-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DKcETPVEwvkLTSQiMcgNhycEcuSUtjxvsJWmSfXimJesR6uT3SDuSfMfxkTkB+UX /bDIu1/hAiLemnFepiATMg== 0001012870-98-002698.txt : 19981026 0001012870-98-002698.hdr.sgml : 19981026 ACCESSION NUMBER: 0001012870-98-002698 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981006 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19981023 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADVANCED MICRO DEVICES INC CENTRAL INDEX KEY: 0000002488 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 941692300 STATE OF INCORPORATION: DE FISCAL YEAR END: 1227 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07882 FILM NUMBER: 98729777 BUSINESS ADDRESS: STREET 1: ONE AMD PL STREET 2: P O BOX 3453 CITY: SUNNYVALE STATE: CA ZIP: 94088-3453 BUSINESS PHONE: 4087322400 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (date of earliest event reported): October 6, 1998 ADVANCED MICRO DEVICES, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 1-7882 94-1692300 - ------------------------------ ----------- ------------------ (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) One AMD Place, P.O. Box 3453 Sunnyvale, California 94088-3453 - ---------------------------------------- ---------- (address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (408) 732-2400 ------------- Item 5. Other Events. - ------- ------------- On October 6, 1998, Advanced Micro Devices, Inc. reported record sales of $685,927,000 during its third quarter, ended September 27, 1998, which resulted in net income of $1,006,000, or $.01 per share. The full text of the press release is set forth in Exhibit 99 attached hereto and is incorporated in this report as if fully set forth herein. Item 7. Financial Statements and Exhibits. - ------- ---------------------------------- (c) Exhibits: 99 Press release dated October 6, 1998 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ADVANCED MICRO DEVICES, INC. (Registrant) /s/ Fran Barton Date: October 21, 1998 By: _____________________________ Fran Barton Senior Vice President, Chief Financial Officer Exhibit Index ------------- Exhibit Number Exhibit - -------------- ------- 99 Press release dated October 6, 1998 EX-99 2 PRESS RELEASE DATED OCTOBER 6TH, 1998 EXHIBIT 99 [LOGO OF AMD] One AMD Place P.O. Box 3453 Sunnyvale, CA 94088-3453 Tel (408)732-2400 CONTACT: SCOTT ALLEN PUBLIC RELATIONS (408) 749-3311 AMD ACHIEVES RECORD SALES AND BOOKINGS AS IT RETURNS TO PROFITABILITY SUNNYVALE, CA - October 6, 1998 - Led by substantial growth in sales of AMD-K6(R)-2 processors with 3DNow!(TM) technology, AMD today reported record sales of $685,927,000 during its third quarter, ended September 27, 1998, which resulted in net income of $1,006,000, or $0.01 per share. Sales increased by 30 percent from the immediate-prior quarter, and by 15 percent from the like period of 1997. In the immediate-prior quarter, AMD reported a net loss of $64,560,000 on sales of $526,538,000, which resulted in a net loss of $0.45 per share. In the like period of 1997, AMD reported a net loss of $31,675,000 on sales of $596,644,000. The net loss amounted to $0.22 per share. For the first nine months of 1998, the company reported total sales of $1,753,321,000, which resulted in a net loss of $126,281,000, or $0.88 per share. For the first nine months of 1997, AMD reported total sales of $1,743,204,000, which resulted in a net loss of $8,756,000, or $0.06 per share. -more- 2 "AMD achieved record sales and returned to nominal profitability on rapid market acceptance of our AMD-K6-2 processor with 3DNow! technology," said W.J. Sanders III, chairman and chief executive officer. "This product, introduced on May 28, 1998, was the largest contributor to the substantial increase in sales of our Microsoft(R) Windows(R) compatible AMD-K6 processor family. "Shipments of AMD-K6 family processors increased by more than one million units to 3.8 million units, and AMD-K6 family processor sales increased by 70 percent over the immediate-prior quarter. Excellent manufacturing and sales execution enabled AMD to return to profitability one quarter ahead of expectations. "We are extremely pleased by the strong demand in the retail channel for personal computers powered by AMD-K6-2 processors," Sanders continued. "According to PC Data, systems powered by AMD-K6 family processors captured 31 percent of the total U.S. retail market for desktop systems in August, the latest period for which data are available. In the rapidly growing market for sub-$1,000 systems, PCs powered by AMD-K6 family processors captured a 54 percent market share - the highest penetration we have achieved to date. The highest-volume desktop system sold in the United States retail channel in August was a system powered by an AMD-K6-2 processor with 3DNow! technology, even surpassing sales of Apple Computer's successful iMac system. "During the quarter, we introduced and shipped hundreds of thousands of our 350MHz AMD-K6-2 processors," Sanders continued. "With the availability of these higher-performance devices, AMD now has very attractive products for the mainstream desktop market: systems priced at $1,500 and below, which comprise 80 percent of the U.S. retail desktop personal computer market. "During the quarter we also introduced a 300MHz AMD-K6 processor for mobile applications. The AMD-K6/300 has a clock speed matching the highest-speed mobile processor on the market. -more- 3 "In the face of continuing intense price pressures and weak overall industry demand, we were able to maintain flat sales compared to the immediate- prior quarter in the aggregate for our Communications Group, our Memory Group, and