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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 January 10, 1996
ADVANCED MICRO DEVICES, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 1-7882 94-1692300
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(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
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(address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (408) 732-2400
Page 1 of 4
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Item 5. Other Events.
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On January 10, 1996, Advanced Micro Devices, Inc. (the "Company") issued a
press release announcing its financial results for the year ended December 31,
1995, and for the fourth quarter of the year. 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.
Except for the historical information contained in the Company's press
release, certain of the matters discussed in the press release are forward
looking statements that involve risks and uncertainties, including the timely
development and acceptance of new products, the impact of competitive products
and pricing and such risks and uncertainties as are described in registration
statements, reports and other documents filed by the Company from time to time
with the Securities and Exchange Commission pursuant to the Securities Act of
1933 and the Securities Exchange Act of 1934. Specific reference is made to the
risks and uncertainties described in the Registration Statement on Form 3-4
(Registration No. 33-64911) filed by the Company in connection with its planned
acquisition of NexGen, Inc., and, in particular, to the risk factors entitled
"Fluctuations in Operating Results," "Personal Computer Marketplace" and
"Dependence on Microprocessor Revenues."
Item 7. Financial Statements and Exhibits.
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(c) Exhibits:
99 Press release dated January 10, 1996
2
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SIGNATURES
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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: January 12, 1996 By: /s/ Marvin D. Burkett
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Marvin D. Burkett
Senior Vice President,
Chief Financial and
Administrative Officer and
Treasurer
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Exhibit Index
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99 Press release dated January 10, 1996
4
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[LETTERHEAD OF ADVANCED MICRO DEVICES, INC.]
NEWS RELEASE
For further information:
Chuck Mulloy
(408) 749-5481
AMD REPORTS 1995 YEAR-END RESULTS
SUNNYVALE, CA ... January 10, 1996 ... Advanced Micro Devices (AMD) today
reported 1995 year-end sales of $2,429,724,000, an increase of 14 percent
compared to the $2,134,659,000 reported for fiscal 1994. Net income applicable
to common stockholders was $300,511,000, compared to $294,916,000 for 1994.
Earnings per share were $2.81 on a fully diluted basis, compared to $2.92 per
share fully diluted reported for 1994.
Sales for the fourth quarter of 1995 were $539,029,000, up nine percent compared
to $545,168,000 reported for the fourth quarter of 1994. Third quarter sales
were $590,385,000. Net income applicable to common stockholders was $55,572,000
or $0.52 per share, up 46 percent compared to $38,171,000 or $0.39 per share
fully diluted earned in the fourth quarter of 1994. The fourth quarter 1994 net
income reflected a one-time charge for a litigation settlement. Third quarter
1995 net income was $56,163,000 or $0.52 per share. Net income in the fourth
quarter of 1995 benefited from a lower tax rate.
The company again reported strong demand for its flash products. "Sales of our
flash devices grew over 20 percent on a sequential basis and nearly tripled
year-over-year," said W.J. Sanders III, chairman and chief executive officer of
AMD. "Late in the quarter we began sampling our new 3 volt-only flash memory
products, which we believe will gain wide acceptance for battery powered
applications in 1996."
More...
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2
Overall sales in the fourth quarter were only nominally higher over the third
quarter due to lower than expected unit shipments of Am486(R) microprocessors.
"With the exception of Microsoft(R) Windows(R)-compatible microprocessors, our
product sales increased by eight percent sequentially and more than 36 percent
for the year," Sanders said.
In December, AMD broadly sampled customers with the first member of its K86(TM)
Superscalar Family of Microsoft Windows-compatible microprocessors, code named
SSA/5-75. This microprocessor is a plug-in replacement for a Pentium 75. Also
during the quarter, AMD commenced shipments of its AM5x86(TM)-P75
microprocessor. This device exceeds the performance of a Pentium 75 while
maintaining socket compatibility with 486 motherboards. Both products are
manufactured on AMD's 0.35 micron logic process technology.
Focusing on personal and networked computing and communications markets,
Advanced Micro Devices, Inc., produces microprocessors and related peripherals,
flash memories, programmable logic devices, and circuits for telecommunications
and networking applications. Founded in 1969, AMD has sales and manufacturing
facilities worldwide.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: Statements in this release looking forward in time involve risks and
uncertainties, including product demand and market acceptance risks, the effect
of changing economic conditions, the impact of competitive products and pricing,
risks in technology development, risks in product development and
commercialization, the effect of the company's accounting policy, and other risk
factors detailed in the company's Securities and Exchange Commission filings.
