AMD Reports 2016 First Quarter Results

                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                             
(Millions except per share amounts and percentages)                         
                                                                            
                                               Three Months Ended           
                                     -------------------------------------- 
                                      March 26,   December 26,   March 28,  
                                         2016         2015          2015    
                                     -----------  ------------  ----------- 
Net revenue                          $       832  $        958  $     1,030 
Cost of sales                                563           675          704 
                                     -----------  ------------  ----------- 
Gross margin                                 269           283          326 
Gross margin %                                32%           30%          32%
Research and development                     242           229          242 
Marketing, general and                                                      
 administrative                              105           109          131 
Amortization of acquired intangible                                         
 assets                                        -             -            3 
Restructuring and other special                                             
 charges, net                                 (3)           (6)          87 
Licensing gain                                (7)            -            - 
                                     -----------  ------------  ----------- 
Operating loss                               (68)          (49)        (137)
Interest expense                             (40)          (41)         (40)
Other expense, net                             -            (2)           - 
                                                          -----------    ------------    -----------  
Loss  before  income  taxes                                        (108)                    (92)                (177)
Provision  for  income  taxes                                          1                        10                        3  
                                                                          -----------    ------------    -----------  
Net  loss                                                          $            (109)  $              (102)  $            (180)
Net  loss  per  share                                                                                                                    
Basic                                                                $          (0.14)  $            (0.13)  $          (0.23)
Diluted                                                            $          (0.14)  $            (0.13)  $          (0.23)
                                                                          -----------    ------------    -----------  
Shares  used  in  per  share  calculation                                                                                
Basic                                                                                793                      791                    777  
Diluted                                                                            793                      791                    777  
                                                                          -----------    ------------    -----------  
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
CONDENSED  CONSOLIDATED  STATEMENTS  OF  COMPREHENSIVE  LOSS                                          
(Millions)                                                                                                                                    
                                                                                              Three  Months  Ended                      
                                                                          --------------------------------------  
                                                                            March  26,      December  26,      March  28,    
                                                                                  2016                  2015                    2015        
                                                                          -----------    ------------    -----------  
Total  comprehensive  loss                          $            (107)  $                (95)  $            (187)
                                                                          -----------    ------------    -----------  
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
CONDENSED  CONSOLIDATED  BALANCE  SHEETS  (1)  (2)                                                              
(Millions)                                                                                                                                    
                                                                                                                                                        
                                                                                                  March  26,        December  26,    
                                                                                                        2016                      2015          
                                                                                              -------------    -------------  
Assets                                                                                                                                            
                                                                                                                                                        
Current  assets:                                                                                                                          
                                                                                                                                                        
    Cash  and  cash  equivalents                                        $                  716    $                  785  
    Accounts  receivable,  net                                                              508                        533  
    Inventories,  net                                                                              675                        678  
    Prepayment  and  other  -  GLOBALFOUNDRIES                                    26                          33  
    Prepaid  expenses                                                                                49                          43  
    Other  current  assets                                                                      252                        248  
                                                                                              -------------    -------------  
        Total  current  assets                                                              2,226                    2,320  
Property,  plant  and  equipment,  net                                              176                        188  
Goodwill                                                                                                  278                        278  
Other  assets                                                                                          301                        298  
                                                                                              -------------    -------------  
Total  Assets                                                                      $              2,981    $              3,084  
                                                                                              =============    =============  
                                                                                                                                                        
Liabilities  and  Stockholders'  Equity  (Deficit)                                                            
Current  liabilities:                                                                                                                
    Short-term  debt                                                            $                  230    $                  230  
    Accounts  payable                                                                              324                        279  
    Payable  to  GLOBALFOUNDRIES                                                          233                        245  
    Accrued  liabilities                                                                        347                        472  
    Other  current  liabilities                                                            151                        124  
    Deferred  income  on  shipments  to  distributors                        43                          53  
                                                                                              -------------    -------------  
        Total  current  liabilities                                                    1,328                    1,403  
Long-term  debt                                                                                  2,006                    2,007  
Other  long-term  liabilities                                                            150                          86  
                                                                                                                                                        
Stockholders'  equity  (deficit):                                                                                          
    Capital  stock:                                                                                                                        
        Common  stock,  par  value                                                                8                            8  
        Additional  paid-in  capital                                                  7,033                    7,017  
        Treasury  stock,  at  cost                                                          (123)                    (123)
    Accumulated  deficit                                                                  (7,415)                (7,306)
    Accumulated  other  comprehensive  loss                                        (6)                        (8)
                                                                                              -------------    -------------  
        Total  Stockholders'  equity  (deficit)                                (503)                    (412)
                                                                                              -------------    -------------  
Total  Liabilities  and  Stockholders'  Equity                                                                    
  (Deficit)                                                                          $              2,981    $              3,084  
                                                                                              =============    =============  
                                                                                                                                                        
