AMD Reports Fourth Quarter Results.SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif.--(BUSINESS WIRE)--Jan. 13, 1997--AMD today reported a net loss of $21,243,000 on sales of $496,868,000 for its fourth quarter, ended December December: see month. 29, 1996. The loss amounted to $0.15 per share. Sales for the like period of 1995 were $595,178,000, which resulted in net income of $9,344,000, or $0.07 per share. In the immediate-prior quarter, AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. reported sales of $456,862,000, which resulted in a loss of $38,362,000, or $0.28 per share. Revenues for 1996 amounted to $1,953,019,000, which resulted in a net loss of $68,950,000, or $0.51 per common share. In 1995 AMD reported revenues of $2,468,379,000, and net income of $216,326,000, or $1.57 per common share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. "An increase in sales over the immediate-prior quarter, coupled with effective expense controls and excellent operational performance, enabled AMD to substantially reduce its operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in the fourth quarter," said W.J. Sanders San´ders n. 1. An old name of sandalwood, now applied only to the red sandalwood. See under Sandalwood. III, chairman and chief executive officer of AMD. "Bookings improved significantly during the fourth quarter of 1996, and our book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can exceeded 1:1 for the first time since the second quarter of 1995. Customers have worked through excess inventories and order patterns currently reflect normal consumption rates. "Our Computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. Products Group (CPG CPG central pattern generators. ) - primarily Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. Windows-compatible microprocessors This is a list of microprocessors. Intel
"We are now widely sampling our AMD-K6 sixth-generation MMX (MultiMedia EXtensions) A set of 57 additional instructions built into the Pentium MMX chip for improved multimedia and modem performance by performing mathematical operations on multiple sets of data at the same time (see SIMD). processor to a broad customer base. We continue to expect to commence production in the current quarter and achieve initial revenues from K6 microprocessors in the second quarter," Sanders concluded. The forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in the above release concerning the Company's microprocessor products, and any implication implication In logic, a relation that holds between two propositions when they are linked as antecedent and consequent of a true conditional proposition. Logicians distinguish two main types of implication, material and strict. from any other statement in the release about the future performance of the Company, involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from presently anticipated results are the following: success in completing the design and verification of the AMD-K6 processor; success in ramping production of new fifth- and sixth-generation microprocessors; shifts in market demand and fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. customer inventory levels; and such other risks and uncertainties as are detailed in "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Results of Operations and Financial Condition" contained in the Company's most recently filed annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , and the Company's most recently filed quarterly report on Form 10-Q Form 10-Q See 10-Q. . About AMD AMD is a global supplier of integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. for the personal and networked computer and communications markets. AMD produces processors, flash memories, programmable logic devices See PLD. , and products for communications and networking applications. Founded in 1969 and based in Sunnyvale, CA, AMD had revenues of $2.0 billion in 1996. (NYSE NYSE See: New York Stock Exchange : AMD). -0- WORLD WIDE WEB: Press announcements and other information about AMD are available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the via the World Wide Web. Type http://www.amd.com at the URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. prompt. -0-
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarter Ended Year Ended
(Unaudited) (Audited)
Dec. 29, Sep. 29, Dec. 31, Dec. 29, Dec. 31,
1996 1996 1995 1996 1995
(Restated)(1) (Restated)(1)
Net sales $ 496,868 $ 456,862 $ 595,178 $ 1,953,019 $ 2,468,379
Cost of
sales 354,622 337,692 427,058 1,440,828 1,417,007
Research and
development 107,499 105,656 107,715 400,703 416,521
Marketing, general and
administrative
88,292 90,432 100,766 364,798 412,651
550,413 533,780 635,539 2,206,329 2,246,179
Operating
income
(loss) (53,545) (76,918) (40,361) (253,310) 222,200
Interest income and other,
net 4,079 4,214 8,024 59,391 32,465
Interest
expense (7,601) (3,443) (1,665) (14,837) (3,059)
Income (loss) before income taxes
and equity in joint
venture (57,067) (76,147) (34,002) (208,756) 251,606
Provision (benefit) for income
taxes (22,826) (30,459) (21,846) (85,008) 70,206
Income (loss) before equity in joint
venture (34,241) (45,688) (12,156) (123,748) 181,400
Equity in net income of joint
venture 12,998 7,326 21,500 54,798 34,926
Net income
(loss) (21,243) (38,362) 9,344 (68,950) 216,326
Preferred stock
dividends - - - - 10
Net income (loss) applicable to common
stockholders
$ (21,243) $ (38,362) $ 9,344 $ (68,950) $ 216,316
Net income (loss) per common
share $(0.15) $(0.28) $0.07 $(0.51) $1.59
Shares used in per share
calculation 137,693 136,082 138,941 135,687 136,208
(1) Restated from previously released financial information as a
result of the January 1996 merger with NexGen, Inc.
