<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, 1997
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.
- ---------------------
On October 7, 1997, Advanced Micro Devices, Inc. (the Company) announced
its third quarter revenues. The Company reported a net loss of $31,675,000 on
sales of $596,644,000 for its third quarter, ended September 28, 1997. The loss
amounted to $0.22 per share. 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, 1997
2
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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 23, 1997 By: /s/ Geoff Ribar
_____________________________
Geoff Ribar
Vice President
Corporate Controller
3
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Exhibit Index
-------------
Exhibit Number Exhibit
- -------------- -------
99 Press release dated October 7, 1997
4
<PAGE>
EXHIBIT 99
[LOGO OF AMD]
P.O. Box 3453
Sunnyvale, CA 94088-3453
Tel (408) 732-2400
CONTACT:
SCOTT ALLEN
PUBLIC RELATIONS
(408) 749-3311
AMD REPORTS THIRD-QUARTER RESULTS
SUNNYVALE, CA--OCTOBER 7, 1997--AMD today reported a net loss of
$31,675,000 on sales of $596,644,000 for its third quarter, ended September 28,
1997. The loss amounted to $0.22 per share. Revenues were nominally up from
the immediate-prior quarter, and up by 31 percent from the like period of
1996.
Sales for the third quarter of 1996 amounted to $456,862,000, which
resulted in a net loss of $38,362,000, or $0.28 per share.
In the immediate-prior quarter, AMD reported sales of $594,561,000.
Second-quarter net income amounted to $9,968,000, or $0.07 per share, fully
diluted.
For the first nine months of 1997, the company reported total revenues
of $1,743,204,000, which resulted in a net loss of $8,756,000, or $0.06 per
share. For the first nine months of 1996, AMD reported total revenues of
$1,456,151,000, which resulted in a net loss of $47,707,000, or $0.35 per
share. Revenues increased by 20 percent over the first nine months of 1996.
"In this traditionally slow summer quarter, aggregate revenues from
our non-microprocessor businesses -- our Communications Group, our Memory
Group, and Vantis -- were essentially flat with the immediate-prior quarter,
and up 12 percent from the same period of 1996, " said W.J. Sanders III,
chairman and chief executive officer.
-more-
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"Revenues from AMD-K6/TM/ MMX/TM/ enhanced processors increased by 50
percent to more than $150 million. The loss in the third quarter was due to
disappointing yields in the production of AMD-K6 MMX enhanced processors,"
Sanders continued. "Shipments of AMD-K6 processor rose from 350,000 units in
the immediate-prior quarter to one million units in our third quarter. While to
date we have executed the steepest microprocessor unit production ramp in AMD
history, yield and speed-grade improvements have lagged our expectations.
"Average selling process (ASPs) for K6 processors fell sharply from the
immediate-prior quarter. The decline in ASPs was influenced by two factors:
aggressive price cuts that became effective during the quarter, and a lower
proportion of 233-megahertz devices than planned.
"Demand for AMD-K6 processors remains strong and our customer base has
continued to expand. Achieving our planned production goal of approximately
two million units in the current quarter will require progress in improving
yields. No activity within the company has higher priority or more focus than
increasing production of K6 processors through higher yields and migration to
the next-generation 0.25-micron process," Sanders concluded.
CAUTIONARY STATEMENT
This press release contains forward-looking statements about
management's expectations of future performance. Investors are cautioned that
all forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from current expectations.
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The forward-looking statements about the AMD-K6/TM/ MMX/TM/ Enhanced
Processor involve risk and uncertainties that the company's production ramp
will fall short of expectations, that production yields will improve, that
customers acceptance and demand of he product will continue, that the customer
base for the product will continue to expand, that timely development and
qualification of 0.25-micron process technology will occur, that customer
demand for the product will be less than available production capacity, that
new wafer fabrication process technologies will not be developed as rapidly as
customers need or demand, and that economic conditions will change and affect
demand for microprocessors and other integrated circuits. Investors are urged
to consult the risks and uncertainties detailed in the company's reports filed
wit the Securities and Exchange Commission.
