<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): April 9, 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
Page 1 of 4
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Item 5. Other Events.
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On April 9, 1996, Advanced Micro Devices, Inc. (the "Company") announced
its first quarter revenues. The Company reported sales of $544,212,000. Net
income amounted to $25,327,000 or $0.18 per common share on a fully diluted
basis. The results include non-recurring charges of $8.7 million for expenses
associated with the Company's merger with NexGen, Inc., on January 17, 1996, and
a non-recurring pre-tax gain of $24.7 million resulting from a sale of
securities. 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 attached press
release, the matters discussed in the press release are forward-looking
statements. These statements involve risks and uncertainties that could cause
actual results to differ from predicted results. The Company's production plans
are subject to change depending on customers inventory levels and orders for the
Company's products, changed industry and Company forecasts of demand, the timing
of introduction of higher-performance fifth-generation microprocessors and
other products, and the pace at which the Company is able to ramp production of
fifth generation microprocessors in FAB 25. The Company's success in producing
and selling products as planned is subject to numerous risks and uncertainties
including those related to the potentially adverse effects of marketing and
pricing strategies adopted by Intel Corporation which has a dominant position in
the microprocessor market, the possibility that products newly introduced by the
Company may fail to achieve market acceptance or that any of the Company's
products may be found to be defective, possibly adverse conditions in the
personal computer market and unexpected interruptions in the Company's
manufacturing operations. Information on the factors that could affect the
Company's financial results are set forth in the Company's SEC filings,
including the recently filed report on Form 10-K for the year ended December 31,
1995.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits:
99 Press release dated April 9, 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)
/s/ Marvin D. Burkett
Date: April 12, 1996 By: -----------------------------
--- Marvin D. Burkett
Senior Vice President, Chief
Financial and Administrative
Officer and Treasurer
3
<PAGE>
Exhibit Index
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Exhibit Number Exhibit
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99 Press release dated April 9, 1996
4
<PAGE>
NEWS RELEASE [LETTER HEAD OF AMD APPEARS HERE]
For further information:
Tom Stites
(408) 749-2918
AMD REPORTS FIRST QUARTER RESULTS
SUNNYVALE, CA ... April 9, 1996 ... AMD today reported sales of $544,212,000 for
the quarter ended March 31, 1996. Net income amounted to $25,327,000, or $0.18
per common share on a fully diluted basis. The results include non-recurring
charges of $8.7 million for expenses associated with AMD's merger with NexGen,
Inc., which was completed on January 17, 1996, and a non-recurring pre-tax gain
of $24.7 million resulting from a sale of securities.
Sales for the like period of 1995 amounted to $627,381,000, which resulted in
net income of $84,320,000, or $0.63 per common share on a fully diluted basis.
Sales for the immediate-prior quarter amounted to $595,178,000, which resulted
in net income of $9,344,000, or $0.07 per common share on a fully diluted basis.
(Financial results for 1995 have been restated to include the historical
financial information of NexGen, Inc.)
"Our Non-Volatile Memory Division, with sales of flash memories primarily from
our Fujitsu AMD Semiconductor Limited joint venture, contributed substantially
to earnings in the first quarter," said W.J. Sanders III, chairman and chief
executive officer. "The earnings from our other product lines were more than
offset by losses incurred in our X86 microprocessor business, where we continued
to feel the effects of the lack of a fifth-generation microprocessor for the
Microsoft(R) Windows(R)-compatible personal computer market. Our megafab in
Austin, Texas, was substantially underutilized in the face of weak demand for
Am486(R) core-based products.
(more)
<PAGE>
2
"At the end of the quarter we made initial shipments of our AMD5\K\86(TM)-P75
and-P90 products, which are plug-in replacements for 75- and 90-megahertz
Pentium microprocessors. We are currently executing to a plan consistent with
our goal of producing more than 3 million AMD5\K\86 microprocessors during the
remainder of 1996 and more than 5 million units through the first quarter of
1997," Sanders said.
"The current industry-wide downturn in demand for integrated circuits in the
personal computer segment makes projections about future prospects problematic,"
Sanders continued. "We believe that original equipment manufacturers have
accumulated more inventory than desirable in recent months, and we do not expect
an upturn in demand until those inventories have been brought down to support
consumption levels.
