-- Fourth Quarter Driven By Record Processor Sales and Profits
-- AMD Reports Fourth Quarter EPS of $0.45, Excluding Non-Cash Charge
AMD (NYSE: AMD) today reported earnings for the quarter ended December 25, 2005. As a result of Spansion Inc.'s initial public offering (IPO), AMD's financial results of operations include Spansion's financial results of operations as a consolidated subsidiary only through December 20, 2005. Because comparison of fourth quarter consolidated financial results to previous periods do not correlate directly, AMD has provided non-GAAP financial statements that exclude Spansion and the Memory Segment results of operations. Management believes this non-GAAP presentation will aid investors by presenting the company's current and historical results in a form that will be more consistent with the presentation of future operating results.
AMD reported record fourth quarter sales of $1.84 billion, operating income of $206 million, and net income of $96 million, or $0.21 per share. These results include a non-cash charge of $110 million, or $0.24 per share, associated with the reduction of AMD's ownership in Spansion to 37.9 percent as a result of Spansion's IPO. Excluding this charge, AMD achieved net income of $205 million, or $0.45 per share.
Percent Change
Q4-05 Q3-05 Q4-04 Q4-05 vs Q4-05 vs
Q3-05 Q4-04
Net sales (billions) $1.84 $1.52 $1.26 21% 45%
Operating Income (millions) $206 $79 $20 161% 930%
Net Income (millions) $96 $76 ($30) 26% 420%
Non-GAAP net income excluding
Q4-05 non-cash charge
(millions) $205 $76 ($30) 170% 783%
Diluted EPS $0.21 $0.18 ($0.08) 17% 363%
Non-GAAP diluted EPS excluding
non-cash charge $0.45 $0.18 ($0.08) 150% 663%
Fourth quarter sales of $1.84 billion, which do not include Spansion's sales from the last five days of the fourth quarter due to Spansion's IPO, increased 45 percent from the fourth quarter of 2004 and 21 percent from the third quarter of 2005. In the fourth quarter of 2004, AMD reported sales of $1.26 billion, operating income of $20 million, and net a loss of $30 million, or $0.08 per share. In the third quarter of 2005, AMD reported sales of $1.52 billion, operating income of $79 million, and net income of $76 million, or $0.18 per share.
AMD excluding Memory Products Segment
Percent Change
Q4-05 Q3-05 Q4-04 Q4-05 vs Q4-05 vs
Q3-05 Q4-04
Net sales (billions) $1.35 1.00 0.76 35% 78%
Operating income (millions) $268 129 59 108% 354%
AMD, excluding the results of the Memory Products Group segment, had fourth quarter sales of $1.35 billion, an increase of 78 percent from the fourth quarter of 2004 and 34 percent from the third quarter of 2005. Comparable sales in the fourth quarter of 2004 were $760 million, resulting in operating income of $59 million. Comparable sales in the third quarter of 2005 were $1.01 billion, resulting in operating income of $129 million.
For the year ended December 25, 2005, AMD achieved record sales of $5.85 billion, a 17 percent increase from 2004. Fiscal year 2005 net income was $165 million, or $0.40 per share. The annual results include a non-cash charge in the fourth quarter of $110 million, or $0.25 per share, associated with the reduction of AMD's ownership in Spansion to 37.9 percent as a result of Spansion's IPO. AMD reported sales in 2004 of $5.00 billion and a net income of $91 million, or $0.25 per share.
AMD, excluding the results of the Memory Products Group segment, had sales of $3.94 billion for the year ended December 25, 2005, an increase of 48 percent from 2004, and operating income of $543 million for 2005. Comparable sales in 2004 were $2.66 billion, resulting in operating income of $187 million.
"AMD's growth rate increased in the fourth quarter resulting in continued market share gains across server, desktop and mobile product lines," said Robert J. Rivet, AMD's chief financial officer. "In addition to solid execution against our product and technology strategies, we made significant strides in the quarter to improve our balance sheet by significantly reducing our debt and increasing our cash and short-term investment balance to $1.8 billion."
BUSINESS OVERVIEW
Record Computation Product Group (CPG) sales of $1.31 billion increased 79 percent from $730 million in the fourth quarter of 2004 and increased 35 percent from $969 million in the third quarter of 2005. CPG generated record operating income of $287 million in the fourth quarter, up from $90 million in the fourth quarter of 2004 and $149 million in the third quarter of 2005.
