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AMD Reports 2013 First Quarter Results


AMD Reports 2013 First Quarter Results

SUNNYVALE, CA -- (Marketwired) -- 04/18/13 -- AMD (NYSE: AMD)

Q1 2013 Results


 
--  AMD revenue $1.09 billion, decreased 6 percent sequentially and 31
    percent year-over-year
--  Gross margin 41 percent
--  Operating loss of $98 million, net loss of $146 million, loss per
    share of $0.19
--  Non-GAAP(1) operating loss of $46 million, net loss of $94 million,
    loss per share of $0.13

AMD (NYSE: AMD) today announced revenue for the first quarter of 2013 of $1.09 billion, an operating loss of $98 million and a net loss of $146 million, or $0.19 per share. The company reported a non-GAAP operating loss of $46 million and a non-GAAP net loss of $94 million, or $0.13 per share.

"Our first quarter results reflect our disciplined operational execution in a difficult market environment," said Rory Read, AMD president and CEO. "We have largely completed our restructuring and are now focused on delivering a powerful set of new products that will accelerate our business in 2013. We will continue to diversify our portfolio and attack high-growth markets like dense server, ultra low-power client, embedded and semi-custom solutions to create the foundation for sustainable financial returns."


 
                                                                            
                           GAAP Financial Results                           
                                                                            
----------------------------------------------------------------------------
                                  Q1-13           Q4-12           Q1-12     
----------------------------------------------------------------------------
Revenue                          $1.09B          $1.16B          $1.59B     
----------------------------------------------------------------------------
Operating loss                   $(98)M          $(422)M         $(580)M    
----------------------------------------------------------------------------
Net loss / Loss per share    $(146)M/$(0.19) $(473)M/$(0.63) $(590)M/$(0.80)
----------------------------------------------------------------------------
                                                                            
                            
                                                
                       Non-GAAP Financial Results(1)                        
                                                                            
----------------------------------------------------------------------------
                                  Q1-13           Q4-12           Q1-12     
----------------------------------------------------------------------------
Revenue                          $1.09B          $1.16B          $1.59B     
----------------------------------------------------------------------------
Operating income (loss)          $(46)M          $(55)M           $138M     
----------------------------------------------------------------------------
Net income (loss) / Earnings                                                
(loss) per share             $(94)M/$(0.13)  $(102)M/$(0.14)   $92M/$0.12   
----------------------------------------------------------------------------

Quarterly Financial Summary


 
--  Gross margin was 41 percent.
    --  Gross margin increased sequentially due to a $20 million benefit
        from sales of inventory that had been previously reserved which
        positively impacted gross margin by 2 percentage points.
--  Cash, cash equivalents and marketable securities balance, including
    long-term marketable securities, was $1.2 billion at the end of the
    quarter.
    --  First quarter cash was bolstered by the closing of a sale and
        leaseback transaction of the "Lone Star Campus" in Austin, Texas
        generating cash proceeds of approximately $164 million, net of
        certain fees.
--  Computing Solutions segment revenue decreased 9 percent sequentially
    and 38 percent year-over-year. The sequential decrease was primarily
    due to lower desktop, notebook and chipset unit shipments. The
    year-over-year decline was driven primarily by lower unit shipments.
    --  Operating loss was $39 million, compared with an operating loss of
        $323 million in Q4 2012 and operating income of $124 million in Q1
        2012. The Q4 2012 operating loss included the impact of a
        GLOBALFOUNDRIES-related "lower of cost or market" (LCM) charge of
        $273 million.
    --  Microprocessor Average Selling Price (ASP) increased sequentially
        and decreased year-over-year.
--  Graphics segment revenue increased 3 percent sequentially and
    decreased 12 percent year-over-year. Graphics processor unit (GPU)
    revenue was flat sequentially and down year-over-year.
    --  Operating income was $16 million, compared with $22 million in Q4
        2012 and $34 million in Q1 2012.
    --  GPU ASP increased sequentially and year-over-year.

