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AMD Reports First Quarter Results
 SUNNYVALE, CA -- (Marketwire) -- 04/19/12 -- AMD (NYSE: AMD) Q1 2012 Results
AMD (NYSE: AMD) today announced revenue for the first quarter of 2012 of $1.59 billion, net loss of $590 million, or $0.80 per share, and operating loss of $580 million. The company reported non-GAAP net income of $92 million, or $0.12 per share, and non-GAAP operating income of $138 million. First quarter non-GAAP net income excludes: the previously disclosed charge of $703 million for a limited waiver of exclusivity of certain 28 nanometer (nm) APU products from GLOBALFOUNDRIES Inc. (GF) related to the 2012 Amendment to the Wafer Supply Agreement; amortization of acquired intangible assets of $1 million; a restructuring charge of $8 million; SeaMicro, Inc. (SeaMicro) acquisition costs of $6 million, and a tax benefit related to the SeaMicro acquisition of $36 million. "AMD delivered solid results in the first quarter as we remain focused on improving our execution, delivering innovative products, and building a company around a strategy to deliver strong cash flow and earnings growth," said Rory Read, AMD president and CEO. "A complete top-to-bottom introduction of new APU offerings, combined with ample product supply resulting from continued progress with our manufacturing partners, positions us to win and grow." GAAP Financial Results
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Q1-12 Q4-11 Q1-11
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Revenue $1.59B $1.69B $1.61B
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Operating income (loss) $(580)M $71M $54M
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Net income (loss) / Earnings
(loss) per share $(590)M/$(0.80) $(177)M/$(0.24) $510M/$0.68
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Non-GAAP Financial Results(1)
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Q1-12 Q4-11 Q1-11
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Revenue $1.59B $1.69B $1.61B
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Operating income $138M $172M $92M
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Net income / Earnings per share $92M/$0.12 $138M/$0.19 $56M/$0.08
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Quarterly Summary
Current Outlook AMD's outlook statements are based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below. AMD expects revenue to increase 3 percent, plus or minus 3 percent, sequentially for the second quarter of 2012. For additional detail regarding AMD's results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com. AMD Teleconference AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its 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 AMD. The webcast will be available for 10 days after the conference call. Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (1)
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(Millions except per share
amounts) Q1-12 Q4-11 Q1-11
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GAAP net income (loss) /
Earnings (loss) per share $(590) $(0.80) $(177) $(0.24) $ 510 $ 0.68
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Limited waiver of exclusivity
from GLOBALFOUNDRIES (703) (0.94) - - - -
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Impairment of investment in
GLOBALFOUNDRIES - - (209) (0.28) - -
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Dilution gain in investee,
net - - - - 492 0.66
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Payment to GLOBALFOUNDRIES - - - - (24) (0.03)
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Amortization of acquired
intangible assets (1) - (3) - (9) (0.01)
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Legal settlement - - - - (5) (0.01)
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Loss on debt repurchase - - (1) - - -
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Restructuring charges, net (8) (0.01) (98) (0.13) - -
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Loss from discontinued
operations* - - (4) (0.01) - -
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SeaMicro acquisition costs (6) (0.01) - - - -
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Tax benefit related to
SeaMicro acquisition 36 0.05 - - - -
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Non-GAAP net income / Earnings
per share $ 92 $ 0.12 $ 138 $ 0.19 $ 56 $ 0.08
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* Loss on discontinued operations consists of charges related to the sale of our DTV division to Broadcom which occurred in 2008. Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Operating Income (1)
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(Millions) Q1-12 Q4-11 Q1-11
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GAAP operating income (loss) $ (580) $ 71 $ 54
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Limited waiver of exclusivity from GLOBALFOUNDRIES (703) - -
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Payment to GLOBALFOUNDRIES - - (24)
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Amortization of acquired intangible assets (1) (3) (9)
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Legal settlement - - (5)
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Restructuring charges, net (8) (98) -
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SeaMicro acquisition costs (6) - -
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Non-GAAP operating income $ 138 $ 172 $ 92
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Reconciliation of GAAP to Non-GAAP Gross Margin (1)
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(Millions except percentages) Q1-12 Q4-11 Q1-11
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GAAP Gross Margin $ 27 $ 773 $ 691
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GAAP Gross Margin % 2% 46% 43%
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Limited waiver of exclusivity from GLOBALFOUNDRIES (703) - -
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Payment to GLOBALFOUNDRIES - - (24)
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Legal settlements - - (5)
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Non-GAAP Gross Margin $ 730 $ 773 $ 720
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Non-GAAP Gross Margin % 46% 46% 45%