Compared to the third quarter of 2005, CPG's fourth quarter sales growth was driven by an increase in both units and average selling price (ASP), increased demand from AMD's largest global customers, and an acceleration of AMD's commercial server and client businesses. Server, mobile and desktop processor sales each grew significantly compared to the third quarter of 2005. Mobile processor sales growth was driven by increased shipments of AMD Turion 64 processors. Server and desktop sales growth was driven in particular by increased customer adoption of Dual-Core AMD processors. Geographically, processor sales were especially strong in North America, Europe and Greater China.
In the fourth quarter of 2005, Memory Products Group (MPG) sales through December 20, 2005, of $487 million decreased 3 percent from $504 million in the fourth quarter of 2004 and 6 percent from $516 million in the third quarter of 2005. MPG had an operating loss of $62 million compared to an operating loss of $50 million in the third quarter of 2005.
ADDITIONAL HIGHLIGHTS
-- AMD Chairman of the Board, President and CEO Hector Ruiz was named "CEO of the Year" by Electronic Business magazine.
-- AMD continues to be a technology partner of choice for an increasing number of enterprises recognizing the performance-per-watt advantages of AMD64 technology. Today, 90 percent of the top 100 and more than 45 percent of the top 500 of the Forbes Global 2000 companies or their subsidiaries are using AMD64 technology. Recent additions include American International Group (AIG), Albertson's, Inc., Clear Channel Communications, Inc. and Nissan Motor Co., Inc. amongst others.
-- The AMD64 platform has earned more than 160 global industry awards since introduction, adding more than 20 awards in the fourth quarter alone. Highlights include VARBusiness awarding the AMD Athlon 64 X2 dual-core processor a Tech Innovator Award, Maximum PC naming the AMD Athlon 64 X2 4800+ processor "Gear of the Year", and EDN editors naming the Dual-Core AMD Opteron processor to the magazine's list of "Hot 100 Products of 2005."
-- AMD celebrated the grand opening of Fab 36 located in Dresden, Germany. The new 300mm facility will more than double AMD's output during the next three years. Production shipments are expected to begin in the first quarter of 2006 and the ramp of 65nm technology remains on schedule.
-- AMD and Sun Microsystems collaborated to build Japan's largest supercomputer for the Tokyo Institute of Technology. The supercomputer is Sun's largest installation to-date, and will use Sun Fire x64 servers powered by 10,480 AMD Opteron processor cores running both the Linux and Solaris operating systems. Once completed, the supercomputer is expected to be among the top 5 highest performing computers in the world.
-- Key global OEMs and partners continued to expand their portfolios of AMD-based solutions for the commercial market. HP introduced the HP dx5150 Business Desktop as well as high-performance blade PCs featuring low-power AMD Athlon 64 processors. Fujitsu Siemens Computers launched the PRIMERGY BX630 scalable blade server and a new two-way PRIMERGY RX220 server. Supermicro Computer, Inc. announced general availability of a broad range of AMD Opteron processor-based server and motherboard solutions.
-- China's third largest PC maker, Tsinghua Tongfang, launched nine AMD-powered systems targeting the commercial and consumer markets.
-- AMD recently unveiled its AMD Live! digital media vision to apply the power and flexibility of the PC to enable enhanced digital entertainment experiences on all the screens in peoples' lives. True to AMD's customer-centric approach which differs from competitive closed-system offerings, AMD LIVE! enables innovative, complementary, industry-friendly solutions that enhance the consumer electronics and broadcast devices already accepted and used by consumers today.
-- As part of the company's efforts to expand in high-growth markets, AMD licensed the low-power AMD Geode GX2 processor to China's Ministry of Science and Technology and Peking University, enabling Chinese entities to develop innovative x86-based solutions that will expand the total available market and extend AMD's "x86 everywhere" vision.
CURRENT OUTLOOK
AMD's outlook statements are based on current expectations. From December 21, 2005, Spansion's financial results will no longer be consolidated as part of AMD's financial results. Instead, AMD will utilize the equity method of accounting to reflect its share of Spansion's net income. The following statements are forward looking, and actual results could differ materially depending on market conditions.
AMD expects first quarter sales to be flat to slightly down seasonally from the fourth quarter of 2005. If achieved, this would approach a 70 percent increase from comparable sales in the first quarter of 2005.
AMD TELECONFERENCE
AMD will hold a conference call for the financial community at 2:30 p.m. PT today to discuss fourth 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 or www.streetevents.com. The webcast will be available for 10 days after the conference call.
ABOUT AMD
Advanced Micro Devices (NYSE: AMD) is a leading global provider of innovative microprocessor solutions for computing, communications and consumer electronics markets. Founded in 1969, AMD is dedicated to delivering superior computing solutions based on customer needs that empower users worldwide. For more information visit www.amd.com.
CAUTIONARY STATEMENT
This release contains forward-looking statements concerning the first quarter of 2006, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from the company's current expectations. Risks include the possibility that global business and economic conditions will worsen resulting in lower than currently expected sales in the first quarter of 2006; that Intel Corporation's pricing, marketing programs, product bundling, new product introductions or other activities targeting the company's microprocessor business will prevent attainment of the company's current microprocessor sales plans; that demand for personal computers and, in turn, demand for the company's microprocessors will be lower than currently expected; that adoption of AMD64 products by OEMs will not occur as expected; that the company may not achieve its current product and technology introduction schedules; that the company will not be able to raise sufficient capital to enable it to establish leading-edge capacity to maintain its market leadership positions; that solutions providers will not timely provide the infrastructure, including operating systems and applications, to support the company's AMD64 technology; and that unfavorable results of operation of Spansion will adversely impact the company's results of operations. We urge investors 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 26, 2004, and the Quarterly Report on Form 10-Q for the quarter ended September 25, 2005.
AMD, the AMD Arrow logo, AMD Athlon, AMD Opteron, AMD Sempron, AMD Turion 64 and combinations thereof are trademarks of Advanced Micro Devices, Inc. Spansion and MirrorBit are trademarks of Spansion LLC. Microsoft is a registered trademarks of Microsoft Corporation in the U.S. and/or other jurisdictions. Other names used are for identification purposes only and may be trademarks of their respective owners.
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarter Ended
------------------------------- ----------- ----------- -----------
Dec. 25, Sept. 25, Dec. 26,
2005 2005 2004
(Unaudited) (Unaudited) (Unaudited)
------------------------------- ----------- ----------- -----------
Net sales $1,838,276 $1,522,755 $1,263,706
Cost of sales 986,148 896,261 742,650
Research and development 329,301 289,018 252,767
Marketing, general and
administrative 317,111 258,748 245,622
Restructuring and other
special charges, net - - 2,942
------------------------------- ----------- ----------- -----------
1,632,560 1,444,027 1,243,981
------------------------------- ----------- ----------- -----------
Operating income 205,716 78,728 19,725
Interest and other income
(expense), net 445 6,054 (42,430)
Interest expense (24,447) (30,615) (29,070)
------------------------------- ----------- ----------- -----------
Income (loss) before minority
interest, equity in income (loss)
of unconsolidated investee and
income taxes 181,714 54,167 (51,775)
Minority interest in loss of
consolidated subsidiaries 19,166 21,227 16,831
Loss on disposition of equity
interest in Spansion Inc. (109,681) - -
Equity in income of
unconsolidated investee 3,105 - -
Provision (benefit) for income
taxes (1,284) (606) (4,981)
------------------------------- ----------- ----------- -----------
Net income (loss) $ 95,588 $ 76,000 $ (29,963)
------------------------------- ----------- ----------- -----------
Net income (loss) per common share
Basic $ 0.23 $ 0.19 $ (0.08)
Diluted $ 0.21 $ 0.18 $ (0.08)
------------------------------- ----------- ----------- -----------
Shares used in per share
calculation
- Basic 412,498 399,025 375,308
- Diluted 452,323 443,681 375,308
Year Ended
---------------------------------------------------------------------
Dec. 25, Dec. 26,
2005 2004(a)
(Unaudited)
------------------------------------ ----------------- -----------
Net sales $5,847,577 $5,001,435
Cost of sales 3,455,812 3,032,585
Research and development 1,144,025 934,574
Marketing, general and
administrative 1,016,085 807,011
Restructuring and other
special charges, net - 5,456
------------------------------------- ---------------- -----------
5,615,922 4,779,626
------------------------------------- ---------------- -----------
Operating income 231,655 221,809
Interest and other income (expense), net 13,571 (31,150)
Interest expense (104,960) (112,328)
------------------------------------- ---------------- -----------
Income (loss) before minority interest,
equity in income of unconsolidated
investee and income taxes 140,266 78,331
Minority interest in loss of consolidated
subsidiaries 125,151 18,663
Loss on disposition of equity interest in
Spansion Inc. (109,681) -
Equity in income of unconsolidated
investee 3,105 -
Provision (benefit) for income taxes (6,642) 5,838
------------------------------------- ---------------- -----------
Net income (loss) $ 165,483 $ 91,156
------------------------------------- ---------------- -----------
Net income (loss) per common share
Basic $ 0.41 $ 0.25
Diluted $0.40 $0.25
------------------------------------- ---------------- -----------
Shares used in per share calculation
- Basic 400,004 358,886
- Diluted 440,776 371,066
(a) Derived from the December 26, 2004 audited financial
statements of Advanced Micro Devices, Inc.
