<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 14, 1999
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
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Page 1 of 4
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Item 5. Other Events.
- ------- -------------
On April 14, 1999, Advanced Micro Devices, Inc. announced a net loss of
$128,367,000 on revenues of $631,593,000 for its first quarter, ended March 28,
1999. The loss amounted to $0.88 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 April 14, 1999.
2
<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/ Francis P. Barton
Date: April 22, 1999 By: _____________________________
Francis P. Barton
Senior Vice President and
Chief Financial Officer
3
<PAGE>
Exhibit Index
-------------
Exhibit Number Exhibit
- -------------- -------
99 Press release dated April 14, 1999.
<PAGE>
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 FIRST QUARTER RESULTS
SUNNYVALE, CA-APRIL 14, 1999-Advanced Micro Devices today reported a net loss of
$128,367,000 on revenues of $631,593,000 for its first quarter, ended March 28,
1999. The loss amounted to $0.88 per share. The results for the first quarter
include a charge of $15,016,000 for restructuring and other special charges.
Without the restructuring and other special charges, the net loss would have
been $0.81 per share.
Revenues declined by 20 percent from the $788,820,000 achieved in the quarter
ended December 27, 1998, which resulted in net income of $22,321,000, or $0.15
per share. Revenues increased by 17 percent from the $540,856,000 reported for
the quarter ended March 29, 1998, which resulted in a net loss of $62,727,000,
or $0.44 per share.
"The best thing that can be said about the first quarter is that it's over,"
said W.J. Sanders III, chairman and chief executive officer. "The significant
decline in revenues reported by AMD in the first quarter was almost entirely due
to previously reported AMD-K6-2 microprocessor yield issues. The large revenue
decline in the face of high fixed costs and record spending on research and
development of $160 million in the quarter precipitated the unprecedented loss.
Improvements in production yields in March and in the current quarter to date
presage a sharp increase in unit production in the current quarter. The last
seven weeks' production results increase our confidence in achieving our
previously stated goal of shipping five million units in the current quarter.
"We are seeing improving order patterns in our non-processor product lines in
the aggregate, with flash memories leading the way," Sanders concluded.
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 $2.5 billion in 1998. (NYSE: AMD)
<PAGE>
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 production
and shipment goals; and, that customer demand for processors and other products
will not continue at current or greater levels. 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.
-30-
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.
AMD and the AMD logo, and combinations thereof, are trademarks, and AMD-K6 is a
registered trademark of Advanced Micro Devices, Inc.
<PAGE>
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------
Mar. 28, Dec. 27, Mar. 29,
1999 1998 1998
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net sales $631,593 $ 788,820 $ 540,856
Cost of sales 450,431 481,987 423,591
Research and development 159,946 156,459 128,120
Marketing, general and
administrative 127,310 120,498 88,214
Restructuring and other
special charges 15,016 - -
- ------------------------------------------------------------------------------------------------------------------
752,703 758,944 639,925
- ------------------------------------------------------------------------------------------------------------------
Operating income (loss) (121,110) 29,876 (99,069)
Litigation settlement - - (11,500)
Interest income and other, net 10,768 10,037 5,581
Interest expense (20,763) (15,177) (12,472)
- ------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes
and equity in joint venture (131,105) 24,736 (117,460)
Benefit for income taxes (5,473) (136) (46,997)
- ------------------------------------------------------------------------------------------------------------------
Income (loss) before equity
in joint venture (125,632) 24,872 (70,463)
Equity in net income (loss) of
joint venture (2,735) (2,551) 7,736
- ------------------------------------------------------------------------------------------------------------------
Net income (loss) $ (128,367) $22,321 $ (62,727)
- ------------------------------------------------------------------------------------------------------------------
Net income (loss) per common share
- Basic $ (0.88) $ 0.15 $ (0.44)
- Diluted $ (0.88) $ 0.15 $ (0.44)
- ------------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic 145,909 144,926 142,503
- Diluted 145,909 149,949 142,503
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Advanced Micro Devices, Inc. INFORMATION ONLY
------------------------------------------------------------------------------------------------------------------
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS*
(Includes Pre-Tax FASL Investment Equity Loss (Income) in Operating Income (Loss))