###
Am5x86 and K86 are trademarks of Advanced Micro Devices.
Am486 is a registered trademark of Advanced Micro Devices.
Microsoft and Windows are registered trademarks of Microsoft Corporation.
All other product names used in this press release are for identification
purposes only and may be trademarks of their respective companies.
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3
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(Thousands except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended Year Ended
(Unaudited) (Audited)
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Dec. 31, Oct. 1, Dec. 25, Dec. 31, Dec. 25,
1995 1995 1994 1995 1994
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<S> <C> <C> <C> <C> <C>
Net sales.................................... $593,029 $590,385 $545,168 $2,429,724 $2,134,659
Cost of sales................................ 362,801 344,344 263,837 1,298,876 982,306
Research and development..................... 104,009 100,014 76,115 397,555 279,984
Marketing, general, and administrative....... 95,181 95,525 87,236 385,016 359,230
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561,991 539,883 427,188 2,081,447 1,621,520
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Operating income............................. 31,038 50,502 117,980 348,277 513,139
Litigation settlement........................ - - (58,000) - (58,000)
Interest income and other, net............... 7,526 9,867 5,317 30,763 16,259
Interest expense............................. (706) - (1) (707) (1,844)
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Income before income taxes and equity
in joint venture............................ 37,858 60,369 65,296 378,333 469,554
Provision for income taxes................... 3,786 16,517 21,548 112,738 153,703
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Income before equity in joint venture........ 34,072 43,852 43,748 265,595 315,851
Equity in net income (loss) of joint
venture..................................... 21,500 12,311 (2,989) 34,296 (10,585)
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Net income................................... 55,572 56,163 40,759 300,521 305,266
Preferred stock dividends.................... - - 2,588 10 10,350
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Net income applicable to common
stockholders................................ 55,572 56,163 38,171 300,511 294,916
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Net income per common share
- - Primary.................................... $0.52 $0.52 $0.39 $2.85 $3.02
- - Fully diluted.............................. $0.52 $0.52 $0.39 $2.81 $2.92
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Shares used in per share calculation
- - Primary.................................... 106,799 107,318 98,636 105,575 97,510
- - Fully diluted.............................. 106,799 107,319 105,490 107,035 104,570
</TABLE>
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4
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
<TABLE>
<CAPTION>
December 31, December 25,
1995 1994
(Audited) (Audited)
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Assets
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<S> <C> <C>
Current assets:
Cash, cash equivalents, and short-term
investments..................................... $ 490,647 $ 377,854
Accounts receivable, net......................... 275,733 337,107
Inventories...................................... 154,670 128,690
Deferred income taxes............................ 108,989 98,675
Prepaid expenses and other current assets........ 66,729 44,293
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Total current assets......................... 1,096,768 986,619
Property, plant, and equipment, net.............. 1,636,092 1,264,211
Investment in joint venture...................... 176,821 124,588
Other assets..................................... 121,587 70,284
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$3,031,268 $2,445,702
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Liabilities and Stockholders' Equity
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Current liabilities:
Notes payable to banks........................... $ 27,070 $ 32,459
Accounts payable................................. 223,708 149,122
Accrued compensation and benefits................ 105,651 104,526
Accrued liabilities.............................. 79,092 82,570
Litigation settlement............................ - 58,000
Income tax payable............................... 56,297 53,795
Deferred income on shipments to distributors..... 100,057 83,800
Current portion of long-term debt and
capital lease obligations....................... 29,861 27,895
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Total current liabilities.................... 621,736 592,167
Deferred income taxes.............................. 94,439 42,518
Long-term debt and capital lease obligations,
less current portion.............................. 214,965 75,752
Stockholders' equity:
Capital stock:
Serial preferred stock, par value.............. - 34
Common stock, par value........................ 1,047 956
Capital in excess of par value................... 735,825 698,673
Retained earnings................................ 1,363,256 1,035,602
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Total stockholders' equity................... 2,100,128 1,735,265
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$3,031,268 $2,445,702
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