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AMD Reports First Quarter Results

SUNNYVALE, CA, Apr 19, 2012 (MARKETWIRE via COMTEX) --AMD (NYSE: AMD)

Q1 2012 Results

--  AMD revenue $1.59 billion, 6 percent sequential decrease and a 2
    percent decrease year-over-year
--  Net loss $590 million, loss per share $0.80, operating loss $580
    million
--  Non-GAAP(1) net income $92 million, earnings per share $0.12,
    operating income $138 million
--  Gross margin 2 percent, non-GAAP gross margin 46 percent

AMD (NYSE: AMD) today announced revenue for the first quarter of 2012 of $1.59 billion, net loss of $590 million, or $0.80 per share, and operating loss of $580 million. The company reported non-GAAP net income of $92 million, or $0.12 per share, and non-GAAP operating income of $138 million. First quarter non-GAAP net income excludes: the previously disclosed charge of $703 million for a limited waiver of exclusivity of certain 28 nanometer (nm) APU products from GLOBALFOUNDRIES Inc. (GF) related to the 2012 Amendment to the Wafer Supply Agreement; amortization of acquired intangible assets of $1 million; a restructuring charge of $8 million; SeaMicro, Inc. (SeaMicro) acquisition costs of $6 million, and a tax benefit related to the SeaMicro acquisition of $36 million.

"AMD delivered solid results in the first quarter as we remain focused on improving our execution, delivering innovative products, and building a company around a strategy to deliver strong cash flow and earnings growth," said Rory Read, AMD president and CEO. "A complete top-to-bottom introduction of new APU offerings, combined with ample product supply resulting from continued progress with our manufacturing partners, positions us to win and grow."

GAAP Financial Results

-----------------------------------------------------------------
-----------
                                  Q1-12           Q4-11           Q1-11
----------------------------------------------------------------------------
Revenue                           $1.59B          $1.69B          $1.61B
----------------------------------------------------------------------------
Operating income (loss)          $(580)M           $71M            $54M
----------------------------------------------------------------------------
Net income (loss) / Earnings
 (loss) per share            $(590)M/$(0.80) $(177)M/$(0.24)   $510M/$0.68
----------------------------------------------------------------------------


Non-GAAP Financial Results(1)

-----------------------------------------------------------------
-----------
                                       Q1-12         Q4-11         Q1-11
----------------------------------------------------------------------------
Revenue                                $1.59B        $1.69B        $1.61B
----------------------------------------------------------------------------
Operating income                       $138M         $172M          $92M
----------------------------------------------------------------------------
Net income / Earnings per share      $92M/$0.12   $138M/$0.19    $56M/$0.08
----------------------------------------------------------------------------


