<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 19, 2000
ADVANCED MICRO DEVICES, INC.
----------------------------
(Exact name of registrant as specified in its charter)
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<CAPTION>
DELAWARE 1-7882 94-1692300
--------- --------- ------------
<S> <C> <C>
(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
<PAGE>
Item 5. Other Events.
On January 19, 2000, Advanced Micro Devices, Inc. reported sales of
$968,710,000 and net income of $65,080,000 in the quarter ended December 26,
1999, lead by strong seasonal demand for personal computers. 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, Pro Forma Financial Information and Exhibits.
- ------- -------------------------------------------------------------------
(c) Exhibits
99.1 Press release dated January 19, 2000.
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.
Dated: January 26, 2000 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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<CAPTION>
Exhibit Number Exhibit
- -------------- -------
<S> <C>
99.1 Press release dated January 19, 2000.
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4
<PAGE>
EXHIBIT 99.1
[LETTERHEAD OF AMD]
NEWS RELEASE
CONTACTS:
Scott Allen
Public Relations
(408) 749-3311
John Greenagel
Corporate Communications
(408) 749-3310
Toni Beckham
Investor Relations
AMD REPORTS FOURTH QUARTER RESULTS
--AMD earns $65 million, or $0.43 per share, on record quarterly revenue--
SUNNYVALE, CA -- January 19, 2000 -- Led by strong seasonal consumer demand
for personal computers, AMD today reported record sales of $968,710,000 and net
income of $65,080,000 in the quarter ended December 26, 1999. Net income
amounted to $0.43 per diluted share. The company reported strong growth in the
just-completed quarter and continuing strong demand in all of its product groups
- - the Computation Products Group, the Memory Group, and the Communications
Group.
Sales grew by 46 percent from the immediate-prior quarter, and by 23
percent from the like period of 1998. In the immediate-prior quarter, AMD
reported sales of $662,192,000 and a net loss of $105,545,000, or $0.72 per
share. In the fourth quarter of 1998, AMD reported sales $788,820,000, which
resulted in net income of $22,321,000, or $0.15 per diluted share.
-more-
<PAGE>
2
At $2,857,604,000, AMD sales for 1999 grew by 12 percent and reached a
record high for the company. For 1999, AMD reported a net loss of $88,936,000,
or $0.60 per share. Results for 1999 include a one-time after-tax gain of
$259,236,000 from the sale of Vantis Corporation, the company's programmable
logic products subsidiary that was sold during the second quarter of 1999. Sales
for AMD continuing product groups - the Computation Products Group,
Communications Group, and Memory Group - grew by 17 percent over 1998. In 1998,
AMD reported sales of $2,542,141,000, and a net loss of $103,960,000, or $0.72
per share.
"AMD had an outstanding quarter as all of our product groups reported
significant growth in sales from the immediate-prior quarter," said W.J. Sanders
III, chairman and chief executive officer. "Our results reflected both the
seasonal boost in already-robust semiconductor demand and the successful
achievement of our aggressive goals for the AMD Athlon(TM) processor. Sales
growth of AMD Athlon processors alone contributed more than half of our greater
than $300 million sequential sales growth. Seasonal strength in the PC market
also enabled us to grow sales sequentially from our AMD-K6(R) processor family
on near-record unit volumes. Total PC processor unit shipments grew by 35
percent to more than 6 million units, a new record. Processor sales grew by 67
percent from the immediate-prior quarter and by 1 percent over the previous
record in the comparable period of 1998.
"AMD Athlon processor unit sales surpassed our goal of 800,000 units for
the quarter and enabled us to achieve our target of cumulative unit shipments of
one million for the year.
"AMD continues to execute well to its processor roadmap," Sanders said. "We
accelerated our planned introduction of higher-speed AMD Athlon processors, with
750-megahertz (MHz) devices in the fourth quarter and an 800-MHz version on
January 6. Our transition to 180-nanometer (0.18-micron) technology is
progressing smoothly. Eighty percent of our wafer output for AMD Athlon
processors is currently on 180-nanometer technology, and our wafer output of AMD
Athlon processors will be 100 percent on 180-nanometer technology in February."
-more-
<PAGE>
3
The company stated that strong demand for AMD high-density, low-power Flash
memory devices, driven primarily by cellular telephone applications, resulted in
record sales of $275 million for the Memory Group. Sales increased by 33 percent
over the immediate-prior quarter's sales of $206 million, and more than doubled
from the like period of 1998 when sales were $132 million. Demand for AMD flash
memory products continues to exceed capacity.
The Communications Group also benefited from strong demand, as it achieved
34 percent sequential sales growth over the immediate-prior quarter, and 48
percent sales growth over the like period of 1998. Communications Group sales
reached $94 million in the fourth quarter compared to $70 million in the third
quarter, and $63 million in the fourth quarter of 1998.
