AMD Reports Third 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)--Oct. 7, 1996--AMD today reported a net loss of $38,362,000 on sales of $456,862,000 for its third quarter, ended Sept. 29, 1996. The loss amounted to $0.28 per 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. The results include a charge of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6,000,000 for employee severance pay Severance Pay Compensation that an employer gives to someone who is about to lose their job. Notes: Severance pay is not always paid to employees. It depends on the situation in which the employee is losing their job and whether legislation requires severance to be paid. and benefits associated with a work force reduction. Sales for the like period of 1995 amounted to $606,953,000, which resulted in net income of $42,000,000, or $0.30 per share fully diluted. 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 $455,077,000, which resulted in a net loss of $34,672,000, or a loss of $0.26 per share fully diluted. The company's second-quarter results included a non-recurring, pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of $16.3 million resulting from a sale of securities. For the first nine months of 1996, AMD reported total revenues of $1,456,151,000, which resulted in a net loss applicable to common shareholders of $47,707,000, or $0.35 per common share fully diluted. For the first nine months of 1995, AMD reported revenues of $1,873,201,000, which resulted in net income applicable to common shareholders of $206,972,000 or $1.51 per share fully diluted. "Overall, bookings improved significantly from the levels of the second quarter, but the 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 remained below 1:1," 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, in commenting on the company's three major business segments. "Revenues from our Programmable Logic Devices See PLD. (PLD (Programmable Logic Device) Refers to a variety of logic chips that are programmable at the customer's site, the customer being the vendor of the finished chip, not the end user. ) business unit were down slightly from the immediate-prior quarter," Sanders continued. "Sales of AMD's MACH family of complex PLDs remained at near-record levels in a generally weak PLD market. "Revenues from AMD's Communications and Components Group (CCG CCG Chicago CCG Collectible Card Game CCG Canadian Coast Guard CCG Country Commercial Guide CCG Children's Cancer Group CCG Commission Canadienne des Grains (Canadian Grain Commission) ) also declined slightly from the second quarter," Sanders said. "Flash memory sales resumed growth, and AMD recorded higher revenues on record unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. . Telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. products achieved record revenues during the quarter. These gains were offset, however, by sharply lower EPROM EPROM in full erasable programmable read-only memory Form of computer memory that does not lose its content when the power supply is cut off and that can be erased and reused. sales. "Revenues from 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
"The aggregate results from CCG and PLD were once again unable to offset the losses we are incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. in CPG, where revenues are currently insufficient in·suf·fi·cient adj. 1. Not sufficient. 2. Incapable of proper functioning. to absorb absorb To offset sell orders or a new security offering with buy orders. the substantial fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). of maintaining our strategic commitment to the Microsoft Windows-compatible microprocessor market," Sanders concluded. Cautionary Statement The forward looking statement in the above release concerning the Company's microprocessor products involves 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 ramping the production of higher-performance products; shifts in market demand; verification See verify. verification - The process of determining whether or not the products of a given phase in the life-cycle fulfil a set of established requirements. of compatibility with industry-standard software and hardware; 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 10Q. 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- Note to Editors: Microsoft and Windows are registered trademarks of Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, . AMD-K5, AMD-K5-PR100/120/133, AMD, the AMD logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. -0-
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
(Unaudited)
Quarter Ended Nine Months Ended
Sept. 29, June 30, Oct. 1, Sept. 29, Oct. 1,
1996 1996 1995 1996 1995
(Restated)(a) (Restated)(a)
Net sales $456,862 $455,077 $606,953 $1,456,151 $1,873,201
Cost of
sales 337,692 379,779 368,359 1,086,206 989,949
Research and
development 105,656 92,768 106,237 293,204 308,806
Marketing,
general and
administrative 90,432 83,063 102,549 276,506 311,885
