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AMD Reports Fourth Quarter and Annual Results

SUNNYVALE, CA, Jan 24, 2012 (MARKETWIRE via COMTEX) --AMD (NYSE: AMD)

Q4 2011 Results

--  AMD revenue $1.69 billion, flat sequentially and increased two percent
    year-over-year
--  Net loss $177 million, loss per share $0.24, operating income $71
    million
--  Non-GAAP(1) net income $138 million, earnings per share $0.19,
    operating income $172 million
--  Gross margin 46 percent

2011 Annual Results

--  AMD revenue $6.57 billion, flat year-over-year
--  Net income $491 million, earnings per share $0.66, operating income
    $368 million
--  Non-GAAP(1) net income $374 million, earnings per share $0.50,
    operating income $524 million
--  Gross margin 45 percent
--  More than 30 million Accelerated Processor Unit (APU) shipments in
    2011 drives record annual notebook revenue

AMD (NYSE: AMD) today announced revenue for the fourth quarter of 2011 of $1.69 billion, net loss of $177 million, or $0.24 per share, and operating income of $71 million. The company reported non-GAAP net income of $138 million, or $0.19 per share, and non-GAAP operating income of $172 million. Fourth quarter non-GAAP net income excludes an impairment of AMD's investment in GLOBALFOUNDRIES of $209 million, restructuring charges of $98 million, the loss from discontinued operations of $4 million, the amortization of acquired intangible assets of $3 million and a loss on debt repurchase of $1 million.

For the year ended December 31, 2011, AMD reported revenue of $6.57 billion, net income of $491 million, or $0.66 per share, and operating income of $368 million. Full year non-GAAP net income was $374 million, or $0.50 per share, and non-GAAP operating income was $524 million.

"AMD shipped more than 30 million APU's in 2011, resulting in record annual notebook revenue," said Rory Read, AMD president and CEO. "The unmatched combination of computing and graphics capabilities in our low-power 'Brazos' platform has made it our fastest ramping platform ever, paving the way for continued growth in key segments and geographies. Our server business has re-gained momentum, delivering two consecutive quarters of strong sequential growth.

"We continued optimizing our financial model in 2011, consistently delivering operating income and creating the foundation for sustained success. We begin 2012 clear on our priorities and opportunities. We are building an AMD that consistently delivers on its commitments."

                          GAAP Financial Results(2)

----------------------------------------------------------------------------
                   Q4-11         Q3-11      Q4-10        2011        2010
----------------------------------------------------------------------------
Revenue            $1.69B       $1.69B      $1.65B      $6.57B      $6.49B
----------------------------------------------------------------------------
Operating
 income             $71M         $138M      $413M       $368M       $848M
----------------------------------------------------------------------------
Net income
 (loss) /
 Earnings
 (loss) per
 share        $(177)M/$(0.24) $97M/$0.13 $375M/$0.50 $491M/$0.66 $471M/$0.64
----------------------------------------------------------------------------

                       Non-GAAP Financial Results(1)

----------------------------------------------------------------------------
                    Q4-11       Q3-11       Q4-10        2011        2010
----------------------------------------------------------------------------
Revenue             $1.69B      $1.69B      $1.65B      $6.57B      $6.49B
----------------------------------------------------------------------------
Operating income    $172M       $146M       $141M       $524M       $553M
----------------------------------------------------------------------------
Net income /
 Earnings per
 share           $138M/$0.19 $110M/$0.15 $106M/$0.14 $374M/$0.50 $360M/$0.49
----------------------------------------------------------------------------

