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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, 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 April 7, 1999, Advanced Micro Devices, Inc. (the Company) announced that
shipments of AMD-K6-2 processors were substantially below plan. The Company
also said that severe price competition, especially in processors with
frequencies below 400 megahertz (MHz), caused average selling prices for AMD-K6
family processors to decline to $78. 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, 1999.
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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)
Date: April 14, 1999 By: /s/ Francis Barton
_____________________________
Francis P. Barton
Senior Vice President, Chief Financial Officer
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Exhibit Index
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Exhibit Number Exhibit
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99 Press release dated April 7, 1999.
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Exhibit 99
[AMD Letterhead and
Logo]
CONTACT:
Scott Allen
Public Relations
(408) 749-3311
John Greenagel
Corporate Communications
(408) 749-3310
Toni Beckham
Investor Relations
(408) 749-3127
AMD REPORTS SUBSTANTIAL DECLINE IN FIRST QUARTER PROCESSOR SHIPMENTS AND
REVENUES
SUNNYVALE, CA-APRIL 7, 1999-Advanced Micro Devices announced today that
shipments of AMD-K6-2 processors, at 4.3 million units in its just-completed
first quarter, were substantially below plan. The company also said that severe
price competition, especially in processors with frequencies below 400 megahertz
(MHz), caused average selling prices (ASPs) for AMD-K6 family processors to
decline to $78. Based on a preliminary analysis, first quarter revenues for the
company are expected to be approximately $630 million. Last year's comparable
quarter produced revenues of $541 million. In the immediate-prior quarter,
revenues were a record $789 million.
The company said that previously reported yield problems that impacted
December production of AMD-K6-2 processors continued to take a heavy toll on
production volume and mix through the first eight weeks of 1999 as the earlier
material worked through the manufacturing process. Wafer starts containing the
design enhancements put in place to address these yield issues positively
impacted both unit volume and mix in fiscal March, the last five weeks of the
first quarter. AMD also reported that March shipments of AMD-K6-2 processors
exceeded shipments in January and February combined. On that basis, the company
said it expects to meet its goal of shipping 20 to 25 million units for all of
1999. Demand for AMD-K6 family processors remains strong, and customer
relationships remain intact. Based on March production results and the planned
production mix of AMD-K6-2 and AMD-K6-III processors, and initial shipments of
AMD-K7(tm) processors scheduled for June, the company believes that ASPs will
improve this quarter.
These statements about estimated results are preliminary. The
company plans to announce its actual results for the quarter on April 14, 1999.
About AMD
AMD is a global supplier of integrated circuits for the personal
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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 $2.5 billion in 1998. (NYSE: AMD)
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 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 involve the risk that
the company will not be able to maintain or increase processor yields; that
design or production problems will prevent the company from meeting its unit
shipment goal for 1999; that the company will not be able to maintain or enhance
processor yields to a richer distribution of higher-speed processors; that the
company will not be able to increase average selling prices because of yield
problems, competitor pricing activity, or a deterioration of market conditions
or customer relationships adversely affecting demand for the company's
processors; and that the AMD-K7 processor introduction will slip from its
current schedule for introduction in limited quantities in June. 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.
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
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URL prompt.
AMD, the AMD logo, and combinations thereof and AMD-K7 are trademarks and AMD-K6
is a registered trademark of Advanced Micro Devices, Inc.
