<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 7, 1998
ADVANCED MICRO DEVICES, INC.
----------------------------
(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
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Page 1 of 4
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Item 5. Other Events.
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On April 7, 1998, Advanced Micro Devices, Inc. (the "Company") announced
its first quarter revenues. The Company reported a net loss of $55,827,000 on
sales of $540,856,000 for its first quarter ended March 29, 1998. The loss
amounted to $0.39 per share. Revenues increased by 12 percent from the quarter
ended December 28, 1997, and by 2 percent from the quarter ended March 30, 1997.
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.
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(c) Exhibits:
99 Press release dated April 7, 1998
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: April 13, 1998 By: /s/ Richard Previte
_____________________________
Richard Previte
Director, President, Chief Operating
Officer, Chief Financial and Administrative
Officer and Treasurer
3
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Exhibit Index
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Exhibit Number Exhibit
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99 Press release dated April 7, 1998
4
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EXHIBIT 99
[AMD Letterhead]
Contact:
Scott Allen
Public Relations
(408) 749-3881
AMD REPORTS FIRST QUARTER RESULTS
SUNNYVALE, CA - April 7, 1998 - AMD today reported a net loss of $55,827,000
on sales of $540,856,000 for its first quarter, ended March 29, 1998. The loss
amounted to $0.39 per share. Revenues declined by 12 percent from the quarter
ended December 28, 1997, and by 2 percent from the quarter ended March 30, 1997.
Sales for the first quarter of 1997 were $551,999,000, which resulted in net
income of $12,951,000, or $0.09 per share, diluted. In the fourth quarter of
1997, AMD reported sales of $613,171,000, which resulted in a net loss of
$12,334,000, or $0.09 per share.
"The first quarter of 1998 was an unusually difficult one for AMD," said W.J.
Sanders III, chairman and chief executive officer. "We faced three major
challenges: 1) remedying yield problems that limited production of AMD-K6(R)
processors on our initial 0.35-micron technology; 2) achieving a successful
transition to leading-edge 0.25-micron technology which is essential to
producing higher-performance AMD-K6 processors; and 3) coping with the effects
of a semiconductor industry slowdown.
"During the quarter, market conditions in the worldwide semiconductor industry
were unsettled, characterized by excess capacity in memories with attendant
severe price pressure, aggressive inventory reduction programs by customers, and
weak demand in certain Asian economies--notably Korea and Japan. These
conditions contributed to a 9 percent aggregate decline in revenues from our
three non-microprocessor businesses - the Communications Group, the Memory
Group, and our programmable logic company, Vantis*. These conditions continue.
"The outlook is brighter for our Computation Products Group," Sanders
continued. "We have resolved the yield problems on the 0.35-micron process. More
importantly, we have made excellent progress toward our top-priority goal of
achieving a successful transition to 0.25-micron technology for AMD-K6
processors in Fab 25 in Austin, Texas. During the just-completed transition
quarter, AMD-K6 unit production increased nominally over the 1.5 million units
shipped in the immediate-prior quarter. More than 10 percent of unit shipments
were 0.25-micron devices, including our first volume shipments of 300-megahertz
AMD-K6 processors.
"Conversion of production wafer starts to 0.25-micron technology is
progressing well, and more than half of our Fab 25 wafer starts are now on 0.25-
micron technology. We remain on target to convert all of our production to this
technology by the end of the current quarter. Current production rates and
yields have encouraged us to communicate to our present customers that we expect
to produce substantially more AMD-K6 processors in a higher-performance mix this
quarter. Also, we are currently engaged in expanding our customer base to absorb
the significant increases in output we plan for the second half of the year,"
Sanders concluded.
Cautionary Statement
Investors are cautioned that all forward-looking statements of management's
expectations involve risks and uncertainties that could cause actual results to
differ materially from current expectations. Any forward-looking statements
about the AMD-K6 processor involve risks and uncertainties, including whether:
the company will successfully convert all of its
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production to 0.25-micron process technology as planned; the company will be
able to significantly increase output of AMD-K6 processors, including higher-
performance AMD-K6 processors; the company will maintain or increase the current
production yields; the company will be successful in expanding its customer
base; customer demand for the AMD-K6 processor will continue at current or
greater levels; the company will have the financial and other resources
necessary to continue to invest in the microprocessor business; and 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 with 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 $2.4 billion in 1997. (NYSE: AMD).
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.
Vantis is a trademark of Advanced Micro Devices, Inc.
AMD-K6, AMD, the AMD logo and combinations thereof are registered trademarks of
Advanced Micro Devices, Inc.
