(Source: Business Wire)
AMD1 (NYSE:AMD) today reported revenue for the third quarter
of 2009 of $1.396 billion. Third quarter 2009 revenue increased 18
percent compared to the second quarter of 2009 and decreased 22 percent
compared to the third quarter of 2008.
In the third quarter of 2009, AMD reported a net loss attributable to
AMD common stockholders of $128 million, or $0.18 per share, which
includes a net favorable impact of $54 million, or $0.08 per share,
primarily from a $66 million gain from the repurchase of debt as
described in the table below2. AMD's operating loss was $77
million.
In the second quarter of 2009, AMD had revenue of $1.184 billion, a net
loss attributable to AMD common stockholders of $330 million and an
operating loss of $249 million. In the third quarter of 2008, AMD had
revenue from continuing operations of $1.797 billion, a net loss
attributable to AMD common stockholders of $134 million and an operating
income of $122 million.
In the third quarter of 2009, AMD Product Company reported non-GAAP net
income of $2 million and non-GAAP operating income of $47 million. In
the second quarter of 2009, AMD Product Company reported a non-GAAP net
loss of $244 million and a non-GAAP operating loss of $205 million3.
"Strong demand for our product and platform offerings combined with
disciplined execution resulted in AMD Product Company achieving
profitability in the third quarter," said Dirk Meyer, AMD president and
CEO. "Growth in microprocessor and graphics unit shipments drove an 18
percent sequential revenue increase, while improved factory utilization
rates, higher microprocessor average selling price and an increase in
45nm product shipments resulted in a gross margin improvement from the
prior quarter."
Third quarter 2009 AMD gross margin was 42 percent compared to 37
percent in the prior quarter. Third quarter 2009 AMD Product Company
non-GAAP gross margin was 38 percent compared to 27 percent in the prior
quarter.
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 the "Cautionary Statement" below.
AMD expects its Product Company revenue to be up modestly for the fourth
quarter of 2009.
Additional Highlights
AMD introduced the ATI
Radeon HD 5000 family of graphics processors, the industry's only
graphics chips that support the DirectX11 technology featured in
Microsoft's upcoming Windows 7 operating system. The flagship ATI
Radeon HD 5870 captured the graphics performance title and has
won more than 50 industry awards to date. The new ATI Radeon HD 5000
family of graphics cards also includes ATI
Eyefinity multi-display technology, allowing a single graphics
card to drive up to six monitors.
AMD delivered several new computing platforms in the quarter.
For the notebook market, global computer manufacturers including
HP, Acer, Toshiba, Asus and MSI announced plans to introduce more
than 70 notebooks based on AMD's latest mainstream
and ultrathin
platforms.
For the server market, AMD began shipping server platforms with
the introduction of three new AMD server
chipsets.
For the commercial client market, HP began selling the Compaq
6005 Pro Business PC based on the new AMD
Business Class Desktop Platform.
For the embedded market, AMD announced dual- and quad-core
platforms for client and high-end commercial embedded
solutions.
AMD launched VISION
Technology from AMD, a differentiated approach to retail
merchandising designed to reinforce the value proposition of AMD
platforms and simplify the consumer buying experience by highlighting
what can be done with a PC rather than what is inside the PC.
AMD launched the AMD
Fusion Partner Program, a business acceleration program designed
to help AMD channel partners gain sales traction and speed the
delivery of AMD platforms.
AMD joined with GLOBALFOUNDRIES to break ground on Fab
2 in New York, GLOBALFOUNDRIES'
state-of-the-art semiconductor manufacturing facility that AMD expects
will provide additional leading-edge manufacturing capacity when the
facility enters production, scheduled for 2012.
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 third quarter financial results.
AMD will provide a real-time audio broadcast of the teleconference on
the Investor Relations page of its Web site at www.amd.com.
The webcast will be available for 10 days after the conference call.
Reconciliation of GAAP Net Income (Loss) Attributable to AMD Common Stockholders to AMD Product Company Non-GAAP Net Income (Loss) 1,2,3,4
(Millions except per share amounts) Q3-09 Q2-09 Q3-08
GAAP net income (loss) attributable to AMD common stockholders / EPS $ (128 ) $ (0.18 ) $ (330 ) $ (0.49 ) $ (134 ) $ (0.22 )
Loss from discontinued operations - - - - (150 ) (0.25 )
Income (loss) attributable to AMD stockholders from continuing operations $ (128 ) $ (0.18 ) $ (330 ) $ (0.49 ) $ 16 $ 0.03
Process technology license revenue - - - - 191 0.31
Gross margin benefit from sales of inventory written down in Q4-08 9 0.01 98 0.15 - -
Amortization of acquired intangibles (17 ) (0.02 ) (17 ) (0.03 ) (30 ) (0.05 )
ATI impairment of goodwill and acquired intangible assets - - - - (2 ) -
Restructuring charges (4 ) (0.01 ) (1 ) - (9 ) (0.01 )
Investment net charges - - - - (9 ) (0.01 )
Gain on debt buyback 66 0.10 6 0.01 - -
Net favorable (unfavorable) impact subtotal $ 54 $ 0.08 $ 86 $ 0.13 $ 141 $ 0.23
Non-GAAP net income (loss) attributable to AMD common stockholders $ (182 ) $ (416 ) $ (125 ) -
Net income (loss) from Foundry segment and intersegment eliminations (191 ) (0.28 ) (177 ) (0.27 ) - -
Net (income) loss attributable to noncontrolling interest 29 0.04 25 0.04 - -
Class B preferred accretion (22 ) (0.03 ) (20 ) (0.03 ) - -
AMD Product Company non-GAAP net income (loss) $ 2 - $ (244 ) - - -
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Reconciliation of GAAP to AMD Product Company Non-GAAP Operating Income (Loss) 1,2,3,4
(Millions) Q3-09 Q2-09 Q3-08
GAAP operating income (loss) $ (77 ) $ (249 ) $ 122
Process technology license revenue - - 191
Gross margin benefit from sales of inventory written down in Q4-08 9 98 -
Amortization of acquired intangibles (17 ) (17 ) (30 )
ATI impairment of goodwill and acquired intangible assets - - (2 )
Restructuring charges (4 ) (1 ) (9 )
Non-GAAP operating income (loss) $ (65 ) $ (329 ) $ (28 )
Operating income (loss) from Foundry segment and intersegment eliminations (112 ) (124 ) -
AMD Product Company non-GAAP operating income (loss) $ 47 $ (205 ) -
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Reconciliation of GAAP to AMD Product Company Non-GAAP Gross Margin 1,2,3,4
(Millions, except percentages) Q3-09 Q2-09 Q3-08
GAAP Gross Margin $ 585 $ 441 $ 916
GAAP Gross Margin % 42 % 37 % 51 %
Process technology license revenue - - 191
Gross margin benefit from sales of inventory written down in Q4-08 9 98 -
Non-GAAP Gross Margin $ 576 $ 343 $ 725
Non-GAAP Gross Margin % 41 % 29 % 45 %
Gross margin from Foundry segment and intersegment eliminations 49 20 -
AMD Product Company non-GAAP Gross Margin $ 527 $ 323 -
AMD Product Company non-GAAP Gross Margin % 38 % 27 % -
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Select Segment Information 4
(Millions, except percentages) Q3-09 vs Q2-09 vs Q3-08
Computing Solutions (includes process technology license revenue in Q3-08)*
Revenue $ 1,069 17 % -23 %
Microprocessor Units up flat
Microprocessor Average Selling Prices (ASP) up down
Graphics
Revenue $ 306 22 % -21 %
Graphic Processor Units up flat
Graphic Processor Average Selling Prices (ASP) down down
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*Computing Solutions Q3-09 revenue decreased 11% compared to Q3-08,
excluding the $191 million process technology license revenue in Q3-08.
About AMD
Advanced Micro Devices (NYSE: AMD) is an innovative technology company
dedicated to collaborating with customers and technology partners to
ignite the next generation of computing and graphics solutions at work,
home and play. For more information, visit http://www.amd.com.
Cautionary Statement
This release contains forward-looking statements concerning AMD Product
Company, its fourth quarter 2009 revenue, future financial results, the
planned availability of its future products, technologies and
manufacturing capacity and production, and its planned positioning for
future growth, 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 "would," "may,"
"expects," "believes," "plans," "intends," "projects," and other terms
with similar meaning. Investors are cautioned that the forward-looking
statements in this release are based on current beliefs, assumptions and
expectations, speak only as of the date of this release 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 targeting the company's business will prevent attainment of
the company's current plans; global business and economic conditions
will continue in their current state or worsen resulting in lower than
currently expected revenue in the fourth quarter of 2009 and beyond;
demand for computers and consumer electronics products and, in turn,
demand for the company's products will be lower than currently expected;
customers stop buying the company's products or materially reduce their
demand for its products; the company will require additional funding and
may not be able to raise funds on favorable terms or at all; the company
will be unable to develop, launch and ramp new products and technologies
in the volumes and mix required by the market and at mature yields on a
timely basis; there will 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 be unable to transition its products
to advanced manufacturing process technologies in a timely and effective
way; the company will be unable to maintain the level of investment in
research and development and capacity that is required to remain
competitive; and the company will be unable to obtain sufficient
manufacturing capacity or components to meet demand for its products or
will under-utilize its commitment with respect to GLOBALFOUNDRIES'
microprocessor manufacturing facilities. 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 Quarterly
Report on Form 10-Q for the quarter ended June 27, 2009.
AMD, the AMD Arrow logo, AMD Opteron and combinations thereof, and
ATI, the ATI logo, and Radeon 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 For financial reporting purposes, AMD consolidates the
operating results of GLOBALFOUNDRIES Inc. in its results as of March 2,
2009 and created the Foundry segment as of the start of the fiscal year.
