<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (date of earliest event reported): October 7, 1996
ADVANCED MICRO DEVICES, INC.
----------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 1-7882 94-1692300
-------- ------ ----------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
One AMD Place,
P.O. Box 3453
Sunnyvale, California 94088-3453
- ---------------------------------------- ----------
(address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (408) 732-2400
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Page 1 of 4
<PAGE>
Item 5. Other Events.
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On October 7, 1996, Advanced Micro Devices, Inc. (the "Company")
announced its third quarter revenues. The Company reported a net loss of
$38,362,000 on sales of $456,862,000. The loss amounted to $0.28 per common
share on a fully-diluted basis. The results include a charge of approximately
$6,000,000 for employee severance pay and benefits associated with a workforce
reduction. The full text of the press release is set forth in Exhibit 99
attached hereto and is incorporated in this report as if fully set forth herein.
Item 7. Financial Statements and Exhibits.
- ------- ----------------------------------
(c) Exhibits:
99 Press release dated October 7, 1996
2
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ADVANCED MICRO DEVICES, INC.
(Registrant)
Date: October 11, 1996 By: /s/ Geoff Ribar
_____________________________
Geoff Ribar
Vice President
Corporate Controller
3
<PAGE>
Exhibit Index
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Exhibit Number Exhibit
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99 Press release dated July 10, 1996
4
<PAGE>
[LETTERHEAD OF AMD APPEARS HERE]
CONTACT:
TOM STITES
COMMUNICATIONS
(408) 749-2918
AMD REPORTS THIRD QUARTER RESULTS
SUNNYVALE, CA--OCTOBER 7, 1996--AMD today reported a net loss of
$38,362,000 on sales of $456,862,000 for its third quarter, ended September 29,
1996. The loss amounted to $0.28 per share on a fully-diluted basis. The results
include a charge of approximately $6,000,000 for employee severance pay and
benefits associated with a work force reduction.
Sales for the like period of 1995 amounted to $606,953,000, which resulted
in net income of $42,000,000, or $0.30 per share fully diluted.
In the immediate-prior quarter, AMD reported sales of $455,077,000, which
resulted in a net loss of $34,672,000, or a loss of $0.26 per share fully
diluted. The company's second-quarter results included a non-recurring, pre-tax
gain of $16.3 million resulting from a sale of securities.
For the first nine months of 1996, AMD reported total revenues of
$1,456,151,000, which resulted in a net loss applicable to common shareholders
of $47,707,000, or $0.35 per common share fully diluted. For the first nine
months of 1995, AMD reported revenues of $1,873,201,000, which resulted in net
income applicable to common shareholders of $206,972,000 or $1.51 per share
fully diluted.
-more-
<PAGE>
2
"Overall, bookings improved significantly from the levels of the second
quarter, but the book-to-bill ratio remained below 1:1," said W.J. Sanders III,
chairman and chief executive officer, in commenting on the company's three major
business segments.
"Revenues from our Programmable Logic Devices (PLD) business unit were down
slightly from the immediate-prior quarter," Sanders continued. "Sales of AMD's
MACH/(R)/ family of complex PLDs remained at near-record levels in a generally
weak PLD market.
"Revenues from AMD's Communications and Components Group (CCG) also
declined slightly from the second quarter," Sanders said. "Flash memory sales
resumed growth, and AMD recorded higher revenues on record unit sales. Telephony
products achieved record revenues during the quarter. These gains were offset,
however, by sharply lower EPROM sales.
"Revenues from our Computation Products Group (CPG) -- primarily
Microsoft/(R)/ Windows/(R)/-compatible microprocessors -- grew from the
immediate-prior quarter. Shipments of AMD-K5/(TM)/ microprocessors more than
doubled to 500,000 units, led by sales of the AMD-K5-PR100/(TM)/ microprocessor.
With today's introduction of AMD-K5-PR133/(TM)/ and AMD-K5-PR120/(TM)/ devices,
the AMD-K5 family now addresses 70 percent of the desktop market.
"The aggregate results from CCG and PLD were once again unable to
offset the losses we are incurring in CPG, where revenues are currently
insufficient to absorb the substantial fixed costs of maintaining our strategic
commitment to the Microsoft Windows-compatible microprocessor market," Sanders
concluded.