Quarterly Summary

--  Gross margin was 2 percent due to the previously disclosed charge of
    $703 million for a limited waiver of exclusivity for certain 28nm APU
    products from GF.
    --  Non-GAAP gross margin was 46 percent, flat sequentially.
--  Cash, cash equivalents and marketable securities balance, including
    long-term marketable securities, was $1.71 billion at the end of the
    quarter.
    --  Cash payments in the quarter included $281 million related to the
        SeaMicro acquisition and $150 million related to the limited
        waiver of exclusivity of certain 28nm APU products from GF.
--  AMD's first quarter of 2011 had 14 weeks of business compared to 13
    weeks for the first quarter of 2012.
--  Computing Solutions segment revenue decreased eight percent
    sequentially and was flat year-over-year. The sequential decrease was
    driven by seasonally lower sales in the Client business.
    --  Operating income was $124 million, compared with $165 million in
        Q411 and $100 million in Q111.
    --  Microprocessor ASP decreased sequentially and was flat
        year-over-year.
    --  AMD announced and began shipping the follow-on to its essential
        notebook platform "Brazos," its bestselling platform ever. The new
        essential notebook platform, codenamed "Brazos 2.0," delivers
        improved performance, extended battery life and many new features.
        Systems based on "Brazos 2.0" are expected to be available in the
        second quarter.
    --  AMD ramped volume production of its second generation A-Series
        APU, codenamed "Trinity," in anticipation of global notebook
        availability from leading OEMs in the second quarter. "Trinity"
        delivers twice the performance-per-watt compared with AMD's
        current generation A-Series APU. Systems powered by "Trinity" will
        enable outstanding entertainment and gaming performance with
        superior battery life.
    --  Dell, Tyan, MSI and Fujitsu are among the partners that introduced
        systems based on AMD Opteron(TM) 3200 processors targeting
        hosting customers who require enterprise-class reliability at
        desktop-class price points. The new server platform delivers
        price-performance and power-per-core advantages compared to
        competitive offerings.
    --  Telus, a leading Canadian Telecommunications provider, selected
        the AMD Opteron 6200 Series processors to power its latest
        offering, the TELUS AgilIT Virtual Private Cloud.
    --  AMD announced two new heterogeneous computing milestones, both
        with the objective of enhancing the user experience and nurturing
        future software development. AMD announced an investment through
        AMD Ventures in Nuvixa, Inc., a developer of gesture-based video
        communication and presentation solutions, and the first AMD Fusion
        Center of Innovation was established at the University of Illinois
        at Urbana-Champaign.
--  Graphics segment revenue was flat sequentially and decreased 7 percent
    year-over-year. GPU revenue was up in a seasonally down quarter, due
    to higher improved desktop GPU ASP in the channel, offset by
    seasonally lower game console royalty revenue. The year-over-year
    decrease was primarily driven by lower demand for desktop and mobile
    graphics.
    --  Operating income was $34 million, compared with $27 million in
        Q411 and $19 million in Q111.
    --  GPU ASP was flat sequentially and increased year-over-year.
    --  AMD reached a major milestone with worldwide availability of its
        full line of next generation 28nm AMD Radeon(TM) HD 7000 Series
        desktop GPUs in less than three months. In addition to the AMD
        Radeon HD 7950 Series GPU, AMD introduced the first graphics card
        to break the 1 GHz barrier, the AMD Radeon HD 7770 GPU. AMD also
        launched the AMD Radeon HD 7800 Series GPU featuring 2GB of GDDR5
        memory for serious gamers.
--  Corporate
    --  AMD announced an amended Wafer Supply Agreement with GF that
        established a negotiated wafer pricing based on a take or pay
        arrangement in 2012 and established a framework for wafer pricing
        in 2013. AMD transferred its remaining ownership interest in GF to
        GF and GF waived the exclusivity arrangement for AMD to
        manufacture certain 28nm APU products at GF for a specified
        period.
    --  AMD acquired SeaMicro, Inc., a pioneer in energy-efficient,
        high-bandwidth microservers. The acquisition accelerates the
        company's strategy to deliver disruptive server technology and
        positions AMD to expand its current server offerings to provide
        customers and partners with low-power, low-cost, high-bandwidth
        server solutions.

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 increase 3 percent, plus or minus 3 percent, sequentially for the second 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 first 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)                            Q1-12          Q4-11          Q1-11
----------------------------------------------------------------------------
GAAP net income (loss) /
 Earnings (loss) per share      $(590) $(0.80) $(177) $(0.24) $ 510  $ 0.68
----------------------------------------------------------------------------
  Limited waiver of exclusivity
   from GLOBALFOUNDRIES          (703)  (0.94)     -       -      -       -
----------------------------------------------------------------------------
  Impairment of investment in
   GLOBALFOUNDRIES                  -       -   (209)  (0.28)     -       -
----------------------------------------------------------------------------
  Dilution gain in investee,
   net                              -       -      -       -    492    0.66
----------------------------------------------------------------------------
  Payment to GLOBALFOUNDRIES        -       -      -       -    (24)  (0.03)
----------------------------------------------------------------------------
  Amortization of acquired
   intangible assets               (1)      -     (3)      -     (9)  (0.01)
----------------------------------------------------------------------------
  Legal settlement                  -       -      -       -     (5)  (0.01)
----------------------------------------------------------------------------
  Loss on debt repurchase           -       -     (1)      -      -       -
----------------------------------------------------------------------------
  Restructuring charges, net       (8)  (0.01)   (98)  (0.13)     -       -
----------------------------------------------------------------------------
  Loss from discontinued
   operations*                      -       -     (4)  (0.01)     -       -
----------------------------------------------------------------------------
  SeaMicro acquisition costs       (6)  (0.01)     -       -      -       -
----------------------------------------------------------------------------
  Tax benefit related to
   SeaMicro acquisition            36    0.05      -       -      -       -
----------------------------------------------------------------------------
Non-GAAP net income / Earnings
 per share                      $  92  $ 0.12  $ 138  $ 0.19  $  56  $ 0.08
----------------------------------------------------------------------------

* Loss on discontinued operations consists of charges related to the sale of our DTV division to Broadcom which occurred in 2008.

Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Operating Income (1)

                                                    ------------------------
(Millions)                                            Q1-12   Q4-11   Q1-11
----------------------------------------------------------------------------
GAAP operating income (loss)                         $ (580) $   71  $   54
----------------------------------------------------------------------------
  Limited waiver of exclusivity from GLOBALFOUNDRIES   (703)      -       -
----------------------------------------------------------------------------
  Payment to GLOBALFOUNDRIES                              -       -     (24)
----------------------------------------------------------------------------
  Amortization of acquired intangible assets             (1)     (3)     (9)
----------------------------------------------------------------------------
  Legal settlement                                        -       -      (5)
----------------------------------------------------------------------------
  Restructuring charges, net                             (8)    (98)      -
----------------------------------------------------------------------------
  SeaMicro acquisition costs                             (6)      -       -
----------------------------------------------------------------------------
Non-GAAP operating income                            $  138  $  172  $   92
----------------------------------------------------------------------------


Reconciliation of GAAP to Non-GAAP Gross Margin (1)

                                                       ---------------------
(Millions except percentages)                            Q1-12  Q4-11  Q1-11
----------------------------------------------------------------------------
GAAP Gross Margin                                       $  27  $ 773  $ 691
----------------------------------------------------------------------------
GAAP Gross Margin %                                         2%    46%    43%
----------------------------------------------------------------------------
  Limited waiver of exclusivity from GLOBALFOUNDRIES     (703)     -      -
----------------------------------------------------------------------------
  Payment to GLOBALFOUNDRIES                                -      -    (24)
----------------------------------------------------------------------------
  Legal settlements                                         -      -     (5)
----------------------------------------------------------------------------
Non-GAAP Gross Margin                                   $ 730  $ 773  $ 720
----------------------------------------------------------------------------
Non-GAAP Gross Margin %                                    46%    46%    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 document contains forward-looking statements concerning AMD, its second quarter of 2012 revenue, demand for the company's products, that the company will have sufficient supply of company's products to meet customer demand, its future growth, its ability to deliver sustained success, its strategy to deliver cash flow and earnings growth, its server strategy and growth opportunities, the anticipated benefits of from AMD's acquisition of SeaMicro, the timing of future products that incorporate the company's products, and the features of these new products 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 "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," "anticipates," "projects," "would," and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document 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 may negatively impact the company's current plans; the company may be unable to develop, launch and ramp new products and technologies in the volumes that are required by the market and at mature yields on a timely basis; that its third party wafer foundry suppliers will be unable to transition the company's products to advanced manufacturing process technologies in a timely and effective way or 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 not fully utilize its projected manufacturing capacity needs at GF's microprocessor manufacturing facilities for 2012; that customers stop buying the company's products or materially reduce their operations or demand for the company's products; that the company may be unable to maintain the level of investment in research and development that is required to remain competitive; that there may 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 require additional funding and may be unable to raise sufficient capital on favorable terms, or at all; that global business and economic conditions will not continue to improve or will worsen; that demand for computers will be lower than currently expected; and the effect of political or economic instability, domestically or internationally, on our sales or supply chain. 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 Annual Report on Form 10-K for the year ended December 31, 2011.

AMD, the AMD Arrow logo, AMD Opteron, AMD Radeon, and combinations thereof, and 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 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.

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

                                                     Quarter Ended
                                            -------------------------------
                                             Mar. 31,   Dec. 31,   Apr. 2,
                                               2012       2011       2011

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

Net revenue                                 $   1,585  $   1,691  $   1,613

Cost of sales                                   1,558        918        922

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

Gross margin                                       27        773        691

Gross margin %                                      2%        46%        43%

Research and development                          368        358        367

Marketing, general and administrative             230        243        261

Amortization of acquired intangible assets          1          3          9

Restructuring charges, net                          8         98          -

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

Operating income (loss)                          (580)        71         54

Interest income                                     2          2          3
Interest expense                                  (43)       (43)       (48)
Other income (expense), net                        (1)      (207)        11

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

Income before dilution gain in investee and
 income taxes                                    (622)      (177)        20

Provision (benefit) for income taxes              (32)        (4)         2

Dilution gain in investee, net                      -          -        492

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

Income (loss) from continuing operations         (590)      (173)       510

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

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

Net income (loss)                           $    (590) $    (177) $     510

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

Net income (loss) per share
  Basic
    Continuing operations                   $   (0.80) $   (0.24) $    0.71
    Discontinued operations                         -      (0.01)         -
                                            ---------  ---------  ---------
  Basic net income (loss) per share         $   (0.80) $   (0.24) $    0.71

  Diluted
    Continuing operations                   $   (0.80) $   (0.24) $    0.68
    Discontinued operations                         -      (0.01)         -
                                            ---------  ---------  ---------
  Diluted net income (loss) per share       $   (0.80) $   (0.24) $    0.68

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

Shares used in per share calculation

  Basic                                           734        732        720

  Diluted                                         734        732        764

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


ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Millions)

                                                      Quarter Ended
                                            -------------------------------
                                             Mar. 31,   Dec. 31,    Apr. 2,
                                               2012       2011       2011

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

Total comprehensive income (loss)           $    (593) $    (173) $     511
                                            ---------  ---------  ---------


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

                                                   -----------  -----------
                                                     Mar. 31,     Dec. 31,
                                                       2012         2011
                                                   -----------  -----------

Assets

Current assets:
  Cash, cash equivalents and marketable securities $     1,544  $     1,765
  Accounts receivable, net                                 962          919
  Inventories, net                                         585          476
  Prepaid expenses and other current assets                104           69

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

      Total current assets                               3,195        3,229

Long-term marketable securities                            169          149
Property, plant and equipment, net                         715          726
Investment in GLOBALFOUNDRIES                                -          278
Acquisition related intangible assets, net                 109            8
Goodwill                                                   553          323
Other assets                                               247          241

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

Total Assets                                       $     4,988  $     4,954
                                                   ===========  ===========

Liabilities and Stockholders' Equity

Current liabilities:
  Accounts payable                                 $       527  $       363
  Payable to GLOBALFOUNDRIES                               560          177
  Accrued liabilities                                      556          550
  Deferred income on shipments to distributors             137          123
  Current portion of long-term debt and capital
   lease obligations                                       490          489
  Other current liabilities                                 77           72

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

      Total current liabilities                          2,347        1,774

Long-term debt and capital lease obligations, less
 current portion                                         1,529        1,527
Other long-term liabilities                                 60           63

Stockholders' equity:
  Capital stock:
    Common stock, par value                                  7            7
    Additional paid-in capital                           6,722        6,672
    Treasury stock, at cost                               (107)        (107)
  Accumulated deficit                                   (5,567)      (4,977)
  Accumulated other comprehensive loss                      (3)          (5)
                                                   -----------  -----------

      Total stockholders' equity                         1,052        1,590

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

Total Liabilities and Stockholders' Equity         $     4,988  $     4,954
                                                   ===========  ===========


ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
                                                              Quarter Ended
                                                             --------------
                                                                Mar. 31,
                                                                  2012
                                                             --------------
Cash flows from operating activities:
  Net loss                                                   $         (590)
  Adjustments to reconcile net income to net cash provided
   by operating activities:
    Non-cash portion of the limited waiver of exclusivity
     from GLOBALFOUNDRIES                                               278
    Depreciation and amortization                                        63
    Benefit for deferred income taxes                                   (36)
    Compensation recognized under employee stock plans                   21
    Non-cash interest expense                                             6
    Other                                                                (3)
  Changes in operating assets and liabilities:
    Accounts receivable                                                 (40)
    Inventories                                                        (106)
    Prepaid expenses and other current assets                           (41)
    Other assets                                                        (16)
    Payable to GLOBALFOUNDRIES                                          384
    Accounts payable, accrued liabilities and other                     187
                                                             --------------
Net cash provided by operating activities                    $          107
                                                             --------------

Cash flows from investing activities:
  Acquisition of SeaMicro, Inc., net of cash acquired                  (281)
  Purchases of property, plant and equipment                            (40)
  Proceeds from sale of property, plant, and equipment                    1
  Purchases of available-for-sale securities                            (95)
  Proceeds from sale and maturity of available-for-sale
   securities                                                           620
  Other                                                                  (5)
                                                             --------------
Net cash provided by investing activities                    $          200
                                                             --------------

Cash flows from financing activities:
  Net proceeds from foreign grants                                        9
  Proceeds from issuance of AMD common stock                              9
  Repayments of debt and capital lease obligations                       (1)
                                                             --------------
Net cash provided by financing activities                    $           17
                                                             --------------
Net increase in cash and cash equivalents                               324
                                                             --------------
Cash and cash equivalents at beginning of period             $          869
                                                             --------------
Cash and cash equivalents at end of period                   $        1,193
                                                             --------------


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


                                                  Quarter Ended
----------------------------------------------------------------------------
                                        Mar. 31,     Dec. 31,     Apr. 2,
Segment and Category Information          2012         2011         2011

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

Computing Solutions (1)
  Net revenue                         $     1,203  $     1,309  $     1,200
  Operating income                    $       124  $       165  $       100

Graphics (2)
  Net revenue                                 382          382          413
  Operating income                             34           27           19

All Other (3)
  Net revenue                                   -            -            -
  Operating income (loss)                    (738)        (121)         (65)

Total
  Net revenue                         $     1,585  $     1,691  $     1,613
  Operating income                    $      (580) $        71  $        54

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

Other Data

  Depreciation and amortization
   (excluding amortization of
   acquired intangible assets)        $        62  $        67  $        79
  Capital additions                   $        40  $        87  $        38
  Adjusted EBITDA (4)                 $       215  $       260  $       198
  Cash, cash equivalents and
   marketable securities (5)          $     1,713  $     1,914  $     1,745
  Adjusted free cash flow (6)         $        67  $       100  $       154
  Total assets                        $     4,988  $     4,954  $     5,209
  Long-term debt and capital lease
   obligations, including current
   portion                            $     2,019  $     2,016  $     2,196
  Headcount                                11,265       11,093       11,256

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

See footnotes on the next page

(1)  Computing Solutions segment includes microprocessors, as standalone
     devices or as incorporated as an Accelerated Processing Unit, chipsets,
     embedded processors, embedded GPUs and data center server solutions.

(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, restructuring
     charges and limited waiver of exclusivity from GLOBALFOUNDRIES.