------- ------- ------- ------- -------
533,780 555,610 577,145 1,655,916 1,610,640
Operating
income
(loss) (76,918) (100,533) 29,808 (199,765) 262,561
Interest
income and
other, net 4,214 23,039 10,408 55,312 24,441
Interest
expense (3,443) (1,812) (315) (7,236) (1,394)
Income (loss)
before income
taxes and
equity in
joint venture (76,147) (79,306) 39,901 (151,689) 285,608
Provision
(credit) for
income taxes (30,459) (31,723) 10,212 (62,182) 92,052
Income (loss)
before equity
in joint
venture (45,688) (47,583) 29,689 (89,507) 193,556
Equity in
net income
of joint
venture 7,326 12,911 12,311 41,800 13,426
Net income
(loss) (38,362) (34,672) 42,000 (47,707) 206,982
Preferred
stock
dividends -- -- -- -- 10
Net income
(loss)
applicable
to common
stockholders ($38,362) ($34,672) $42,000 ($47,707) $206,972
Net income
(loss) per
common share
-Primary ($0.28) ($0.26) $0.30 ($0.35) $1.53
-Fully diluted ($0.28) ($0.26) $0.30 ($0.35) $1.51
Shares used in
per share
calculation
-Primary 136,082 135,266 139,288 135,019 135,451
-Fully diluted 136,082 135,266 139,434 135,019 137,617
(a) 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(b)
(Includes Pre-Tax FASL Investment Equity Income
in Operating Income (Loss))
(Thousands except per share amounts)
Quarter Ended Nine Months Ended
(Unaudited) (Unaudited)
Sept. 29, June 30, Oct. 1, Sept. 29, Oct. 1,
1996 1996 1995(c) 1996 1995 (c)
Net sales $456,862 $455,077 $606,953 $1,456,151 $1,873,201
Cost of
sales 337,692 379,779 368,359 1,086,206 989,949
Net income
from equity
investment
in FASL (11,272) (19,863) (18,940) (64,309) (20,655)
Research and
development 105,656 92,768 106,237 293,204 308,806
Marketing,
general and
administrative 90,432 83,063 102,549 276,506 311,885
------- ------- ------- ------- -------
522,508 535,747 558,205 1,591,607 1,589,985
Operating
income (loss) (65,646) (80,670) 48,748 (135,456) 283,216
Interest income
and other, net 4,214 23,039 10,408 55,312 24,441
Interest
expense (3,443) (1,812) (315) (7,236) (1,394)
Income (loss)
before income
taxes and
equity in
joint venture (64,875) (59,443) 58,841 (87,380) 306,263
Provision
(credit) for
income taxes (30,459) (31,723) 10,212 (62,182) 92,052
Provision for
taxes on
equity in
income of FASL 3,946 6,952 6,629 22,509 7,229
Net income
(loss) (38,362) (34,672) 42,000 (47,707) 206,982
Preferred
stock dividends -- -- -- -- 10
Net income (loss)
applicable to
common
stockholders ($38,362) ($34,672) $42,000 ($47,707) $206,972
Net income
(loss) per
common share
- Primary ($0.28) ($0.26) $0.30 ($0.35) $1.53
- Fully diluted ($0.28) ($0.26) $0.30 ($0.35) $1.51
Shares used
in per share
calculation
- Primary 136,082 135,266 139,288 135,019 135,451
- Fully
diluted 136,082 135,266 139,434 135,019 137,617
(b) 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.
(c) Financial results for 1995 have been restated to include the
historical financial information of NexGen, Inc.
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
Sept. 29, Dec. 31,
1996 1995
(Unaudited) (Audited)
(Restated)(d)
Assets
Current assets:
Cash, cash equivalents, and
short-term investments $361,344 $509,665
Accounts receivable, net 234,242 284,238
Inventories 163,489 155,986
Deferred income taxes 149,289 147,489
Prepaid expenses and other current
assets 95,287 40,564
Total current assets 1,003,651 1,137,942
Property, plant, and equipment, net 1,733,267 1,641,634
Investment in joint venture 192,128 176,821
Other assets 124,946 122,070
--------- ---------
$3,053,992 $3,078,467
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable to banks $12,902 $26,770
Accounts payable 166,791 241,916
Accrued compensation and benefits 73,333 106,347
Accrued liabilities 107,617 103,404
Income tax payable 148 56,297
Deferred income on shipments to
distributors 85,936 100,057
Current portion of long-term debt
and capital lease obligations 27,711 41,642
Total current liabilities 474,438 676,433
Deferred income taxes 97,407 84,607
Long-term debt and capital lease
obligations, less current portion 445,489 214,965
Stockholders' equity:
Capital stock:
Common stock, par value 1,413 1,050
Capital in excess of par value 943,077 908,989
Retained earnings 1,092,168 1,192,423
Total stockholders' equity 2,036,658 2,102,462
--------- ---------
$3,053,992 $3,078,467
(d) Restated from previously released financial information as a
result of the January 1996 merger with NexGen, Inc.
AMD
Selected Corporate Data
(Unaudited)
Product Line Breakdown(e)
Q3 '96 Q2 '96 Q3 '95
% of Sales Revenue % of Sales Revenue % of Sales Revenue
Communications
and
Components
Group 62 $ 284M 64 $ 290M 54 $ 324M
Programmable
Logic
Division 13 58M 13 62M 11 68M
(TBN)
Computation
Products Group 25 115M 23 103M 35 215M
Other Data Q3 '96 Q2 '96 Q3 '95
Depreciation $ 85M $ 82M $ 66M
Capital Spending 143M 116M 169M
Headcount 12,388 12,535 12,594
International Sales 53% 53% 56%
(e) Restated to include NEXGEN
CONTACT: AMD Tom Stites, 408/749-2918 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion