AMD Reports 2014 Second Quarter Results

About AMD
AMD (NYSE: AMD) designs and integrates technology that powers millions of intelligent devices, including personal computers, tablets, game consoles and cloud servers that define the new era of surround computing. AMD solutions enable people everywhere to realize the full potential of their favorite devices and applications to push the boundaries of what is possible. For more information, visit www.amd.com.

Cautionary Statement

This earnings press release contains forward-looking statements concerning AMD, its ability to deliver non-GAAP profitability and revenue growth; its ability to diversify its business; its targeted and optimal cash, cash equivalents and marketable securities balances; expected OEM introductions of its products and its expected third quarter of 2014 revenue; 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," "would" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this release are based on current beliefs, assumptions and expectations, speak only as of the date of this release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include the possibility that Intel Corporation's pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities may negatively impact AMD's plans; that AMD will require additional funding and may be unable to raise sufficient capital on favorable terms, or at all; that customers stop buying AMD's products or materially reduce their operations or demand for AMD's products; that AMD 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 AMD's third-party foundry suppliers will be unable to transition AMD's products to advanced manufacturing process technologies in a timely and effective way or to manufacture AMD's products on a timely basis in sufficient quantities and using competitive process technologies; that AMD will be unable to obtain sufficient manufacturing capacity or components to meet demand for its products or will not fully utilize its projected manufacturing capacity needs at GLOBALFOUNDRIES, Inc. (GF) microprocessor manufacturing facilities; that AMD's requirements for wafers will be less than the fixed number of wafers that it agreed to purchase from GF or GF encounters problems that significantly reduce the number of functional die it receives from each wafer; that AMD is unable to successfully implement its long-term business strategy; that AMD inaccurately estimates the quantity or type of products that its customers will want in the future or will ultimately end up purchasing, resulting in excess or obsolete inventory; that AMD is unable to manage the risks related to the use of its third-party distributors and add-in-board (AIB) partners or offer the appropriate incentives to focus them on the sale of AMD's products; that AMD 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 market growth and demand for AMD's products and technologies in light of the product mix that it may have available at any particular time; that global business and economic conditions will not improve or will worsen; that PC market 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 AMD's sales or supply chain. Investors are urged to review in detail the risks and uncertainties in AMD's Securities and Exchange Commission filings, including but not limited to the Quarterly Report on Form 10-Q for the quarter ended March 29, 2014.

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 earnings press release, in addition to GAAP financial results,  
    AMD has provided non-GAAP financial measures including 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 earnings press   
    release. AMD 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 earnings press release. AMD 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 AMD believes it assists investors in
    comparing AMD'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 the data tables at the  
    end of this earnings press release for additional AMD data.             
(2) Testing conducted by AMD Performance Labs on optimized AMD reference    
    systems. PC manufacturers may vary configuration yielding different     
    results. Basemark CL is used to simulate compute performance; AMD A6-   
    6310 APU scored 21 while the "Haswell U" Pentium part scored 3. AMD     
    "Larne" reference platform system using AMD A6-6310 APU with AMD Radeon™
    R4 Graphics, 2x2048 MBytes of DDR3-1600 RAM, Microsoft Windows 8.1      
    Single Language, and 13.300.0.0 - 13-Jan-2014 driver. Intel® Pentium®   
    3556U @ 1.70GHz with Intel® HD Graphics, 2x2048 MBytes of DDR3-1600 RAM,
    Microsoft Windows 8.1 Single Language, 10.18.10.3412 - 28-Jan-2014      
    driver. BMN-11                                                          
(3) Testing conducted by AMD Performance Labs on optimized AMD reference    
    systems. PC manufacturers may vary configuration yielding different     
    results. Basemark CL is used to simulate compute performance; A4 Micro- 
    6400T APU scored 13 while the "Bay Trail T" platform scored 4. AMD      
    "Discovery" reference platform system using AMD A4 Micro-6400T APU with 
    Radeon™ R6 Graphics, 2048 MBytes of DDR3-                               
(4) SiSoftware Sandra test details: System Description: AMD FirePro W8100   
    vs. Nvidia Quadro K5000 - Dell T3610, Intel Xeon E5-1620 v2 @ 3.60 GHz, 
    8GB DDR3, Seagate HDD 7200RPM, Win7 64-bit SP1, 1920x1080 resolution.   
    AMD Driver 13.352.1009 | Nvidia Driver 333.11                           
                                                                                                                                              