Quarterly Summary

--  Gross margin was 46 percent, a sequential increase of one percent.
--  Cash, cash equivalents and marketable securities balance, including
    long-term marketable securities, was $1.91 billion at the end of the
    quarter.
--  Computing Solutions segment revenue increased two percent sequentially
    and seven percent year-over-year. The sequential increase was driven
    by double digit growth in Server and Chipset revenue. The
    year-over-year increase was driven by higher mobile processor and
    Chipset revenue.
    --  Operating income was $165 million, compared with $149 million in
        Q3 11 and $91 million in Q4 10.
    --  Microprocessor ASP increased sequentially and was flat
        year-over-year.
    --  AMD launched its "Bulldozer"-based AMD Opteron(TM) 6200 Series
        and AMD Opteron 4200 Series processors, delivering
        industry-leading performance(3) for business, increased
        scalability for virtualization and more efficient economics for
        the cloud.
        --  HP introduced five new ProLiant systems, including the
            industry's fastest dual-socket database server.
        --  Dell introduced four new PowerEdge systems, including the
            world's most power-efficient blade server. The AMD-powered
            PowerEdge R715 was awarded Technology of the Year from
            InfoWorld magazine based on its outstanding virtualization
            performance.
        --  The AMD Opteron 6200 Series Processors were honored with the
            Analysts' Choice Award for Best Server Processor by the Linley
            Group and "Technology of the Year" from InfoWorld.
        --  AMD Opteron processor adoption in the HPC market continued, as
            the National Science Foundation announced a new supercomputer
            at the University of Illinois' National Center for
            Supercomputing Applications (NCSA) will be powered by
            approximately 50,000 AMD Opteron 6200 series processors.
    --  Worldwide demand for AMD APUs continued to increase throughout the
        fourth quarter. AMD shipped more than 30 million APUs in 2011,
        including a record number of mobile processors found in notebooks
        from Acer, Asus, Dell, HP, Lenovo, MSI Samsung, Sony and Toshiba.
    --  AMD introduced new A-Series notebook and desktop APUs that offer
        improved performance and enhanced features. We expect that systems
        based on the refreshed A-Series APU will be offered from the
        world's largest PC companies in early 2012.
--  Graphics segment revenue decreased five percent sequentially and 10
    percent year-over-year. The sequential decrease was driven primarily
    by a decline in mobile graphics processor unit (GPU) shipments,
    partially offset by a seasonal increase in game console revenue. The
    year-over-year decrease was primarily driven by decreased desktop and
    Add-in Board (AIB) graphics revenue.
    --  Operating income was $27 million, compared with $12 million in Q3
        11 and $68 million in Q4 10.
    --  GPU ASP increased sequentially and year-over-year.
    --  In December, AMD launched the world's fastest single-GPU graphics
        card(4) and the first member of its AMD Radeon(TM) HD 7000
        Series graphics family, the AMD Radeon HD 7970. The HD 7970
        delivers up to 150% performance improvement per square millimeter
        compared to our previous generation GPU, and is the industry's
        first 28nm GPU(5).
    --  AMD launched the AMD Radeon HD 7000M series mobile graphics
        processors for smaller form factor notebooks. Both HP and Lenovo
        announced new notebooks powered by the new GPU.
    --  AMD is the industry leader in leading-edge graphics technology,
        having shipped more than 100 million DirectX(R) 11 graphics
        engines across its GPUs and APUs that enable superior visual
        experiences.
--  Corporate
    --  The Company announced a restructuring plan and implementation of
        operational efficiency initiatives designed to strengthen the
        Company's competitive positioning. The Company plans to reinvest a
        significant portion of the anticipated savings to fund initiatives
        designed to accelerate AMD's strategies for lower power, emerging
        markets, and the cloud.
    --  AMD strengthened its leadership team with the additions of Mark
        Papermaster as senior vice president and chief technology officer,
        Rajan Naik as senior vice president and chief strategy officer,
        and Dr. Lisa Su as senior vice president and general manager,
        global business units.

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 decrease eight percent, plus or minus three percent, sequentially for the first 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 fourth 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)


                            ------------------------------------------------
(Millions except per share
 amounts)                         Q4-11           Q3-11           Q4-10
----------------------------------------------------------------------------
GAAP net income (loss) /
 Earnings (loss) per share    $(177) $(0.24)     $97   $0.13    $375   $0.50
----------------------------------------------------------------------------
  Gross margin benefit due
   to deconsolidation of
   GLOBALFOUNDRIES                 -       -       -       -       -       -
----------------------------------------------------------------------------
  Deconsolidation gain on
   the fair value assessment
   of investment in
   GLOBALFOUNDRIES                 -       -       -       -       -       -
----------------------------------------------------------------------------
  Equity income (loss) and
   dilution gain in
   investee, net                   -       -       -       -      27    0.05
----------------------------------------------------------------------------
  Payment to GLOBALFOUNDRIES       -       -       -       -       -       -
----------------------------------------------------------------------------
  Impairment of investment
   in GLOBALFOUNDRIES          (209)  (0.28)       -       -       -       -
----------------------------------------------------------------------------
Non-GAAP net income
 excluding GLOBALFOUNDRIES
 related items                    32    0.04      97    0.13     348    0.47
----------------------------------------------------------------------------
    Amortization of acquired
     intangible assets           (3)       -     (8)  (0.01)    (11)  (0.01)
----------------------------------------------------------------------------
    Legal settlement               -       -       -       -     283    0.39
----------------------------------------------------------------------------
    Income tax related to
     legal settlement              -       -       -       -    (47)  (0.06)
----------------------------------------------------------------------------
    Gain on investment sale        -       -       -       -      17    0.02
----------------------------------------------------------------------------
    Loss on debt repurchase      (1)       -     (5)  (0.01)       -       -
----------------------------------------------------------------------------
    Restructuring (charges)
     reversals, net             (98)  (0.13)       -       -       -       -
----------------------------------------------------------------------------
    Loss from discontinued
     operations*                 (4)  (0.01)       -       -       -       -
----------------------------------------------------------------------------
Non-GAAP net income /
 Earnings per share             $138   $0.19    $110   $0.15    $106   $0.14
----------------------------------------------------------------------------
* Loss on discontinued operations consists of charges related to the sale of
 our DTV division to Broadcom which occurred in 2008.