(1)  Amounts  reflected  adoption  of  FASB  ASU  2015-17,  Balance  Sheet                      
Classification  of  Deferred  Taxes  in  the  first  quarter  of  2016.                            
(2)  Amounts  reflected  adoption  of  FASB  ASU  2015-03,  Simplifying  the                  
Presentation  of  Debt  Issuance  Costs  in  the  first  quarter  of  2016.                      
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
CONDENSED  CONSOLIDATED  STATEMENT  OF  CASH  FLOWS                                                            
(Millions)                                                                                                                                    
                                                                                                                                                        
                                                                                                                              Three  Months  
                                                                                                                                    Ended          
                                                                                                                            -------------  
                                                                                                                                March  26,      
                                                                                                                                      2016          
                                                                                                                            -------------  
                                                                                                                                                        
Cash  flows  from  operating  activities:                                                                              
    Net  Loss                                                                                                        $                (109)
                                                                                                                                                        
    Adjustments  to  reconcile  net  loss  to  net  cash  used  in                                          
      operating  activities:                                                                                                        
                                                                                                                                                        
        Depreciation  and  amortization                                                                                33  
        Stock-based  compensation  expense                                                                          16  
        Non-cash  interest  expense                                                                                          4  
        Other                                                                                                                                (5)
    Changes  in  operating  assets  and  liabilities:                                                            
        Accounts  receivable                                                                                                    26  
        Inventories                                                                                                                      3  
        Prepayment  and  other  -  GLOBALFOUNDRIES                                                                7  
        Prepaid  expenses  and  other  assets                                                                        22  
        Accounts  payable,  accrued  liabilities  and  other                                          (27)
        Payable  to  GLOBALFOUNDRIES                                                                                    (12)
                                                                                                                            -------------  
Net  cash  used  in  operating  activities                                                  $                  (42)
                                                                                                                            -------------  
                                                                                                                                                        
Cash  flows  from  investing  activities:                                                                              
    Purchases  of  property,  plant  and  equipment                                                        (26)
                                                                                                                            -------------  
Net  cash  used  in  investing  activities                                                  $                  (26)
                                                                                                                            -------------  
                                                                                                                                                        
Cash  flows  from  financing  activities:                                                                              
    Other                                                                                                                                    (1)
                                                                                                                            -------------  
Net  cash  used  in  financing  activities                                                  $                    (1)
                                                                                                                            -------------  
Net  decrease  in  cash  and  cash  equivalents                                                              (69)
                                                                                                                            -------------  
Cash  and  cash  equivalents  at  beginning  of  period                            $                  785  
                                                                                                                            -------------  
Cash  and  cash  equivalents  at  end  of  period                                        $                  716  
                                                                                                                            -------------  
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
SELECTED  CORPORATE  DATA                                                                                                          
(Millions  except  headcount)                                                                                                  
                                                                                                Three  Months  Ended                    
----------------------------------------------------------------------------
                                                                            March  26,      December  26,      March  28,    
Segment  and  Category  Information                  2016                    2015                  2015        
----------------------------------------------------------------------------
                                                                                                                                                        
    Computing  and  Graphics  (1)                                                                                                
        Net  revenue                                            $              460    $                470    $              532  
        Operating  loss                                      $              (70)  $                (99)  $              (75)
                                                                                                                                                        
    Enterprise,  Embedded  and  Semi-                                                                                        
      Custom  (2)                                                                                                                              
        Net  revenue                                            $              372    $                488    $              498  
        Operating  income                                  $                16    $                  59    $                45  
                                                                                                                                                        
    All  Other  (3)                                                                                                                          
        Net  revenue                                                                -                          -                        -  
        Operating  loss                                      $              (14)  $                  (9)  $            (107)
                                                                                                                                                        
    Total                                                                                                                                          
        Net  revenue                                            $              832    $                958    $          1,030  
        Operating  loss                                      $              (68)  $                (49)  $            (137)
                                                                                                                                                        
----------------------------------------------------------------------------
                                                                                                                                                        
Other  Data                                                                                                                                    
                                                                                                                                                        
    Depreciation  and  amortization,                                                                                        
      excluding  amortization  of                                                                                                
      acquired  intangible  assets                $                33    $                  34    $                43  
    Capital  additions                                    $                26    $                  32    $                22  
    Adjusted  EBITDA  (4)                                $              (22)  $                  (5)  $                13  
    Cash  and  cash  equivalents                    $              716    $                785    $              906  
    Non-GAAP  free  cash  flow  (5)                $              (68)  $                  27    $            (194)
    Total  assets                                              $          2,981    $            3,084    $          3,399  
    Total  debt                                                  $          2,236    $            2,237    $          2,239  
    Headcount                                                                9,047                  9,139                9,583  
----------------------------------------------------------------------------
                                                                                                                                                        
See  footnotes  on  the  next  page                                                                                            
                                                                                                                                                        
                                                                                                                                                        
(1)  Computing  and  Graphics  segment  primarily  includes  desktop  and  notebook    
        processors,  chipsets,  discrete  graphics  processing  units  (GPUs)  and          
        professional  graphics.                                                                                                    
(2)  Enterprise,  Embedded  and  Semi-Custom  segment  primarily  includes  server    
        and  embedded  processors,  semi-custom  System-on-Chip  (SoC)  products,          
        development  services,  technology  for  game  consoles  and  licensing  gain.    
(3)  All  Other  category  primarily  includes  certain  expenses  and  credits  that  
        are  not  allocated  to  any  of  the  operating  segments.  Also  included  in        
        this  category  are  stock-based  compensation  expense  and  restructuring        
        and  other  special  charges,  net.  In  addition,  the  Company  also  included    
        amortization  of  acquired  intangible  assets  for  the  first  quarter  of          
        2015.                                                                                                                                      
                                                                                                                                                        