Recent Highlights


 
--  Sony announced a semi-custom AMD APU would power its upcoming PS4
    gaming console. The APU combines AMD's "Jaguar" processor cores and
    next-generation AMD Radeon(TM) graphics, integrating a combination
    of x86 processor cores and advanced graphics IP unique to AMD.
--  Highlighting AMD's commitment to optimizing the world's top PC titles
    for AMD Radeon(TM) graphics cards, the company launched the "Never
    Settle: Reloaded" promotion. The current program bundles up to five of
    the year's most anticipated PC games -- "BioShock(R) Infinite" by
    2K Games and Irrational Games, "Crysis(R) 3" by Electronic Arts and
    Crytek, "DmC Devil May Cry(TM)" by Capcom(R), "Tomb Raider(R)"
    by Square Enix and Crystal Dynamics(TM) and most recently, "Far
    Cry(R) 3 Blood Dragon" by Ubisoft(R) -- with the purchase of
    select AMD Radeon(TM) HD 7900 Series, HD 7800 Series as well as HD
    7790 and HD 7770 graphics cards.(2)
--  AMD ushered in the new frontier of gaming realism with the
    introduction of TressFX Hair -- a collaboration with Crystal Dynamics
    to deliver the world's first real-time hair rendering technology that
    can react to forces like gravity, wind and head movement in a playable
    game. The technology uses the DirectCompute programming language to
    unlock the capabilities of the AMD Graphics Core Next architecture and
    is featured heavily in the newly launched PC version of Tomb Raider.
--  AMD expanded its server graphics solutions with the introduction of
    the AMD FirePro(TM) R5000 remote graphics card supporting remote
    3D-graphics workflows and full computing experiences over IP networks.
--  AMD moved into cloud gaming with AMD Radeon(TM) Sky Graphics, based
    on AMD Graphics Core Next architecture. Working with CiiNow,
    G-Cluster, Otoy and Ubitus, AMD developed a flexible cloud gaming
    technology that enables developers and service providers to deliver
    excellent gaming experiences through PCs, tablets, smart TVs and
    mobile devices.
--  AMD announced AMD Turbo Dock Technology(3) which automatically adjusts
    performance of the AMD accelerated processing unit (APU) higher while
    a hybrid PC is docked and being used for more complex tasks like
    content creation.
--  AMD began shipping the next generation of AMD Elite A-Series APUs,
    codenamed "Richland," which combine improved performance and battery
    life(4,5) with
 advanced user experiences like AMD Face Login(6) and
    AMD Gesture Control.(7)
--  AMD extended its commitment to drive the development of accelerated
    applications that tap into the full compute performance of the APU
    through collaboration with Aviary to bring an optimized version of its
    popular photo editing tool to Windows 8 PCs and tablets powered by AMD
    APUs.
--  AMD announced that the SeaMicro SM15000(TM) server is now certified
    for CDH4, Cloudera's Distribution, creating a "Hadoop-in-a-Box"
    solution. Red 5, Livestream and Wayfair also announced they have
    deployed SeaMicro-powered microservers across their businesses.
--  AMD launched the AMD Open 3.0 server platform, a radical rethinking of
    the server motherboard designed to the standards developed by the Open
    Compute Project. The AMD Open 3.0 server enables substantial gains in
    computing flexibility, efficiency and operating cost by simplifying
    motherboard design.
--  Aligned with the company's strategy to reduce investments and capital
    in non-core parts of the business, AMD announced that it sold and
    leased-back its "Lone Star Campus" in Austin, Texas, generating
    approximately $164 million in cash, net of certain fees.

Current Outlook

AMD's outlook statements are based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.

For the second quarter of 2013, AMD expects revenue to increase 2 percent, plus or minus 3 percent, sequentially.

For additional details regarding AMD's results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.

AMD Teleconference

AMD will hold a conference call for the financial community at 2 p.m. PT (5 p.m. ET) today to discuss its first quarter financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its web site at www.amd.com. The webcast will be available for 12 months after the conference call.

Reconciliation of GAAP to Non-GAAP Gross Margin(1)


 
                                                                            
                                           ---------------------------------
(Millions except percentages)                  Q1-13      Q4-12      Q1-12  
----------------------------------------------------------------------------
GAAP gross margin                            $    445   $    178   $     27 
----------------------------------------------------------------------------
GAAP gross margin %                                41%        15%         2%
----------------------------------------------------------------------------
  Lower of cost or market charge related to                                 
   GF take-or-pay obligation                        -       (273)         - 
----------------------------------------------------------------------------
  Limited waiver of exclusivity from GF             -          -       (703)
----------------------------------------------------------------------------
Non-GAAP gross margin                        $    445   $    451   $    730 
----------------------------------------------------------------------------
Non-GAAP gross margin %                            41%        39%        46%
----------------------------------------------------------------------------