"The best way to predict the future now is to create it. As the leader in
networking ICs and flash memories, and with our AMD5\K\86 plug-in alternative
to the Pentium microprocessor now in volume production, AMD will move
aggressively to capture available business as we await a general upturn in
demand," Sanders concluded.
Except for the historical information contained in this release, the matters
discussed above are forward-looking statements. The forward-looking statements
involve risks and uncertainties that could cause actual results to differ from
predicted results. The company's production plans are subject to change
depending on customer inventory levels and orders for the company's products,
changed industry and company forecasts of demand, the timing of introduction of
higher-performance fifth-generation microprocessors and other products, and the
pace at which the company is able to ramp production of microprocessors in Fab
25. Further information on the factors that could affect the company's financial
results are set forth in the company's SEC filings, including the recently filed
report on Form 10-K for the year ended December 31, 1995.
(more)
<PAGE>
3
AMD is a global supplier of integrated circuits for the personal and networked
computer and communications markets. A FORTUNE 500 company, AMD produces
processors, flash memories, programmable logic devices, and products for
communications and networking applications. Founded in 1969, AMD is based in
Sunnyvale, California, and has sales and manufacturing facilities worldwide.
The company had revenues of $2.5 billion in 1995 (NYSE: AMD).
Am486 and AMD5\K\86 are trademarks of Advanced Micro Devices, Inc. Microsoft and
Windows are registered trademarks of Microsoft Corporation.
AMD, the AMD logo and combinations thereof are trademarks of Advanced Micro
Devices, Inc.
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.
AMD news release #96CORP13 9635
<PAGE>
4
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(THOUSANDS EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Quarter Ended
(Unaudited)
- --------------------------------------------------------------------------------------------------------------------------------
Mar. 31, Dec. 31, Apr. 2,
1996 1995 1995
(Restated)* (Restated)*
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NET SALES $ 544,212 $ 595,178 $ 627,381
Cost of sales 368,735 427,058 305,685
Research and development 94,780 107,715 96,874
Marketing, general, and 103,011 100,766 102,734
administrative
- --------------------------------------------------------------------------------------------------------------------------------
566,526 635,539 505,293
- --------------------------------------------------------------------------------------------------------------------------------
Operating income (loss) (22,314) (40,361) 122,088
Interest income and other, net 28,059 7,526 6,713
Interest expense (1,981) (1,167) (233)
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes
and equity in joint venture 3,764 (34,002) 128,568
Provision (credit) for income
taxes - (21,846) 42,824
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) before equity
in joint venture 3,764 (12,156) 85,744
Equity in net income (loss) of
joint venture 21,563 21,500 (1,414)
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NET INCOME 25,327 9,344 84,330
Preferred stock dividends - - 10
- --------------------------------------------------------------------------------------------------------------------------------
NET INCOME APPLICABLE
TO COMMON STOCKHOLDERS $ 25,327 $ 9,344 $ 84,320
- --------------------------------------------------------------------------------------------------------------------------------
NET INCOME PER COMMON SHARE
- - Primary $0.18 $0.07 $0.66
- - Fully diluted $0.18 $0.07 $0.63
- --------------------------------------------------------------------------------------------------------------------------------
Shares used in per share calculation
- - Primary 138,399 137,965 127,181
- - Fully diluted 138,399 138,110 134,421
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Restated from previously released financial information as a result of the
January 1996 merger with NexGen, Inc.
<PAGE>
5
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
(Unaudited) (Unaudited)
(Restated)*
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Current assets:
Cash, cash equivalents, and short-term investments $ 409,299 $ 509,665
Accounts receivable, net 235,159 284,238
Inventories 168,173 155,986
Deferred income taxes 151,089 147,489
Prepaid expenses and other current assets 49,230 40,564
- ---------------------------------------------------------------------------------------------------------------------------------
Total current assets 1,012,950 1,137,942
Property, plant, and equipment, net 1,660,306 1,641,634
Investment in joint venture 175,382 176,821
Other assets 106,171 122,070
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$ 2,954,809 $ 3,078,467
=================================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
- ---------------------------------------------------------------------------------------------------------------------------------
Current liabilities:
Notes payable to banks $ 13,870 $ 26,770
Accounts payable 159,043 241,916
Accrued compensation and benefits 67,639 106,347
Accrued liabilities 96,213 103,404
Income tax payable 49,396 56,297
Deferred income on shipments to distributors 107,331 100,057
Current portion of long-term debt and capital
lease obligations 39,244 41,642
- ---------------------------------------------------------------------------------------------------------------------------------
Total current liabilities 532,736 676,433
Deferred income taxes 94,207 84,607
Long-term debt and capital lease obligations,
less current portion 205,918 214,965
Stockholders' equity:
Capital stock:
Common stock, par value 1,394 1,050
Capital in excess of par value 926,353 908,989
Retained earnings 1,194,201 1,192,423
- ---------------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 2,121,948 2,102,462
- ---------------------------------------------------------------------------------------------------------------------------------
$ 2,954,809 $ 3,078,467
=================================================================================================================================
</TABLE>
* Restated from previously released financial information as a result of the
January 1996 merger with NexGen, Inc.