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
CONDENSED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS                                                          
(Millions  except  per  share  amounts  and  percentages)                                                  
                                                                                                                                                        
                                                          Three  Months  Ended                    Six  Months  Ended      
                                            -------------------------------    --------------------  
                                              Jun.  28,      Mar.  29,      Jun.  29,      Jun.  28,      Jun.  29,  
                                                  2014              2014              2013              2014              2013      
                                                                                                                                                        
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Net  revenue                      $      1,441    $      1,397    $      1,161    $      2,838    $      2,249  
                                                                                                                                                        
Cost  of  sales                  $          943                910                702    $      1,853            1,345  
                                                                                                                                                        
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Gross  margin                    $          498                487                459                985                904  
                                                                                                                                                        
Gross  margin  %                              35%                35%                40%                35%                40%
                                                                                                                                                        
Research  and                                                                                                                                
  development                    $          277                279                308                556                620  
                                                                                                                                                        
Marketing,  general                                                                                                                    
  and  administrative      $          154                156                171                310                350  
                                                                                                                                                        
Amortization  of                                                                                                                          
  acquired  intangible                                                                                                                
  assets                              $              4                    3                    4                    7                    9  
                                                                                                                                                        
Restructuring  and                                                                                                                      
  other  special                                                                                                                            
  charges,  net                  $              -                    -                    5                    -                  52  
                                                                                                                                                        
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Operating  income                                                                                                                        
  (loss)                              $            63                  49                (29)              112              (127)
                                                                                                                                                        
Interest  income              $              -                    1                    2                    1                    3  
Interest  expense            $          (46)              (47)              (42)              (93)              (86)
Other  expense,  net        $          (49)              (21)                (2)              (70)                (5)
                                                                                                                                                        
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Loss  before  income                                                                                                                    
  taxes                                $          (32)              (18)              (71)              (50)            (215)
                                                                                                                                                        
Provision  for  income                                                                                                                
  taxes                                $              4                    2                    3                    6                    5  
                                                                                                                                                        
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Net  loss                            $          (36)  $          (20)  $          (74)  $          (56)  $        (220)
                                                                                                                                                        
                                                                                                                                                        
Net  loss  per  share                                                                                                                    
                                                                                                                                                        
    Basic                              $      (0.05)  $      (0.03)  $      (0.10)  $      (0.07)  $      (0.29)
                                                                                                                                                        
    Diluted                          $      (0.05)  $      (0.03)  $      (0.10)  $      (0.07)  $      (0.29)
                                                                                                                                                        
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Shares  used  in  per                                                                                                                    
  share  calculation                                                                                                                    
                                                                                                                                                        
    Basic                                          764                761                752                762                751  
                                                                                                                                                        
    Diluted                                      764                761                752                762                751  
                                                                                                                                                        
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
CONDENSED  CONSOLIDATED  STATEMENTS  OF  COMPREHENSIVE  INCOME  (LOSS)                        
(Millions)                                                                                                                                    
                                                                                                                                                        
                                                          Three  Months  Ended                    Six  Months  Ended      
                                            -------------------------------    --------------------  
                                              Jun.  28,      Mar.  29,      Jun.  29,      Jun.  28,      Jun.  29,  
                                                  2014              2014              2013              2014              2013      
                                                                                                                                                        
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Total  comprehensive                                                                                                                  
  loss                                  $          (32)  $          (21)  $          (76)  $          (53)  $        (223)
                                                                                                                                                        
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
CONDENSED  CONSOLIDATED  BALANCE  SHEETS                                                                              
(Millions)                                                                                                                                    
                                                                                                                                                        
                                                                                        ---------    ---------    ---------  
                                                                                          Jun.  28,      Mar.  29,      Dec.  28,  
                                                                                              2014              2014              2013      
                                                                                                                                                        
                                                                                        ---------    ---------    ---------  
                                                                                                                                                        
Assets                                                                                                                                            
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                                  $          503    $          554    $          869  
    Marketable  securities                                                      445                348                228  
    Accounts  receivable,  net                                                872                840                832  
    Inventories,  net                                                                960                869                884  
    Prepaid  expenses  and  other  current  assets              152                  79                  71  
                                                                                                                                                        