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3
Cautionary Statement
The forward looking statement in the above release concerning the Company's
microprocessor products involves a number of risks and uncertainties. Among the
factors that could cause actual results to differ materially from presently
anticipated results are the following: success in ramping the production of
higher-performance products; shifts in market demand; verification of
compatibility with industry-standard software and hardware; and such other risks
and uncertainties as are detailed in "Management's Discussion and Analysis of
Results of Operations and Financial Condition" contained in the Company's most
recently filed annual report on Form 10-K, and the company's most recently filed
quarterly report on Form 10Q.
WORLD WIDE WEB: Press announcements and other information about AMD are
available on the Internet via the World Wide Web. Type http://www.amd.com at
the URL prompt.
MICROSOFT AND WINDOWS ARE REGISTERED TRADEMARKS OF MICROSOFT CORPORATION.
AMD-K5, AMD-K5-PR100/120/133, AMD, THE AMD LOGO AND COMBINATIONS THEREOF ARE
TRADEMARKS OF ADVANCED MICRO DEVICES, INC.
<PAGE>
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
----------------------------------------------------------------------------------------------------
Sept. 29, June 30, October 1, Sept. 29, October 1,
1996 1996 1995 1996 1995
(Restated)* (Restated)*
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET SALES $456,862 $455,077 $606,953 $1,456,151 $1,873,201
Cost of sales 337,692 379,779 368,359 1,086,206 989,949
Research and development 105,656 92,768 106,237 293,204 308,806
Marketing, general and
administrative 90,432 83,063 102,549 276,506 311,885
- -----------------------------------------------------------------------------------------------------
533,780 555,610 577,145 1,655,916 1,610,640
- -----------------------------------------------------------------------------------------------------
Operating income (loss) (76,918) (100,533) 29,808 (199,765) 262,561
Interest income and other, net 4,214 23,039 10,408 55,312 24,441
Interest expense (3,443) (1,812) (315) (7,236) (1,394)
- -----------------------------------------------------------------------------------------------------
Income (loss) before income taxes
and equity in joint venture (76,147) (79,306) 39,901 (151,689) 285,608
Provision (credit) for income
taxes (30,459) (31,723) 10,212 (62,182) 92,052
- -----------------------------------------------------------------------------------------------------
Income (loss) before equity
in joint venture (45,688) (47,583) 29,689 (89,507) 193,556
Equity in net income of
joint venture 7,326 12,911 12,311 41,800 13,426
- -----------------------------------------------------------------------------------------------------
NET INCOME (LOSS) (38,362) (34,672) 42,000 (47,707) 206,982
Preferred stock dividends - - - - 10
- -----------------------------------------------------------------------------------------------------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS ($38,362) ($34,672) $42,000 ($47,707) $206,972
- -----------------------------------------------------------------------------------------------------
NET INCOME (LOSS) PER COMMON SHARE
- - Primary ($0.28) ($0.26) $0.30 ($0.35) $1.53
- - Fully diluted ($0.28) ($0.26) $0.30 ($0.35) $1.51
- -----------------------------------------------------------------------------------------------------
Shares used in per share calculation
- - Primary 136,082 135,266 139,288 135,019 135,451
- - Fully diluted 136,082 135,266 139,434 135,019 137,617
- -----------------------------------------------------------------------------------------------------
</TABLE>
* Restated from previously released financial information as a result of the
January 1996 merger with NexGen, Inc.
