<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 12, 2000
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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Page 1 of 4
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Item 5. Other Events.
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On April 12, 2000, Advanced Micro Devices, Inc. reported record sales of
$1,092,029,000 and net income of $189,349,000 for the quarter ended April 2,
2000. Net income amounted to $1.15 per diluted share. 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 April 12, 2000.
2
<PAGE>
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: April 21, 2000 By: /s/ Francis P. Barton
--------------------------------------
Francis P. Barton
Senior Vice President, Chief Financial
Officer
3
<PAGE>
Exhibit Index
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Exhibit Number Exhibit
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99.1 Press release dated April 12, 2000.
4
<PAGE>
EXHIBIT 99.1
NEWS RELEASE
CONTACT:
John Greenagel
Corporate Communications
(408) 749-3310
Toni Beckham
Investor Relations
(408)749-3127
AMD REPORTS FIRST QUARTER RESULTS
- --AMD earns a record $189.3 million, or $1.15 per share, on record quarterly
sales--
SUNNYVALE, CA -- April 12, 2000 -- AMD today reported record sales of
$1,092,029,000 and record net income of $189,349,000 for the quarter ended April
2, 2000. Net income amounted to $1.15 per diluted share. The company reported
strong growth in each of its product groups - the Computation Products Group,
the Memory Group, and the Communications Group.
Total revenues grew by 13 percent over the immediate-prior quarter ended
December 26, 1999, and by 73 percent over the like period of 1999. In the
immediate-prior quarter, AMD reported sales of $968,710,000 and net income of
$65,080,000, or $0.43 per diluted share. In the first quarter of 1999, AMD
reported sales of $631,593,000, and a net loss of $128,367,000, or $0.88 per
share.
-more-
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2
"AMD had the best quarter in its history," said W.J. Sanders III, chairman
and chief executive officer. "Each of our product groups reported significant
growth in the first quarter. Led by strength in PC processors and Flash memory
sales, sales from AMD's three product groups grew by more than 13 percent
sequentially and by more than 83 percent over the comparable period of 1999.
"Unit sales of AMD Athlon(TM) processors increased by 50 percent to 1.2
million units," Sanders continued. "Total PC processor revenues grew 14 percent
sequentially and by more than 65 percent over the first quarter of 1999. Total
unit sales, including AMD Athlon and AMD-K6(R) family processors, reached a new
record at nearly 6.5 million units. Reflecting a richer PC processor portfolio
with the industry's broadest range of high-performance solutions, revenues from
AMD Athlon processors exceeded revenues from AMD-K6 family processors."
During the quarter, AMD introduced the industry's first 1-gigahertz (GHz)
PC processor and 850-, 900-, and 950-megahertz (MHz) versions of the AMD Athlon
processor. AMD also began sampling two new versions of the AMD Athlon processor
family that incorporate on-chip L2 cache. The first, code-named "Thunderbird,"
is targeted at the performance segment of the PC market. The second, code-named
"Spitfire," is targeted at the value segment. Both products are planned for
shipment later this quarter.
The company also commenced shipments of a 550-MHz AMD-K6-2 processor
targeted at the value segment of the desktop PC market and a 500-MHz AMD-K6-2
processor for mobile systems.
The company reported that continuing strong demand for Flash memory devices
coupled with extraordinary operational execution resulted in record sales of
$327 million for the Memory Group, an increase of 19 percent from the immediate-
prior quarter and more than 150 percent from the comparable period of 1999.
During the quarter, AMD concluded multi-year agreements with Alcatel and Cisco
Systems to supply Flash memory products. AMD said it expects that demand for
Flash memory devices will continue to exceed supply for the remainder of the
year and into 2001.
-more-
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3
Communications Group sales increased by 7 percent over the immediate-prior
quarter and by 59 percent over the first quarter of 1999 driven by strength in
telecommunications line-card circuits and devices for physical-layer Ethernet
solutions.