Reconciliation of GAAP Operating Loss to Non-GAAP Operating Income (Loss)


 
                                                                            
                                           ---------------------------------
(Millions)                                     Q1-13      Q4-12      Q1-12  
----------------------------------------------------------------------------
GAAP operating loss                          $    (98)  $   (422)  $   (580)
----------------------------------------------------------------------------
  Lower of cost or market charge related to                                 
   GF take-or-pay obligation                        -       (273)         - 
----------------------------------------------------------------------------
  Limited waiver of exclusivity from GF             -          -       (703)
----------------------------------------------------------------------------
  Amortization of acquired intangible                                       
   assets                                          (5)        (4)        (1)
----------------------------------------------------------------------------
  Restructuring and other special charges,                                  
   net                                            (47)       (90)        (8)
----------------------------------------------------------------------------
  SeaMicro acquisition costs                        -          -         (6)
----------------------------------------------------------------------------
Non-GAAP operating income (loss)             $    (46)  $    (55)  $    138 
----------------------------------------------------------------------------

Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss)


 
                                                                            
                            ------------------------------------------------
(Millions except per share                                                  
 amounts)                         Q1-13           Q4-12           Q1-12     
----------------------------------------------------------------------------
GAAP net loss / Loss per                                                    
 share                       $ (146) $(0.19) $ (473) $(0.63) $ (590) $(0.80)
----------------------------------------------------------------------------
  Lower of cost or market                                                   
   charge related to GF                                                     
   take-or-pay obligation         -       -    (273)  (0.37)      -       - 
----------------------------------------------------------------------------
  Limited waiver of                                                         
   exclusivity from GF            -       -       -       -    (703)  (0.94)
----------------------------------------------------------------------------
  Amortization of acquired                                                  
   intangible assets             (5)  (0.01)     (4)  (0.01)     (1)      - 
----------------------------------------------------------------------------
  Restructuring and other                                                   
   special charges, net         (47)  (0.06)    (90)  (0.12)     (8)  (0.01)
----------------------------------------------------------------------------
  SeaMicro acquisition costs      -       -       -       -      (6)  (0.01)
----------------------------------------------------------------------------
  Tax benefit related to                                                    
   SeaMicro acquisition           -       -       -       -      36    0.05 
----------------------------------------------------
------------------------
  Impairment charge on                                                      
   certain marketable                                                       
   securities                     -       -      (4)      -       -       - 
----------------------------------------------------------------------------
Non-GAAP net income (loss) /                                                
 Earnings (loss) per share   $  (94) $(0.13) $ (102) $(0.14) $   92  $ 0.12 
----------------------------------------------------------------------------

About AMD

AMD (NYSE: AMD) is a semiconductor design innovator leading the next era of vivid digital experiences with its groundbreaking AMD Accelerated Processing Units (APUs) that power a wide range of computing devices. AMD's server computing products are focused on driving industry-leading cloud computing and virtualization environments. AMD's superior graphics technologies are found in a variety of solutions ranging from game consoles, PCs to supercomputers. For more information, visit www.amd.com.

Cautionary Statement

This document contains forward-looking statements concerning AMD, its second quarter of 2013 revenue, the pace of the company's business in 2013, the company's opportunities in high-growth markets, and the potential for sustainable financial returns in the future, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "believes, "expects," "may," "will," "should," "seeks," "intends," "pro forma," "estimates," "anticipates," "plans," "projects," and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this release are based on current beliefs, assumptions and expectations, speak only as of the date of this release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include the possibility that Intel Corporation's pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities may negatively impact the company's plans; the company may be unable to develop, launch and ramp new products and technologies in the volumes that are required by the market at mature yields on a timely basis; that the company's third party foundry suppliers will be unable to transition its products to advanced manufacturing process technologies in a timely and effective way or to manufacture the company's products on a timely basis in sufficient quantities and using competitive technologies; the company will be unable to obtain sufficient manufacturing capacity or components to meet demand for its products; the company's requirements for wafers are less than the fixed number of wafers that it agreed to purchase from GLOBALFOUNDRIES (GF) or GF encounters problems that significantly reduce the number of functional die the company receives from each wafer; that the company is unable to successfully implement its long-term business strategy; that customers stop buying the company's products or materially reduce their operations or demand for the company's products; that the company may be unable to maintain the level of investment in research and development that is required to remain competitive; that there may be unexpected variations in the market growth and demand for its products and technologies in light of the product mix that the company may have available at any particular time or a decline in demand; that the company will require additional funding and may be unable to raise sufficient capital on favorable terms, or at all; that global business and economic conditions will not improve or will worsen; that demand for computers will be lower than currently expected; and the effect of political or economic instability, domestically or internationally, on the company's sales or supply chain. Investors are urged to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 29, 2012.

