AMD Reports 2013 Second Quarter Results

AMD Reports 2013 Second Quarter Results 
SUNNYVALE, CA -- (Marketwired) -- 07/18/13 --  AMD (NYSE: AMD) 
Q2 2013 Results 


 
--  AMD revenue $1.16 billion, increased 7 percent sequentially and
    decreased 18 percent year-over-year
--  Gross margin 40 percent
--  Operating loss of $29 million, net loss of $74 million, loss per share
    of $0.10
--  Non-GAAP(1) operating loss of $20 million, net loss of $65 million,
    loss per share of $0.09

  
AMD (NYSE: AMD) today announced revenue for the second quarter of 2013
of $1.16 billion, an operating loss of $29 million and a net loss of
$74 million, or $0.10 per share. The company reported a non-GAAP
operating loss of $20 million and a non-GAAP net loss of $65 million,
or $0.09 per share. 
"Our focus on restructuring and transforming AMD resulted in improved
financial results," said Rory Read, AMD president and CEO. "Our
performance in the second quarter was driven by opportunities in our
new high-growth and traditional PC businesses. Looking ahead, we will
continue to deliver a strong value proposition to our established
customers and also reach new customers as we diversify our business.
We expect significant revenue growth and a return to profitability in
the third quarter." 


 
                                                                            
                           GAAP Financial Results                           
                                                                            
----------------------------------------------------------------------------
                                  Q2-13           Q1-13           Q2-12     
----------------------------------------------------------------------------
Revenue                           $1.16B          $1.09B          $1.41B    
----------------------------------------------------------------------------
Operating income (loss)           $(29)M          $(98)M           $77M     
----------------------------------------------------------------------------
Net income (loss) / Earnings                                                
 (loss) per share             $(74)M/$(0.10) $(146)M/$(0.19)    $37M/$0.05  
----------------------------------------------------------------------------
                                                                            
                                                                            
                        Non-GAAP Financial Results(1)                       
                                                                            
----------------------------------------------------------------------------
                                  Q2-13           Q1-13           Q2-12     
----------------------------------------------------------------------------
Revenue                           $1.16B          $1.09B          $1.41B    
----------------------------------------------------------------------------
Operating income (loss)           $(20)M          $(46)M           $86M     
----------------------------------------------------------------------------
Net income (loss) / Earnings                                                
 (loss) per share             $(65)M/$(0.09)  $(94)M/$(0.13)    $46M/$0.06  
----------------------------------------------------------------------------

 
Q2 2013 Reportable Segment Name Change 
AMD's Graphics reportable segment has been renamed Graphics and
Visual Solutions. The new reportable segment nomenclature provides
greater clarity on the product lines that comprise the segment and
reflects the growing importance of gaming and semi-custom offerings
to AMD. There is no change to the composition of this reportable
segment from what was previously reported. 
AMD's two reportable segments continue to be comprised of the
following: 


 
--  The Computing Solutions segment, which includes microprocessors
    (MPUs), accelerated processing units (APUs), chipsets, embedded
    processors and servers; and
--  The Graphics and Visual Solutions segment, comprised of graphic
    processing units (GPUs), including professional graphics, as well as
    revenue from semi-custom products and development and game console
    royalties.