<PAGE>
6
ADVANCED MICRO DEVICES, INC. INFORMATION ONLY
- --------------------------------------------------------------------------------
NON-GAAP CONSOLIDATED STATEMENTS OF INCOME*
(INCLUDES PRE-TAX FASL INVESTMENT EQUITY (INCOME)/LOSS IN OPERATING INCOME
(LOSS))
- --------------------------------------------------------------------------------
(THOUSANDS EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Quarter Ended
(Unaudited)
- ---------------------------------------------------------------------------------------------------
Mar. 31, Dec. 31, Apr. 2,
1996 1995 ** 1995 **
<S> <C> <C> <C>
NET SALES $ 544,212 $ 595,178 $ 627,381
Cost of sales 368,735 427,058 305,685
Net (income) loss from equity
investment in FASL (33,174) (33,077) 2,176
Research and development 94,780 107,715 96,874
Marketing, general, and
administrative 103,011 100,766 102,734
- ---------------------------------------------------------------------------------------------------
533,352 602,462 507,469
- ---------------------------------------------------------------------------------------------------
Operating income (loss) 10,860 (7,284) 119,912
Interest income and other, net 28,059 7,526 6,713
Interest expense (1,981) (1,167) (233)
- ---------------------------------------------------------------------------------------------------
Income (loss) before income taxes
and equity in joint venture 36,938 (925) 126,392
Provision (credit) for income
taxes - (21,846) 42,824
Provision (credit) for taxes
on equity in (income)/loss
of FASL 11,611 11,577 (762)
- ---------------------------------------------------------------------------------------------------
NET INCOME 25,327 9,344 84,330
Preferred stock dividends - - 10
- ---------------------------------------------------------------------------------------------------
NET INCOME APPLICABLE
TO COMMON STOCKHOLDERS $ 25,327 $ 9,344 $ 84,320
- ---------------------------------------------------------------------------------------------------
NET INCOME PER COMMON SHARE
- - Primary $0.18 $0.07 $0.66
- - Fully diluted $0.18 $0.07 $0.63
- ---------------------------------------------------------------------------------------------------
Shares used in per share calculation
- - Primary 138,399 137,965 127,181
- - Fully diluted 138,399 138,110 134,421
- ---------------------------------------------------------------------------------------------------
</TABLE>
* The above statements of income are not in accordance with
generally accepted accounting principles in that the pre-tax equity (income)
loss of FASL has been reclassified and included in the determination of
operating income (loss). Net income and related net income per common share
amounts are the same as those reported under generally accepted accounting
principles.
** Financial results for 1995 have been restated to include the historical
financial information of NexGen, Inc.
<PAGE>
7
AMD
SELECTED CORPORATE DATA
(UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
PRODUCT LINE BREAKDOWN* Q1 '96 Q4 '95 Q1 '95
- -----------------------
% OF SALES REVENUE % OF SALES REVENUE % OF SALES REVENUE
---------- ------- ---------- ------- ---------- -------
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Computation Products Group 23 $ 126M 27 $ 164M 50 $ 314M
Communications and
Components Group 64 348M 61 362M 41 255M
Programmable Logic Subsidiary 13 70M 12 69M 9 58M
(TBN)
- ---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
OTHER DATA Q1 '96 Q4 '95 Q1 '95
- ---------- ------ ------ ------
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Depreciation $ 81M $ 83M $ 57M
Capital Spending 106M 138M 200M
Headcount 12,806 12,730 11,939
- ---------------------------------------------------------------------------------------------
International Sales 52% 53% 58%
</TABLE>
* Restated to include NEXGEN