AMD, the AMD Arrow logo, AMD Opteron, AMD Radeon, and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner.

(1) In this press release, in addition to GAAP financial results, the Company has provided non-GAAP financial measures including non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP earnings (loss) per share. These non-GAAP financial measures reflect certain adjustments as presented in the tables in this press release. The Company also provided Adjusted EBITDA and non-GAAP free cash flow as supplemental mea sures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this press release. The Company is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because the Company believes it assists investors in comparing the Company's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. Refer to corresponding tables at the end of this press release for additional AMD data.

(2) Offer may vary by geographic region. See www.amd.com/neversettlereloadedoffer for complete details.

(3) AMD Turbo Dock technology allows a tablet device to boost its performance when connected with a compatible base unit. AMD Turbo Dock-compatible base units provide supplemental APU cooling beyond what is available solely in the slate. Actual performance increases using AMD Turbo Dock technology will vary based on the manufacturer's tablet, base unit and supplemental cooling solution design. AMD Turbo Dock technology is currently available only on the 2013 AMD A6-1450 APU, and is not available on all tablet models -- check with the manufacturer for specific m odels that support this feature.

(4) Testing and projections develop by AMD Performance Labs. The score for the 2012 AMD A10-4600M on 3DMark Vantage P benchmark was 4500 and the 2012 AMD A8-4555M was 2430 while the "Richland" 2013 AMD A10-5750M was 5000and the 2013 AMD A8-5545M was 3930. PC configs based on the "Pumori" reference design with the 2012 AMD A10-4600M with Radeon(TM) HD 7660G graphics, the 2012 AMD A8-4555M with AMD Radeon(TM) HD 7600G graphics, and the 2013 AMD A10-5750M with AMD Radeon(TM) HD 8650G graphics and the 2013 AMD A8-5545M with AMD Radeon(TM) 8510G Graphics. All configs used 4G DDR3-1600 (Dual Channel) Memory and Windows 7 Home Premium 64-bit. RIN-2

(5) Testing and projections develop by AMD Performance Labs. The score for the 2012 AMD A10-4600M on the Cinebench Multi CPU benchmark was 2.0 and the 2012 AMD A8-4555M was 1.30, while the "Richland" 2013 AMD A10-5750M was 2.35 and the 2013 AMD A8-5545M was 1.55. PC configs based on the "Pumori" reference design with the 2012 AMD A10-4600M with Radeon(TM) HD 7660G graphics, the 2012 AMD A8-4555M with AMD Radeon(TM) HD 7600G graphics, the 2013 AMD A10-5750M with AMD Radeon(TM) HD 8650G graphics and the 2013 AMD A8-5545M with AMD Radeon(TM) 8510G Graphics. All configs used 4G DDR3-1600 (Dual Channel) Memory and Windows 7 Home Premium 64-bit. RIN-3

(6) AMD Face Login is designed as a convenient tool to help you log into Windows and many popular web sites quickly. It should not be used to protect your computer and personal information from unwanted access. Only available on upcoming AMD A10 and A8 APUs codenamed "Richland" and upcoming AMD A6 and A4 APUs codenamed "Temash." Requires a webcam, and will only operate on PCs running Windows 7 or Windows 8 operating system and Internet Explorer version 9 or 10. Internet connection is required for website login and use of other online features.

(7) AMD Gesture Control is designed to enable gesture recognition as a tool for controlling certain applications on your PC. Only available on upcoming AMD A10 and A8 APUs codenamed "Richland" and upcoming AMD A6 and A4 APUs codenamed "Temash." Requires a web camera, and will only operate on PCs running Windows 7 or Windows 8 operating system. Supported Windows desktop apps include: Windows Media Player, Windows Photo Viewer, Microsoft PowerPoint and Adobe Acrobat Reader. Supported Windows Store apps include: Microsoft Photos, Microsoft Music, Microsoft Reader and Kindle. Performance may be degraded in low lighting or intensely-focused lighting environments.