  
Quarterly Financial Summary 


 
--  Gross margin was 40 percent in Q2 2013.
    --  Gross margin decreased sequentially. Q2 2013 gross margin included
        an $11 million benefit from sales of inventory that had been
        previously reserved in Q3 2012 and this positively impacted gross
        margin by 1 percentage point as compared to a similar $20 million
        benefit in Q1 2013 which positively impacted gross margin by 2
        percentage points.
--  Cash, cash equivalents and marketable securities balance, including
    long-term marketable securities, was $1.1 billion at the end of the
    quarter.
--  Computing Solutions segment revenue increased 12 percent sequentially
    and decreased 20 percent year-over-year. The sequential increase was
    due to significantly higher notebook unit shipments and higher server
    and desktop unit shipments. The year-over-year decline was driven by
    lower unit shipments and microprocessor Average Selling Price (ASP).
    --  Operating income was $2 million, compared with an operating loss
        of $39 million in Q1 2013 and operating income of $82 million in
        Q2 2012. Q2 2013 operating income included an $11 million benefit
        from sales of inventory that had been previously reserved and Q1
        2013 operating income included a similar $20 million benefit.
    --  Microprocessor ASP decreased sequentially and year-over-year.
--  Graphics and Visual Solutions segment revenue decreased 5 percent
    sequentially and decreased 13 percent year-over-year. GPU revenue was
    flat sequentially and declined year-over-year.
    --  Operating income was breakeven compared with $16 million in Q1
        2013 and $31 million in Q2 2012.
    --  GPU ASP decreased sequentially and increased year-over-year.

  
Recent Highlights 


 
--  AMD introduced several new client processors in the quarter:
    --  The new AMD Elite Performance, AMD Mainstream and AMD Elite
        Mobility A-Series APUs offer dramatically increased performance
        and power efficiency compared to prior AMD APUs. Acer, Asus, Dell,
        HP, Lenovo and Samsung have begun to roll out products based on
        these latest A-Series APUs.
    --  The AMD Elite Mobility A-Series APU for tablets, hybrids and small
        form factor notebooks won the 2013 "Best Choice of Computex
        Taipei" award.
    --  AMD launched its 2013 Elite A-Series APU for the desktop channel,
        delivering leading performance, discrete-level graphics and an
        easy upgrade infrastructure.
    --  AMD unveiled the AMD FX-9590 desktop processor, the world's first
        commercially available 5 GHz x86 processor capable of delivering
        new levels of gaming and multimedia performance.
--  Microsoft announced the Xbox One, its next-generation gaming console
    featuring a semi-custom, System-on-Chip (SoC) AMD APU. AMD technology
    is inside all three of the next generation gaming consoles: Nintendo
    Wii U, Sony PS4(TM), and Xbox One.
--  AMD launched the AMD Opteron(TM) X-Series processors, the industry's
    most efficient x86 server processors.
--  AMD provided additional details on its 2014 products for the
    fast-growing data center and cloud computing markets; including
    introducing best-in-class APUs, two- and four-socket x86 CPUs, and its
    first 64-bit ARM server processor.
--  AMD announced the new AMD Embedded G-Series SoC. The single-chip APU
    solution delivers more than double the CPU performance while running
    multiple industry-standard compute-intensive benchmarks compared to
    the Intel Atom (2).
--  For enthusiasts who want to take their PC gaming to the next level,
    AMD introduced the fastest desktop and notebook graphics solutions in
    the world.
--  Apple announced its newest Mac Pro will feature dual AMD FirePro(TM)
    graphics cards. The unique solution offers improved visual and general
    computing performance of the high-end system, providing the power
    needed by the most demanding digital content creators.

