<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): July 14, 1999
ADVANCED MICRO DEVICES, INC.
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(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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Item 5. Other Events.
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On July 14, 1999, Advanced Micro Devices, Inc. reported sales of
$595,109,000 and net income of $79,896,000, or $0.53 per diluted share, for the
second quarter, ended June 27, 1999. The results reflected an operating loss of
$173 million, a one-time, after-tax gain of $259 million from the sale of Vantis
Corporation, the company's programmable logic subsidiary, and restructuring and
other special charges of $17.5 million. The full text of the press release is
set forth in Exhibit 99.1 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
99.1 Press Release dated July 14, 1999.
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.
Dated: July 22, 1999 By: /s/ FRANCIS P. BARTON
------------------------------
Francis P. Barton
Senior Vice President, Chief
Financial Officer
3
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Exhibit Index
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Exhibit Number Exhibit
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99.1 Press Release dated July 14, 1999.
4
<PAGE>
EXHIBIT 99.1
[LETTERHEAD OF AMD APPEARS HERE]
AMD REPORTS SECOND QUARTER RESULTS
SUNNYVALE, CA-JULY 14, 1999-AMD today reported that the one-time, after-tax
gain from the sale of Vantis Corporation offset a substantial operating loss in
the just-completed quarter. AMD reported sales of $595,109,000 and net income of
$79,896,000, or $0.53 per diluted share, for the second quarter, ended June 27,
1999. The results reflected an operating loss of $173 million, a one-time,
after-tax gain of $259 million from the sale of Vantis, the company's
programmable logic subsidiary, and restructuring and other special charges of
$17.5 million. Excluding the one-time gain from the sale of Vantis and the
restructuring and other special charges would result in a net loss of $162
million, or $1.10 per share.
Sales declined by 6 percent from the immediate-prior quarter, while
increasing by 13 percent from the second quarter of 1998. The sale of Vantis was
concluded on June 15, 1999, and therefore results from the second quarter
include only 11 weeks of sales from Vantis Corporation. In the first quarter of
1999, AMD reported sales of $631,593,000, which resulted in a net loss of
$128,367,000, or $0.88 per share, including restructuring and other special
charges. In the second quarter of 1998, AMD reported sales of $526,538,000
and a net loss of $64,560,000, or $0.45 per share.
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2
For the first six months of 1999, AMD reported total sales of
$1,226,702,000 and a net loss of $48,471,000, or a loss of $0.33 per share,
including the gain on the sale of Vantis and restructuring and other special
charges. For the same period a year ago, AMD reported total sales of
$1,067,394,000 and a net loss of $127,287,000, or $0.89 per share.
As the company forecasted several weeks ago, AMD reported sales of 3.7
million AMD-K6(R) family processors, down from 4.3 million units in the
immediate-prior quarter. Average selling prices for AMD-K6 family processors
declined to $67 versus $78 in the first quarter of 1999.
Sales from the company's non-microprocessor product lines increased by 16
percent from the immediate-prior quarter, led by strong sales of flash memory
products, driven by demand from cellular telephone customers.
"With the resumption of growth from our memory and communications product
lines, AMD's challenge is clear," said W.J. Sanders III, chairman and chief
executive officer. "In the face of Intel's intensifying aggression in the
consumer sector of the PC market, where our AMD-K6-2 processor family with
3DNow!(R) technology has achieved substantial market share in both desktop and
portable PCs, further gains in unit market share or revenue growth are unlikely.
"The key to resuming growth and expanding margins is the recently
introduced AMD Athlon(TM) processor. The world's first seventh-generation
processor for Microsoft(R) Windows(R) computing is the highest-performance
processor for PCs available today. Initial shipments of AMD Athlon processors,
including 600-megahertz versions, commenced in June. We are encouraged by early
customer reaction to the AMD Athlon processor," Sanders concluded.
Cautionary Statement
This release contains forward-looking statements, which are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are generally preceded by words such as
"expects," "plans," "believes," "anticipates," or "intends." Investors are
cautioned that all forward-looking
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3
statements in this release involve risks and uncertainty that could cause actual
results to differ materially from current expectations. Forward-looking
statements in this release regarding the AMD Athlon processor involve the risk
that the company will not be able to produce the processor in the volume
required by customers on a timely basis; that AMD and third parties may not
provide timely infrastructure solutions (motherboards and chipsets) to support
the processor; that the processor will not achieve customer and market
acceptance; and that the company will not be able to maintain average selling
prices because of Intel's competitive reaction to this new product. We urge
investors to review in detail the risks and uncertainties detailed in the
company's Securities and Exchange Commission filings, including the most
recently filed Form-10K.
About AMD
AMD is a global supplier of integrated circuits for the personal and
networked computer and communications markets. AMD produces microprocessors,
flash memories, and integrated circuits for communications and networking
applications. Founded in 1969 and based in Sunnyvale, California, AMD had
revenues of $2.5 billion in 1998. (NYSE:AMD).
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Visit AMD on the Web: Additional press releases and information about AMD and
its products are available at www.amd.com.
AMD, the AMD logo, 3DNow, AMD Athlon and combinations thereof are trademarks,
and the AMD-K6 is a registered trademark of Advanced Micro Devices, Inc.
Microsoft and Windows are registered trademarks of Microsoft Corporation.
<PAGE>
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
(Unaudited) (Unaudited)
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June 27, Mar. 28, June 28, June 27, June 28,
1999 1999 1998 1999 1998
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<S> <C> <C> <C> <C> <C>
Net sales $ 595,109 $ 631,593 $ 526,538 $1,226,702 $1,067,394
Cost of sales 458,339 450,431 390,140 908,770 813,731
Research and development 167,278 159,946 139,158 327,224 267,278
Marketing, general and
administrative 124,520 127,310 101,198 251,830 189,412
Restructuring and other
special charges 17,514 15,016 - 32,530 -
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767,651 752,703 630,496 1,520,354 1,270,421
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Operating loss (172,542) (121,110) (103,958) (293,652) (203,027)
Gain on sale of Vantis 432,059 - - 432,059 -
Litigation settlement - - - - (11,500)
Interest income and other, net 7,252 10,768 8,518 18,020 14,099
Interest expense (18,087) (20,763) (17,663) (38,850) (30,135)
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Income (loss) before income taxes
and equity in joint venture 248,682 (131,105) (113,103) 117,577 (230,563)
Provision (benefit) for income taxes 172,823 (5,473) (44,110) 167,350 (91,107)
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Income (loss) before equity
in joint venture 75,859 (125,632) (68,993) (49,773) (139,456)
Equity in net income (loss) of
joint venture 4,037 (2,735) 4,433 1,302 12,169
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Net income (loss) $ 79,896 $(128,367) $ (64,560) $ (48,471) $ (127,287)
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Net income (loss) per common share
- - Basic $0.54 $(0.88) $(0.45) $(0.33) $(0.89)
- - Diluted $0.53 $(0.88) $(0.45) $(0.33) $(0.89)
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Shares used in per share
calculation
- - Basic 146,947 145,909 143,462 146,428 142,983
- - Diluted 149,540 145,909 143,462 146,428 142,983
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</TABLE>
<PAGE>
Advanced Micro Devices, Inc.