"Demand continues to be strong across each of our product groups. With a
stronger product portfolio than at any time in our history, we look forward to
continuing growth," 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 second quarter to be modestly
higher than the record level of the first quarter. The company's current
overall outlook is based on the following projections for its major product
lines:
The company expects that unit shipments of PC processors could approach
the record level of the first quarter. Unit shipments of AMD Athlon processors
are expected to increase to 1.8 million units, resulting in a richer mix and a
higher blended average selling price and higher revenues for PC processors.
Communications Group sales are projected to grow by more than 10 percent
over first-quarter levels.
AMD projects that Memory Group sales will grow in the high single-digit
range over the first quarter and resume double-digit growth in the third and
fourth quarters of 2000. The company believes that demand for Flash memory
products will continue to exceed supply.
With the Semiconductor Industry Association forecasting worldwide growth
in the range of 20 to 25 percent in 2000, the company believes it will continue
to grow faster than the industry, with total sales growth of more than 50
percent for the year as a whole.
-more-
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4
AMD Teleconference
AMD will hold a teleconference for the financial community at 2:30 PM
Pacific Standard Time today to discuss first-quarter 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 or
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http://www.streetfusion.com. The webcast will be available for two weeks after
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the teleconference.
AMD will also provide a telephone recording of the teleconference, which
will be available at approximately 4:30 PM PT 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 14739320.
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. 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. There can be no assurance that demand for
the company's products will continue at current or greater levels, or that the
company will continue to grow revenues. There are also risks that the company
will not be able to produce the AMD Athlon processor in the volume, speed mix
or with the feature set necessary to meet customer requirements and the
company's plans and goals; that Intel Corporation pricing, marketing programs,
new product introductions or other activities targeted the company's processor
business will prevent attainment of the company's current processor sales plans;
that third parties may not provide timely or adequate infrastructure solutions
to support the AMD Athlon processor, including new derivative products scheduled
to begin shipment in the second quarter, and that the company will not be able
to grow demand for its PC processors sufficiently 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-K for the year ended December
26, 1999.
-more-
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5
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-
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.
NOTE TO EDITOR: Readers may obtain additional information by calling 1 (800)
222-9323 or (408) 749-3060. Technical Support Email: [email protected].
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AMD, the AMD logo, AMD Athlon and combinations thereof are trademarks of
Advanced Micro Devices, Inc. in the United States and other jurisdictions.
<PAGE>
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended
(Unaudited)
- --------------------------------------------------------------------------------------------------------------------
Apr. 2, Dec. 26, Mar. 28,
2000 1999 1999
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net sales $1,092,029 $ 968,710 $ 631,593
Cost of sales 605,757 581,545 450,431
Research and development 161,297 150,936 159,946
Marketing, general and
administrative 144,306 158,803 127,310
Restructuring and other
special charges - 5,700 15,016
- --------------------------------------------------------------------------------------------------------------------
911,360 896,984 752,703
- --------------------------------------------------------------------------------------------------------------------
Operating income (loss) 180,669 71,726 (121,110)
Interest income and other, net 21,128 6,958 10,768
Interest expense (11,479) (12,370) (20,763)
- --------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes
and equity in joint venture 190,318 66,314 (131,105)
Benefit for income taxes - - (5,473)
- --------------------------------------------------------------------------------------------------------------------
Income (loss) before equity
in joint venture 190,318 66,314 (125,632)
Equity in net loss of joint venture (969) (1,234) (2,735)
- --------------------------------------------------------------------------------------------------------------------
Net income (loss) $189,349 $65,080 (128,367)
- --------------------------------------------------------------------------------------------------------------------
Net income (loss) per common share
- Basic $ 1.25 $ 0.44 $ (0.88)
- Diluted $ 1.15 $ 0.43 $ (0.88)
- --------------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic 150,880 148,029 145,909
- Diluted 171,942 152,750 145,909
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS*
(Thousands)
<TABLE>
<CAPTION>