In the aggregate, the book-to-bill ratio was significantly over 1:1 in the
fourth quarter.
"Our ability to return to solid profitability on substantial growth from
all of our product groups is directly attributable to the exemplary performance
of the worldwide AMD team. Particularly noteworthy in the quarter was the
attainment of record unit market share/1/ in PC processors in the era of AMD
proprietary designs highlighted by the award-winning/2/ AMD Athlon processor,"
Sanders concluded.
Current Outlook
The company's outlook statements are based on current expectations. The
following statements are forward-looking, and actual results could differ
materially.
The company currently projects sales in the first quarter to be flat to
slightly down, reflecting an anticipated seasonal slowdown in the retail sector
of the personal computer market following an exceptionally strong fourth quarter
in the sector. The company's current overall outlook is based on the following
projections for its major product lines:
-more-
________________
/1/ According to Mercury Research as reported in the Wall Street Journal on
January 14, 2000.
/2/ A list of the awards won by the AMD Athlon processor is attached.
<PAGE>
4
Based on the normal seasonal patterns of personal computer demand, the
company expects its overall PC processor unit shipments will grow substantially
from the comparable period of 1999, but will decline modestly from the record
level of the fourth quarter. Unit shipments of AMD Athlon processors are
expected to increase, resulting in a richer mix and higher blended average
selling price for PC processors. For the year, the company anticipates continued
growth in personal computer sales and in the PC processors that power them, with
the distribution of unit demand skewed to the second half of the year as usual.
Communication Group sales are projected to grow by 50 percent compared to
the first quarter of 1999 and by a mid-single-digit percentage sequentially.
Demand remains strong.
AMD projects that Memory Group sales will more than double compared to the
first quarter of 1999 and will grow by 10 percent sequentially. Demand is
expected to continue to exceed supply.
With the Semiconductor Industry Association and others forecasting
worldwide industry growth in the range of 20 to 25 percent in 2000, the company
believes that it is positioned to grow faster than the industry.
AMD Teleconference
AMD will hold a teleconference for the financial community at 2:30 PM
Pacific Standard Time today to discuss fourth-quarter and full-year financial
results. AMD will provide a real-time audio broadcast of the teleconference on
the Investor Relations page of its web site at http://www.amd.com. The webcast
------------------
will be available for two weeks after the teleconference.
AMD will also provide a telephone recording of the teleconference, which
will be available at approximately 4:30 PM PST today. Interested persons may
listen to the playback of the teleconference by calling the following toll-free
number: 1-800-633-8284 and entering the code number 13853993.
-more-
<PAGE>
5
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
"plans," "expects," "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
demand for AMD's products will not continue at current or greater levels; that
the company will not be able to produce the AMD Athlon(TM) processor using 0.18
micron process technology in the volume, speed mix or with the feature set
necessary to meet customer requirements and the company's goals; that Intel
Corporation pricing, marketing programs or other activities targeting the
company's microprocessor business will prevent achievement of the company's
current processor sales plans; that third parties may not provide timely or
adequate infrastructure solutions to support the AMD Athlon(TM) processor; and
that the company will not be able to grow demand for its PC processors
sufficient to utilize fully its processor production capacity. We urge investors
to review in detail the risks and uncertainties in the company's Securities and
Exchange Commission filings, including but not limited to the report on Form
10-Q for the quarter ended September 26, 1999.
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 $2.9 billion in 1999. (NYSE: AMD).
--30--
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, AMD Athlon and combinations thereof are trademarks, and the
AMD-K6 is a registered trademarks of Advanced Micro Devices, Inc.
<PAGE>
6
AMD Athlon Processor Awards
Analyst's Choice Award - Best PC Processor, Microprocessor Report, January 2000;
Technical Excellence - Best Component (Hardware Category), PC Magazine, November
1999; CPU of the Year, Maximum PC, December 1999; Best Product of 1999
(Hardware), Windows NT Systems, January 2000; All-Star Award, Cadalyst, December
1999; Wired for 3D Editors' Choice, 3D Magazine, January 2000; Attaboy Award -
Product of the Year, Houston Chronicle, December 1999; Technical Excellence -
Best Component (Hardware Category), PC Magazine en Espanol, December 1999; Best
Overall Product of the Year, PC Magazine (UK), December 1999; Best System Design
- - Processor, PC Magazine (UK), December 1999; Product of the Year, PC Expert
(France), January 2000; Technical Excellence - Hardware and Component Category,
PC Expert (France), January 2000; Year 2000 Star Product (New Technology
Category), Info PC (France), January 2000; Overall Product of the Year, Info PC
(France), January 2000; Editors' Choice, Generation PC (France), January 2000;
Product of the Year, PC Compatibles (France), December 1999; Product of the Year
- - Processor, PC Direct (France), January 2000; Product of the Year 2000, PC
Achat (France), January 2000; Product of the Year, PC World (Denmark), December
1999; Product of the Year, PC World (Norway), December 1999; Best CPU for
Desktops, PC World Komputer (Poland), December 1999; Technology Product of the
Year, PC Kurier (Poland), January 2000; Millennium Award, Personal Computer
Magazine (The Netherlands), January 2000; Best of Comdex (Israel), December
1999; and Best of World PC Expo 99 (Japan), Nikkei BYTE/Nikkei WinPC Magazine,
September 1999.
