<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 6, 1998
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>
Item 5. Other Events.
- ------- -------------
On October 6, 1998, Advanced Micro Devices, Inc. reported record sales of
$685,927,000 during its third quarter, ended September 27, 1998, which resulted
in net income of $1,006,000, or $.01 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 6, 1998
<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/ Fran Barton
Date: October 21, 1998 By: _____________________________
Fran Barton
Senior Vice President,
Chief Financial
Officer
<PAGE>
Exhibit Index
-------------
Exhibit Number Exhibit
- -------------- -------
99 Press release dated October 6, 1998
<PAGE>
EXHIBIT 99
[LOGO OF AMD]
One AMD Place
P.O. Box 3453
Sunnyvale, CA 94088-3453
Tel (408)732-2400
CONTACT:
SCOTT ALLEN
PUBLIC RELATIONS
(408) 749-3311
AMD ACHIEVES RECORD SALES AND BOOKINGS
AS IT RETURNS TO PROFITABILITY
SUNNYVALE, CA - October 6, 1998 - Led by substantial growth in sales of
AMD-K6(R)-2 processors with 3DNow!(TM) technology, AMD today reported record
sales of $685,927,000 during its third quarter, ended September 27, 1998, which
resulted in net income of $1,006,000, or $0.01 per share.
Sales increased by 30 percent from the immediate-prior quarter, and by 15
percent from the like period of 1997.
In the immediate-prior quarter, AMD reported a net loss of $64,560,000 on
sales of $526,538,000, which resulted in a net loss of $0.45 per share. In the
like period of 1997, AMD reported a net loss of $31,675,000 on sales of
$596,644,000. The net loss amounted to $0.22 per share.
For the first nine months of 1998, the company reported total sales of
$1,753,321,000, which resulted in a net loss of $126,281,000, or $0.88 per
share. For the first nine months of 1997, AMD reported total sales of
$1,743,204,000, which resulted in a net loss of $8,756,000, or $0.06 per share.
-more-
<PAGE>
2
"AMD achieved record sales and returned to nominal profitability on rapid
market acceptance of our AMD-K6-2 processor with 3DNow! technology," said W.J.
Sanders III, chairman and chief executive officer. "This product, introduced on
May 28, 1998, was the largest contributor to the substantial increase in sales
of our Microsoft(R) Windows(R) compatible AMD-K6 processor family.
"Shipments of AMD-K6 family processors increased by more than one million
units to 3.8 million units, and AMD-K6 family processor sales increased by 70
percent over the immediate-prior quarter. Excellent manufacturing and sales
execution enabled AMD to return to profitability one quarter ahead of
expectations.
"We are extremely pleased by the strong demand in the retail channel for
personal computers powered by AMD-K6-2 processors," Sanders continued.
"According to PC Data, systems powered by AMD-K6 family processors captured 31
percent of the total U.S. retail market for desktop systems in August, the
latest period for which data are available. In the rapidly growing market for
sub-$1,000 systems, PCs powered by AMD-K6 family processors captured a 54
percent market share - the highest penetration we have achieved to date. The
highest-volume desktop system sold in the United States retail channel in August
was a system powered by an AMD-K6-2 processor with 3DNow! technology, even
surpassing sales of Apple Computer's successful iMac system.
"During the quarter, we introduced and shipped hundreds of thousands of our
350MHz AMD-K6-2 processors," Sanders continued. "With the availability of these
higher-performance devices, AMD now has very attractive products for the
mainstream desktop market: systems priced at $1,500 and below, which comprise 80
percent of the U.S. retail desktop personal computer market.
"During the quarter we also introduced a 300MHz AMD-K6 processor for mobile
applications. The AMD-K6/300 has a clock speed matching the highest-speed mobile
processor on the market.
-more-
<PAGE>
3
"In the face of continuing intense price pressures and weak overall
industry demand, we were able to maintain flat sales compared to the immediate-
prior quarter in the aggregate for our Communications Group, our Memory Group,
and Vantis, our programmable logic subsidiary," said Sanders.
