<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, 1999
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, 1999, Advanced Micro Devices, Inc. announced record revenues
of $788,820,000 during its fourth quarter, ended December 27, 1998. Net income
amounted to $22,321,000, or $0.15 per diluted 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.
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(c) Exhibits:
99 Press release dated January 13, 1999.
2
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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: January 18, 1999 By: _____________________________
Francis P. Barton
Senior Vice President and Chief Financial
Officer
3
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Exhibit Index
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Exhibit Number Exhibit
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99 Press release dated January 13, 1999.
4
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Exhibit 99
[LETTERHEAD FOR AMD]
NEWS RELEASE
CONTACTS:
Scott Allen
Public Relations
(408) 749-3311
AMD REPORTS FOURTH QUARTER RESULTS
SUNNYVALE, CA - JANUARY 13, 1999 - AMD today reported record revenues of
$788,820,000 during its fourth quarter, ended December 27, 1998. Net income
amounted to $22,321,000, or $0.15 per diluted share. All of the revenue growth
resulted from increased sales of AMD-K6(R)-2 processors with 3DNow!(TM)
technology.
Revenues increased by 15 percent from the immediate-prior quarter, and by
29 percent from the like period of 1997. In the immediate-prior quarter, AMD
reported net income of $1,006,000 on revenues of $685,927,000, which resulted in
net income of $0.01 per diluted share. In the like period of 1997, AMD reported
revenues of $613,171,000, which resulted in a net loss of $12,334,000, or $0.09
per share.
At $2,542,141,000, revenues for 1998 were also a record. For 1998, AMD
reported a net loss of $103,960,000, or $0.72 per share. In 1997 AMD reported
revenues of $2,356,375,000, which resulted in a net loss of $21,090,000, or
$0.15 per share. AMD revenues for 1998 grew by 8 percent in a year in which the
worldwide semiconductor industry experienced a double-digit revenue decline.
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2
"Growing customer acceptance of the AMD-K6-2 processor with 3DNow!
technology enabled AMD to continue to gain share in the market for Microsoft(R)
Windows(R) computing," said W.J. Sanders III, chairman and chief executive
officer. "Unit shipments of AMD-K6 family processors grew by 1.7 million, or
45 percent, to 5.5 million units from the immediate-prior quarter. AMD-K6
family processor revenues grew by more than $100 million over the immediate-
prior quarter to $488 million.
"In 1998 AMD shipped more than 13.5 million AMD-K6 family processors,
generating revenues in excess of $1.25 billion," Sanders continued. "The
majority of these units - more than 8.5 million - were AMD-K6-2 processors with
3DNow! technology. We believe the substantial and growing installed base of PC
systems with 3DNow! technology will provide a strong platform for software
developers, which in turn should enhance opportunities for broader acceptance of
AMD processors going forward. All AMD processors for the personal computer
market now incorporate 3DNow! technology supported by Microsoft Windows DirectX
6.0.
"A key objective in the just-completed quarter was progressing on our speed
roadmap and satisfying strategic customer requirements for processors with
speeds up to 400 megahertz (MHz)," Sanders continued. "We accomplished this
objective. We introduced and shipped in volume 366MHz, 380MHz, and 400MHz
versions of the AMD-K6-2 processor with 3DNow! technology. We shipped hundreds
of thousands of 400MHz processors, but were unable to satisfy strong overall
market demand. We expect to substantially increase shipments of 400MHz
processors in the current quarter.
"We continued to gain unit market share during the just-completed quarter.
We estimate that AMD-K6 family processors accounted for 16 percent of all
processor units for Microsoft Windows computing in the fourth quarter of 1998 -
a doubling of market share from the comparable quarter of 1997.
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3
"At 38 percent share of market, AMD-K6 family processors were number one in
the burgeoning segment for sub-$1,000 desktop PC systems in the bellwether North
American retail channel, according to the most recent information from PC Data.
Our market share in the $1,000-to-$1,500 desktop segment was 37 percent. AMD-K6
family processors captured 21 percent of the North American retail market for
portable systems. With today's announcement by Toshiba and the recent
announcement by Compaq Computer of portable systems featuring AMD-K6-2
processors with 3DNow! technology, the world's number one and number two
producers of portable systems are now AMD customers.
"Aggregate revenues from our other product groups - our Communications
Group, our Memory Group, and Vantis, our programmable logic subsidiary - were
essentially flat with the immediate-prior quarter. Total AMD bookings for the
second consecutive quarter reached record levels, driven by continuing strong
demand for AMD-K6-2 processors with 3DNow! technology," 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.
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4
Any forward-looking statements about the AMD-K6-2 processor involve risks
and uncertainties, including whether: the company will substantially increase
production of 400MHz processors, and overall will meet customer demand for
increasingly higher-performance AMD-K6-2 processors; the company will maintain
or increase AMD-K6-2 revenues sufficient to maintain or increase profitability
in the microprocessor business; the company will have the financial and other
resources necessary to continue to invest and compete successfully in the
microprocessor business, including investment in leading-edge wafer fabrication
equipment and process technologies; customer demand for the AMD-K6-2 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 AMD'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 $2.5 billion in 1998. (NYSE: AMD)
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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
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the URL prompt.
NOTE TO EDITOR: Readers may obtain additional information by calling 1 (800)
222-9323 or (408) 749-5703.
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.
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Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended Year Ended
(Unaudited) (Unaudited) (Audited)
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Dec. 27, Sept. 27, Dec. 28, Dec. 27, Dec. 28,
1998 1998 1997 1998 1997
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<S> <C> <C> <C> <C> <C>
Net sales $ 788,820 $ 685,927 $ 613,171 $2,542,141 $2,356,375
Cost of sales 481,987 422,985 428,856 1,718,703 1,578,438
Research and development 156,459 143,665 127,031 567,402 467,877
Marketing, general and
administrative 120,498 109,768 102,296 419,678 400,713
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758,944 676,418 658,183 2,705,783 2,447,028
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Operating income (loss) 29,876 9,509 (45,012) (163,642) (90,653)
Litigation settlement - - - (11,500) -
Interest income and other, net 10,037 10,071 6,525 34,207 35,097
Interest expense (15,177) (21,182) (11,757) (66,494) (45,276)
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Income (loss) before income taxes
and equity in joint venture 24,736 (1,602) (50,244) (207,429) (100,832)
Benefit for income taxes (136) (635) (29,861) (91,878) (55,155)
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Income (loss) before equity
in joint venture 24,872 (967) (20,383) (115,551) (45,677)
Equity in net income (loss) of
joint venture (2,551) 1,973 8,049 11,591 24,587
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Net income (loss) $ 22,321 $ 1,006 $ (12,334) $ (103,960) $ (21,090)
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Net income (loss) per common share
- Basic $ 0.15 $ 0.01 $ (0.09) $ (0.72) $ (0.15)
- Diluted $ 0.15 $ 0.01 $ (0.09) $ (0.72) $ (0.15)
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Shares used in per share
calculation
- Basic 144,926 143,915 141,889 143,668 140,453
- Diluted 149,949 146,642 141,889 143,668 140,453
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</TABLE>
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Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
<TABLE>
<CAPTION> December 27, December 28,
1998 1997
(Unaudited) (Audited)
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Assets
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<S> <C> <C>
Current assets:
Cash, cash equivalents and short-term investments $ 697,025 $ 467,032
Accounts receivable, net 415,557 329,111
Inventories 175,075 168,517
Deferred income taxes 205,959 160,583
Prepaid expenses and other current assets 68,411 50,024
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Total current assets 1,562,027 1,175,267