  
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 third quarter of 2013, AMD expects revenue to increase 22
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 second 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                             
                                              ------------------------------
(Millions except percentages)                    Q2-13     Q1-13     Q2-12  
----------------------------------------------------------------------------
GAAP gross margin                              $    459  $    445  $    638 
----------------------------------------------------------------------------
GAAP gross margin %                                  40%       41%       45%
----------------------------------------------------------------------------
  Legal settlement                                    -         -        (5)
----------------------------------------------------------------------------
Non-GAAP gross margin                          $    459  $    445  $    643 
----------------------------------------------------------------------------
Non-GAAP gross margin %                              40%       41%       46%
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Reconciliation of GAAP to Non-GAAP Operating Income (Loss)                  
                                              ------------------------------
(Millions)                                       Q2-13     Q1-13     Q2-12  
----------------------------------------------------------------------------
GAAP operating income (loss)                   $    (29) $    (98) $     77 
----------------------------------------------------------------------------
  Amortization of acquired intangible assets         (4)       (5)       (4)
----------------------------------------------------------------------------
  Restructuring and other special charges, net       (5)      (47)        - 
----------------------------------------------------------------------------
  Legal settlement                                    -         -        (5)
----------------------------------------------------------------------------
Non-GAAP operating income (loss)               $    (20) $    (46) $     86 
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Reconciliation of GAAP to Non-GAAP Net Income (Loss)                        
                      ------------------------------------------------------
(Millions except per                                                        
 share amounts)              Q2-13             Q1-13             Q2-12      
----------------------------------------------------------------------------
GAAP net income (loss)                                                      
 / Earnings (loss) per                                                      
 share                 $   (74) $ (0.10) $  (146) $ (0.19) $    37  $  0.05 
----------------------------------------------------------------------------
  Amortization of                                                           
   acquired intangible                                                      
   assets                   (4)   (0.01)      (5)   (0.01)      (4)   (0.01)
----------------------------------------------------------------------------
  Restructuring and                                                         
   other special                                                            
   charges, net             (5)   (0.01)     (47)   (0.06)       -        - 
----------------------------------------------------------------------------
  Legal settlement           -        -        -        -       (5)   (0.01)
----------------------------------------------------------------------------
Non-GAAP net income                                                         
 (loss) / Earnings                                                          
 (loss) per share      $   (65) $ (0.09) $   (94) $ (0.13) $    46  $  0.06 
----------------------------------------------------------------------------

 
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
third quarter of 2013 revenue, AMD's ability to expand into new
markets and reach new customers; AMD's ability to achieve revenue
growth in the third quarter of 2013 compared to the second quarter of
2013 and that such growth will be significant; and AMD's ability to
achieve profitability in the third quarter of 2013, 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 Corp.'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
Quarterly Report on Form 10-Q for the quarter ended March 30, 2013. 
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 measures 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)   AMD GX-415GA scored 209, AMD G-T56N scored 98, and Intel Atom D525    
      scored 93, based on an average of Sandra Engineering 2011 Dhyrstone,  
      Sandra Engineering 2011 Whetstone and EEMBC CoreMark Multi-thread     
      benchmark results. AMD G-T56N system configuration used iBase MI958   
      motherboard with 4BG DDR3 and integrated graphics. AMD GX-415GA system
      configuration used AMD "Larne" Reference Design Board with 4GB [1]    
      Based on AMD's small core Opteron(TM) processor Model X1150 vs. Intel(R)  
 
      Atom(TM) Model S1260, Intel's highest performance small core processor.  
      Highest density based on cores/rack. Since Opteron X-Series has double
      the number of cores of Intel Atom S1200 series, it has the double the 
      density among small core x86 processors. Most power efficient small   
      core x86 processor as measured by SPECint(R)_rate_base2006 estimates    
      divided by TDP.                                                       
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                             
(Millions except per share amounts and percentages)                         
                                                                            
                                    Quarter Ended         Six Months Ended  
                            ---------------------------- ------------------ 
                            Jun. 29,  Mar. 30,  Jun. 30, Jun. 29,  Jun. 30, 
                              2013      2013      2012     2013      2012   
                            --------  --------  -------- --------  -------- 
                                                                            
Net revenue                 $  1,161  $  1,088  $  1,413 $  2,249  $  2,998 
                                                                            
Cost of sales                    702       643       775    1,345     2,333 
                             -------  --------  -------- --------  -------- 
                                                                            
                                                                            
Gross margin                     459       445       638      904       665 
                                                                            
Gross margin %                    40%       41%       45%      40%       22%
                                                                            
Research and development         308       312       345      620       713 
                                                                            
Marketing, general and                                                      
 administrative                  171       179       212      350       442 
                                                                            
Amortization of acquired                                                    
 intangible assets                 4         5         4        9         5 
                                                                            
Restructuring and other                                                     
 special charges, net              5        47         -       52         8 
                            --------  --------  --------  -------  -------- 
                                                                            
                                                                            
Operating income (loss)          (29)      (98)       77     (127)     (503)
                                                                            