AMD Athlon Processor-based Awards
State-of-the-Art Desktop PC: Compaq Presario 5861, PC Computing, November 1999;
Editors' Choice Award (Desktop PCs): TCE K7-600, Computer Reseller News,
September 1999; #1 Midrange PC: Micro Express's MicroFlex-550B, PC World,
January 2000; Best Hardware of 1999: Polywell Poly 800K7-700, CNET.com, December
1999; System of the Year: Cybermax Enthusiast AP6 650 MHz Athlon, Maximum PC,
December 1999; Attaboy Award - Best Consumer PC: Compaq Presario 5900Z, Houston
Chronicle, December 1999; Cadalyst Labs 5-Star (out of a possible 5 stars)
Highly Recommended Workstation: Polywell 800K7-6501 (with an AMD Athlon 650 MHz
<PAGE>
7
processor), Sys Performance 600A (AMD Athlon 600 MHz processor), and XI Computer
650K MTower SP (AMD Athlon 650 MHz processor); and Ultimate Game Machine
(co-winner): Falcon Northwest Computers, Computer Gaming World, December 1999.
<PAGE>
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS *
(Thousands except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended
(Unaudited) Year Ended
- ---------------------------------------------------------------------------------------------------------------
Dec. 26, Sept. 26, Dec. 27, Dec. 26, Dec. 27,
1999 1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales .......................... $ 968,710 $ 662,192 $ 788,820 $ 2,857,604 $ 2,542,141
Cost of sales ...................... 581,545 474,119 481,987 1,964,434 1,718,703
Research and development ........... 150,936 157,626 156,459 635,786 567,402
Marketing, general and
administrative ................. 158,803 129,437 120,498 540,070 419,678
Restructuring and other
special charges ................ 5,700 -- -- 38,230 --
- ---------------------------------------------------------------------------------------------------------------
896,984 761,182 758,944 3,178,520 2,705,783
- ---------------------------------------------------------------------------------------------------------------
Operating income (loss) ............ 71,726 (98,990) 29,876 (320,916) (163,642)
Gain on sale of Vantis ............. -- -- -- 432,059 --
Litigation settlement .............. -- -- -- -- (11,500)
Interest income and other, net ..... 6,958 6,757 10,037 31,735 34,207
Interest expense ................... (12,370) (18,033) (15,177) (69,253) (66,494)
- ---------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes
and equity in joint venture .... 66,314 (110,266) 24,736 73,625 (207,429)
Provision (benefit) for income taxes -- -- (136) 167,350 (91,878)
- ---------------------------------------------------------------------------------------------------------------
Income (loss) before equity
in joint venture ............... 66,314 (110,266) 24,872 (93,725) (115,551)
Equity in net income (loss) of
joint venture .................. (1,234) 4,721 (2,551) 4,789 11,591
- ---------------------------------------------------------------------------------------------------------------
Net income (loss) .................. $ 65,080 $ (105,545) 22,321 $ (88,936) $ (103,960)
- ---------------------------------------------------------------------------------------------------------------
Net income (loss) per common share
- Basic .......................... $ 0.44 $ (0.72) $ 0.15 $ (0.60) (0.72)
- Diluted ........................ $ 0.43 $ (0.72) $ 0.15 $ (0.60) (0.72)
- ---------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic .......................... 148,029 147,388 144,926 147,068 143,668
- Diluted ........................ 152,750 147,388 149,949 147,068 143,668
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
* Amounts for the year ended December 26, 1999 are unaudited. Amounts for the
year ended December 27, 1998 are derived from the December 27, 1998 audited
financial statements.