 
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                             
(Millions except per share amounts and percentages)                         
                                                                            
                                                    Quarter Ended           
                                          --------------------------------- 
                                           Mar. 30,    Dec. 29,    Mar. 31, 
                                             2013        2012        2012   
                                          ---------   ---------   --------- 
                                                                            
Net revenue                               $   1,088   $   1,155   $   1,585 
                                                                            
Cost of sales                                   643         977       1,558 
                                          ---------   ---------   --------- 
                                                                            
Gross margin                                    445         178          27 
                                                                            
Gross margin %                                   41%         15%          2%
                                                                            
Research and development                        312         313         368 
                                                                            
Marketing, general and administrative           179         193         230 
                                                                            
Amortization of acquired intangible                                         
 assets                                           5           4           1 
                                                                            
Restructuring and other special charges,                                    
 net                                             47          90           8 
                                          ---------   ---------   --------- 
                                                                            
Operating loss                                  (98)       (422)       (580)
                                                                            
Interest income                                   1           2           2 
Interest expense                                (44)        (45)        (43)
Other income (expense), net                      (3)         (4)         (1)
                                          ---------   ---------   --------- 
                                                                            
Loss before income taxes                       (144)       (469)       (622)
                                                                            
Provision (benefit) for income taxes              2           4         (32)
                                          ---------   ---------   --------- 
                                                                            
Net loss                                  $    (146)  $    (473)  $    (590)
                                                                            
                                                                            
Net loss per share                                                          
                                                                            
  Basic and diluted                       $   (0.19)  $   (0.63)  $   (0.80)
                                          ---------   ---------   --------- 
                                                                            
Shares used in per share calculation                                        
                                                                            
  Basic and diluted                             749         747         734 
                                          ---------   ---------   --------- 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)            
(Millions)                                                                  
                                                                            
                                                    Quarter Ended           
                                          --------------------------------- 
                                           Mar. 30,    Dec. 29,    Mar. 31, 
                                             2013        2012        2012   
         
                                 ---------   ---------   --------- 
                                                                            
Total comprehensive loss                  $    (147)  $    (475)  $    (593)
                                          ---------   ---------   --------- 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED BALANCE SHEETS                                       
(Millions)                                                                  
                                                                            
                                                  -----------   ----------- 
                                                    Mar. 30,      Dec. 29,  
                                                      2013          2012    
                                                  -----------   ----------- 
                                                                            
Assets                                                                      
                                                                            
Current assets:                                                             
  Cash, cash equivalents and marketable                                     
   securities                                     $     1,003   $     1,002 
  Accounts receivable, net                                645           630 
  Inventories, net                                        613           562 
  Prepaid expenses and other current assets                77            71 
                                                  -----------   ----------- 
                                                                            
      Total current assets                              2,338         2,265 
                                                                            
Long-term marketable securities                           180           181 
Property, plant and equipment, net                        411           658 
Acquisition related intangible assets, net                 92            96 
Goodwill                                                  553           553 
Other assets                                              223           247 
                                                  -----------   ----------- 
                                                                            
Total Assets                                      $     3,797   $     4,000 
                                                  ===========   =========== 
                                                                            
Liabilities and Stockholders' Equity                                        
                                                                            
Current liabilities:                                                        
  Accounts payable                                $       301   $       278 
  Payable to GLOBALFOUNDRIES                              379           454 
  Accrued liabilities                                     461           489 
  Deferred income on shipments to distributors            132           108 
  Current portion of long-term debt and capital                             
   lease obligations                                        5             5 
  Other current liabilities                                43            63 
                                                  -----------   ----------- 
                                                                            
      Total current liabilities                         1,321         1,397 
                                                                            
Long-term debt and capital lease obligations,                               
 less current portion                                   2,039         2,037 
Other long-term liabilities                                22            28 
                                                                            
Stockholders' equity:                                                       
  Capital stock:                                                            
    Common stock, par value                                 7             7 
    Additional paid-in capital                          6,827         6,803 
    Treasury stock, at cost                              (109)         (109)
  Accumulated deficit                                  (6,306)       (6,160)
  Accumulated other comprehensive loss                     (4)           (3)
                                                  -----------   ----------- 
                                                                            
      Total stockholders' equity                          415           538 
                                                  -----------   ----------- 
                                                                            