                                    --------------------------------
        (Millions except per share
         amounts)                          2011            2010
        ------------------------------------------------------------
        GAAP net income (loss) /
         Earnings (loss) per share      $491   $0.66    $471   $0.64
        ------------------------------------------------------------
          Gross margin benefit due
           to deconsolidation of
           GLOBALFOUNDRIES                 -       -      69    0.09
        ------------------------------------------------------------
          Deconsolidation gain on
           the fair value assessment
           of investment in
           GLOBALFOUNDRIES                 -       -     325    0.44
        ------------------------------------------------------------
          Equity income (loss) and
           dilution gain in
           investee, net                 492    0.66   (462)  (0.63)
        ------------------------------------------------------------
          Payment to GLOBALFOUNDRIES    (24)  (0.03)       -       -
        ------------------------------------------------------------
          Impairment of investment
           in GLOBALFOUNDRIES          (209)  (0.28)       -       -
        ------------------------------------------------------------
        Non-GAAP net income
         excluding GLOBALFOUNDRIES
         related items                   232    0.31     539    0.73
        ------------------------------------------------------------
            Amortization of acquired
             intangible assets          (29)  (0.04)    (61)  (0.08)
        ------------------------------------------------------------
            Legal settlement             (5)  (0.01)     283    0.39
        ------------------------------------------------------------
            Income tax related to
             legal settlement              -       -    (47)  (0.06)
        ------------------------------------------------------------
            Gain on investment sale        -       -      24    0.03
        ------------------------------------------------------------
            Loss on debt repurchase      (6)  (0.01)    (24)  (0.03)
        ------------------------------------------------------------
            Restructuring (charges)
             reversals, net             (98)  (0.13)       4    0.01
        ------------------------------------------------------------
            Loss from discontinued
             operations*                 (4)  (0.01)       -       -
        ------------------------------------------------------------
        Non-GAAP net income /
         Earnings per share             $374   $0.50    $360   $0.49
        ------------------------------------------------------------
        * Loss on discontinued operations consists of charges
         related to the sale of our DTV division to Broadcom which
         occurred in 2008.


Reconciliation of GAAP to Non-GAAP
 Operating Income(1)
                                    ----------------------------------------
(Millions)                            Q4-11   Q3-11   Q4-10    2011    2010
----------------------------------------------------------------------------
GAAP operating income                    $71    $138    $413    $368    $848
----------------------------------------------------------------------------
Gross margin benefit due to the
 deconsolidation of GLOBALFOUNDRIES        -       -       -       -      69
----------------------------------------------------------------------------
Payment to GLOBALFOUNDRIES                 -       -       -    (24)       -
----------------------------------------------------------------------------
Amortization of acquired intangible
 assets                                  (3)     (8)    (11)    (29)    (61)
----------------------------------------------------------------------------
Legal settlement                           -       -     283     (5)     283
----------------------------------------------------------------------------
Restructuring (charges) reversals,
 net                                    (98)       -       -    (98)       4
----------------------------------------------------------------------------
Non-GAAP operating income               $172    $146    $141    $524    $553
----------------------------------------------------------------------------