"On the strength of demand for AMD-K6 family processors, total third-
quarter company bookings achieved a record level," 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 AMD-K6 family processors involve risks
and uncertainties, including: whether the company will be able to maintain or
increase output of higher-performance AMD-K6-2 processors; whether customer
demand for AMD-K6 family processors will continue at current or greater levels;
whether uncertain worldwide economic conditions, including the economic
conditions in Asia, will result in decreased demand for microprocessors and
other integrated circuits; and whether as a result of industry conditions or for
other reasons customers will cancel currently booked orders or decrease their
placement of orders in the future. 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).
--30--
-more-
<PAGE>
4
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.
3DNOW! AND VANTIS ARE TRADEMARKS OF ADVANCED MICRO DEVICES, INC.
AMD-K6, AMD-K6-2, AMD, THE LOGO AND COMBINATIONS THEREOF ARE REGISTERED
TRADEMARKS OF ADVANCED MICRO DEVICES, INC.
Microsoft and Windows are registered trademarks of Microsoft Corporation
GENERAL NOTICE: OTHER PRODUCT NAMES USED IN THIS PUBLICATION ARE FOR
IDENTIFICATION PURPOSES ONLY AND MAY BE TRADEMARKS OF THEIR RESPECTIVE
COMPANIES.
<PAGE>
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(THOUSANDS EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Quarters Ended Nine Months Ended
(Unaudited) (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sept. 27, June 28, Sept. 28, Sept. 27, Sept. 28,
1998 1998 1997 1998 1997
- ----------------------------------------------------------------------------------------------------------------------------------
NET SALES $ 685,927 $ 526,538 $ 596,644 $1,753,321 $1,743,204
Cost of sales 422,985 390,140 428,240 1,236,716 1,149,582
Research and development 143,665 139,158 125,917 410,943 340,846
Marketing, general and
administrative 109,768 101,198 100,915 299,180 298,417
- ----------------------------------------------------------------------------------------------------------------------------------
676,418 630,496 655,072 1,946,839 1,788,845
- ----------------------------------------------------------------------------------------------------------------------------------
Operating income (loss) 9,509 (103,958) (58,428) (193,518) (45,641)
Litigation settlement - - - (11,500) -
Interest income and other, net 10,071 8,518 5,532 24,170 28,572
Interest expense (21,182) (17,663) (14,151) (51,317) (33,519)
- ----------------------------------------------------------------------------------------------------------------------------------
Loss before income taxes
and equity in joint venture (1,602) (113,103) (67,047) (232,165) (50,588)
Benefit for income taxes (635) (44,110) (30,072) (91,742) (25,294)
- ----------------------------------------------------------------------------------------------------------------------------------
Loss before equity
in joint venture (967) (68,993) (36,975) (140,423) (25,294)
Equity in net income of
joint venture 1,973 4,433 5,300 14,142 16,538
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) $ 1,006 $ (64,560) $ (31,675) $ (126,281) $ (8,756)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) PER COMMON SHARE
- Basic $ 0.01 $ (0.45) $ (0.22) $ (0.88) $ (0.06)
- Diluted $ 0.01 $ (0.45) $ (0.22) $ (0.88) $ (0.06)
- ----------------------------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic 143,915 143,462 141,055 143,249 139,975
- Diluted 146,642 143,462 141,055 143,249 139,975
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
<TABLE>
<CAPTION>
Sept. 27, December 28,
1998 1997
(Unaudited) (Audited)
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Current assets:
Cash, cash equivalents and short-term investments $ 580,510 $ 467,032
Accounts receivable, net 372,393 329,111
Inventories 172,231 168,517
Deferred income taxes 168,554 160,583
Prepaid expenses and other current assets 71,915 50,024
- -----------------------------------------------------------------------------------------------------------------------------------
Total current assets 1,365,603 1,175,267
Property, plant and equipment, net 2,375,105 1,990,689
Investment in joint venture 206,792 204,031
Other assets 168,618 145,284
- -----------------------------------------------------------------------------------------------------------------------------------
$ 4,116,118 $ 3,515,271
===================================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
Current liabilities:
Notes payable to banks $ 5,167 $ 6,601
Accounts payable 312,543 359,536
Accrued compensation and benefits 83,763 63,429
Accrued liabilities 161,984 134,656
Income tax payable 20,386 12,676
Deferred income on shipments to distributors 86,790 83,508
Current portion of long-term debt and capital
lease obligations 149,220 66,364
- -----------------------------------------------------------------------------------------------------------------------------------
Total current liabilities 819,853 726,770
Deferred income taxes 2,339 96,269
Long-term debt and capital lease obligations,
less current portion 1,364,230 662,689
Stockholders' equity:
Capital stock:
Common stock, par value 1,453 1,428
Capital in excess of par value 1,051,619 1,018,884
Retained earnings 939,850 1,066,131
Accumulated other comprehensive loss (63,226) (56,900)
- -----------------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 1,929,696 2,029,543
- -----------------------------------------------------------------------------------------------------------------------------------
$ 4,116,118 $ 3,515,271
===================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ADVANCED MICRO DEVICES, INC. INFORMATION ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
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. 27, June 28, Sept. 28, Sept. 27, Sept. 28,
1998 1998 1997 1998 1997
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET SALES $ 685,927 $ 526,538 $ 596,644 $1,753,321 $1,743,204
Cost of sales 422,985 390,140 428,240 1,236,716 1,149,582
Income from equity
investment in FASL (4,487) (7,416) (11,041) (27,891) (30,779)
Research and development 143,665 139,158 125,917 410,943 340,846
Marketing, general and
administrative 109,768 101,198 100,915 299,180 298,417
- ------------------------------------------------------------------------------------------------------------------------------------
671,931 623,080 644,031 1,918,948 1,758,066
- ------------------------------------------------------------------------------------------------------------------------------------
Operating income (loss) 13,996 (96,542) (47,387) (165,627) (14,862)
Litigation settlement - - - (11,500) -
Interest income and other, net 10,071 8,518 5,532 24,170 28,572
Interest expense (21,182) (17,663) (14,151) (51,317) (33,519)
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes 2,885 (105,687) (56,006) (204,274) (19,809)
Benefit for income taxes (635) (44,110) (30,072) (91,742) (25,294)
Provision for taxes on equity
income in FASL 2,514 2,983 5,741 13,749 14,241
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) $ 1,006 $ (64,560) $ (31,675) $ (126,281) $ (8,756)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) PER COMMON SHARE
SHARE
- Basic $ 0.01 $ (0.45) $ (0.22) $ (0.88) $ (0.06)
- Diluted $ 0.01 $ (0.45) $ (0.22) $ (0.88) $ (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic 143,915 143,462 141,055 143,249 139,975
- Diluted 146,642 143,462 141,055 143,249 139,975
- ------------------------------------------------------------------------------------------------------------------------------------
</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>
AMD
SELECTED CORPORATE DATA
(UNAUDITED)
<TABLE>
<CAPTION>
PRODUCT LINE BREAKDOWN Q3 '98 Q2 '98 Q3 '97
- ----------------------
% OF SALES REVENUE % OF SALES REVENUE % OF SALES REVENUE
---------- ------- ---------- ------- ---------- -------
_________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Communications Group
(CPD, EPD, NPD) 18 $ 126M 23 $ 123M 30 $ 179M
Vantis (PLD) 7 50M 10 52M 10 62M
Memory Group (MG) 19 129M 25 132M 30 178M
Computation Products Group
(CMD, PPD, TMD) 56 381M 42 220M 30 178M
_________________________________________________________________________________________________
_________________________________________________________________________________________________
OTHER DATA Q3 '98 Q2 '98 Q3 '97
- ---------- ------ ------ ------
_________________________________________________________________________________________________
Depreciation
and Amortization $ 117M $ 113M $ 104M
Capital Additions 321M 314M 169M
Headcount 13,384 13,314 12,617
_________________________________________________________________________________________________
International Sales 52% 48% 60%
</TABLE>