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NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS*
(Includes Pre-tax FASL Investment Equity Loss (Income) in Operating Income
(Loss))
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(Thousands except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
(Unaudited) (Unaudited) (Audited)
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June 27, Mar. 28, June 28, June 27, June 28,
1999 1999 1998 1999 1998
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<S> <C> <C> <C> <C> <C>
Net sales $ 595,109 $ 631,593 $ 526,538 $1,226,702 $1,067,394
Cost of sales 458,339 450,431 390,140 908,770 813,731
Loss (income) from equity
investment in FASL (6,869) 4,636 (7,416) (2,233) (23,404)
Research and development 167,278 159,946 139,158 327,224 267,278
Marketing, general and
administrative 124,520 127,310 101,198 251,830 189,412
Restructuring and other
special charges 17,514 15,016 - 32,530 -
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760,782 757,339 623,080 1,518,121 1,247,017
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Operating loss (165,673) (125,746) (96,542) (291,419) (179,623)
Gain on sale of Vantis 432,059 - - 432,059 -
Litigation settlement - - - - (11,500)
Interest income and other, net 7,252 10,768 8,518 18,020 14,099
Interest expense (18,087) (20,763) (17,663) (38,850) (30,135)
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Income (loss) before income taxes 255,551 (135,741) (105,687) (119,810) (207,159)
Provision (benefit) for income taxes 172,823 (5,473) (44,110) 167,350 (91,107)
Provision (benefit) for taxes on
equity loss (income) in FASL 2,832 (1,901) 2,983 931 11,235
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Net income (loss) $ 79,896 $(128,367) $ (64,560) $ (48,471) $ (127,287)
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Net income (loss) per common share
shares
- - Basic $0.54 $(0.88) $(0.45) $(0.33) $(0.89)
- - Diluted $0.53 $(0.88) $(0.45) $(0.33) $(0.89)
- ---------------------------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- - Basic 146,947 145,909 143,462 146,428 142,983
- - Diluted 149,540 145,909 143,462 146,428 142,983
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</TABLE>
* The above statements of operations are not in accordance with generally
accepted accounting principles (GAAP) in that the pre-tax equity loss
(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>
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
<TABLE>
<CAPTION>
June 27, Dec. 27,
1999 1998
(Unaudited) (Audited)
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<S> <C> <C>
Assets
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Current assets:
Cash, cash equivalents and short-term investments $ 650,830 $ 697,025
Accounts receivable, net 320,755 415,557
Inventories 203,056 175,075
Deferred income taxes 49,827 205,959
Prepaid expenses and other current assets 73,407 68,411
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Total current assets 1,297,875 1,562,027
Property, plant and equipment, net 2,538,119 2,268,468
Investment in joint venture 228,881 236,820
Other assets 181,134 185,653
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$4,246,009 $4,252,968
=================================================================================================================================
Liabilities and Stockholders' Equity
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Current liabilities:
Notes payable to banks $ 5,762 $ 6,017
Accounts payable 300,538 333,975
Accrued compensation and benefits 91,539 80,334
Accrued liabilities 161,789 168,280
Income tax payable 10,917 22,026
Deferred income on shipments to distributors 81,263 84,523
Current portion of long-term debt, capital
lease obligations and other 131,364 145,564
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Total current liabilities 783,172 840,719
Deferred income taxes 60,113 34,784
Long-term debt, capital lease obligations and other,
less current portion 1,440,563 1,372,416
Stockholders' equity:
Capital stock:
Common stock, par value 1,490 1,465
Capital in excess of par value 1,102,723 1,071,591
Retained earnings 913,700 962,171
Accumulated other comprehensive loss (55,752) (30,178)
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Total stockholders' equity 1,962,161 2,005,049
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$4,246,009 $4,252,968
=================================================================================================================================
</TABLE>
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AMD
Selected Corporate Data
(Unaudited)
<TABLE>
<CAPTION>
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Segment Breakdown Q2 '99 Q1 '99 Q2 '98
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% of Sales Revenue % of Sales Revenue % of Sales Revenue
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<S> <C> <C> <C> <C> <C> <C>
AMD segment:
Computation Products Group 53 $317M 63 $395M 42 $220M
Memory Group 28 166M 20 126M 25 132M
Communications Group 12 70M 10 64M 23 123M
Other 0 2M 0 0M 0 0M
Vantis segment:
Vantis 7 40M 7 47M 10 52M
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Other Data Q2 '99 Q1 '99 Q2 '98
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Depreciation
and Amortization $128M $127M $113M
Capital Additions 148M 200M 314M
Headcount 13,467 13,803 13,314
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International Sales 58% 58% 48%
</TABLE>