Property, plant and equipment, net 2,268,468 1,990,689
Investment in joint venture 236,820 204,031
Other assets 185,653 145,284
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$4,252,968 $3,515,271
====================================================================================================================================
Liabilities and Stockholders' Equity
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Current liabilities:
Notes payable to banks $ 6,017 $ 6,601
Accounts payable 333,975 359,536
Accrued compensation and benefits 80,334 63,429
Accrued liabilities 168,280 134,656
Income tax payable 22,026 12,676
Deferred income on shipments to distributors 84,523 83,508
Current portion of long-term debt, capital
lease obligations and other 145,564 66,364
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Total current liabilities 840,719 726,770
Deferred income taxes 34,784 96,269
Long-term debt, capital lease obligations and other,
less current portion 1,372,416 662,689
Stockholders' equity:
Capital stock:
Common stock, par value 1,465 1,428
Capital in excess of par value 1,071,591 1,018,884
Retained earnings 962,171 1,066,131
Accumulated other comprehensive loss (30,178) (56,900)
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Total stockholders' equity 2,005,049 2,029,543
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$4,252,968 $3,515,271
====================================================================================================================================
</TABLE>
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Advanced Micro Devices, Inc. INFORMATION ONLY
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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 Year Ended
(Unaudited) (Unaudited) (Audited)
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Dec. 27, Sept. 27, Dec. 28, Dec. 27, Dec. 28,
1998 1998 1997 1998 1997
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<S> <C> <C> <C> <C> <C>
Net sales $ 788,820 $ 685,927 $ 613,171 $2,542,141 $2,356,375
Cost of sales 481,987 422,985 428,856 1,718,703 1,578,438
Loss (income) from equity
investment in FASL 4,814 (4,487) (16,770) (23,077) (47,549)
Research and development 156,459 143,665 127,031 567,402 467,877
Marketing, general and
administrative 120,498 109,768 102,296 419,678 400,713
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763,758 671,931 641,413 2,682,706 2,399,479
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Operating income (loss) 25,062 13,996 (28,242) (140,565) (43,104)
Litigation settlement - - - (11,500) -
Interest income and other, net 10,037 10,071 6,525 34,207 35,097
Interest expense (15,177) (21,182) (11,757) (66,494) (45,276)
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Income (loss) before income taxes 19,922 2,885 (33,474) (184,352) (53,283)
Benefit for income taxes (136) (635) (29,861) (91,878) (55,155)
Provision (benefit) for taxes on
equity loss (income) in FASL (2,263) 2,514 8,721 11,486 22,962
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Net income (loss) $ 22,321 $ 1,006 $ (12,334) $ (103,960) $ (21,090)
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Net income (loss) per common share
share
- Basic $ 0.15 $ 0.01 $ (0.09) $ (0.72) $ (0.15)
- Diluted $ 0.15 $ 0.01 $ (0.09) $ (0.72) $ (0.15)
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Shares used in per share
calculation
- Basic 144,926 143,915 141,889 143,668 140,453
- Diluted 149,949 146,642 141,889 143,668 140,453
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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>
AMD
Selected Corporate Data
(Unaudited)
<TABLE>
<CAPTION>
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Product Line Breakdown Q4 '98 Q3 '98 Q4 '97
- ----------------------------
% of Sales Revenue % of Sales Revenue % of Sales Revenue
---------- ------- ---------- ------- ---------- -------
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<S> <C> <C> <C> <C> <C> <C>
Communications Group
(CPD, EPD, NPD) 15 $ 122M 18 $ 126M 28 $ 174M
Vantis (PLD) 6 47M 7 50M 9 55M
Memory Group (MG) 17 132M 19 129M 30 181M
Computation Products Group
(CMD, PPD, TMD) 62 488M 56 381M 33 203M
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</TABLE>
<TABLE>
<CAPTION>
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Other Data Q4 '98 Q3 '98 Q4 '97
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<S> <C> <C> <C>
Depreciation
and Amortization $ 125M $ 117M $ 108M
Capital Additions 180M 321M 250M
Headcount 13,597 13,384 12,759
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International Sales 60% 52% 56%
</TABLE>