Interest income                    2         1         2        3         4 
Interest expense                 (42)      (44)      (43)     (86)      (86)
Other income (expense), net       (2)       (3)       (5)      (5)       (6)
                            --------  --------  -------- --------  -------- 
                                                                            
                                                                            
Income (loss) before income                                                 
 taxes                           (71)     (144)       31     (215)     (591)
                                                                            
Provision (benefit) for                                                     
 income taxes                      3         2        (6)       5       (38)
                            --------  --------  -------- --------  -------- 
                                                                            
                                                                            
Net income (loss)           $    (74) $   (146) $     37 $   (220) $   (553)
                                                                            
                                                                            
Net income (loss) per share                                                 
                                                                            
  Basic                     $  (0.10) $  (0.19) $   0.05 $  (0.29) $  (0.75)
                                                                            
  Diluted                   $  (0.10) $  (0.19) $   0.05 $  (0.29) $  (0.75)
                            --------  --------  -------- --------  -------- 
                                                                            
                                                                            
Shares used in per share                                                    
 calculation                                                                
                                                                            
  Basic                          752       749       739      751       737 
                                                                            
  Diluted                        752       749       755      751       737 
                            --------  --------  -------- --------  -------- 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)            
(Millions)                                                                  
                                                                            
                                    Quarter Ended         Six Months Ended  
                            ---------------------------- ------------------ 
                            Jun. 29,  Mar. 30,  Jun. 30, Jun. 29,  Jun. 30, 
                              2013      2013      2012     2013      2012   
                            --------  --------  -------- --------  -------- 
                                                                            
Total comprehensive income                                                  
 (loss)                     $    (76) $   (147) $     36 $   (223) $   (552)
                            --------  --------  -------- --------  -------- 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED BALANCE SHEETS                                       
(Millions)                                                                  
                                                                            
                                      -----------  -----------  ----------- 
                                        Jun. 29,     Mar. 30,     Dec. 29,  
                                          2013         2013         2012    
                                      -----------  -----------  ----------- 
                                                                            
Assets                                                                      
                                                                            
Current assets:                                                             
  Cash, cash equivalents and                                                
   marketable securities              $       968  $     1,003  $     1,002 
  Accounts receivable, net                    670          645          630 
  Inventories, net                            711          613          562 
  Prepaid expenses and other current                                        
   assets                                     109           77           71 
                                      -----------  -----------  ----------- 
                                                                            
                                                                            
      Total current assets                  2,458        2,338        2,265 
                                                                            
Long-term marketable securities               149          180          181 
Property, plant and equipment, net            402          411          658 
Acquisition related intangible                                              
 assets, net                                   87           92           96 
Goodwill                                      553          553          553 
Other assets                                  248          223          247 
                                      -----------  -----------  ----------- 
                                                                            
Total Assets                          $     3,897  $     3,797  $     4,000 
                                      ===========  ===========  =========== 
                                                                            
Liabilities and Stockholders' Equity                                        
                                                                            
Current liabilities:                                                        
  Accounts payable                    $       402  $       301  $       278 
  Payable to GLOBALFOUNDRIES                  414          379          454 
  Accrued liabilities                         475          461          489 
  Deferred income on shipments to                                           
   distributors                               129          132          108 
  Current portion of long-term debt                                         
   and capital lease obligations                5            5            5 
  Other current liabilities                    26           43           63 
                                      -----------  -----------  ----------- 
                                                                            
      Total current liabilities             1,451        1,321        1,397 
                                                                            
Long-term debt and capital lease                                            
 obligations, less current portion          2,042        2,039        2,037 
Other long-term liabilities                    45           22           28 
                                                                            
Stockholders' equity:                                                       
  Capital stock:                                                            
    Common stock, par value                     7            7            7 
    Additional paid-in capital              6,848        6,827        6,803 
    Treasury stock, at cost                  (110)        (109)        (109)
  Accumulated deficit                      (6,380)      (6,306)      (6,160)
  Accumulated other comprehensive                                           
   loss                                        (6)          (4)          (3)
                                      -----------  -----------  ----------- 
                                                                            