Total Liabilities and Stockholders' Equity        $     3,797   $     4,000 
                                                  ===========   =========== 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS                              
(Millions)                                                                  
                                                             Quarter Ended  
                                                           ---------------- 
                                                               Mar. 30,     
                                                                 2013       
                                                           ---------------- 
                                                                            
Cash flows from operating activities:                                       
  Net loss                                                 $           (146)
  Adjustments to reconcile net loss to net cash used in                     
   operating activities:                                                    
    Depreciation and amortization                                        66 
    Net loss on disposal of property, plant and equipment                48 
    Benefit for deferred income taxes                                     1 
    Employee stock-based compensation expense                            24 
    Non-cash interest expense                                             6 
    Other                                                                (1)
  Changes in operating assets and liabilities:                              
    Accounts receivable                                                 (14)
    Inventories                                                         (52)
    Prepaid expenses and other current assets                            (7)
    Other assets                                                          6 
    Payable to GLOBALFOUNDRIES                                          (74)
    Accounts payable, accrued liabilities and other                     (12)
                                                           ---------------- 
Net cash used in operating activities                      $           (155)
                                                           ---------------- 
                                                                            
Cash flows from investing activities:                                       
  Purchases of property, plant and equipment                            (20)
  Proceeds from sale of property, plant and equipment                   178 
  Purchases of available-for-sale securities                           (361)
  Proceeds from sale and maturity of available-for-sale                     
   securities                                                           250 
                                                           ---------------- 
Net cash provided by investing activities                  $             47 
                                                           ---------------- 
                                                                            
Cash flows from financing activities:                                       
  Proceeds from issuance of common stock                                  1 
  Repayments of debt and capital lease obligations                       (1)
                                                           ---------------- 
Net cash provided by (used in) financing activities        $              - 
                     
                                      ---------------- 
Net decrease in cash and cash equivalents                              (108)
                                                           ---------------- 
Cash and cash equivalents at beginning of period           $            549 
                                                           ---------------- 
Cash and cash equivalents at end of period                 $            441 
                                                           ---------------- 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
SELECTED CORPORATE DATA                                                     
(Millions except headcount)                                                 
                                                                            
                                                                            
                                                    Quarter Ended           
----------------------------------------------------------------------------
                                           Mar. 30,    Dec. 29,    Mar. 31, 
Segment and Category Information             2013        2012        2012   
                                                                            
----------------------------------------------------------------------------
                                                                            
  Computing Solutions (1)                                                   
    Net revenue                          $      751  $      829  $    1,203 
    Operating income (loss)              $      (39) $     (323) $      124 
                                                                            
  Graphics (2)                                                              
    Net revenue                                 337         326         382 
    Operating income                             16          22          34 
                                                                            
  All Other (3)                                                             
    Operating loss                              (75)       (121)       (738)
                                                                            
  Total                                                                     
    Net revenue                          $    1,088  $    1,155  $    1,585 
    Operating loss                       $      (98) $     (422) $     (580)
                                                                            
----------------------------------------------------------------------------
                                                                            
Other Data                                                                  
                                                                            
  Depreciation and amortization,                                            
   excluding amortization of acquired                                       
   intangible assets                     $       62  $       62  $       62 
  Capital additions                      $       20  $       22  $       40 
  Adjusted EBITDA (4)                    $       40  $       30  $      221 
  Cash, cash equivalents and marketable                                     
   securities, including long-term                                          
   marketable securities                 $    1,183  $    1,183  $    1,713 
  Non-GAAP free cash flow (5)            $     (175) $     (308) $       67 
  Total assets                           $    3,797  $    4,000  $    4,988 
  Long-term debt and capital lease                                          
   obligations, including current                                           
   portion                               $    2,044  $    2,042  $    2,019 
  Headcount                                   9,844      10,340      11,265 
                                                                            
----------------------------------------------------------------------------
                                                                            
(1) Computing Solutions segment includes microprocessors, as standalone     
    devices or as incorporated as an Accelerated Processing Unit, chipsets, 
    and embedded processors.                                                
                                                                            
(2) Graphics segment includes graphics, video and multimedia products       
    developed for use in desktop and notebook computers, including home     
    media PCs, professional workstations and servers as well as revenue     
    received in connection with the development and sale of game console    
    systems that incorporate the Company's graphics technology.             
                                                                            
(3) All Other category includes certain expenses and credits that are not   
    allocated to any of the operating segments. Also included in this       
    category are amortization of acquired intangible assets, employee stock-
    based compensation expense, net restructuring and other special charges 
    and a charge related to the limited waiver of exclusivity from          
    GLOBALFOUNDRIES ("GF").                                                 
                                                                            
