-----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, WqE61m9JlkbPMV4kwYebZOnXLJfHzdZk/pXhBnCnplnvAVPw85wYRmZh9OjTrRCf DGY5grTW6R/auiS0ux1BwQ== 0001012870-99-002514.txt : 19990727 0001012870-99-002514.hdr.sgml : 19990727 ACCESSION NUMBER: 0001012870-99-002514 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990714 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990726 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: 99670314 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): July 14, 1999 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 -------------- Page 1 of 4 Item 5. Other Events. - ------- ------------ On July 14, 1999, Advanced Micro Devices, Inc. reported sales of $595,109,000 and net income of $79,896,000, or $0.53 per diluted share, for the second quarter, ended June 27, 1999. The results reflected an operating loss of $173 million, a one-time, after-tax gain of $259 million from the sale of Vantis Corporation, the company's programmable logic subsidiary, and restructuring and other special charges of $17.5 million. The full text of the press release is set forth in Exhibit 99.1 attached hereto and is incorporated in this report as if fully set forth herein. Item 7. Financial Statements and Exhibits. - ------- --------------------------------- (c) Exhibits 99.1 Press Release dated July 14, 1999. 2 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. Dated: July 22, 1999 By: /s/ FRANCIS P. BARTON ------------------------------ Francis P. Barton Senior Vice President, Chief Financial Officer 3 Exhibit Index ------------- Exhibit Number Exhibit - -------------- ------- 99.1 Press Release dated July 14, 1999. 4 EX-99.1 2 PRESS RELEASE DATED JULY 14TH 1999 EXHIBIT 99.1 [LETTERHEAD OF AMD APPEARS HERE] AMD REPORTS SECOND QUARTER RESULTS SUNNYVALE, CA-JULY 14, 1999-AMD today reported that the one-time, after-tax gain from the sale of Vantis Corporation offset a substantial operating loss in the just-completed quarter. AMD reported sales of $595,109,000 and net income of $79,896,000, or $0.53 per diluted share, for the second quarter, ended June 27, 1999. The results reflected an operating loss of $173 million, a one-time, after-tax gain of $259 million from the sale of Vantis, the company's programmable logic subsidiary, and restructuring and other special charges of $17.5 million. Excluding the one-time gain from the sale of Vantis and the restructuring and other special charges would result in a net loss of $162 million, or $1.10 per share. Sales declined by 6 percent from the immediate-prior quarter, while increasing by 13 percent from the second quarter of 1998. The sale of Vantis was concluded on June 15, 1999, and therefore results from the second quarter include only 11 weeks of sales from Vantis Corporation. In the first quarter of 1999, AMD reported sales of $631,593,000, which resulted in a net loss of $128,367,000, or $0.88 per share, including restructuring and other special charges. In the second quarter of 1998, AMD reported sales of $526,538,000 and a net loss of $64,560,000, or $0.45 per share. -more- 2 For the first six months of 1999, AMD reported total sales of $1,226,702,000 and a net loss of $48,471,000, or a loss of $0.33 per share, including the gain on the sale of Vantis and restructuring and other special charges. For the same period a year ago, AMD reported total sales of $1,067,394,000 and a net loss of $127,287,000, or $0.89 per share. As the company forecasted several weeks ago, AMD reported sales of 3.7 million AMD-K6(R) family processors, down from 4.3 million units in the immediate-prior quarter. Average selling prices for AMD-K6 family processors declined to $67 versus $78 in the first quarter of 1999. Sales from the company's non-microprocessor product lines increased by 16 percent from the immediate-prior quarter, led by strong sales of flash memory products, driven by demand from cellular telephone customers. "With the resumption of growth from our memory and communications product lines, AMD's challenge is clear," said W.J. Sanders III, chairman and chief executive officer. "In the face of Intel's intensifying aggression in the consumer sector of the PC market, where our AMD-K6-2 processor family with 3DNow!(R) technology has achieved substantial market share in both desktop and portable PCs, further gains in unit market share or revenue growth are unlikely. "The key to resuming growth and expanding margins is the recently introduced AMD Athlon(TM) processor. The world's first seventh-generation processor for Microsoft(R) Windows(R) computing is the highest-performance processor for PCs available today. Initial shipments of AMD Athlon processors, including 600-megahertz versions, commenced in June. We are encouraged by early customer reaction to the AMD Athlon processor," Sanders concluded. Cautionary Statement This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally preceded by words such as "expects," "plans," "believes," "anticipates," or "intends." Investors are cautioned that all forward-looking -more- 3 statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Forward-looking statements in this release regarding the AMD Athlon processor involve the risk that the company will not be able to produce the processor in the volume required by customers on a timely basis; that AMD and third parties may not provide timely infrastructure solutions (motherboards and