------------------------------------------------------------------------------------------------------------------
(Thousands except per share amounts)
</TABLE>
<TABLE>
<CAPTION>
Quarter Ended
(Unaudited)
------------------------------------------------------------------------------------------------------------------
Mar. 28, Dec. 27, Mar. 29,
1999 1998 1998
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net sales $ 631,593 $ 788,820 $540,856
Cost of sales 450,431 481,987 423,591
Loss (income) from equity
investment in FASL 4,636 4,814 (15,988)
Research and development 159,946 156,459 128,120
Marketing, general and
administrative 127,310 120,498 88,214
Restructuring and other -
special charges 15,016 - -
------------------------------------------------------------------------------------------------------------------
757,339 763,758 623,937
------------------------------------------------------------------------------------------------------------------
Operating income (loss) (125,746) 25,062 (83,081)
Litigation settlement - - (11,500)
Interest income and other, net 10,768 10,037 5,581
Interest expense (20,763) (15,177) (12,472)
------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes (135,741) 19,922 (101,472)
Benefit for income taxes (5,473) (136) (46,997)
Provision (benefit) for taxes on
equity loss (income) in FASL (1,901) (2,263) 8,252
------------------------------------------------------------------------------------------------------------------
Net income (loss) $(128,367) $22,321 $(62,727)
------------------------------------------------------------------------------------------------------------------
Net income (loss) per common share
share
- Basic $ (0.88) $ 0.15 $ (0.44)
- Diluted $ (0.88) $ 0.15 $ (0.44)
- --------------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic 145,909 144,926 142,503
- Diluted 145,909 149,949 142,503
------------------------------------------------------------------------------------------------------------------
</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>
Mar. 28, Dec. 27,
1999 1998
(Unaudited) (Audited)
- ------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Current assets:
Cash, cash equivalents and short-term investments $ 489,145 $ 697,025
Accounts receivable, net 376,360 415,557
Inventories 182,670 175,075
Deferred income taxes 206,745 205,959
Prepaid expenses and other current assets 73,701 68,411
- ------------------------------------------------------------------------------------------------------------------
Total current assets 1,328,621 1,562,027
Property, plant and equipment, net 2,573,491 2,268,468
Investment in joint venture 232,313 236,820
Other assets 171,068 185,653
- ------------------------------------------------------------------------------------------------------------------
$ 4,305,493 $ 4,252,968
==================================================================================================================
Liabilities and Stockholders' Equity
- ------------------------------------------------------------------------------------------------------------------
Current liabilities:
Notes payable to banks $ 5,941 $ 6,017
Accounts payable 343,980 333,975
Accrued compensation and benefits 81,451 80,334
Accrued liabilities 133,468 168,280
Income tax payable 21,610 22,026
Deferred income on shipments to distributors 102,503 84,523
Current portion of long-term debt, capital
lease obligations and other 174,663 145,564
- ------------------------------------------------------------------------------------------------------------------
Total current liabilities 863,616 840,719
Deferred income taxes 28,226 34,784
Long-term debt, capital lease obligations and other,
less current portion 1,539,957 1,372,416
Stockholders' equity:
Capital stock:
Common stock, par value 1,478 1,465
Capital in excess of par value 1,080,729 1,071,591
Retained earnings 833,804 962,171
Accumulated other comprehensive loss (42,317) (30,178)
- ------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 1,873,694 2,005,049
- ------------------------------------------------------------------------------------------------------------------
$ 4,305,493 $ 4,252,968
==================================================================================================================
</TABLE>
<PAGE>
AMD
Selected Corporate Data
(Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Segment Breakdown Q1 '99 Q4 '98 Q1 '98
- ----------------- % of Sales Revenue % of Sales Revenue % of Sales Revenue
---------- ------- ---------- ------- ---------- -------
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AMD segment:
Computation Products Group 63 $395M 69 $546M 43 $230M
Memory Group 20 126M 17 132M 31 167M
Communications Group 10 64M 8 64M 16 88M
Vantis segment:
Vantis 7 47M 6 47M 10 56M
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Other Data Q1 '99 Q4 '98 Q1 '98
- ---------- ------ ------ ------
- --------------------------------------------------------------------------------------------------------------------------------
Depreciation
and Amortization $127M $125M $117M
Capital Additions 200M 180M 193M
Headcount 13,803 13,597 12,936
- ----------------------------------------------------------------------------------------------------------------------------------
International Sales 58% 60% 55%
</TABLE>