Advanced Micro Devices, Inc. INFORMATION ONLY
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS(a)
(Includes Pre-Tax FASL Investment Equity Income in
Operating Income (Loss))
(Thousands except per share amounts)
Quarter Ended Year Ended
(Unaudited) (Audited)
Dec. 29, Sep. 29, Dec. 31, Dec. 29, Dec. 31,
1996 1996 1995 (b) 1996 1995 (b)
Net sales $496,868 $456,862 $595,178 $1,953,019 $2,468,379
Cost of sales 354,622 337,692 427,058 1,440,828 1,417,007
Net income from
equity investment
in FASL (19,996) (11,272) (33,077) (84,305) (53,732)
Research and
development 107,499 105,656 107,715 400,703 416,521
Marketing,
general and
administrative 88,292 90,432 100,766 364,798 412,651
530,417 522,508 602,462 2,122,024 2,192,447
Operating
income (loss) (33,549) (65,646) (7,284) (169,005) 275,932
Interest income
and other, net 4,079 4,214 8,024 59,391 32,465
Interest
expense (7,601) (3,443) (1,665) (14,837) (3,059)
Income (loss)
before income
taxes (37,071) (64,875) (925) (124,451) 305,338
Provision (benefit)
for income
taxes (22,826) (30,459) (21,846) (85,008) 70,206
Provision for
taxes on equity
income in FASL 6,998 3,946 11,577 29,507 18,806
Net income
(loss) (21,243) (38,362) 9,344 (68,950) 216,326
Preferred stock
dividends -- -- -- -- 10
Net income
(loss) applicable
to common
stockholders $(21,243) $(38,362) $ 9,344 $(68,950) $216,316
Net income (loss)
per common
share $(0.15) $(0.28) $0.07 $(0.51) $1.59
Shares used in
per share
calculation 137,693 136,082 138,941 135,687 136,208
(a) 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) and
related net income (loss) per common share amounts are the same as
those reported under GAAP.
(b) Financial results for 1995 have been restated to include the
historical financial information of NexGen, Inc.
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
December 29, December 31,
1996 1995
(Audited) (Audited)
(Restated)(a)
Assets
Current assets:
Cash, cash equivalents,
and short-term investments $ 386,198 $ 509,665
Accounts receivable, net 220,028 284,238
Inventories 154,010 155,986
Deferred income taxes 140,850 147,489
Prepaid expenses and other
current assets 127,991 40,564
Total current assets 1,029,077 1,137,942
Property, plant, and
equipment, net 1,787,402 1,641,634
Investment in joint venture 197,205 176,821
Other assets 131,599 122,070
$3,145,283 $3,078,467
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable to banks $ 14,692 $ 26,770
Accounts payable 224,139 241,916
Accrued compensation and
benefits 66,745 106,347
Accrued liabilities 103,436 103,404
Income tax payable 51,324 56,297
Deferred income on shipments
to distributors 95,466 100,057
Current portion of long-term
debt and capital lease
obligations 27,671 41,642
Total current liabilities 583,473 676,433
Deferred income taxes 95,102 84,607
Long-term debt and capital lease
obligations, less current
portion 444,830 214,965
Stockholders' equity:
Capital stock:
Common stock, par value 1,428 1,050
Capital in excess of par value 957,178 908,989
Retained earnings 1,063,272 1,192,423
Total stockholders'
equity 2,021,878 2,102,462
$3,145,283 $3,078,467
(a) Restated from previously released financial information as a
result of the January 1996 merger with NexGen, Inc.
AMD
Selected Corporate Date
(Unaudited)
Product Line Breakdown (1)
Q4 '96 Q3 '96 Q4 '95
% Revenue % Revenue % Revenue
of Sales of Sales of Sales
Communications and
Components Group 66 $ 328M 69 $ 317M 69 $ 413M
Programmable Logic
Division (TBN) 12 59M 13 58M 12 69M
Computation Products
Group 22 110M 18 82M 19 113M
Other Data Q4 '96 Q3 '96 Q4 '95
Depreciation $ 84M $ 85M $ 84M
Capital
Spending 144M 143M 139M
Headcount 12,181 12,388 12,730
International
Sales 55% 53% 53%
(1) Restated to include NEXGEN
CONTACT: AMD Tom Stites, 408/749-2918 (Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most ) or Toni Beckham, 408-749-3127 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) |
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