ABOUT AMD
AMD is a global supplier of integrated circuits for the personal and
networked computer and communications markets. AMD produces processors, flash
memories, programmable logic devices, and products for communications and
networking applications. Founded in 1969 and based in Sunnyvale, California,
AMD had revenues of $2 billion in 1996. (NYSE: AMD).
AMD IS A REGISTERED TRADEMARK, AND AMD-K6 IS A TRADEMARK OF ADVANCED MICRO
DEVICES, INC.
MMX IS A TRADEMARK OF INTEL CORPORATION.
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<TABLE>
<CAPTION>
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarters Ended Nine Months Ended
(Unaudited) (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------
Sept. 28, June 29, Sept. 29, Sept. 28, Sept. 29,
1997 1997 1996 1997 1996
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales $ 596,644 $ 594,561 $ 456,862 $ 1,743,204 $ 1,456,151
Cost of sales 428,240 372,266 337,692 1,149,582 1,086,206
Research and development 125,917 110,021 105,656 340,846 293,204
Marketing, general and
administrative 100,915 102,983 90,432 298,417 276,506
- ----------------------------------------------------------------------------------------------------------------------
655,072 585,270 533,780 1,788,845 1,655,916
- ----------------------------------------------------------------------------------------------------------------------
Operating income (loss) (58,428) 9,291 (76,918) (45,641) (199,765)
Interest income and other, net 5,532 9,718 4,214 28,572 55,312
Interest expense (14,151) (9,958) (3,443) (33,519) (7,236)
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes
and equity in joint venture (67,047) 9,051 (76,147) (50,588) (151,689)
Provision (benefit) for income
taxes (30,072) 2,630 (30,459) (25,294) (62,182)
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) before equity
in joint venture (36,975) 6,421 (45,688) (25,294) (89,507)
Equity in net income of
joint venture 5,300 3,547 7,326 16,538 41,800
- ----------------------------------------------------------------------------------------------------------------------
Net income (loss) applicable $ (31,675) $ 9,968 $ (38,362) $ (8,756) $ (47,707)
to common stockholders
- ----------------------------------------------------------------------------------------------------------------------
Net income (loss) per common
share
- Primary $ (0.22) $ 0.07 $ (0.28) $ (0.06) $ (0.35)
- Fully diluted $ (0.22) $ 0.07 $ (0.28) $ (0.06) $ (0.35)
- ----------------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Primary 141,730 147,919 136,082 140,619 135,019
- Fully diluted 141,730 147,919 136,082 140,619 135,019
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<CAPTION>
Advanced Micro Devices, Inc. INFORMATION ONLY
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NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS*
(Includes Pre-Tax FASL Investment Equity Income in Operating Income (Loss))
- -----------------------------------------------------------------------------------------------------------------------
(Thousands except per share amounts)
Quarters Ended Nine Months Ended
(Unaudited) (Unaudited)
- -----------------------------------------------------------------------------------------------------------------------
Sept. 28, June 29, Sept. 29, Sept. 28, Sept. 29,
1997 1997 1996 1997 1996
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales $ 596,644 $ 594,561 $ 456,862 $ 1,743,204 $ 1,456,151
Cost of sales 428,240 372,266 337,692 1,149,582 1,086,206
Income from equity
investment in FASL (11,041) (7,256) (11,272) (30,779) (64,309)
Research and development 125,917 110,021 105,656 340,846 293,204
Marketing, general and
administrative 100,915 102,983 90,432 298,417 276,506
- -----------------------------------------------------------------------------------------------------------------------
644,031 578,014 522,508 1,758,066 1,591,607
- -----------------------------------------------------------------------------------------------------------------------
Operating income (loss) (47,387) 16,547 (65,646) (14,862) (135,456)
Interest income and other, net 5,532 9,718 4,214 28,572 55,312
Interest expense (14,151) (9,958) (3,443) (33,519) (7,236)
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes (56,006) 16,307 (64,875) (19,809) (87,380)
Provision (benefit) for income
taxes (30,072) 2,630 (30,459) (25,294) (62,182)
Provision for taxes on equity
income in FASL 5,741 3,709 3,946 14,241 22,509
- -----------------------------------------------------------------------------------------------------------------------
Net income (loss) applicable
to common stockholders $ (31,675) $ 9,968 $ (38,362) $ (8,756) $ (47,707)
- -----------------------------------------------------------------------------------------------------------------------
Net income (loss) per common
share
- Primary $ (0.22) $ 0.07 $ (0.28) $ (0.06) $ (0.35)
- Fully diluted $ (0.22) $ 0.07 $ (0.28) $ (0.06) $ (0.35)
- -----------------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Primary 141,730 147,919 136,082 140,619 135,019
- Fully diluted 141,730 147,919 136,082 140,619 135,019
- -----------------------------------------------------------------------------------------------------------------------
</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.