Reconciliation of GAAP to Non-GAAP Gross Margin (1)
                                    ----------------------------------------
(Millions except percentages)         Q4-11   Q3-11   Q4-10    2011    2010
----------------------------------------------------------------------------
GAAP Gross Margin                       $773    $756    $743  $2,940  $2,961
----------------------------------------------------------------------------
GAAP Gross Margin %                      46%     45%     45%     45%     46%
----------------------------------------------------------------------------
Gross margin benefit due to the
 deconsolidation of GLOBALFOUNDRIES        -       -       -       -      69
----------------------------------------------------------------------------
Payment to GLOBALFOUNDRIES                 -       -       -    (24)       -
----------------------------------------------------------------------------
Legal settlement                           -       -       -     (5)       -
----------------------------------------------------------------------------
Non-GAAP Gross Margin                   $773    $756    $743  $2,969  $2,892
----------------------------------------------------------------------------
Non-GAAP Gross Margin %                  46%     45%     45%     45%     45%
----------------------------------------------------------------------------

About AMD AMD (NYSE: AMD) is a semiconductor design innovator leading the next era of vivid digital experiences with its groundbreaking AMD Fusion Accelerated Processing Units (APUs) that power a wide range of computing devices. AMD's server computing products are focused on driving industry-leading cloud computing and virtualization environments. AMD's superior graphics technologies are found in a variety of solutions ranging from game consoles, PCs to supercomputers. For more information, visit http://www.amd.com.

Cautionary Statement This release contains forward-looking statements concerning AMD, its first quarter 2012 revenue, its future growth in key segments and geographies, the momentum of its server business, its ability to deliver sustained success, the timing of future products that incorporate the company's products, and the company's restructuring plan implemented in the fourth quarter of 2011, the anticipated operational savings resulting from the restructuring and the company's plans for reinvesting these savings, 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; 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; GLOBALFOUNDRIES will be unable 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 under-utilize its commitment with respect to GLOBALFOUNDRIES' microprocessor manufacturing facilities; the company will be unable to transition its products to advanced manufacturing process technologies in a timely and effective way; global business and economic conditions will not continue to improve or will worsen resulting in lower than currently expected demand; 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; 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; and the company will be unable to maintain the level of investment in research and development that is required to remain competitive. 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 October 1, 2011.

AMD, the AMD Arrow logo, AMD Opteron, AMD Radeon, and combinations thereof, 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 for non-GAAP net income excluding GLOBALFOUNDRIES related items, 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.

(2) For the year 2010, the Company accounted for its investment in GLOBALFOUNDRIES under the equity method of accounting. Starting in the first quarter of 2011, the Company started accounting for its investment in GLOBALFOUNDRIES under the cost method of accounting.

(3) The highest 2P TPC-C performance score ever was achieved by an AMD Opteron(TM) processor-powered server. Based on results published by the Transaction Processing Performance Council as of November 15, 2011, an AMD Opteron(TM) processor-based server achieved the highest TPC-C performance score of any 2P server. 1,207,982 tpmC using 2 x AMD Opteron(TM) processors Model 6282 SE in HP ProLiant DL385 G7 server, 512GB memory, Microsoft(R) Windows Server(R) 2008 R2 Enterprise x64 Edition, Microsoft(R) SQL Server(R) 2005 Enterprise x64 Edition SP3. http://www.tpc.org/results/individual_results/HP/HP_ProLiant_DL385G7_TPCC_111114_01_es.pdf. For the latest TPC-C results, visit www.tpc.org. TPC Benchmark and TPC-C are trademarks of the Transaction Processing Performance Council. SVR-105

(4) As of December 22, 2011, the AMD Radeon(TM) HD 7970 scores in excess of X2700 in 3DMark(R) 11, the highest single-GPU graphics card score achieved on a stock platform to date.

(5) The AMD Radeon(TM) HD 7970 Series GPU offers more than 1.54X times the compute power/mm2 when compared to the AMD Radeon(TM) HD 6970 Series GPU: the AMD Radeon(TM) HD 6970 Series GPU has been calculated at 2.703 TFLOPs of compute power with a measured die size of 389mm2, while the AMD Radeon(TM) HD 7970 Series GPU has been calculated at 3.789 TFLOPs of compute power with a die size of 352mm2.