      Total stockholders' equity              359          415          538 
                                      -----------  -----------  ----------- 
                                                                            
Total Liabilities and Stockholders'                                         
 Equity                               $     3,897  $     3,797  $     4,000 
                                      ===========  ===========  =========== 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS                              
(Millions)                                                                  
                                                    Quarter     Six Months  
                                                     Ended         Ended    
                                                 ------------  ------------ 
                                                   Jun. 29,      Jun. 29,   
                                                     2013          2013     
                                                 ------------  ------------ 
                                                                            
Cash flows from operating activities:                                       
  Net loss                                       $        (74) $       (220)
  Adjustments to reconcile net loss to net cash                             
   used in operating activities:                                            
    Depreciation and amortization                          59           125 
    Net loss on disposal of property, plant and                             
     equipment                                             (1)           47 
    Benefit for deferred income taxes                       -             1 
    Employee stock-based compensation expense              20            44 
    Non-cash interest expense                               6            12 
    Other                                                   2             1 
  Changes in operating assets and liabilities:                              
    Accounts receivable                                   (25)          (39)
    Inventories                                           (97)         (149)
    Prepaid expenses and other current assets             (35)          (42)
    Other assets                                          (39)          (33)
    Payable to GLOBALFOUNDRIES                             34           (40)
    Accounts payable, accrued liabilities and                               
     other                                                115           103 
                                                 ------------  ------------ 
Net cash used in operating activities            $        (35) $       (190)
                                                 ------------  ------------ 
                                                                            
Cash flows from investing activities:                                       
  Purchases of property, plant and equipment              (28)          (48)
  Proceeds from sale of property, plant and                                 
   equipment                                                3           181 
  Purchases of available-for-sale securities             (392)         (753)
  Proceeds from sale and maturity of available-                             
   for-sale securities                                    343           593 
                                                 ------------  ------------ 
Net cash used in investing activities            $        (74) $        (27)
                                                 ------------  ------------ 
                                                                            
Cash flows from financing activities:                                       
  Net proceeds from foreign grants and                                      
   allowances                                               2             2 
  Proceeds from issuance of common stock                    1             2 
  Repayments of debt and capital lease                                      
   obligations                                             (1)           (2)
                                                 ------------  ------------ 
Net cash provided by financing activities        $          2  $          2 
                                                 ------------  ------------ 
Net decrease in cash and cash equivalents                (107)         (215)
                                                 ------------  ------------ 
Cash and cash equivalents at beginning of                                   
 period                                          $        441  $        549 
                                                 ------------  ------------ 
Cash and cash equivalents at end of period       $        334  $        334 
                                                 ------------  ------------ 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
SELECTED CORPORATE DATA                                                     
(Millions except headcount)                                                 
                                                                            
                                                                            
                                   Quarter Ended          Six Months Ended  
-------------------------------------------------------- -------------------
                                                                            
Segment and Category       Jun. 29,  Mar. 30,  Jun. 30,  Jun. 29,  Jun. 30, 
 Information                 2013      2013      2012      2013      2012   
-------------------------------------------------------- -------------------
                                                                            
  Computing Solutions (1)                                                   
    Net revenue            $    841  $    751  $  1,046  $  1,592  $  2,249 
    Operating income                                                        
     (loss)                $      2  $    (39) $     82  $    (37) $    206 
                                                                            
  Graphics and Visual                                                       
   Solutions (2)                                                            
    Net revenue                 320       337       367       657       749 
    Operating income              -        16        31        16        65 
                                                                            
  All Other (3)                                                             
    Operating loss              (31)      (75)      (36)     (106)     (774)
                                                                            
  Total                                                                     
    Net revenue            $  1,161  $  1,088  $  1,413  $  2,249  $  2,998 
    Operating income                                                        
     (loss)                $    (29) $    (98) $     77  $   (127) $   (503)
                                                                            