<PAGE>
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS*
(Thousands)
<TABLE>
<CAPTION>
Dec. 26, Dec. 27,
1999 1998
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Current assets:
Cash, cash equivalents and short-term investments $ 596,511 $ 697,025
Accounts receivable, net 429,809 415,557
Inventories 198,213 175,075
Deferred income taxes 55,956 205,959
Prepaid expenses and other current assets 129,389 68,411
- -------------------------------------------------------------------------------------------
Total current assets 1,409,878 1,562,027
Property, plant and equipment, net 2,523,236 2,268,468
Investment in joint venture 273,608 236,820
Other assets 170,976 185,653
- -------------------------------------------------------------------------------------------
$ 4,377,698 $ 4,252,968
===========================================================================================
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable to banks $ - $ 6,017
Accounts payable 387,193 333,975
Accrued compensation and benefits 91,900 80,334
Accrued liabilities 273,689 168,280
Income tax payable 17,327 22,026
Deferred income on shipments to distributors 92,917 84,523
Current portion of long-term debt, capital
lease obligations and other 47,626 145,564
- -------------------------------------------------------------------------------------------
Total current liabilities 910,652 840,719
Deferred income taxes 60,491 34,784
Long-term debt, capital lease obligations and other,
less current portion 1,427,282 1,372,416
Stockholders' equity:
Capital stock:
Common stock, par value 1,496 1,465
Capital in excess of par value 1,121,956 1,071,591
Retained earnings 873,235 962,171
Accumulated other comprehensive loss (17,414) (30,178)
- -------------------------------------------------------------------------------------------
Total stockholders' equity 1,979,273 2,005,049
- -------------------------------------------------------------------------------------------
$ 4,377,698 $ 4,252,968
===========================================================================================
</TABLE>
* Amounts as of December 26, 1999 are unaudited. Amounts as of December 27,
1998 are derived from the December 27, 1998 audited financial statements.
<PAGE>
<TABLE>
<CAPTION>
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)
Quarter Ended Year Ended
(Unaudited) (Unaudited)
- ---------------------------------------------------------------------------------------------------------------
Dec. 26, Sept. 26, Dec. 27, Dec. 26, Dec. 27,
1999 1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales ........................ $ 968,710 $ 662,192 $ 788,820 $ 2,857,604 $ 2,542,141
Cost of sales .................... 581,545 474,119 481,987 1,964,434 1,718,703
Loss(Income) from equity
investment in FASL ............ 2,117 (8,098) 4,814 (8,215) (23,077)
Research and development ......... 150,936 157,626 156,459 635,786 567,402
Marketing, general and
administrative ................ 158,803 129,437 120,498 540,070 419,678
Restructuring and other
special charges ............... 5,700 -- -- 38,230 --
- ---------------------------------------------------------------------------------------------------------------
899,101 753,084 763,758 3,170,305 2,682,706
- ---------------------------------------------------------------------------------------------------------------
Operating income (loss) .......... 69,609 (90,892) 25,062 (312,701) (140,565)
Gain on sale of Vantis ........... -- -- -- 432,059 --
Litigation settlement ............ -- -- -- -- (11,500)
Interest income and other, net ... 6,958 6,757 10,037 31,735 34,207
Interest expense ................. (12,370) (18,033) (15,177 (69,253) (66,494))
- ---------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes. 64,197 (102,168) 19,922 81,840 (184,352)
Provision (benefit) for income taxes -- -- (136 167,350 (91,878))
Provision for taxes on
equity income in FASL ......... (883) 3,377 (2,263 3,426 11,486 )
- ---------------------------------------------------------------------------------------------------------------
Net income (loss) ................ $ 65,080 $ (105,545) $ 22,321 $ (88,936) $ (103,960)
- ---------------------------------------------------------------------------------------------------------------
Net income (loss) per common share
- Basic ......................... $ 0.44 $ (0.72) $ 0.15 $ (0.60) $ (0.72)
- Diluted ....................... $ 0.43 $ (0.72) $ 0.15 $ (0.60) $ (0.72)
- ---------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic ......................... 148,029 147,388 144,926 147,068 143,668
- Diluted ....................... 152,750 147,388 149,949 147,068 143,668
- ---------------------------------------------------------------------------------------------------------------
</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) related net income (loss) per common share
amounts are the same as those reported under GAAP.
<PAGE>
AMD
Selected Corporate Data
(Unaudited)
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<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Segment Breakdown Q4 '99 Q3 '99 Q4 '98
- -----------------
% of Sales Revenue % of Sales Revenue % of Sales Revenue
-------------- ---------- ----------- -------- --------- ----------
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AMD segment:
Computation Products Group 60 $577M 55 $368M 69 $546M
Memory Group 29 275M 31 206M 17 132M
Communications Group 9 94M 11 70M 8 63M
Other 2 23M 3 18M 0 0
Vantis segment:
Vantis 0 0 0 0 6 47M
<CAPTION>
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- ----------------------------------------------------------------------------------------------------------------
Other Data Q4 '99 Q3 '99 Q4 '98
- ---------- ------ ------ ------
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Depreciation and Amortization $130M $130M $125M
Capital Additions $126M 146M 180M
Headcount 13,354 13,244 13,597
- ---------------------------------------------------------------------------------------------------------------
International Sales 63% 63% 60%
Research and Development $151M $158M $156M
EBITDA $202M $31M $155M
</TABLE>