chipsets) to support the processor; that the processor will not achieve customer and market acceptance; and that the company will not be able to maintain average selling prices because of Intel's competitive reaction to this new product. We urge investors to review in detail the risks and uncertainties detailed in the company's Securities and Exchange Commission filings, including the most recently filed Form-10K. About AMD AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets. AMD produces microprocessors, flash memories, and integrated circuits for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $2.5 billion in 1998. (NYSE:AMD). -30- Visit AMD on the Web: Additional press releases and information about AMD and its products are available at www.amd.com. AMD, the AMD logo, 3DNow, AMD Athlon and combinations thereof are trademarks, and the AMD-K6 is a registered trademark of Advanced Micro Devices, Inc. Microsoft and Windows are registered trademarks of Microsoft Corporation. Advanced Micro Devices, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Thousands except per share amounts)
Quarter Ended Six Months Ended (Unaudited) (Unaudited) - --------------------------------------------------------------------------------------------------------------------------------- June 27, Mar. 28, June 28, June 27, June 28, 1999 1999 1998 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net sales $ 595,109 $ 631,593 $ 526,538 $1,226,702 $1,067,394 Cost of sales 458,339 450,431 390,140 908,770 813,731 Research and development 167,278 159,946 139,158 327,224 267,278 Marketing, general and administrative 124,520 127,310 101,198 251,830 189,412 Restructuring and other special charges 17,514 15,016 - 32,530 - - --------------------------------------------------------------------------------------------------------------------------------- 767,651 752,703 630,496 1,520,354 1,270,421 - --------------------------------------------------------------------------------------------------------------------------------- Operating loss (172,542) (121,110) (103,958) (293,652) (203,027) Gain on sale of Vantis 432,059 - - 432,059 - Litigation settlement - - - - (11,500) Interest income and other, net 7,252 10,768 8,518 18,020 14,099 Interest expense (18,087) (20,763) (17,663) (38,850) (30,135) - --------------------------------------------------------------------------------------------------------------------------------- Income (loss) before income taxes and equity in joint venture 248,682 (131,105) (113,103) 117,577 (230,563) Provision (benefit) for income taxes 172,823 (5,473) (44,110) 167,350 (91,107) - --------------------------------------------------------------------------------------------------------------------------------- Income (loss) before equity in joint venture 75,859 (125,632) (68,993) (49,773) (139,456) Equity in net income (loss) of joint venture 4,037 (2,735) 4,433 1,302 12,169 - --------------------------------------------------------------------------------------------------------------------------------- Net income (loss) $ 79,896 $(128,367) $ (64,560) $ (48,471) $ (127,287) - --------------------------------------------------------------------------------------------------------------------------------- Net income (loss) per common share - - Basic $0.54 $(0.88) $(0.45) $(0.33) $(0.89) - - Diluted $0.53 $(0.88) $(0.45) $(0.33) $(0.89) - --------------------------------------------------------------------------------------------------------------------------------- Shares used in per share calculation - - Basic 146,947 145,909 143,462 146,428 142,983 - - Diluted 149,540 145,909 143,462 146,428 142,983 - ---------------------------------------------------------------------------------------------------------------------------------
Advanced Micro Devices, Inc. - -------------------------------------------------------------------------------- NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS* (Includes Pre-tax FASL Investment Equity Loss (Income) in Operating Income (Loss)) - -------------------------------------------------------------------------------- (Thousands except per share amounts)
Quarter Ended Six Months Ended (Unaudited) (Unaudited) (Audited) - --------------------------------------------------------------------------------------------------------------------------------- June 27, Mar. 28, June 28, June 27, June 28, 1999 1999 1998 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net sales $ 595,109 $ 631,593 $ 526,538 $1,226,702 $1,067,394 Cost of sales 458,339 450,431 390,140 908,770 813,731 Loss (income) from equity investment in FASL (6,869) 4,636 (7,416) (2,233) (23,404) Research and development 167,278 159,946 139,158 327,224 267,278 Marketing, general and administrative 124,520 127,310 101,198 251,830 189,412 Restructuring and other special charges 17,514 15,016 - 32,530 - - --------------------------------------------------------------------------------------------------------------------------------- 760,782 757,339 623,080 1,518,121 1,247,017 - --------------------------------------------------------------------------------------------------------------------------------- Operating loss (165,673) (125,746) (96,542) (291,419) (179,623) Gain on sale of Vantis 432,059 - - 432,059 - Litigation settlement - - - - (11,500) Interest income and other, net 7,252 10,768 8,518 18,020 14,099 Interest expense (18,087) (20,763) (17,663) (38,850) (30,135) - --------------------------------------------------------------------------------------------------------------------------------- Income (loss) before income taxes 255,551 (135,741) (105,687) (119,810) (207,159) Provision (benefit) for income taxes 172,823 (5,473) (44,110) 167,350 (91,107) Provision (benefit) for taxes on equity loss (income) in FASL 2,832 (1,901) 2,983 931 11,235 - --------------------------------------------------------------------------------------------------------------------------------- Net income (loss) $ 79,896 $(128,367) $ (64,560) $ (48,471) $ (127,287) - --------------------------------------------------------------------------------------------------------------------------------- Net income (loss) per common share shares - - Basic $0.54 $(0.88) $(0.45) $(0.33) $(0.89) - - Diluted $0.53 $(0.88) $(0.45) $(0.33) $(0.89) - --------------------------------------------------------------------------------------------------------------------------------- Shares used in per share calculation - - Basic 146,947 145,909 143,462 146,428 142,983 - - Diluted 149,540 145,909 143,462 146,428 142,983 - ---------------------------------------------------------------------------------------------------------------------------------
* The above statements of operations are not in accordance with generally accepted accounting principles (GAAP) in that the pre-tax equity loss (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. Advanced Micro Devices, Inc. CONSOLIDATED BALANCE SHEETS (Thousands)
June 27, Dec. 27, 1999 1998 (Unaudited) (Audited) - --------------------------------------------------------------------------------------------------------------------------------- Assets - --------------------------------------------------------------------------------------------------------------------------------- Current assets: Cash, cash equivalents and short-term investments $ 650,830 $ 697,025 Accounts receivable, net 320,755 415,557 Inventories 203,056 175,075 Deferred income taxes 49,827 205,959 Prepaid expenses and other current assets 73,407 68,411 - --------------------------------------------------------------------------------------------------------------------------------- Total current assets 1,297,875 1,562,027 Property, plant and equipment, net 2,538,119 2,268,468 Investment in joint venture 228,881 236,820 Other assets 181,134 185,653 - --------------------------------------------------------------------------------------------------------------------------------- $4,246,009 $4,252,968 ================================================================================================================================= Liabilities and Stockholders' Equity - --------------------------------------------------------------------------------------------------------------------------------- Current liabilities: Notes payable to banks $ 5,762 $ 6,017 Accounts payable 300,538 333,975 Accrued compensation and benefits 91,539 80,334 Accrued liabilities 161,789 168,280 Income tax payable 10,917 22,026 Deferred income on shipments to distributors 81,263 84,523 Current portion of long-term debt, capital lease obligations and other 131,364 145,564 - --------------------------------------------------------------------------------------------------------------------------------- Total current liabilities 783,172 840,719 Deferred income taxes 60,113 34,784 Long-term debt, capital lease obligations and other, less current portion 1,440,563 1,372,416 Stockholders' equity: Capital stock: Common stock, par value 1,490 1,465 Capital in excess of par value 1,102,723 1,071,591 Retained earnings 913,700 962,171 Accumulated other comprehensive loss (55,752) (30,178) - --------------------------------------------------------------------------------------------------------------------------------- Total stockholders' equity 1,962,161 2,005,049 - --------------------------------------------------------------------------------------------------------------------------------- $4,246,009 $4,252,968 =================================================================================================================================
AMD Selected Corporate Data (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------ Segment Breakdown Q2 '99 Q1 '99 Q2 '98 - ----------------- % of Sales Revenue % of Sales Revenue % of Sales Revenue ---------- --------- ---------- --------- ---------- --------- - ------------------------------------------------------------------------------------------------------------------------------------ AMD segment: Computation Products Group 53 $317M 63 $395M 42 $220M Memory Group 28 166M 20 126M 25 132M Communications Group 12 70M 10 64M 23 123M Other 0 2M 0 0M 0 0M Vantis segment: Vantis 7 40M 7 47M 10 52M - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Other Data Q2 '99 Q1 '99 Q2 '98 - ---------- ------ ------ ------ - ------------------------------------------------------------------------------------------------------------------------------------ Depreciation and Amortization $128M $127M $113M Capital Additions 148M 200M 314M Headcount 13,467 13,803 13,314 - ------------------------------------------------------------------------------------------------------------------------------------ International Sales 58% 58% 48%
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