-------------------------------------------------------- -------------------
                                                                            
Other Data                                                                  
                                                                            
  Depreciation and                                                          
   amortization, excluding                                                  
   amortization of                                                          
   acquired intangible                                                      
   assets                  $     54  $     62  $     61  $    116  $    123 
  Capital additions        $     28  $     20  $     39  $     48  $     79 
  Adjusted EBITDA (4)      $     54  $     40  $    173  $     94  $    394 
  Cash, cash equivalents                                                    
   and marketable                                                           
   securities, including                                                    
   long-term marketable                                                     
   securities              $  1,117  $  1,183  $  1,759  $  1,117  $  1,759 
  Non-GAAP free cash flow                                                   
   (5)                     $    (63) $   (175) $     42  $   (238) $    109 
  Total assets             $  3,897  $  3,797  $  5,041  $  3,897  $  5,041 
  Long-term debt and                                                        
   capital lease                                                            
   obligations, including                                                   
   current portion         $  2,047  $  2,044  $  2,021  $  2,047  $  2,021 
  Headcount                   9,928     9,844    11,737     9,928    11,737 
                                                                            
-------------------------------------------------------- -------------------
                                                                            
                                                                            
                                                                            
(1) Computing Solutions segment includes x86 microprocessors, as standalone 
    devices or as incorporated as an accelerated processing unit (APU),     
    chipsets, embedded processors and dense servers.                        
                                                                            
(2) Graphics and Visual Solutions 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 semi-custom products and         
    development and game console royalties.                                 
                                                                            
(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 income (loss) to Adjusted EBITDA*      
                                                                            
                                   Quarter Ended          Six Months Ended  
                           ----------------------------  ------------------ 
                           Jun. 29,  Mar. 30,  Jun. 30,  Jun. 29,  Jun. 30, 
                             2013      2013      2012      2013      2012   
                           --------  --------  --------  --------  -------- 
    GAAP operating income                                                   
     (loss)                $    (29) $    (98) $     77  $   (127) $   (503)
      Limited waiver of                                                     
       exclusivity from GF        -         -         -         -       703 
      Legal settlement            -         -         5         -         5 
      Depreciation and                                                      
       amortization              54        62        61       116       123 
      Employee stock-based                                                  
       compensation                                                         
       expense                   20        24        26        44        47 
      Amortization of                                                       
       acquired intangible                                                  
       assets                     4         5         4         9         5 
      Restructuring and                                                     
       other special                                                        
       charges, net               5        47         -        52         8 
      SeaMicro acquisition                                                  
       costs                      -         -         -         -         6 
                           --------  --------  --------  --------  -------- 
    Adjusted EBITDA        $     54  $     40  $    173  $     94  $    394 
                           ========  ========  ========  ========  ======== 
                                                                            
                                                                            
(5) Non-GAAP free cash flow reconciliation**                                
                                                                            
                                   Quarter Ended          Six Months Ended  
                           ----------------------------  ------------------ 
                           Jun. 29,  Mar. 30,  Jun. 30,  Jun. 29,  Jun. 30, 
                             2013      2013      2012      2013      2012   
                           --------  --------  --------  --------  -------- 
    GAAP net cash provided                                                  
     by (used in)                                                           
     operating activities  $    (35) $   (155) $     81  $   (190) $    188 
      Purchases of                                                          
       property, plant and                                                  
       equipment                (28)      (20)      (39)      (48)      (79)
                           --------  --------  --------  --------  -------- 
    Non-GAAP free cash                                                      
     flow                  $    (63) $   (175) $     42  $   (238) $    109 
                           ========  ========  ========  ========  ======== 
                                                                            
                                                                            
    * 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, except for the    
    second quarter of 2012, the Company also included an adjustment for net 
    restructuring and other special charges; for the second quarter of 2012,
    the Company included an adjustment related to a legal settlement with a 
    third party; and for six months ended June 30, 2012, the Company also   
    included adjustments for the limited waiver of exclusivity from         
    GLOBALFOUNDRIES, legal settlement with a third party and costs related  
    to acquisition of SeaMicro, Inc. 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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