<PAGE>
<TABLE>
<CAPTION>
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
Sept. 28, December 29,
1997 1996
(Unaudited) (Audited)
- ------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------
<S> <C> <C>
Current assets:
Cash, cash equivalents and short-term investments $ 441,010 $ 386,198
Accounts receivable, net 309,153 220,028
Inventories 163,431 154,010
Deferred income taxes 163,905 140,850
Prepaid expenses and other current assets 56,215 127,991
- ------------------------------------------------------------------------------------
Total current assets 1,133,714 1,029,077
Property, plant and equipment, net 1,945,401 1,787,402
Investment in joint venture 199,998 197,205
Other assets 146,833 131,599
- ------------------------------------------------------------------------------------
$3,425,946 $3,145,283
====================================================================================
Liabilities and Stockholders' Equity
- ------------------------------------------------------------------------------------
Current liabilities:
Notes payable to banks $ 9,864 $ 14,692
Accounts payable 249,439 224,139
Accrued compensation and benefits 70,480 66,745
Accrued liabilities 112,900 103,436
Income tax payable 59,193 51,324
Deferred income on shipments to distributors 85,036 95,466
Current portion of long-term debt and capital
lease obligations 35,141 27,671
- ------------------------------------------------------------------------------------
Total current liabilities 622,053 583,473
Deferred income taxes 82,857 95,102
Long-term debt and capital lease obligations,
less current portion 677,419 444,830
Stockholders' equity:
Capital stock:
Common stock, par value 1,425 1,380
Capital in excess of par value 1,010,901 957,226
Retained earnings 1,031,291 1,063,272
- ------------------------------------------------------------------------------------
Total stockholders' equity 2,043,617 2,021,878
- ------------------------------------------------------------------------------------
$3,425,946 $3,145,283
====================================================================================
</TABLE>
<PAGE>
AMD
SELECTED CORPORATE DATA
(UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
PRODUCT LINE BREAKDOWN
- ---------------------------- Q3 '97 Q2 '97 Q3 '96
% OF SALES REVENUE % OF SALES REVENUE % OF SALES REVENUE
---------- --------- --------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Communications Group
(CPD, LPD, NPD) 30 $ 179M 31 $ 183M 34 $ 158M
Vantis (PLD) 10 62M 10 57M 13 58M
Memory Group (MG) 30 178M 30 181M 35 159M
Computation Products Group
(CMD, PPD, TMD) 30 178M 29 174M 18 82M
==========================================================================================
<CAPTION>
OTHER DATA Q3 '97 Q2 '97 Q3 '96
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Depreciation
and Amortization $ 104M $ 94M $ 88M
Capital Additions 157M 160M 144M
Headcount 12,583 12,382 12,388
- ------------------------------------------------------------------------------------------
International Sales 60% 54% 53%
</TABLE>