ADVANCED MICRO DEVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)

                               Quarter Ended                Year Ended
                      -------------------------------  --------------------
                       Dec. 31,   Oct. 1,    Dec. 25,   Dec. 31,   Dec. 25,
                         2011       2011       2010       2011       2010

                      ---------  ---------  ---------  ---------  ---------

Net revenue           $   1,691  $   1,690  $   1,649  $   6,568  $   6,494

Cost of sales               918        934        906      3,628      3,533

                      ---------  ---------  ---------  ---------  ---------

Gross margin                773        756        743      2,940      2,961

Gross margin %               46%        45%        45%        45%        46%

Research and
 development                358        361        352      1,453      1,405

Marketing, general
 and administrative         243        249        250        992        934

Legal settlement              -          -       (283)         -       (283)

Amortization of
 acquired intangible
 assets                       3          8         11         29         61

Restructuring charges
 (reversals), net            98          -          -         98         (4)

                      ---------  ---------  ---------  ---------  ---------

Operating income             71        138        413        368        848

Interest income               2          3          2         10         11
Interest expense            (43)       (42)       (39)      (180)      (199)
Other income
 (expense), net            (207)        (7)        14       (199)       311

                      ---------  ---------  ---------  ---------  ---------

Income before equity
 income (loss) and
 dilution gain in
 investee and income
 taxes                     (177)        92        390         (1)       971

Provision (benefit)
 for income taxes            (4)        (5)        42         (4)        38

Equity income (loss)
 and dilution gain in
 investee, net                -          -         27        492       (462)

                      ---------  ---------  ---------  ---------  ---------

Income (loss) from
 continuing
 operations           $    (173) $      97  $     375  $     495  $     471

Loss from
 discontinued
 operations, net of
 tax                         (4)         -          -         (4)         -

                      ---------  ---------  ---------  ---------  ---------

Net income (loss)     $    (177) $      97  $     375  $     491  $     471

                      ---------  ---------  ---------  ---------  ---------

Net income (loss) per
 share
  Basic
    Continuing
     operations       $   (0.24) $    0.13  $    0.52  $    0.68  $    0.66
    Discontinued
     operations           (0.01)         -          -      (0.01)         -
                      ---------  ---------  ---------  ---------  ---------
  Basic net income
   (loss) per share   $   (0.24) $    0.13  $    0.52  $    0.68  $    0.66

  Diluted
    Continuing
     operations       $   (0.24) $    0.13  $    0.50  $    0.67  $    0.64
    Discontinued
     operations           (0.01)         -          -      (0.01)         -
                      ---------  ---------  ---------  ---------  ---------
  Diluted net income
   (loss) per share   $   (0.24) $    0.13  $    0.50  $    0.66  $    0.64

                      ---------  ---------  ---------  ---------  ---------

Shares used in per
 share calculation

  Basic                     732        729        717        727        711

  Diluted                   732        741        758        742        733


ADVANCED MICRO DEVICES, INC.
CONSOLIDATED BALANCE SHEETS
(Millions)

                                            ---------  ---------  ---------
                                             Dec. 31,   Oct. 1,    Dec. 25,
                                               2011       2011       2010
                                            ---------  ---------  ---------

Assets

Current assets:
  Cash, cash equivalents and marketable
   securities                               $   1,765  $   1,807  $   1,789
  Accounts receivable, net                        919        908        968
  Inventories, net                                476        540        632
  Prepaid expenses and other current assets        69        157        205

                                            ---------  ---------  ---------

      Total current assets                      3,229      3,412      3,594

Long-term marketable securities                   149         50          -
Property, plant and equipment, net                726        697        700
Investment in GLOBALFOUNDRIES                     278        486          -
Goodwill                                          323        323        323
Other assets                                      249        268        347

                                            ---------  ---------  ---------

Total Assets                                $   4,954  $   5,236  $   4,964
                                            =========  =========  =========

Liabilities and Stockholders' Equity

 Current liabilities:
  Accounts payable                          $     363  $     467  $     376
  Accounts payable to GLOBALFOUNDRIES             177        151        205
  Accrued liabilities                             550        590        698
  Deferred income on shipments to
   distributors                                   123        131        143
  Other short-term obligations                      -          -        229
  Current portion of long-term debt and
   capital lease obligations                      489        489          4
  Other current liabilities                        72         27         19

                                            ---------  ---------  ---------

      Total current liabilities                 1,774      1,855      1,674

Long-term debt and capital lease
 obligations, less current portion              1,527      1,571      2,188
Other long-term liabilities                        63         66         89

