AMD Reports Fourth Quarter and Annual Results

AMD Teleconference

AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its 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. The webcast will be available for 10 days after the conference call.

About AMD

Advanced Micro Devices (NYSE:AMD) is an innovative technology company dedicated to collaborating with customers and partners to ignite the next generation of computing and graphics solutions at work, home and play. For more information, visit http://www.amd.com

Cautionary Statement

This release contains forward-looking statements concerning the expected closing of The Foundry Company joint venture and the increased investment by the Mubadala Development Company, first quarter 2009 revenue, and the company’s breakeven goals, restructuring actions, asset smart strategy and its future products and technologies, 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 “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects,” 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 targeting the company’s business will prevent attainment of the company’s current plans; global business and economic conditions will continue in their current state or worsen, resulting in lower than currently expected revenue in the first quarter of 2009 and beyond; the company’s Asset Smart strategy will not reach fruition or will be less beneficial than anticipated; the announced transaction for the formation of The Foundry Company and the associated fourth-party investment will not occur as anticipated; demand for computers and consumer electronics products and, in turn, demand for the company’s products will be lower than currently expected; customers stop buying the company’s products or materially reduce their demand for its products; the company will require additional funding and may not be able to raise funds on favorable terms or at all; the company’s restructuring efforts will not be effective; the company will be unable to develop, launch and ramp new products and technologies in the volumes and mix required by the market and at mature yields on a timely basis; there will be unexpected variations in market growth and demand for the company’s products and technologies in light of the product mix that it may have available at any particular time or a decline in demand; the company will be unable to transition to advanced manufacturing process technologies in a timely and effective way, consistent with planned capital expenditures; the company will be unable to maintain the level of investment in research and development and capacity that is required to remain competitive; and the company will be unable to obtain sufficient manufacturing capacity or components to meet demand for its products or will under-utilize its microprocessor manufacturing facilities. Investors are urged to review in detail the risks and uncertainties in the company’s Securities and Exchange Commission filings, including but not limited to the Quarterly Report on Form 10-Q for the quarter ended September 27, 2008.

AMD, the AMD Arrow logo, AMD Opteron, AMD Phenom, AMD Athlon and combinations thereof, and ATI, the ATI logo, FireGL, CrossFireX and Radeon 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.

                   

Reconciliation of GAAP to Non-GAAP Net Loss 1, 2

(Millions except per share amounts) Q4-08 Q3-08 Q4-07 2008   2007  
GAAP net loss / EPS $ (1,424 ) $ (2.34 ) $ (127 ) $ (0.21 ) $ (1,772 ) $ (3.06 ) $ (3,098 ) $ (5.10 ) $ (3,379 ) $ (6.06 )
Loss from discontinued operations (10 ) (0.02 ) (150 ) (0.25 ) (474 ) (0.82 ) (684 ) (1.12 ) (551 ) (0.99 )
Income (loss) from continuing operations (1,414 ) (2.32 ) 23 0.04 (1,298 ) (2.24 ) (2,414 ) (3.98 ) (2,828 ) (5.07 )
ATI impairment of goodwill and acquired intangible assets (684 ) (1.12 ) (2 ) - (1,132 ) (1.96 ) (1,089 ) (1.79 ) (1,132 ) (2.03 )
Incremental write-down of inventory (227 ) (0.37 ) - - - - (227 ) (0.37 ) - -
Process technology license revenue - - 191 0.31 - - 191 0.31 - -
Gain on sale of 200 millimeter equipment - - - - - - 193 0.32 - -
Marketable securities net impairment charges (21 ) (0.03 ) (9 ) (0.01 ) (69 ) (0.12 ) (66 ) (0.11 ) (111 ) (0.20 )
Amortization of acquired intangibles, integration and other charges (30 ) (0.05 ) (30 ) (0.05 ) (50 ) (0.09 ) (137 ) (0.23 ) (254 ) (0.46 )
Restructuring charges (50 ) (0.08 ) (9 ) (0.01 ) - - (90 ) (0.15 ) - -
Tax benefit from ATI acquisition-related charges - - - - 46 0.08 - - 46 0.08
The Foundry Company formation costs (23 ) (0.04 ) (4 ) (0.01 ) (3 ) (0.01 ) (35 ) (0.06 ) (3 ) (0.01 )
Gain on debt buyback 39 0.06 - - - - 39 0.06 - -
Cost of fair value adjustment of acquired inventory - - - - - - - - (25 ) (0.04 )
Debt issuance charges - - - - - - - - (5 ) (0.01 )
Non-GAAP net loss $ (418 ) $ (114 ) $ (90 ) $ (1,193 ) $ (1,344 )
 