                                                                                        ---------    ---------    ---------  
                                                                                                                                                        
            Total  current  assets                                            2,932            2,690            2,884  
                                                                                                                                                        
Long-term  marketable  securities                                          -                  80                  90  
Property,  plant  and  equipment,  net                                329                337                346  
Acquisition  related  intangible  assets,  net                  72                  75                  78  
Goodwill                                                                                    553                553                553  
Other  assets                                                                            360                373                386  
                                                                                        ---------    ---------    ---------  
                                                                                                                                                        
Total  Assets                                                                $      4,246    $      4,108    $      4,337  
                                                                                        =========    =========    =========  
                                                                                                                                                        
Liabilities  and  Stockholders'  Equity                                                                                
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Short-term  debt                                                      $          101    $            60    $            60  
    Accounts  payable                                                                511                483                519  
    Payable  to  GLOBALFOUNDRIES                                            295                213                364  
    Accrued  and  other  current  liabilities                      480                482                530  
    Deferred  income  on  shipments  to                                                                                      
      distributors                                                                      118                146                145  
                                                                                                                                                        
                                                                                        ---------    ---------    ---------  
                                                                                                                                                        
            Total  current  liabilities                                  1,505            1,384            1,618  
                                                                                                                                                        
Long-term  debt                                                                    2,109            2,078            1,998  
Other  long-term  liabilities                                              131                135                177  
                                                                                                                                                        
Stockholders'  equity:                                                                                                              
    Capital  stock:                                                                                                                        
        Common  stock,  par  value                                                  8                    8                    7  
        Additional  paid-in  capital                                    6,905            6,883            6,894  
        Treasury  stock,  at  cost                                            (114)            (114)            (112)
    Accumulated  deficit                                                    (6,299)        (6,263)        (6,243)
    Accumulated  other  comprehensive  income                                                                        
      (loss)                                                                                      1                  (3)                (2)
                                                                                                                                                        
                                                                                        ---------    ---------    ---------  
                                                                                                                                                        
            Total  stockholders'  equity                                    501                511                544  
                                                                                                                                                        
                                                                                        ---------    ---------    ---------  
                                                                                                                                                        
Total  Liabilities  and  Stockholders'  Equity    $      4,246    $      4,108    $      4,337  
                                                                                        =========    =========    =========  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
CONDENSED  CONSOLIDATED  STATEMENT  OF  CASH  FLOWS                                                            
(Millions)                                                                                                                                    
                                                                          Three  Months  Ended      Six  Months  Ended    
                                                                          ------------------    ------------------  
                                                                                    Jun.  28,                        Jun.  28,            
                                                                                        2014                                2014                
                                                                                                                                                        
                                                                          ------------------    ------------------  
                                                                                                                                                        
Cash  flows  from  operating                                                                                                      
  activities:                                                                                                                                
    Net  loss                                                      $                            (36)  $                            (56)
    Adjustments  to  reconcile  net  loss                                                                                  
      to  net  cash  used  in  operating                                                                                        
      activities:                                                                                                                            
        Depreciation  and  amortization                                        53                                  106  
        Employee  stock-based                                                                                                        
          compensation  expense                                                        21                                    44  
        Non-cash  interest  expense                                                  3                                      9  
        Loss  on  debt  redemptions                                                  49                                    64  
        Other                                                                                        (1)                                  (4)
    Changes  in  operating  assets  and                                                                                      
      liabilities:                                                                                                                          
        Accounts  receivable                                                          (32)                                (40)
        Inventories                                                                          (90)                                (76)
        Prepaid  expenses  and  other                                                                                            
          assets                                                                                  (75)                                (84)
        Payable  to  GLOBALFOUNDRIES                                              82                                  (69)
        Accounts  payable,  accrued                                                                                              
          liabilities  and  other                                                      (2)                              (126)
                                                                          ------------------    ------------------  
Net  cash  used  in  operating                                                                                                    
  activities                                                    $                            (28)  $                          (232)
                                                                          ------------------    ------------------  
                                                                                                                                                        
