Advanced Micro Devices Reports Record Year-End Results.SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 6, 1995--Advanced Micro Devices (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. ) Friday reported record 1994 year-end sales of $2,134,659,000, a 30 percent increase over 1993. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $508,686,000 also a record, up 67 percent over the previous year. Net income was a record $341,143,000 before the preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividend, up 49 percent over 1993. After the preferred dividend preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) , annual net income amounted to $3.39 per share. Sales for the fourth quarter were a record $545,168,000 up 32 percent compared to the same period last year when sales were $413,404,000, and were up nominally from record third quarter sales of $543,114,000. Operating income for the fourth quarter was $113,527,000, up 107 percent compared to the year-ago quarter when the company reported $54,957,000 but was down 16 percent compared to $135,577,000 reported in the third quarter of 1994. The decrease primarily reflects start-up charges for Fab 25 and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. related expenses. Net income for the quarter was $76,636,000 before the preferred stock dividend, or $0.75 per common share after the preferred dividend. Net income was up 84 percent over the same year-ago period when the company reported $41,639,000, but was down 12 percent compared to the prior quarter. "By any measure, 1994 was an outstanding year for Advanced Micro Devices with record sales, operating income and net income. 1994 was the year of the microprocessor at AMD with more than one billion dollars in sales. We more than doubled sales of X86 microprocessors and produced record sales of embedded Inserted into. See embedded system. RISC RISC in full Reduced Instruction Set Computing Computer architecture that uses a limited number of instructions. RISC became popular in microprocessors in the 1980s. microprocessors. Communications circuits and non-volatile memories Refers to memory chips that hold their content without power being applied. It may refer to chips that are not changeable, such as ROMs and PROMs, or to chips that can be rewritten many times such as flash memory. also set new records," said W.J. Sanders III, chairman and chief executive officer. "These record fourth-quarter sales manifest the outstanding effort put forth by all of our employees and were made possible only through superior teamwork company-wide," Sanders said. "Record sales in the fourth quarter are particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. in the face of an adverse ruling in the ICE (In Circuit Emulation) module of the 486 litigation with Intel Corporation (company) Intel Corporation - A US microelectronics manufacturer. They produced the Intel 4004, Intel 8080, Intel 8086, Intel 80186, Intel 80286, Intel 80386, Intel 486 and Pentium microprocessor families as well as many other integrated circuits and personal computer networking . The ruling required us to scrap approximately 100,000 Am486 microprocessors which had special ICE circuitry bonded out. Additionally, the ruling required us to remove the custom ICE circuitry from all of our Am486 microprocessors resulting in a significant fab transition to new "de-ICEd" mask sets A mask set is a series of electronic data that define geometry for the photolithography steps of semiconductor fabrication. Each of the physical masks generated from this data are called a photomask. . This transition was completed successfully and ongoing manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. will be unaffected. During the quarter, the company commenced shipment of 100MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. Am486 microprocessors using 0.5 micron process technology. The company also produced functional silicon of the first member of the Microsoft Windows-compatible K86 Family of superscalar A CPU architecture that allows more than one instruction to be executed in one clock cycle. See pipeline processing. (architecture) superscalar - A superscalar architecture is a uniprocessor that can execute two or more scalar operations in parallel. microprocessors. Initial samples of this new microprocessor, designated K5, shipped in the quarter. "In the fourth quarter, we saw continuing strong demand for our 5-volt only flash memory products and we shipped initial production of our 16 Megabit flash devices," Sanders continued. "The 29K Family of RISC embedded processors A CPU chip used in a system other than a general purpose workstation, desktop or laptop computer. Such chips are used by the billions every year in a myriad of products. See embedded system. was a strong performer for the year and closed the fourth quarter with record sales. During the year, we also experienced strong growth in our networking products. "In addition to our financial results, 1994 was a year of significant milestones for AMD including victories in litigation with Intel over microcode A set of elementary instructions in a complex instruction set computer (CISC). The microcode resides in a separate high-speed memory and functions as a translation layer between the machine instructions and the circuit level of the computer. license rights in March and the recent California Supreme Court ruling which upheld our rights to any Intel intellectual property in the Am386 