Stockholders' equity:
  Capital stock:
    Common stock, par value                         7          7          7
    Additional paid-in capital                  6,672      6,652      6,575
    Treasury stock, at cost                      (107)      (107)      (102)
  Accumulated deficit                          (4,977)    (4,800)    (5,468)
  Accumulated other comprehensive income
   (loss)                                          (5)        (8)         1
                                            ---------  ---------  ---------

      Total stockholders' equity                1,590      1,744      1,013

                                            ---------  ---------  ---------

Total Liabilities and Stockholders' Equity  $   4,954  $   5,236  $   4,964
                                            =========  =========  =========


ADVANCED MICRO DEVICES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
                                                     Quarter
                                                      Ended      Year Ended
                                                   -----------  -----------
                                                     Dec. 31,     Dec. 31
                                                       2011         2011
                                                   -----------  -----------
Cash flows from operating activities:
  Net income (loss)                                $      (177) $       491
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Equity in net (gain) loss of investee                    -         (492)
    Impairment charge of GF investment                     209          209
    Depreciation and amortization                           70          317
    Compensation recognized under employee stock
     plans                                                  21           90
    Non-cash interest expense                                5           21
    Net gain on sale of marketable securities               (1)          (4)
    Other                                                   (5)           2
  Changes in operating assets and liabilities:
    Accounts receivable                                    (10)        (347)
    Inventories                                             65          157
    Prepaid expenses and other current assets               73          115
    Other assets                                             2           (1)
    Accounts payable to GLOBALFOUNDRIES                     26          (28)
    Accounts payable, accrued liabilities and
     other                                                 (91)        (148)
                                                   -----------  -----------
Net cash provided by operating activities          $       187  $       382
                                                   -----------  -----------

Cash flows from investing activities:
  Purchases of property, plant and equipment               (87)        (250)
  Proceeds from sale of property, plant, and
   equipment                                                 -           16
  Purchases of available-for-sale securities              (125)      (1,586)
  Proceeds from sale and maturity of available-
   for-sale securities                                     311        1,726
  Other                                                     (2)         (19)
                                                   -----------  -----------
Net cash provided by (used in) investing
 activities                                        $        97  $      (113)
                                                   -----------  -----------

Cash flows from financing activities:
  Proceeds from borrowings, net of issuance cost             -          170
  Net proceeds from foreign grants                          10           20
  Proceeds from issuance of AMD common stock                 1           18
  Repayments of debt and capital lease obligations         (51)        (209)
  Other                                                      -           (5)
                                                   -----------  -----------
Net cash used in financing activities              $       (40) $        (6)
                                                   -----------  -----------
Net increase in cash and cash equivalents                  244          263
                                                   -----------  -----------
Cash and cash equivalents at beginning of period   $       625  $       606
                                                   -----------  -----------
Cash and cash equivalents at end of period         $       869  $       869
                                                   -----------  -----------

ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions except headcount)


                                 Quarter Ended               Year Ended
------------------------------------------------------- --------------------
                         Dec. 31,   Oct. 2,    Dec. 25,  Dec. 31,   Dec. 25,
Segment and Category
 Information               2011       2011       2010      2011       2010

                       -------------------------------- --------------------

Computing Solutions (1)
  Net revenue           $   1,309  $   1,286  $   1,219 $   5,002  $   4,817
  Operating income      $     165  $     149  $      91 $     556  $     529

Graphics (2)
  Net revenue                 382        403        424     1,565      1,663
  Operating income             27         12         68        51        149

All Other (3)
  Net revenue                   -          1          6         1         14
  Operating income
   (loss)                    (121)       (23)       254      (239)       170

Total
  Net revenue           $   1,691  $   1,690  $   1,649 $   6,568  $   6,494
  Operating income      $      71  $     138  $     413 $     368  $     848

------------------------------------------------------- --------------------

Other Data

  Depreciation and
   amortization
   (excluding
   amortization of
   acquired intangible
   assets)              $      67  $      71  $      78 $     288  $     322
  Capital additions     $      87  $      58  $      38 $     250  $     148
  Adjusted EBITDA (4)   $     260  $     239  $     241 $     902  $   1,031
  Cash, cash
   equivalents and
   marketable
   securities (5)       $   1,914  $   1,857  $   1,789 $   1,914  $   1,789
  Adjusted free cash
   flow (6)             $     100  $     131  $      11 $     528  $     355
  Total assets          $   4,954  $   5,236  $   4,964 $   4,954  $   4,964
  Long-term debt and
   capital lease
   obligations,
   including current
   portion              $   2,016  $   2,060  $   2,192 $   2,016  $   2,192
  Headcount                11,093     12,019     11,068    11,093     11,068

------------------------------------------------------- --------------------

See footnotes below

(1) Computing Solutions segment includes microprocessors, chipsets and
    embedded processors.