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

                                                    Quarter Ended
                                        ------------------------------------
                                          Mar. 31,     Dec. 31,    Apr. 2,
                                            2012         2011        2011
                                        -----------  ----------- -----------
     GAAP operating income (loss)       $      (580) $        71 $        54
       Limited waiver of exclusivity
        from GLOBALFOUNDRIES                    703            -           -
       Payments to GLOBALFOUNDRIES                -            -          24
       Legal settlement                           -            -           5
       Depreciation and amortization             62           67          79
       Employee stock-based
        compensation expense                     21           21          27
       Amortization of acquired
        intangible assets                         1            3           9
       Restructuring charges, net                 8           98           -
                                        -----------  ----------- -----------
     Adjusted EBITDA                    $       215  $       260 $       198
                                        ===========  =========== ===========


(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
                                      -------------------------------------
                                        Mar. 31,     Dec. 31,     Apr. 2,
                                          2012         2011         2011
                                      -----------  -----------  -----------
     GAAP net cash provided by (used
      in) operating activities        $       107  $       187  $      (168)
       Non-GAAP adjustment                      -            -          360
                                      -----------  -----------  -----------
     Non-GAAP net cash provided by
      operating activities                    107          187          192
       Purchases of property, plant
        and equipment                         (40)         (87)         (38)
                                      -----------  -----------  -----------
     Non-GAAP adjusted free cash flow $        67  $       100  $       154
                                      ===========  ===========  ===========


     * 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 first quarter of 2012 the
     Company included an adjustment for the limited waiver of exclusivity
     from GLOBALFOUNDRIES and net restructuring charges; for the fourth
     quarter of 2011, the Company also included an adjustment for net
     restructuring charges; and for the first quarter of 2011, the Company
     also included an adjustment related to a payment to GF and a legal
     settlement with a third party. 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.

     ** The Company also presents non-GAAP adjusted free cash flow in the
     earnings release as a supplemental measure of its performance. In 2008
     and 2009, the Company and certain of its subsidiaries (collectively,
     the "AMD Parties") entered into supplier agreements with IBM Credit LLC
     and certain of its subsidiaries (collectively, the "IBM Parties").
     Pursuant to these supplier agreements, the AMD Parties sold to the IBM
     Parties invoices of selected distributor customers. Because the Company
     does not recognize revenue until its distributors sell its products to
     their customers, under GAAP, the Company classified funds received from
     the IBM Parties as debt on the balance sheet. Moreover, for cash flow
     purposes, these funds were classified as cash flows from financing
     activities. When a distributor paid the applicable IBM Party, the
     Company reduced the distributor's accounts receivable and the
     corresponding debt resulted in a noncash accounting entry. Because the
     Company did not receive the cash from the distributor to reduce the
     accounts receivable, the distributor's payment was not reflected in the
     Company's cash flows from operating activities. Non-GAAP adjusted free
     cash flow for the Company was determined by adding the distributors'
     payments to the IBM Parties to GAAP net cash provided by (used in)
     operating activities. This amount was then further adjusted by
     subtracting capital expenditures. Generally, under GAAP, the reduction
     in accounts receivable is assumed to be a source of operating cash
     flows. Therefore, the Company believes that treating the payments from
     its distributor customers to the IBM Parties as if the Company actually
     received the cash from the distributor and then used that cash to pay
     down the debt is more reflective of the economic substance of the
     transaction. On February 11, 2011, the Company terminated its supplier
     agreements with IBM Parties. As a result, as of the end of the second
     quarter of 2011, there were no outstanding invoices relating to the
     financing arrangement with the IBM Parties, and starting from the third
     quarter of 2011, the Company no longer makes quarterly adjustments for
     distributors' payments to the IBM Parties to its GAAP net cash provided
     by (used in) operating activities when calculating non-GAAP adjusted
     free cash flow. The Company calculates and communicates non-GAAP
     adjusted free cash flow in the financial schedules because the
     Company's management believes it is of importance to investors to
     understand the nature of these cash flows. The Company's calculation of
     non-GAAP adjusted free cash flow may or may not be consistent with the
     calculation of this measure by other companies in the same industry.
     Investors should not view non-GAAP adjusted free cash flow as an
     alternative to GAAP liquidity measures of cash flows from operating or
     financing activities. The Company has provided reconciliations within
     the press release and financial schedules of these non-GAAP financial
     measures to the most directly comparable GAAP financial measures.

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=3884E4118E40A20E
http://www2.marketwire.com/mw/emailprcntct?id=7FD5B14C83EEB006

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