Advanced Micro Devices, Inc.
--------------------------------- ----------- ----------- -----------
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(Thousands)
--------------------------------- ----------- ----------- -----------
Quarter Ended
--------------------------------- ----------- ----------- ----------
Dec. 25, Sept. 25, Dec. 26,
2005 2005 2004
(Unaudited) (Unaudited) (Unaudited)
--------------------------------- ----------- ----------- -----------
Net income (loss) $ 95,588 $ 76,000 $(29,963)
Depreciation and amortization 277,258 290,750 329,148
Interest income (13,562) (9,510) (6,397)
Interest expense 24,447 30,615 29,070
Provision (benefit) for income
taxes (1,284) (606) (4,981)
--------------------------------- ----------- ----------- ----------
EBITDA $382,447 $387,249 $316,877
-------------------------------------------- ------------ -----------
Year Ended
-------------------------------------------- ------------------------
Dec. 25, Dec. 26,
2005 2004
(Unaudited) (Unaudited)
-------------------------------------------- ------------ -----------
Net income (loss) $ 165,483 $ 91,156
Depreciation and amortization 1,219,344 1,224,252
Interest income (37,151) (18,013)
Interest expense 104,960 112,328
Provision (benefit) for income taxes (6,642) 5,838
-------------------------------------------- ------------ -----------
EBITDA $1,445,994 $1,415,561
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
Dec. 25, Sept. 25, Dec. 26,
2005 2005 2004(a)
----------------------------- ------------- ------------- -----------
(Unaudited) (Unaudited)
Assets
Current assets:
Cash, cash equivalents and
short-term investments $1,794,765 $1,342,167 $1,195,559
Accounts receivable, net(1) 805,531 861,799 719,572
Inventories 388,631 931,763 874,790
Prepaid expenses and other
current assets 477,304 272,442 350,240
Deferred income taxes 92,606 54,232 87,836
----------------------------- ------------- ------------- -----------
Total current assets 3,558,837 3,462,403 3,227,997
Property, plant and
equipment, net 2,700,999 4,321,384 4,233,807
Net investment in
Spansion, Inc. 721,342 - -
Other assets 306,602 376,169 382,406
----------------------------- ------------- ------------- -----------
Total Assets $7,287,780 $8,159,956 $7,844,210
----------------------------- ------------- ------------- -----------
----------------------------- ------------- ------------- -----------
Liabilities and
Stockholders' Equity
Current liabilities:
Notes payable $ - $ 75,656 $ -
Accounts payable 855,834 941,651 655,123
Accrued compensation and
benefits 226,874 232,446 191,431
Accrued liabilities 388,999 402,895 445,341
Restructuring accruals 18,616 21,355 18,997
Income taxes payable 3,326 12,245 47,145
Deferred income on
shipments to distributors 141,898 163,652 141,738
Current portion of long-
term debt and capital
lease obligations 43,225 224,872 230,828
Other current liabilities 143,191 137,583 115,773
----------------------------- ------------- ------------- -----------
Total current
liabilities 1,821,963 2,212,355 1,846,376
Deferred income taxes 92,605 50,630 104,246
Long-term debt and capital
lease obligations 1,327,064 1,708,872 1,628,268
Other long-term liabilities 459,323 436,802 414,626
Minority interest in
consolidated subsidiaries 234,988 777,052 840,641
Stockholders' equity:
Capital stock:
Common stock, par
value 4,353 4,020 3,917
Capital in excess of par
value 2,710,171 2,438,504 2,316,669
Retained earnings 473,676 378,067 308,497
Accumulated other
comprehensive income 163,637 153,654 380,970
----------------------------- ------------- ------------- -----------
Total stockholders'
equity 3,351,837 2,974,245 3,010,053
----------------------------- ------------- ------------- -----------
Total Liabilities and
Stockholders' Equity $7,287,780 $8,159,956 $7,844,210
----------------------------- ------------- ------------- -----------
----------------------------- ------------- ------------- -----------
(1) Includes accounts receivable from customers of Spansion Inc.