(2) Graphics segment includes graphics, video and multimedia products
    developed for use in desktop and notebook computers, including home
    media PCs, professional workstations and servers and also includes
    revenue received in connection with the development and sale of game
    console systems that incorporate the Company's graphics technology.

(3) All Other category includes certain operating expenses and credits that
    are not allocated to the operating segments. Also included in this
    category are amortization of acquired intangible assets and
    restructuring charges. It also includes the results of the Handheld
    business unit because the operating results of this business unit were
    not material.

(4) AMD reconciliation of GAAP operating income to Adjusted EBITDA*

                                 Quarter Ended               Year Ended
                         ------------------------------ --------------------
                          Dec. 31,  Oct. 1,   Dec. 25,   Dec. 31,  Dec. 25,
                            2011      2011      2010       2011      2010
                         ------------------------------ --------------------
GAAP operating income    $      71 $     138 $     413  $     368 $     848
  Payments to
   GLOBALFOUNDRIES               -         -         -         24         -
  Legal settlement               -         -      (283)         5      (283)
  Depreciation and
   amortization                 67        71        78        288       322
  Employee stock-based
   compensation expense         21        22        22         90        87
  Amortization of
   acquired intangible
   assets                        3         8        11         29        61
  Restructuring charges
   (reversals), net             98         -         -         98        (4)
                         ------------------------------ --------------------
Adjusted EBITDA          $     260 $     239 $     241  $     902 $   1,031
                         ============================== ====================


(5) Cash, cash equivalents and marketable securities also include the long-
    term portion of marketable securities.

(6) Non-GAAP adjusted free cash flow reconciliation**

                               Quarter Ended                Year Ended
                      -------------------------------- ---------------------
                       Dec. 31,   Oct. 1,    Dec. 25,   Dec. 31,   Dec. 25,
                         2011       2011       2010       2011       2010
                      -------------------------------- ---------------------
GAAP net cash
 provided by (used
 in) operating
 activities           $     187  $     189  $    (213) $     382  $    (412)
  Non-GAAP adjustment         -          -        262        396        915
                      -------------------------------- ---------------------
Non-GAAP net cash
 provided by
 operating activities       187        189         49        778        503
  Purchases of
   property, plant
   and equipment            (87)       (58)       (38)      (250)      (148)
                      -------------------------------- ---------------------
Non-GAAP adjusted
 free cash flow       $     100  $     131  $      11  $     528  $     355
                      ================================ =====================


* The Company presents "Adjusted EBITDA" as a supplemental measure of its
performance. Adjusted EBITDA for the Company is determined by adjusting
operating income for depreciation and amortization, employee stock-based
compensation expense and amortization of acquired intangible assets. In
addition, for the fourth quarter of 2011 and fiscal 2011, the Company
included an adjustment for restructuring charges and reversals, net; for the
fourth quarter of 2010 and fiscal 2010, the Company also included an
adjustment related to its legal settlement with Samsung; and for fiscal
2011, the Company included an adjustment related to a payment to GF. The
Company calculates and communicates Adjusted EBITDA in the financial
schedules because the Company's management believes it is of importance to
investors and lenders in relation to its overall capital structure and its
ability to borrow additional funds. In addition, the Company presents
Adjusted EBITDA because it believes this measure assists investors in
comparing its performance across reporting periods on a consistent basis by
excluding items that the Company does not believe are indicative of its core
operating performance. The Company's calculation of Adjusted EBITDA may or
may not be consistent with the calculation of this measure by other
companies in the same industry. Investors should not view Adjusted EBITDA as
an alternative to the GAAP operating measure of operating income (loss) or
GAAP liquidity measures of cash flows from operating, investing and
financing activities. In addition, Adjusted EBITDA does not take into
account changes in certain assets and liabilities as well as interest and
income taxes that can affect cash flows.

Media Contact
Drew Prairie
512-602-4425
Email Contact

Investor Contact
Ruth Cotter
408-749-3887
Email Contact


SOURCE: Advanced Micro Devices

http://www2.marketwire.com/mw/emailprcntct?id=C71DDBE811C39A97
http://www2.marketwire.com/mw/emailprcntct?id=4779629B36642186

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