(4)  Reconciliation  of  GAAP  Operating  Loss  to  Adjusted  EBITDA*                              
                                                                                                                                                        
                                                                                                Three  Months  Ended                    
                                                                            -------------------------------------  
                                                                              March  26,      December  26,      March  28,  
                                                                                  2016                    2015                  2015        
                                                                            ----------    -------------    ----------  
        GAAP  operating  loss                              $            (68)  $                  (49)  $          (137)
        Restructuring  and  other  special                                                                                  
          charges,  net                                                          (3)                        (6)                  87  
        Stock-based  compensation  expense                    16                          16                    17  
        Amortization  of  acquired                                                                                                
          intangible  assets                                                  -                            -                      3  
        Depreciation  and  amortization                          33                          34                    43  
                                                                            ----------    -------------    ----------  
        Adjusted  EBITDA                                      $            (22)  $                    (5)  $              13  
                                                                            ==========    =============    ==========  
                                                                                                                                                        
(5)  Non-GAAP  free  cash  flow  reconciliation**                                                                
                                                                                                Three  Months  Ended                    
                                                                            -------------------------------------  
                                                                              March  26,      December  26,      March  28,  
                                                                                    2016                  2015                    2015      
                                                                            ----------    -------------    ----------  
        GAAP  net  cash  provided  by  (used                                                                                  
          in)  operating  activities                  $            (42)  $                    59    $          (172)
        Purchases  of  property,  plant  and                                                                                
          equipment                                                              (26)                      (32)                (22)
                                                                            ----------    -------------    ----------  
        Non-GAAP  free  cash  flow                      $            (68)  $                    27    $          (194)
                                                                            ==========    =============    ==========  
                                                                                                                                                        
                                                                                                                                                        
*      The  Company  presents  "Adjusted  EBITDA"  as  a  supplemental  measure  of  its  
        performance.  Adjusted  EBITDA  for  the  Company  is  determined  by  adjusting  
        operating  income  (loss)  for  depreciation  and  amortization,  stock-based    
        compensation  expense  and  restructuring  and  other  special  charges,  net.    
        In  addition,  the  company  excluded  amortization  of  acquired  intangible      
        assets  for  the  first  quarter  of  2015.  The  Company  calculates  and                
        communicates  Adjusted  EBITDA  because  the  Company's  management  believes    
        it  is  of  importance  to  investors  and  lenders  in  relation  to  its  overall  
        capital  structure  and  its  ability  to  borrow  additional  funds.  In                
        addition,  the  Company  presents  Adjusted  EBITDA  because  it  believes  this  
        measure  assists  investors  in  comparing  its  performance  across  reporting  
        periods  on  a  consistent  basis  by  excluding  items  that  the  Company  does    
        not  believe  are  indicative  of  its  core  operating  performance.  The              
        Company's  calculation  of  Adjusted  EBITDA  may  or  may  not  be  consistent      
        with  the  calculation  of  this  measure  by  other  companies  in  the  same          
        industry.  Investors  should  not  view  Adjusted  EBITDA  as  an  alternative      
        to  the  GAAP  operating  measure  of  operating  income  (loss)  or  GAAP                
        liquidity  measures  of  cash  flows  from  operating,  investing  and                    
        financing  activities.  In  addition,  Adjusted  EBITDA  does  not  take  into      
        account  changes  in  certain  assets  and  liabilities  as  well  as  interest      
        and  income  taxes  that  can  affect  cash  flows.                                                        
                                                                                                                                                        
**    The  Company  also  presents  non-GAAP  free  cash  flow  as  a  supplemental          
        measure  of  its  performance.  Non-GAAP  free  cash  flow  is  determined  by        
        adjusting  GAAP  net  cash  provided  by  (used  in)  operating  activities  for    
        capital  expenditures.  The  Company  calculates  and  communicates  non-GAAP    
        free  cash  flow  in  the  financial  earnings  press  release  because  the            
        Company's  management  believes  it  is  of  importance  to  investors  to              
        understand  the  nature  of  these  cash  flows.  The  Company's  calculation  of  
        non-GAAP  free  cash  flow  may  or  may  not  be  consistent  with  the                      
        calculation  of  this  measure  by  other  companies  in  the  same  industry.        
        Investors  should  not  view  non-GAAP  free  cash  flow  as  an  alternative  to    
        GAAP  liquidity  measures  of  cash  flows  from  operating  activities.  The        
        Company  has  provided  reconciliations  within  the  earnings  press  release    
        of  these  non-GAAP  financial  measures  to  the  most  directly  comparable        
        GAAP  financial  measures.                                                                                                
                                                                                                                                                        
 

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