References to "AMD" in this announcement include these consolidated
operating results which are reported for GAAP purposes. "AMD Product
Company" refers to AMD, excluding the operating results of the Foundry
segment and Intersegment eliminations. Foundry segment includes the
operating results attributable to the front end wafer manufacturing
operations and related activities as of the beginning of the first
quarter of 2009, which includes the operating results of GLOBALFOUNDRIES
from March 2, 2009 through September 26, 2009. Intersegment eliminations
consist of revenues, cost of sales and profits on inventory between AMD
Product Company and the Foundry segment.
2 In this press release, in addition to GAAP financial
results, the Company has provided non-GAAP financial measures for AMD
net income (loss) attributable to AMD common stockholders, operating
income (loss) and gross margin. These non-GAAP financial measures
reflect certain adjustments as presented in the tables in this press
release. Management believes this non-GAAP presentation makes it easier
for investors to compare current and historical period operating results
by, among other things, excluding items that are not indicative of
ongoing operating performance.
3 The Company is providing non-GAAP financial measures for
AMD Product Company such as a statement of operations and selected
balance sheet items as reflected in this press release. In addition, for
AMD Product Company, the Company is providing non-GAAP financial
measures such as net income (loss), operating income (loss) and gross
margin which exclude certain adjustments as reflected in the tables
above. AMD is providing these financial measures because it believes it
is important for investors to have visibility into AMD's financial
results excluding the Foundry segment, intersegment eliminations and
certain adjustments as reflected in the tables in this press release and
to better understand the Company's financial results absent the
requirement to consolidate the financial results of GLOBALFOUNDRIES.
4 Refer to corresponding tables at the end of this press
release for additional AMD and AMD Product Company data.
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Millions except per share amounts and percentages)
Quarter Ended Nine Months Ended
Sept. 26, June 27, Sept. 27, Sept. 26, Sept. 27,
2009 2009 2008((1)) 2009 2008 ((1))
Net revenue $ 1,396 $ 1,184 $ 1,797 $ 3,757 $ 4,646
Cost of sales 811 743 881 2,220 2,598
Gross margin 585 441 916 1,537 2,048
Gross margin % 42 % 37 % 51 % 41 % 44 %
Research and development 420 425 438 1,289 1,383
Marketing, general and administrative 221 247 315 755 987
Amortization of acquired intangible assets 17 17 30 52 107
Impairment of goodwill and acquired intangible assets - - 2 - 405
Restructuring charges 4 1 9 65 40
Gain on sale of 200 millimeter equipment - - - - (193 )
Operating income (loss) (77 ) (249 ) 122 (624 ) (681 )
Interest income 4 6 7 13 32
Interest expense (114 ) (108 ) (94 ) (319 ) (296 )
Other income (expense), net 47 6 (13 ) 147 (48 )
Income (loss) before income taxes (140 ) (345 ) 22 (783 ) (993 )
Provision (benefit) for income taxes (5 ) (10 ) (1 ) 101 (1 )
Income (loss) from continuing operations (135 ) (335 ) 23 (884 ) (992 )
Income (loss) from discontinued operations, net of tax - - (150 ) - (674 )
Net income (loss) $ (135 ) $ (335 ) $ (127 ) $ (884 ) $ (1,666 )
Net (income) loss attributable to noncontrolling interest 29 25 (7 ) 60 (27 )
Class B preferred accretion (22 ) (20 ) - (50 ) -
Net Income (loss) attributable to AMD common stockholders $ (128 ) $ (330 ) $ (134 ) $ (874 ) $ (1,693 )
Net income (loss) attributable to AMD common stockholders per common share
Basic and diluted
Continuing operations $ (0.18 ) $ (0.49 ) $ 0.03 $ (1.32 ) $ (1.68 )
Discontinued operations - - (0.25 ) - (1.11 )
Basic and diluted net income (loss) attributable to AMD common stockholders per common share $ (0.18 ) $ (0.49 ) $ (0.22 ) $ (1.32 ) $ (2.79 )
Shares used in per share calculation
Basic and diluted 694 667 608 662 607
(1 ) Includes retrospective adoption of FASB Staff Position Accounting Principles Board No. 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (FSP APB 14-1) codified principally in Accounting Standards Codification (ASC) Topic 470, Debt (ASC 470) and FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements - An Amendment of ARB No. 51 (SFAS 160) now codified in ASC Topic 810, Consolidation (ASC 810) in the first quarter of 2009.
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ADVANCED MICRO DEVICES, INC.
AMD NON-GAAP AND RECONCILIATIONS TO CONSOLIDATED STATEMENTS OF OPERATIONS(2)
(Millions except per share amounts and percentages)
Quarter Ended Nine Months Ended
Sept. 26, 2009 June 27, 2009 Sept. 26, 2009
AMD ProductCompany ((3)) Foundrysegment andintersegmenteliminations( (4)) AMD AMD ProductCompany ((3)) Foundrysegment andintersegmenteliminations( (4)) AMD AMD ProductCompany ((3)) Foundrysegment andintersegmenteliminations( (4)) AMD
Net revenue $ 1,396 $ - $ 1,396 $ 1,184 $ - $ 1,184 $ 3,757 $ - $ 3,757
Cost of sales 860 (49 ) 811 763 (20 ) 743 2,323 (103 ) 2,220
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