Vantis, our programmable logic subsidiary," said Sanders. "On the strength of demand for AMD-K6 family processors, total third- quarter company bookings achieved a record level," Sanders concluded. CAUTIONARY STATEMENT Investors are cautioned that all forward-looking statements of management's expectations involve risks and uncertainties that could cause actual results to differ materially from current expectations. Any forward-looking statements about AMD-K6 family processors involve risks and uncertainties, including: whether the company will be able to maintain or increase output of higher-performance AMD-K6-2 processors; whether customer demand for AMD-K6 family processors will continue at current or greater levels; whether uncertain worldwide economic conditions, including the economic conditions in Asia, will result in decreased demand for microprocessors and other integrated circuits; and whether as a result of industry conditions or for other reasons customers will cancel currently booked orders or decrease their placement of orders in the future. Investors are urged to consult the risks and uncertainties detailed in the company's reports filed with the Securities and Exchange Commission. ABOUT AMD AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets. AMD produces processors, flash memories, programmable logic devices, and products for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $2.4 billion in 1997. (NYSE: AMD). --30-- -more- 4 WORLD WIDE WEB: Press announcements and other information about AMD are available on the Internet via the World Wide Web. Type http://www.amd.com at the URL prompt. 3DNOW! AND VANTIS ARE TRADEMARKS OF ADVANCED MICRO DEVICES, INC. AMD-K6, AMD-K6-2, AMD, THE LOGO AND COMBINATIONS THEREOF ARE REGISTERED TRADEMARKS OF ADVANCED MICRO DEVICES, INC. Microsoft and Windows are registered trademarks of Microsoft Corporation GENERAL NOTICE: OTHER PRODUCT NAMES USED IN THIS PUBLICATION ARE FOR IDENTIFICATION PURPOSES ONLY AND MAY BE TRADEMARKS OF THEIR RESPECTIVE COMPANIES. ADVANCED MICRO DEVICES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (THOUSANDS EXCEPT PER SHARE AMOUNTS)
Quarters Ended Nine Months Ended (Unaudited) (Unaudited) - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- Sept. 27, June 28, Sept. 28, Sept. 27, Sept. 28, 1998 1998 1997 1998 1997 - ---------------------------------------------------------------------------------------------------------------------------------- NET SALES $ 685,927 $ 526,538 $ 596,644 $1,753,321 $1,743,204 Cost of sales 422,985 390,140 428,240 1,236,716 1,149,582 Research and development 143,665 139,158 125,917 410,943 340,846 Marketing, general and administrative 109,768 101,198 100,915 299,180 298,417 - ---------------------------------------------------------------------------------------------------------------------------------- 676,418 630,496 655,072 1,946,839 1,788,845 - ---------------------------------------------------------------------------------------------------------------------------------- Operating income (loss) 9,509 (103,958) (58,428) (193,518) (45,641) Litigation settlement - - - (11,500) - Interest income and other, net 10,071 8,518 5,532 24,170 28,572 Interest expense (21,182) (17,663) (14,151) (51,317) (33,519) - ---------------------------------------------------------------------------------------------------------------------------------- Loss before income taxes and equity in joint venture (1,602) (113,103) (67,047) (232,165) (50,588) Benefit for income taxes (635) (44,110) (30,072) (91,742) (25,294) - ---------------------------------------------------------------------------------------------------------------------------------- Loss before equity in joint venture (967) (68,993) (36,975) (140,423) (25,294) Equity in net income of joint venture 1,973 4,433 5,300 14,142 16,538 - ---------------------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 1,006 $ (64,560) $ (31,675) $ (126,281) $ (8,756) - ---------------------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) PER COMMON SHARE - Basic $ 0.01 $ (0.45) $ (0.22) $ (0.88) $ (0.06) - Diluted $ 0.01 $ (0.45) $ (0.22) $ (0.88) $ (0.06) - ---------------------------------------------------------------------------------------------------------------------------------- Shares used in per share calculation - Basic 143,915 143,462 141,055 143,249 139,975 - Diluted 146,642 143,462 141,055 143,249 139,975 - ----------------------------------------------------------------------------------------------------------------------------------
ADVANCED MICRO DEVICES, INC. CONSOLIDATED BALANCE SHEETS (THOUSANDS)
Sept. 27, December 28, 1998 1997 (Unaudited) (Audited) - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS - ----------------------------------------------------------------------------------------------------------------------------------- Current assets: Cash, cash equivalents and short-term investments $ 580,510 $ 467,032 Accounts receivable, net 372,393 329,111 Inventories 172,231 168,517 Deferred income taxes 168,554 160,583 Prepaid expenses and other current assets 71,915 50,024 - ----------------------------------------------------------------------------------------------------------------------------------- Total current assets 1,365,603 1,175,267 Property, plant and equipment, net 2,375,105 1,990,689 Investment in joint venture 206,792 204,031 Other assets 168,618 145,284 - ----------------------------------------------------------------------------------------------------------------------------------- $ 4,116,118 $ 3,515,271 =================================================================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY - ----------------------------------------------------------------------------------------------------------------------------------- Current liabilities: Notes payable to banks $ 5,167 $ 6,601 Accounts payable 312,543 359,536 Accrued compensation and benefits 83,763 63,429 Accrued liabilities 161,984 134,656 Income tax payable 20,386 12,676 Deferred income on shipments to distributors 86,790 83,508 Current portion of long-term debt and capital lease obligations 149,220 66,364 - ----------------------------------------------------------------------------------------------------------------------------------- Total current liabilities 819,853 726,770 Deferred income taxes 2,339 96,269 Long-term debt and capital lease obligations, less current portion 1,364,230 662,689 Stockholders' equity: Capital stock: Common stock, par value 1,453 1,428 Capital in excess of par value 1,051,619 1,018,884 Retained earnings 939,850 1,066,131 Accumulated other comprehensive loss (63,226) (56,900) - ----------------------------------------------------------------------------------------------------------------------------------- Total stockholders' equity 1,929,696 2,029,543 - ----------------------------------------------------------------------------------------------------------------------------------- $ 4,116,118 $ 3,515,271 ===================================================================================================================================
ADVANCED MICRO DEVICES, INC. INFORMATION ONLY - ------------------------------------------------------------------------------------------------------------------------------------ NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS* (INCLUDES PRE-TAX FASL INVESTMENT EQUITY INCOME IN OPERATING INCOME (LOSS)) - ------------------------------------------------------------------------------------------------------------------------------------ (THOUSANDS EXCEPT PER SHARE AMOUNTS) Quarters Ended Nine Months Ended (Unaudited) (Unaudited) - ----------------------------------------------------------------------------------------------------------------------------------- Sept. 27, June 28, Sept. 28, Sept. 27, Sept. 28, 1998 1998 1997 1998 1997 - ----------------------------------------------------------------------------------------------------------------------------------- NET SALES $ 685,927 $ 526,538 $ 596,644 $1,753,321 $1,743,204 Cost of sales 422,985 390,140 428,240 1,236,716 1,149,582 Income from equity investment in FASL (4,487) (7,416) (11,041) (27,891) (30,779) Research and development 143,665 139,158 125,917 410,943 340,846 Marketing, general and administrative 109,768 101,198 100,915 299,180 298,417 - ------------------------------------------------------------------------------------------------------------------------------------ 671,931 623,080 644,031 1,918,948 1,758,066 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income (loss) 13,996 (96,542) (47,387) (165,627) (14,862) Litigation settlement - - - (11,500) - Interest income and other, net 10,071 8,518 5,532 24,170 28,572 Interest expense (21,182) (17,663) (14,151) (51,317) (33,519) - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) before income taxes 2,885 (105,687) (56,006) (204,274) (19,809) Benefit for income taxes (635) (44,110) (30,072) (91,742) (25,294) Provision for taxes on equity income in FASL 2,514 2,983 5,741 13,749 14,241 - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME (LOSS) $ 1,006 $ (64,560) $ (31,675) $ (126,281) $ (8,756) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME (LOSS) PER COMMON SHARE SHARE - Basic $ 0.01 $ (0.45) $ (0.22) $ (0.88) $ (0.06) - Diluted $ 0.01 $ (0.45) $ (0.22) $ (0.88) $ (0.06) - ------------------------------------------------------------------------------------------------------------------------------------ Shares used in per share calculation - Basic 143,915 143,462 141,055 143,249 139,975 - Diluted 146,642 143,462 141,055 143,249 139,975 - ------------------------------------------------------------------------------------------------------------------------------------
* The above statements of operations are not in accordance with generally accepted accounting principles (GAAP) in that the pre-tax equity income of FASL has been reclassified and included in the determination of operating income (loss). Net income (loss) and related net income (loss) per common share amounts are the same as those reported under GAAP. AMD SELECTED CORPORATE DATA (UNAUDITED)
PRODUCT LINE BREAKDOWN Q3 '98 Q2 '98 Q3 '97 - ---------------------- % OF SALES REVENUE % OF SALES REVENUE % OF SALES REVENUE ---------- ------- ---------- ------- ---------- ------- _________________________________________________________________________________________________ Communications Group (CPD, EPD, NPD) 18 $ 126M 23 $ 123M 30 $ 179M Vantis (PLD) 7 50M 10 52M 10 62M Memory Group (MG) 19 129M 25 132M 30 178M Computation Products Group (CMD, PPD, TMD) 56 381M 42 220M 30 178M _________________________________________________________________________________________________ _________________________________________________________________________________________________ OTHER DATA Q3 '98 Q2 '98 Q3 '97 - ---------- ------ ------ ------ _________________________________________________________________________________________________ Depreciation and Amortization $ 117M $ 113M $ 104M Capital Additions 321M 314M 169M Headcount 13,384 13,314 12,617 _________________________________________________________________________________________________ International Sales 52% 48% 60%
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