microprocessor family. Additionally, we successfully defended AMD customers against Intel's attack in the International Trade Commission based on Intel's Crawford patent licensing plan. We continue to offer the olive branch olive branch symbol of peace and serenity. [Gk. and Rom. Myth.: Brewer Handbook; O.T.: Genesis, 8:11] See : Peace for a peaceful resolution of the remaining issues in dispute and are hopeful the robust business climate will result in an environment conducive to settlement," Sanders said. "We enter 1995 with our critically important plans to add major state-of-the-art manufacturing capacity on or ahead of schedule. In the fourth quarter, we commenced production of flash memory devices using 0.5 micron technology Micron Technology ("Micron") NYSE: MU is a multinational company based in Boise, Idaho, USA, best known for producing many forms of semiconductor devices. This includes DRAM, SDRAM, flash memory, and CMOS image sensing chips. on eight-inch wafers from our Fujitsu/AMD joint-venture fab in Aizu-Wakamatsu, Japan, with product shipments scheduled during the current quarter. Meanwhile, construction at our $1.2 billion Fab 25 in Austin, Texas, is on schedule and initial test runs of wafers began in December. "In the first quarter of 1995, we expect continued revenue growth based upon fourth quarter bookings which were the strongest in the company's history. 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 in the fourth quarter for our flagship X86 microprocessor and flash memory product lines was substantially greater than one," Sanders concluded. Advanced Micro Devices, Inc., is the fifth-largest U.S. manufacturer 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. . Focusing on the personal and networked computing and communications markets, AMD produces microprocessors and related peripherals, memories, programmable logic devices See PLD. along with circuits for telecommunications and networking applications. AMD has sales offices worldwide and has manufacturing facilities in Sunnyvale, California Sunnyvale ([sʌniveil]) is a city in Santa Clara County, California, United States. It is one of the major cities that make up the Silicon Valley. As of the 2000 census, the city population was 131,760. ; Austin, Texas; Bangkok, Thailand; Penang, Malaysia; Singapore; Aizu-Wakamatsu, Japan and Basingstoke, England. -0-
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarter Ended Year Ended
(Unaudited) (Audited)
Dec. 25, Sept. 25, Dec. 26, Dec. 25, Dec. 26,
1994 1994 1993 1994 1993
Net sales $545,168 $543,114 $413,404 $2,134,659 $1,648,280
Cost of sales 263,597 252,409 208,552 982,066 789,564
Research and
development 75,977 67,759 66,747 279,846 262,802
Marketing,
general, and
administrative 92,067 87,369 83,148 364,061 290,861
431,641 407,537 358,447 1,625,973 1,343,227
Operating
income 113,527 135,577 54,957 508,686 305,053
Interest income
and other, net 5,317 394 4,647 16,259 16,490
Interest expense (1) (205) (1,391) (1,844) (2,910)
Income before
income taxes
and equity in
joint venture 118,843 135,766 58,213 523,101 318,633
Provision for
income taxes 39,218 44,803 16,300 171,373 89,218
Income before
equity in
joint venture 79,625 90,963 41,913 351,728 229,415
Equity in net income
(loss) of
joint venture (2,989) (4,277) (274) (10,585) (634)
Net income 76,636 86,686 41,639 341,143 228,781
Preferred stock
dividends 2,588 2,587 2,588 10,350 10,350
Net income
applicable to
common
shareholders $74,048 $84,099 $39,051 $330,793 $218,431
Net income per common share
-Primary $0.75 $0.86 $0.41 $3.39 $2.30
-Fully diluted $0.73 $0.83 $0.41 $3.26 $2.24
Shares used in per share calculation
-Primary 98,636 97,778 95,895 97,510 95,108
-Fully diluted 105,490 104,872 102,751 104,570 102,063
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
December 25, December 26,
1994 1993
(Audited) (Audited)
Assets
Current assets:
Cash and temporary cash investments $377,854 $488,198
Accounts receivable, net 337,107 263,617
Inventories 128,690 104,050
Prepaid expenses and
other current assets 44,293 30,399
Deferred income taxes 81,005 77,922
Total current assets 968,949 964,186
Other assets 70,284 58,633
Property, plant, and equipment, net 1,264,211 904,326
Investment in joint venture 124,588 2,086
$2,428,032 $1,929,231
Liabilities and Shareholders' Equity
Current liabilities:
Notes payable to banks $32,459 $30,994
Accounts payable 149,122 127,151
Accrued compensation and benefits 103,979 81,860
Other accrued liabilities 87,570 83,982
Income tax payable 53,795 34,991
Deferred income on shipments
to distributors 83,800 74,436
Long-term debt and capital lease
obligations due within one year 27,895 21,205
Total current liabilities 538,620 454,619
Deferred income taxes 42,518 42,837
Long-term debt and capital lease
obligations due after one year 75,752 79,504
Shareholders' equity:
Capital stock:
Serial preferred stock, par value 34 35
Common stock, par value 956 926
Capital in excess of par value 698,673 619,733
Retained earnings 1,071,479 731,577
Total shareholders' equity 1,771,142 1,352,271
$2,428,032 $1,929,231
-0- Note to Editors: Am486 and Am386 are registered trademarks of Advanced Micro Devices, Inc. Am29000 is a trademark of Advanced Micro Devices, Inc. Microsoft is a registered trademark 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, . Windows is a trademark of Microsoft Corporation. CONTACT: Advanced Micro Devices Inc. Chuck Mulloy, 408/749-5481 |
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