(a) Derived from the December 26, 2004 audited financial statements of
Advanced Micro Devices, Inc.
AMD
Selected Corporate Data
(Unaudited)
Quarter Ended Year Ended
---------------------------------------------------- -----------------
Dec. 25, Sep. 25, Dec. 26, Dec. 25, Dec. 26,
Segment Information (5) 2005 2005 2004 2005 2004
------------------------
---------------------------------------------------- -----------------
Computation Products (1)
Net Sales $1,307 M $969 M $730 M $3,793 M $2,528 M
Operating Income (Loss) 287 M 149 M 90 M 617 M 266 M
Personal Connectivity
Solutions Products (2)
Net Sales 42 M 35 M 30 M 136 M 131 M
Operating Income (Loss) (15)M (14)M (21)M (55)M (54)M
All Other (3)
Net Sales 2 M 3 M 0 M 7 M (1)M
Operating Income (Loss) (4)M (6)M (10)M (19)M (25)M
Subtotal (excluding
Memory Products Segment)
Net Sales 1,351 M 1,007 M 760 M 3,936 M 2,658 M
Operating Income (Loss) 268 M 129 M 59 M 543 M 187 M
Memory Products (4)
Net Sales 487 M 516 M 504 M 1,912 M 2,343 M
Operating Income (Loss) (62)M (50)M (39)M (311)M 35 M
Total AMD
Net Sales 1,838 M 1,523 M 1,264 M 5,848 M 5,001 M
Operating Income (Loss) 206 M 79 M 20 M 232 M 222 M
----------------------------------------------------------------------
------------------------------------------ ---------------------------
Dec. 25, Sep. 25, Dec. 26, Dec. 25, Dec. 26,
Other Data (AMD Only)(6) 2005 2005 2004 2005 2004
------------------------
----------------------------------------------------------------------
Gross Margin 57% 55% 57% 56% 55%
Depreciation &
Amortization $153 M $154 M $183 M $ 668 M $668 M
Capital Additions $250 M $177 M $368 M $1,109 M $909 M
Headcount 9,860 9,530 8,335 9,860 8,335
International Sales 70% 73% 70% 70% 68%
----------------------------------------------------------------------
(1) Computation Products segment includes PC processors and
Chipsets.
(2) The Personal Connectivity Solution Products segment includes
Embedded Processors and Products for global commercial and
consumer markets.
(3) The All Other category includes certain operating expenses and
credits that are not allocated to the operating segments and,
starting Q3-05, includes Personal Internet Communicator(PIC)
products.
(4) Memory Products segment includes Flash memory products of AMD
and Spansion LLC, and for the quarter ended Dec. 25, 2005 reflects
consolidated Spansion results through December 20, 2005.
(5) Due to the Spansion IPO the Company has allocated bonus and
profit sharing expenses to the segments. Prior period information
has been restated to conform to current period information.
(6) Other Data reflects AMD information, excluding the Memory Products
Segment.
Note: Figures may not foot due to rounding
Advanced Micro Devices, Inc.
RECONCILIATION OF NON GAAP PRO FORMA CONSOLIDATED STATEMENTS OF
OPERATIONS TO GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarter Ended
----------------------------------- --------------------------
Dec. 25,
2005 Reconciliation
(Unaudited) Adjustments
(GAAP)
----------------------------------- ----------- -------------
Net sales $1,838,276 $ -
Cost of sales 986,148 -
----------------------------------- ----------- -------------
Gross Margin 852,128
Gross Margin % 46.4%
Research and development 329,301 -
Marketing, general and administrative 317,111 -
----------------------------------- ----------- -------------
Operating expenses 646,412
----------------------------------- ----------- -------------
Operating income 205,716
Interest and other income (expense),
net 445 -
Interest expense (24,447) -
----------------------------------- ----------- --------------
Income before minority interest, equity
in income (loss)of unconsolidated
investee and income taxes 181,714 -
Minority interest in loss of
consolidated subsidiary 19,166 -
Loss on disposition of equity
interest in Spansion Inc. (109,681) 109,681 (1)
Equity in income of unconsolidated
investee 3,105 -
Net impact of Memory Products Segment
and Spansion IPO - -
Provision (benefit) for income taxes (1,284) -
----------------------------------- ----------- --------------
Net income $ 95,588
----------------------------------- ----------- --------------
Net income per common share
Basic $ 0.23
Diluted $ 0.21
----------------------------------- ----------- --------------
Shares used in per share calculation
Basic 412,498
Diluted 452,323
----------------------------------- ----------- --------------
Quarter Ended
-----------------------------------------
Dec. 25, Dec. 25,
2005 Reconciliation 2005
(pro-forma Adjustments (pro-forma
non-GAAP) non-GAAP)
(Note A) (Note B)
-------------------------- ----------- -------------- -----------
Net sales $1,838,276 $(487,200)(2) $1,351,076
Cost of sales 986,148 (409,000)(2) 577,148
-------------------------- ----------- -------------- -----------
Gross Margin 852,128 773,928
Gross Margin % 46.4% 57.3%
Research and development 329,301 (73,000)(2) 256,301
Marketing, general and
administrative 317,111 (67,600)(2) 249,511
-------------------------- ----------- -------------- -----------
Operating expenses 646,412 505,812
-------------------------- ----------- -------------- -----------
Operating income (loss) 205,716 268,116
Interest income and other, net 445 (664)(3) (219)
Interest expense (24,447) 5,185 (3) (19,262)
-------------------------- ----------- -------------- -----------
Income (loss) before minority
interest, equity in income
(loss) of unconsolidated
investee and income taxes 181,714 254,172
Minority interest in loss
of consolidated subsidiary 19,166 (24,698)(4) (5,532)
Loss on disposition of
equity interest in
Spansion Inc. - - -
Equity in income of
unconsolidated investee 3,105 (3,105)(5) -
Net impact of Memory Products
Segment and Spansion IPO - (39,109)(7) (39,109)
Provision (benefit) for
income taxes (1,284) 9 (6) (1,275)
-------------------------- ----------- -------------- -----------
Net income $ 205,269 $ 205,269
-------------------------- ----------- -------------- -----------
Net income per common share
Basic $ 0.50 $ 0.50
Diluted $ 0.45 $ 0.45
-------------------------- ----------- -------------- -----------
Shares used in per share
calculation
Basic 412,498 412,498
Diluted 473,709 473,709
-------------------------- ----------- -------------- -----------
Note A: Non-GAAP pro-forma consolidated statement of operations
with adjustment for loss on disposition of equity interest in
Spansion Inc. For details see note (1) below.
Note B: Non-GAAP pro-forma consolidated statement of operations
with adjustments for loss on disposition of equity interest in
Spansion Inc. and the exclusion of the Memory Products Segment
and Spansion results for the quarter ended December 25, 2005.
For details see notes (2) through (7) below.
Notes to the Reconciliation Adjustments:
(1) Excludes the non-cash loss on disposition of the Company's
ownership interest in Spansion from 60 percent to 37.9 percent as
a result of Spansion's initial public offering.
(2) Excludes the Memory Products segment results and reclassifies
them to "Net impact of Memory Products Segment and Spansion IPO".
(3) Excludes Spansion's results and reclassifies them to "Net
impact of Memory Products Segment and Spansion IPO".
(4) Excludes Fujitsu's 40% minority interest share in AMD's
earnings relating to Spansion up to December 20, 2005 and
reclassifies it to "Net impact of Memory Products Segment and
Spansion IPO".
(5) Excludes AMD's 37.9% equity income share of Spansion's net
income from December 21, 2005 to December 25, 2005 and
reclassifies it to "Net impact of Memory Products Segment and
Spansion IPO"
(6) Excludes Spansion's results and reclassifies them to "Net
impact of Memory Products Segment and Spansion IPO".
(7) Net impact of all adjustments from (2) to (6) above.
Contact:
AMD Dave Kroll, 408-749-3310 (Editorial) email: Email Contact Mike Haase, 408-749-3124 (Investor) email: Email Contact