Reconciliation of GAAP to Non-GAAP Operating Income (Loss) 1, 2

(Millions)   Q4-08   Q3-08   Q4-07   2008   2007
GAAP operating income (loss) $ (1,274) $ 122 $ (1,187) $ (1,955) $ (2,310)
ATI impairment of goodwill and acquired intangible assets (684) (2) (1,132) (1,089) (1,132)
Incremental write-down of inventory (227) - - (227) -
Process technology license revenue - 191 - 191 -
Gain on sale of 200 millimeter equipment - - - 193 -
Amortization of acquired intangibles, integration and other charges (30) (30) (50) (137) (254)
Restructuring charges (50) (9) - (90) -
The Foundry Company formation costs (23) (4) (3) (35) (3)
Cost of fair value adjustment of acquired inventory - - - - (25)
Non-GAAP operating loss $ (260) $ (24) $ (2) $ (761) $ (896)
 
 

Reconciliation of GAAP to Non-GAAP Gross Margin 2

(Millions, except percentages) Q4-08 Q3-08 Q4-07 2008 2007
GAAP Gross Margin $ 272 $ 916 $ 769 $ 2,320 $ 2,189
GAAP Gross Margin % 23% 51% 44% 40% 37%
Incremental write-down of inventory (227) - - (227) -
Process technology license revenue - 191 - 191 -
Cost of fair value adjustment of acquired inventory - - - - (25)
Non-GAAP Gross Margin $ 499 $ 725 $ 769 $ 2,356 $ 2,214
Non-GAAP Gross Margin %* 43% 45% 44% 42% 38%
*For Q3-08 the revenue number used in the gross margin percent calculation excludes $191 million of process technology license revenue
 
 
Segment Information
(Millions) Q4-08 vs Q3-08 vs Q4-07 2008 vs 2007
Computing Solutions (including process technology license revenue in Q3-08)
Revenue $ 873 -37% -38% $ 4,559 -3%
Microprocessor Units down down down
Microprocessor Average Selling Prices (ASP) down down down
Graphics (including game console royalties)
Revenue $ 270 -30% -8% $ 1,165 17%
Graphic Processor Units down down up
Graphic Processor Average Selling Prices (ASP) up up up

« Previous Page 1 | 2 | 3 | 4 | 5 | 6  Next Page »



Review Article Be the first to review this article
 True Circuits: IOT PLL

Aldec Simulator Evaluate Now

Featured Video
Jobs
Senior Formal FAE Location OPEN for EDA Careers at San Jose or Anywhere, CA
Senior PIC Test Development Engineer for Infinera Corp at Sunnyvale, CA
RF IC Design Engineering Manager for Intel at Santa Clara, CA
ASIC Design Engineer for Infinera Corp at Sunnyvale, CA
Principal PIC Hardware Controls Engineer for Infinera Corp at Sunnyvale, CA
Upcoming Events
IC Open Innovation Panel During REUSE 2017 at Santa Clara Convention Center 5001 Great America Parkway Santa Clara CA - Dec 14, 2017
Essentials of Electronic Technology: A Crash Course at Columbia MD - Jan 16 - 18, 2018
Essentials of Digital Technology at MD - Feb 13 - 14, 2018
CST: Webinar series
TrueCircuits: IoTPLL



Internet Business Systems © 2017 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise