<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): January 13, 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 January 13, 1998, Advanced Micro Devices, Inc. (the Company) announced
its fourth quarter revenues. The Company reported a net loss of $12,334,000 on
sales of $613,171,000 for its fourth quarter, ended December 28, 1997. The loss
amounted to $0.09 per share. Revenues increased by 3 percent over the immediate-
prior quarter, and 23 percent over the like period of 1996. 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 January 13, 1998
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)
/s/ Marvin D. Burkett
Date: January 26, 1998 By: _____________________________
Marvin D. Burkett
Senior Vice President,
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 January 13, 1998
4
<PAGE>
EXHIBIT 99
[AMD LETTERHEAD]
CONTACT:
Scott Allen
Public Relations
(408) 749-3311
AMD REPORTS FOURTH QUARTER RESULTS
SUNNYVALE, CA - January 13, 1998 - AMD today reported a net loss of
$12,334,000 on sales of $613,171,000 for its fourth quarter, ended December 28,
1997. The loss amounted to $0.09 per share. Revenues increased by 3 percent over
the immediate-prior quarter, and by 23 percent over the like period of 1996.
Sales for the like period of 1996 were $496,868,000, which resulted in a
net loss of $21,243,000, or $0.15 per share. In the immediate-prior quarter, AMD
reported sales of $596,644,000, which resulted in a loss of $0.22 per share.
Revenues for 1997 were $2,356,375,000, which resulted in a net loss of
$21,090,000, or $0.15 per share. In 1996 AMD reported revenues of
$1,953,019,000, which resulted in a net loss of $68,950,000, or $0.51 per share.
Revenues grew by 21 percent year-to-year.
"Our three non-microprocessor businesses - our Communications Group, our
Memory Group, and our programmable logic company, Vantis(TM) - were profitable
in the aggregate in the fourth quarter on revenues down slightly from the
immediate-prior quarter," said W.J. Sanders III, chairman and chief executive
officer. "We were especially pleased that flash memory sales increased nominally
during a period of intense competition.
"Sales of AMD-K6(R) processors for Microsoft(R) Windows(R) computing
increased by 26 percent over the immediate-prior quarter to $190 million,"
Sanders continued. "Unit shipments of AMD-K6 processors increased by 50 percent
to 1.5 million units. Although we increased unit production substantially,
yields continued to be disappointing. We achieved significant progress in
shipping higher-speed devices as nearly half of the units shipped were 233-
megahertz (MHz) devices.
"Demand for AMD-K6 processors remained strong. The AMD-K6 processor has
achieved significant acceptance in the market for desktop personal computers
priced below $2,000, and especially in the fast-growing market for sub-$1,000
personal computers. Our base of top-tier customers expanded with the addition of
Compaq, the world's largest personal computer manufacturer, during the quarter.
As previously reported, we made initial shipments of AMD-K6 processors
manufactured with 0.25-micron technology produced in the company's Submicron
Development Center in Sunnyvale, California, including both 266-MHz desktop and
233-MHz mobile versions. The 266-MHz AMD-K6 is being used in IBM Corp.'s new
Aptiva model E46 personal computer, and the 233-MHz AMD-K6 is being used in the
Compaq Presario model 1621 notebook computer.
"Our current challenge is to execute a successful transition to 0.25-micron
technology in our megafab, Fab 25, in Austin, Texas. Meeting our customers'
demand for higher-performance AMD-K6 processors in the volumes they need is our
first priority," 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.
<PAGE>
Any forward-looking statements about the AMD-K6 processor involve risks and
uncertainties, including whether: the company will execute a successful
transition to 0.25-micron technology in Fab 25 in Austin, will significantly
improve production yields, and overall will achieve the production ramp
necessary to meet customer demand for higher-performance AMD-K6 processors in
the volumes they need; the company will increase AMD-K6 revenues sufficient to
achieve profitability in the microprocessor business; the company will have the
financial and other resources necessary to continue to invest in the
microprocessor business, including leading-edge wafer fabrication equipment and
process technologies; customer demand for the AMD-K6 processor will continue at
current or greater levels; and whether 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://www.amd.com at the URL
prompt.
VANTIS IS A TRADEMARKS OF ADVANCED MICRO DEVICES, INC.
AMD-K6, AMD, THE AMD LOGO AND COMBINATIONS THEREOF ARE REGISTERED TRADEMARKS OF
ADVANCED MICRO DEVICES, INC.
MICROSOFT AND WINDOWS ARE REGISTERED TRADEMARKS OF MICROSOFT CORPORATION.
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ADVANCED MICRO DEVICES, INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
<TABLE>
<CAPTION>
December 28, December 29,
1997 1996
(Audited) (Audited)
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ASSETS
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<S> <C> <C>
Current assets:
Cash, cash equivalents and short-term investments $ 467,032 $ 386,198
Accounts receivable, net 329,111 220,028
Inventories 168,517 154,010
Deferred income taxes 160,583 140,850
Prepaid expenses and other current assets 50,024 127,991
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Total current assets 1,175,267 1,029,077
Property, plant and equipment, net 1,990,689 1,787,402
Investment in joint venture 204,031 197,205
Other assets 145,284 131,599
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$3,515,271 $3,145,283
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
Notes payable to banks $ 6,601 $ 14,692
Accounts payable 359,536 224,139
Accrued compensation and benefits 63,429 66,745
Accrued liabilities 134,656 103,436
Income tax payable 12,676 51,324
Deferred income on shipments to distributors 83,508 95,466
Current portion of long-term debt and capital
lease obligations 66,364 27,671
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Total current liabilities 726,770 583,473
Deferred income taxes 96,269 95,102
Long-term debt and capital lease obligations,
less current portion 662,689 444,830
Stockholders' equity:
Capital stock:
Common stock, par value 1,428 1,380
Capital in excess of par value 1,018,884 957,226
Retained earnings 1,009,231 1,063,272
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Total stockholders' equity 2,029,543 2,021,878
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$3,515,271 $3,145,283
============================================================================================================================
</TABLE>
<PAGE>
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(THOUSANDS EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Quarters Ended Year Ended
(Unaudited) (Audited)
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Dec. 28, Sept. 28, Dec. 29, Dec. 28, Dec. 29,
1997 1997 1996 1997 1996
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<S> <C> <C> <C> <C> <C>
Net sales $613,171 $596,644 $496,868 $2,356,375 $1,953,019
Cost of sales 428,856 428,240 354,622 1,578,438 1,440,828
Research and development 127,031 125,917 107,499 467,877 400,703
Marketing, general and
administrative 102,296 100,915 88,292 400,713 364,798
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658,183 655,072 550,413 2,447,028 2,206,329
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Operating loss (45,012) (58,428) (53,545) (90,653) (253,310)
Interest income and other, net 6,525 5,532 4,079 35,097 59,391
Interest expense (11,757) (14,151) (7,601) (45,276) (14,837)
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Loss before income taxes
and equity in joint venture (50,244) (67,047) (57,067) (100,832) (208,756)
Benefit for income
taxes (29,861) (30,072) (22,826) (55,155) (85,008)
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Loss before equity
in joint venture (20,383) (36,975) (34,241) (45,677) (123,748)
Equity in net income of
joint venture 8,049 5,300 12,998 24,587 54,798
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NET LOSS APPLICABLE
TO COMMON STOCKHOLDERS $(12,334) $(31,675) $(21,243) $ (21,090) $ (68,950)
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NET LOSS PER COMMON
SHARE
- Basic $ (0.09) $ (0.22) $ (0.15) $ (0.15) $ (0.51)
- Diluted $ (0.09) $ (0.22) $ (0.15) $ (0.15) $ (0.51)
- ---------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic 141,889 141,055 137,102 140,453 135,126
- Diluted 141,889 141,055 137,102 140,453 135,126
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</TABLE>
<PAGE>
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 LOSS)
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(THOUSANDS EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Quarters Ended Year Ended
(Unaudited) (Audited)
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Dec. 28, Sept. 28, Dec. 29, Dec. 28, Dec. 29,
1997 1997 1996 1997 1996
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET SALES $613,171 $596,644 $496,868 $2,356,375 $1,953,019
Cost of sales 428,856 428,240 354,622 1,578,438 1,440,828
Income from equity
investment in FASL (16,770) (11,041) (19,996) (47,549) (84,305)
Research and development 127,031 125,917 107,499 467,877 400,703
Marketing, general and
administrative 102,296 100,915 88,292 400,713 364,798
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641,413 644,031 530,417 2,399,479 2,122,024
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Operating loss (28,242) (47,387) (33,549) (43,104) (169,005)
Interest income and other, net 6,525 5,532 4,079 35,097 59,391
Interest expense (11,757) (14,151) (7,601) (45,276) (14,837)
- ---------------------------------------------------------------------------------------------------------------
Loss before income taxes (33,474) (56,006) (37,071) (53,283) (124,451)
Benefit for income
taxes (29,861) (30,072) (22,826) (55,155) (85,008)
Provision for taxes on equity
income in FASL 8,721 5,741 6,998 22,962 29,507
- ---------------------------------------------------------------------------------------------------------------
NET LOSS APPLICABLE
TO COMMON STOCKHOLDERS $(12,334) $(31,675) $(21,243) $ (21,090) $ (68,950)
- ---------------------------------------------------------------------------------------------------------------
NET LOSS PER COMMON
SHARE
- Basic $ (0.09) $ (0.22) $ (0.15) $ (0.15) $ (0.51)
- Diluted $ (0.09) $ (0.22) $ (0.15) $ (0.15) $ (0.51)
- ---------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic 141,889 141,055 137,102 140,453 135,126
- Diluted 141,889 141,055 137,102 140,453 135,126
- ---------------------------------------------------------------------------------------------------------------
</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 loss. Net loss and related net loss per common share amounts
are the same as those reported under GAAP.
<PAGE>
AMD
SELECTED CORPORATE DATA
(UNAUDITED)
<TABLE>
<CAPTION>
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PRODUCT LINE BREAKDOWN Q4 '97 Q3 '97 Q4 '96
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% 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 $174M 30 $179M 33 $166M
Vantis (PLD) 9 55M 10 62M 12 59M
Memory Group (MG) 30 181M 30 178M 33 162M
Computation Products Group
(CMD, PPD, TMD) 33 203M 30 178M 22 110M
<CAPTION>
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OTHER DATA Q4 '97 Q3 '97 Q4 '96
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<S> <C> <C> <C>
Depreciation
and Amortization $108M $104M $ 88M
Capital Additions 155M 157M 144M
Headcount 12,759 12,617 12,181
- -----------------------------------------------------------------------------------------------------
International Sales 56% 60% 55%
</TABLE>