Cash  flows  from  investing                                                                                                      
  activities:                                                                                                                                
    Purchases  of  property,  plant  and                                                                                    
      equipment                                                                                (23)                                (44)
    Purchases  of  available-for-sale                                                                                      
      securities                                                                            (308)                              (618)
    Proceeds  from  sale  and  maturity  of                                                                                
      available-for-sale  securities                                        288                                  488  
                                                                          ------------------    ------------------  
Net  cash  used  in  investing                                                                                                    
  activities                                                    $                            (43)  $                          (174)
                                                                          ------------------    ------------------  
                                                                                                                                                        
Cash  flows  from  financing                                                                                                      
  activities:                                                                                                                                
    Net  proceeds  from  foreign  grants                                                                                    
      and  allowances                                        $                                2    $                                2  
    Proceeds  from  issuance  of  common                                                                                    
      stock                                                                                            1                                      2  
    Proceeds  from  borrowings,  net                                          491                              1,080  
    Repayments  of  long-term  debt  and                                                                                    
      capital  lease  obligations                                              (473)                          (1,042)
    Other                                                                                            (1)                                  (2)
                                                                          ------------------    ------------------  
Net  cash  provided  by  financing                                                                                            
  activities                                                    $                              20    $                              40  
                                                                          ------------------    ------------------  
Net  decrease  in  cash  and  cash                                                                                              
  equivalents                                                                                (51)                              (366)
                                                                          ------------------    ------------------  
Cash  and  cash  equivalents  at                                                                                                
  beginning  of  period                                  $                            554    $                            869  
                                                                          ------------------    ------------------  
Cash  and  cash  equivalents  at  end  of                                                                                  
  period                                                            $                            503    $                            503  
                                                                          ------------------    ------------------  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
SELECTED  CORPORATE  DATA                                                                                                          
(Millions  except  headcount)                                                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                Three  Months  Ended                  Six  Months  Ended  
------------------------------------------------------          -----------------
                                                            Jun.          Mar.          Jun.                  Jun.          Jun.    
                                                            28,            29,            29,                    28,            29,      
Segment  and  Category                                                                                                                
  Information                                    2014          2014          2013                  2014          2013    
                                                                                                                                                        
------------------------------------------------------          -----------------
                                                                                                                                                        
  Computing  Solutions  (1)                                                                                                        
    Net  revenue                              $      669    $      663    $      841            $  1,332    $  1,592  
    Operating  income  (loss)      $          9    $        (3)  $          2            $          6    $      (37)
                                                                                                                                                        
  Graphics  and  Visual                                                                                                                
    Solutions  (2)                                                                                                                          
    Net  revenue                                      772            734            320                1,506            657  
    Operating  income                              82              91                -                    173              16  
                                                                                                                                                        
  All  Other  (3)                                                                                                                            
    Operating  loss                                (28)          (39)          (31)                  (67)        (106)
                                                                                                                                                        
  Total                                                                                                                                            
    Net  revenue                              $  1,441    $  1,397    $  1,161            $  2,838    $  2,249  
    Operating  income  (loss)      $        63    $        49    $      (29)          $      112    $    (127)
                                                                                                                                                        
------------------------------------------------------          -----------------
                                                                                                                                                        
Other  Data                                                                                                                                    
                                                                                                                                                        
  Depreciation  and                                                                                                                      
    amortization,  excluding                                                                                                      
    amortization  of  acquired                                                                                                    
    intangible  assets                  $        49    $        50    $        54            $        99    $      116  
  Capital  additions                    $        23    $        21    $        28            $        44    $        48  
  Adjusted  EBITDA  (4)                $      137    $      139    $        54            $      276    $        94  
  Cash,  cash  equivalents  and                                                                                                  
    marketable  securities          $      948    $      982    $  1,117            $      948    $  1,117  
  Non-GAAP  free  cash  flow                                                                                                        
    (5)                                              $      (51)  $    (225)  $      (63)          $    (276)  $    (238)
  Total  assets                              $  4,246    $  4,108    $  3,897            $  4,246    $  3,897  
  Total  debt                                  $  2,210    $  2,138    $  2,047            $  2,210    $  2,047  
  Headcount                                      10,300      10,397        9,928              10,300        9,928  
                                                                                                                                                        
------------------------------------------------------          -----------------
                                                                                                                                                        
 

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