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<TABLE>
<CAPTION>
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
March 29, December 28,
1998 1997
(Unaudited) (Audited)
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ASSETS
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<S> <C> <C>
Current assets:
Cash, cash equivalents and short-term investments $ 306,804 $ 467,032
Accounts receivable, net 254,346 329,111
Inventories 157,859 168,517
Deferred income taxes 160,583 160,583
Prepaid expenses and other current assets 36,214 50,024
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Total current assets 915,806 1,175,267
Property, plant and equipment, net 2,054,295 1,990,689
Investment in joint venture 208,616 204,031
Other assets 153,589 145,284
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$3,332,306 $3,515,271
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
Notes payable to banks $ 5,372 $ 6,601
Accounts payable 279,176 359,536
Accrued compensation and benefits 74,047 63,429
Accrued liabilities 101,686 134,656
Income tax payable 13,500 12,676
Deferred income on shipments to distributors 78,427 83,508
Current portion of long-term debt and capital
lease obligations 95,048 66,364
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Total current liabilities 647,256 726,770
Deferred income taxes 46,168 96,269
Long-term debt and capital lease obligations,
less current portion 666,271 662,689
Stockholders' equity:
Capital stock:
Common stock, par value 1,435 1,428
Capital in excess of par value 1,026,313 1,018,884
Retained earnings 1,010,304 1,066,131
Unrealized gain on investments 779 2,007
Cumulative translation adjustments (66,220) (58,907)
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Total stockholders' equity 1,972,611 2,029,543
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$3,332,306 $3,515,271
============================================================================================================================
</TABLE>
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<TABLE>
<CAPTION>
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarters Ended
(Unaudited)
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Mar. 29 Dec. 28 Mar. 30
1998 1997 1997
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<S> <C> <C> <C>
NET SALES $ 540,856 $613,171 $551,999
Cost of sales 423,591 428,856 349,076
Research and development 128,120 127,031 104,908
Marketing, general and
administrative 88,214 102,296 94,519
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639,925 658,183 548,503
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Operating income (loss) (99,069) (45,012) 3,496
Interest income and other, net 5,581 6,525 13,322
Interest expense (12,472) (11,757) (9,410)
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Income (loss) before income taxes
and equity in joint venture (105,960) (50,244) 7,408
Provision (benefit) for income
taxes (42,397) (29,861) 2,148
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Income (loss) before equity
in joint venture (63,563) (20,383) 5,260
Equity in net income of
joint venture 7,736 8,049 7,691
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NET INCOME (LOSS) APPLICABLE $ (55,827) $(12,334) $ 12,951
TO COMMON STOCKHOLDERS
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NET INCOME (LOSS) PER COMMON
SHARE
- Basic $ (0.39) $ (0.09) $ 0.09
- Diluted $ (0.39) $ (0.09) $ 0.09
- -----------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic 142,503 141,889 138,616
- Diluted 142,503 141,889 146,758
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</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))
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(Thousands except per share amounts)
Quarters Ended
(Unaudited)
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Mar. 29 Dec. 28 Mar. 30
1998 1997 1997
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<S> <C> <C> <C>
NET SALES $ 540,856 $ 613,171 $ 551,999
Cost of sales 423,591 428,856 349,076
Income from equity
investment in FASL (15,988) (16,770) (12,482)
Research and development 128,120 127,031 104,908
Marketing, general and
administrative 88,214 102,296 94,519
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623,937 641,413 536,021
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Operating income (loss) (83,081) (28,242) 15,978
Interest income and other, net 5,581 6,525 13,322
Interest expense (12,472) (11,757) (9,410)
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Income (loss) before income taxes (89,972) (33,474) 19,890
Provision (benefit) for income
taxes (42,397) (29,861) 2,148
Provision for taxes on equity
income in FASL 8,252 8,721 4,791
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NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $ (55,827) $ (12,334) $ 12,951
- --------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) PER COMMON
SHARE
- Basic $ (0.39) $ (0.09) $ 0.09
- Diluted $ (0.39) $ (0.09) $ 0.09
- --------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic 142,503 141,889 138,616
- Diluted 142,503 141,889 146,758
- --------------------------------------------------------------------------------------------------------------
</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.
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AMD
SELECTED CORPORATE DATA
(UNAUDITED)
<TABLE>
<CAPTION>
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PRODUCT LINE BREAKDOWN
- ---------------------- Q1 '98 Q4 '97 Q1 '97
% OF SALES REVENUE % OF SALES REVENUE % OF SALES REVENUE
---------- ------- ---------- ------- ---------- -------
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<S> <C> <C> <C> <C> <C> <C>
Communications Group
(CPD, LPD, NPD) 28 $149M 28 $174M 31 $171M
Vantis (PLD) 10 56M 9 55M 13 69M
Memory Group (MG) 31 167M 30 181M 33 184M
Computation Products Group
(CMD, PPD, TMD) 31 169M 33 203M 23 128M
</TABLE>
<TABLE>
<CAPTION>
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OTHER DATA Q1 '98 Q4 '97 Q1 '97
- ---------- ------- ------------ -------
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<S> <C> <C> <C>
Depreciation
and Amortization $117M $108M $ 89M
Capital Additions 193M 250M* 151M
Headcount 12,936 12,759 12,025
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International Sales 55% 56% 56%
</TABLE>
* Restated from Q4 '97.