April 2, Dec. 26,
2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Current assets:
Cash, cash equivalents and short-term investments $ 919,183 $ 596,511
Accounts receivable, net 408,148 429,809
Inventories 204,965 198,213
Deferred income taxes 55,956 55,956
Prepaid expenses and other current assets 144,621 129,389
- ------------------------------------------------------------------------------------------------------------------------------
Total current assets 1,732,873 1,409,878
Property, plant and equipment, net 2,475,889 2,523,236
Investment in joint venture 265,871 273,608
Other assets 163,594 170,976
- ------------------------------------------------------------------------------------------------------------------------------
$ 4,638,227 $ 4,377,698
==============================================================================================================================
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable to banks $ 3,769 $ -
Accounts payable 317,302 387,193
Accrued compensation and benefits 131,414 91,900
Accrued liabilities 266,324 273,689
Income tax payable 14,396 17,327
Deferred income on shipments to distributors 108,666 92,917
Current portion of long-term debt, capital
lease obligations and other 68,209 47,626
- ------------------------------------------------------------------------------------------------------------------------------
Total current liabilities 910,080 910,652
Deferred income taxes 59,976 60,491
Long-term debt, capital lease obligations and other,
less current portion 1,469,799 1,427,282
Stockholders' equity:
Capital stock:
Common stock, par value 1,543 1,496
Capital in excess of par value 1,174,518 1,121,956
Retained earnings 1,062,584 873,235
Accumulated other comprehensive loss (40,273) (17,414)
- ------------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 2,198,372 1,979,273
- ------------------------------------------------------------------------------------------------------------------------------
$ 4,638,227 $ 4,377,698
==============================================================================================================================
</TABLE>
* Amounts as of April 2, 2000 are unaudited. Amounts for December 26, 1999
are derived from the December 26, 1999 audited financial statements.
<PAGE>
<TABLE>
<CAPTION>
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)
Quarter Ended
(Unaudited)
- ---------------------------------------------------------------------------------------------------------------------
Apr. 2, Dec. 26, Mar. 28,
2000 1999 1999
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net sales $1,092,029 $968,710 $631,593
Cost of sales 605,757 581,545 450,431
Loss from equity
investment in FASL 1,659 2,117 4,636
Research and development 161,297 150,936 159,946
Marketing, general and
administrative 144,306 158,803 127,310
Restructuring and other
special charges - 5,700 15,016
- ---------------------------------------------------------------------------------------------------------------------
913,019 899,101 757,339
- ---------------------------------------------------------------------------------------------------------------------
Operating income (loss) 179,010 69,609 (125,746)
Interest income and other, net 21,128 6,958 10,768
Interest expense (11,479) (12,370) (20,763)
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes 188,659 64,197 (135,741)
Benefit for income taxes - - (5,473)
Benefit for taxes on
equity loss in FASL (690) (883) (1,901)
- ---------------------------------------------------------------------------------------------------------------------
Net income (loss) $189,349 $ 65,080 $ (128,367)
- ---------------------------------------------------------------------------------------------------------------------
Net income (loss) per common share
- Basic $ 1.25 $ 0.44 $ (0.88)
- Diluted $ 1.15 $ 0.43 $ (0.88)
- ---------------------------------------------------------------------------------------------------------------------
Shares used in per share
calculation
- Basic 150,880 148,029 145,909
- Diluted 171,942 152,750 145,909
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
* The above statements of operations are not in accordance with generally
accepted accounting principles (GAAP) in that the pre-tax equity loss 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>
- ------------------------------------------------------------------------------------------------------------------------------
Segment Breakdown Q1 '00 Q4 '99 Q1 '99
- ----------------- % of Sales Revenue % of Sales Revenue % of Sales Revenue
---------- ------- ---------- ------- ---------- -------
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AMD segment:
Computation Products Group 59 $644M 60 $577M 63 $395M
Memory Group 30 327M 29 275M 20 126M
Communications Group 9 101M 9 94M 10 64M
Other 2 20M 2 23M 0 0
Vantis segment:
Vantis 0 0 0 0 7 47M
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
Other Data Q1 '00 Q4 '99 Q1 '99
- ---------- ------ ------ ------
- -------------------------------------------------------------------------------------------------------------------------------
Depreciation
and Amortization $128M $130M $127M
Capital Additions $129M $126M 200M
Headcount 13,398 13,354 13,803
- -------------------------------------------------------------------------------------------------------------------------------
International Sales 59% 63% 58%
Research and Development $161M $151M $160M
EBITDA $309M $202M $6.4M
</TABLE>