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About AMD Cautionary Statement This document contains forward-looking statements concerning AMD, its second quarter of 2012 revenue, demand for the company's products, that the company will have sufficient supply of company's products to meet customer demand, its future growth, its ability to deliver sustained success, its strategy to deliver cash flow and earnings growth, its server strategy and growth opportunities, the anticipated benefits of from AMD's acquisition of SeaMicro, the timing of future products that incorporate the company's products, and the features of these new products which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," "anticipates," "projects," "would," and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include the possibility that Intel Corporation's pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities may negatively impact the company's current plans; the company may be unable to develop, launch and ramp new products and technologies in the volumes that are required by the market and at mature yields on a timely basis; that its third party wafer foundry suppliers will be unable to transition the company's products to advanced manufacturing process technologies in a timely and effective way or to manufacture the company's products on a timely basis in sufficient quantities and using competitive technologies; the company will be unable to obtain sufficient manufacturing capacity or components to meet demand for its products or will not fully utilize its projected manufacturing capacity needs at GF's microprocessor manufacturing facilities for 2012; that customers stop buying the company's products or materially reduce their operations or demand for the company's products; that the company may be unable to maintain the level of investment in research and development that is required to remain competitive; that there may be unexpected variations in market growth and demand for the company's products and technologies in light of the product mix that it may have available at any particular time or a decline in demand; the company will require additional funding and may be unable to raise sufficient capital on favorable terms, or at all; that global business and economic conditions will not continue to improve or will worsen; that demand for computers will be lower than currently expected; and the effect of political or economic instability, domestically or internationally, on our sales or supply chain. Investors are urged to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 31, 2011. AMD, the AMD Arrow logo, AMD Opteron, AMD Radeon, and combinations thereof, and are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner. (1) In this press release, in addition to GAAP financial results, the Company has provided non-GAAP financial measures including non-GAAP net income, non-GAAP operating income, non-GAAP earnings per share and non-GAAP gross margin. These non-GAAP financial measures reflect certain adjustments as presented in the tables in this press release. The Company also provided Adjusted EBITDA and non-GAAP Adjusted free cash flow as supplemental measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this press release. The Company is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because the Company believes it assists investors in comparing the Company's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. Refer to corresponding tables at the end of this press release for additional AMD data.
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)
Quarter Ended
-------------------------------
Mar. 31, Dec. 31, Apr. 2,
2012 2011 2011
--------- --------- ---------
Net revenue $ 1,585 $ 1,691 $ 1,613
Cost of sales 1,558 918 922
--------- --------- ---------
Gross margin 27 773 691
Gross margin % 2% 46% 43%
Research and development 368 358 367
Marketing, general and administrative 230 243 261
Amortization of acquired intangible assets 1 3 9
Restructuring charges, net 8 98 -
--------- --------- ---------
Operating income (loss) (580) 71 54
Interest income 2 2 3
Interest expense (43) (43) (48)
Other income (expense), net (1) (207) 11
--------- --------- ---------
Income before dilution gain in investee and
income taxes (622) (177) 20
Provision (benefit) for income taxes (32) (4) 2
Dilution gain in investee, net - - 492
--------- --------- ---------
Income (loss) from continuing operations (590) (173) 510
Loss from discontinued operations, net of
tax - (4) -
--------- --------- ---------
Net income (loss) $ (590) $ (177) $ 510
--------- --------- ---------
Net income (loss) per share
Basic
Continuing operations $ (0.80) $ (0.24) $ 0.71
Discontinued operations - (0.01) -
--------- --------- ---------
Basic net income (loss) per share $ (0.80) $ (0.24) $ 0.71
Diluted
Continuing operations $ (0.80) $ (0.24) $ 0.68
Discontinued operations - (0.01) -
--------- --------- ---------
Diluted net income (loss) per share $ (0.80) $ (0.24) $ 0.68
--------- --------- ---------
Shares used in per share calculation
Basic 734 732 720
Diluted 734 732 764
--------- --------- ---------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Millions)
Quarter Ended
-------------------------------
Mar. 31, Dec. 31, Apr. 2,
2012 2011 2011
--------- --------- ---------
Total comprehensive income (loss) $ (593) $ (173) $ 511
--------- --------- ---------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
----------- -----------
Mar. 31, Dec. 31,
2012 2011
----------- -----------
Assets
Current assets:
Cash, cash equivalents and marketable securities $ 1,544 $ 1,765
Accounts receivable, net 962 919
Inventories, net 585 476
Prepaid expenses and other current assets 104 69
----------- -----------
Total current assets 3,195 3,229
Long-term marketable securities 169 149
Property, plant and equipment, net 715 726
Investment in GLOBALFOUNDRIES - 278
Acquisition related intangible assets, net 109 8
Goodwill 553 323
Other assets 247 241
----------- -----------
Total Assets $ 4,988 $ 4,954
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 527 $ 363
Payable to GLOBALFOUNDRIES 560 177
Accrued liabilities 556 550
Deferred income on shipments to distributors 137 123
Current portion of long-term debt and capital
lease obligations 490 489
Other current liabilities 77 72
----------- -----------
Total current liabilities 2,347 1,774
Long-term debt and capital lease obligations, less
current portion 1,529 1,527
Other long-term liabilities 60 63
Stockholders' equity:
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