(4) Reconciliation of GAAP operating loss to Adjusted EBITDA*               
                                                                            
                                                     Quarter Ended          
                                            ------------------------------- 
                                             Mar. 30,   Dec. 29,   Mar. 31, 
                                               2013       2012       2012   
                                            ---------  ---------  --------- 
    GAAP operating loss                     $     (98) $    (422) $    (580)
      Lower of cost or market charge                                        
       related to GF take-or-pay obligation         -        273          - 
      Limited waiver of exclusivity from GF         -          -        703 
      Depreciation and amortization                62         62         62 
      Employee stock-based compensation                                     
       expense                                     24         23         21 
      Amortization of acquired intangible                                   
       assets                                       5          4          1 
      Restructuring and other special                                       
       charges, net                                47         90          8 
      SeaMicro acquisition costs                    -          -          6 
                                            ---------  ---------  --------- 
    Adjusted EBITDA                         $      40  $      30  $     221 
                                            =========  =========  ========= 
                                                                            
                                                                            
(5) Non-GAAP free cash flow                                                 
     reconciliation**                                                       
                                                     Quarter Ended          
                                            ------------------------------- 
                                             Mar. 30,   Dec. 29,   Mar. 31, 
                                               2013       2012       2012   
                       
                     ---------  ---------  --------- 
    GAAP net cash provided by (used in)                                     
     operating activities                   $    (155) $    (286) $     107 
      Purchases of property, plant and                                      
       equipment                                  (20)       (22)       (40)
                                            ---------  ---------  --------- 
    Non-GAAP free cash flow                 $    (175) $    (308) $      67 
                                            =========  =========  ========= 
                                                                            
    * The Company presents Adjusted EBITDA as a supplemental measure of its 
    performance. Adjusted EBITDA for the Company is determined by adjusting 
    operating income (loss) for depreciation and amortization, employee     
    stock-based compensation expense and amortization of acquired intangible
    assets. In addition, the Company also included the following adjustments
    for the applicable period: for all periods presented, the Company       
    included an adjustment for net restructuring and other special charges; 
    for the fourth quarter of 2012, the Company also included an adjustment 
    for the lower of cost or market charge (LCM Charge) related to GF take- 
    or-pay obligation; and for the first quarter of 2012, the Company also  
    included adjustments for the limited waiver of exclusivity from GF and  
    SeaMicro acquisition costs. The Company calculates and communicates     
    Adjusted EBITDA in the financial schedules because the Company's        
    management believes it is of importance to investors and lenders in     
    relation to its overall capital structure and its ability to borrow     
    additional funds. In addition, the Company presents Adjusted EBITDA     
    because it believes this measure assists investors in comparing its     
    performance across reporting periods on a consistent basis by excluding 
    items that the Company does not believe are indicative of its core      
    operating performance. The Company's calculation of Adjusted EBITDA may 
    or may not be consistent with the calculation of this measure by other  
    companies in the same industry. Investors should not view Adjusted      
    EBITDA as an alternative to the GAAP operating measure of operating     
    income (loss) or GAAP liquidity measures of cash flows from operating,  
    investing and financing activities. In addition, Adjusted EBITDA does   
    not take into account changes in certain assets and liabilities as well 
    as interest and income taxes that can affect cash flows.                
                                                                            
    ** The Company also presents non-GAAP free cash flow in the earnings    
    release as a supplemental measure of its performance. Non-GAAP free cash
    flow is determined by adjusting GAAP net cash provided by (used in)     
    operating activities for capital expenditures. The Company calculates   
    and communicates non-GAAP free cash flow in the financial schedules     
    because the Company's management believes it is of importance to        
    investors to understand the nature of these cash flows. The Company's   
    calculation of non-GAAP free cash flow may or may not be consistent with
    the calculation of this measure by other companies in the same industry.
    Investors should not view non-GAAP free cash flow as an alternative to  
    GAAP liquidity measures of cash flows from operating activities. The    
    Company has provided reconciliations within the press release and       
    financial schedules of these non-GAAP financial measures to the most    
    directly comparable GAAP financial measures.                            

Media Contact Drew Prairie 512-602-4425 drew.prairie@amd.com

Investor Contact Ruth Cotter 408-749-3887 ruth.cotter@amd.com

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