<PAGE>
ADVANCED MICRO DEVICES, INC. INFORMATION ONLY
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS*
(INCLUDES PRE-TAX FASL INVESTMENT EQUITY INCOME IN OPERATING INCOME (LOSS))
(THOUSANDS EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
(Unaudited) (Unaudited)
- ----------------------------------------------------------------------------------------------------------
September 29, June 30, October 1, September 29, October 1,
1996 1996 1995 ** 1996 1995 **
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET SALES $456,862 $455,077 $606,953 $1,456,151 $1,873,201
Cost of sales 337,692 379,779 368,359 1,086,206 989,949
Net income from equity
investment in FASL (11,272) (19,863) (18,940) (64,309) (20,655)
Research and development 105,656 92,768 106,237 293,204 308,806
Marketing, general and
administrative 90,432 83,063 102,549 276,506 311,885
- ----------------------------------------------------------------------------------------------------------
522,508 535,747 558,205 1,591,607 1,589,985
- ----------------------------------------------------------------------------------------------------------
Operating income (loss) (65,646) (80,670) 48,748 (135,456) 283,216
Interest income and other, net 4,214 23,039 10,408 55,312 24,441
Interest expense (3,443) (1,812) (315) (7,236) (1,394)
- ----------------------------------------------------------------------------------------------------------
Income (loss) before income taxes
and equity in joint venture (64,875) (59,443) 58,841 (87,380) 306,263
Provision (credit) for income
taxes (30,459) (31,723) 10,212 (62,182) 92,052
Provision for taxes on equity
in income of FASL 3,946 6,952 6,629 22,509 7,229
- ----------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) (38,362) (34,672) 42,000 (47,707) 206,982
Preferred stock dividends - - - - 10
- ----------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS ($38,362) ($34,672) $42,000 ($47,707) $206,972
- ----------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) PER COMMON SHARE
- Primary ($0.28) ($0.26) $0.30 ($0.35) $1.53
- Fully diluted ($0.28) ($0.26) $0.30 ($0.35) $1.51
- ----------------------------------------------------------------------------------------------------------
Shares used in per share calculation
- Primary 136,082 135,266 139,288 135,019 135,451
- Fully diluted 136,082 135,266 139,434 135,019 137,617
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* The above statements of operations are not in accordance with generally
accepted accounting principles (GAAP) in that the pre-tax equity income of
FASL has been reclassified and included in the determination of operating
income (loss). Net income (loss) and related net income (loss) per common
share amounts are the same as those reported under GAAP.
** Financial results for 1995 have been restated to include the historical
financial information of NexGen, Inc.
<PAGE>
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
<TABLE>
<CAPTION>
September 29, December 31,
1996 1995
(Unaudited) (Audited)
(Restated)*
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Current assets:
<S> <C> <C>
Cash, cash equivalents, and short-term investments $ 361,344 $ 509,665
Accounts receivable, net 234,242 284,238
Inventories 163,489 155,986
Deferred income taxes 149,289 147,489
Prepaid expenses and other current assets 95,287 40,564
- --------------------------------------------------------------------------------
Total current assets 1,003,651 1,137,942
Property, plant, and equipment, net 1,733,267 1,641,634
Investment in joint venture 192,128 176,821
Other assets 124,946 122,070
- --------------------------------------------------------------------------------
$3,053,992 $3,078,467
================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
- --------------------------------------------------------------------------------
Current liabilities:
<S> <C> <C>
Notes payable to banks $ 12,902 $ 26,770
Accounts payable 166,791 241,916
Accrued compensation and benefits 73,333 106,347
Accrued liabilities 107,617 103,404
Income tax payable 148 56,297
Deferred income on shipments to distributors 85,936 100,057
Current portion of long-term debt and capital
lease obligations 27,711 41,642
- --------------------------------------------------------------------------------
Total current liabilities 474,438 676,433
Deferred income taxes 97,407 84,607
Long-term debt and capital lease obligations,
less current portion 445,489 214,965
Stockholders' equity:
Capital stock:
Common stock, par value 1,413 1,050
Capital in excess of par value 943,077 908,989
Retained earnings 1,092,168 1,192,423
- --------------------------------------------------------------------------------
Total stockholders' equity 2,036,658 2,102,462
- --------------------------------------------------------------------------------
$3,053,992 $3,078,467
================================================================================
</TABLE>
* Restated from previously released financial information as a result of the
January 1996 merger with NexGen, Inc.
<PAGE>
<TABLE>
<CAPTION>
AMD
SELECTED CORPORATE DATA
(UNAUDITED)
- ---------------------------------------------------------------------------------------------
PRODUCT LINE BREAKDOWN* Q3 '96 Q2 '96 Q3 '95
- -----------------------
% OF SALES REVENUE % OF SALES REVENUE % OF SALES REVENUE
---------- ------- ---------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Communications and
Components Group 62 $ 284M 64 $ 290M 54 $ 324M
Programmable Logic Division 13 58M 13 62M 11 68M
(TBN)
Computation Products Group 25 115M 23 103M 35 215M
</TABLE>
<TABLE>
<CAPTION>
OTHER DATA Q3 '96 Q2 '96 Q3 '95
- ------------------- ------ ------ ------
<S> <C> <C> <C>
Depreciation $ 85M $ 82M $ 66M
Capital Spending 143M 116M 169M
Headcount 12,388 12,535 12,594
International Sales 53% 53% 56%
</TABLE>
* Restated to include NEXGEN
