AMD Reports First Quarter Results

[Apoptosis]

AMD Reports First Quarter Results

SUNNYVALE, Calif. — April 17, 2008 — AMD (NYSE: AMD) today reported first quarter 2008 revenue of $1.505 billion, a net loss of $358 million, or $0.59 per share, and an operating loss of $264 million. These results include an impact of $50 million, or $0.08 per share, from ATI acquisition-related charges. First quarter revenue decreased 15 percent compared to the fourth quarter of 2007 and increased 22 percent compared to the first quarter of 2007. In the fourth quarter of 2007, AMD reported revenue of $1.770 billion, a net loss of $1.772 billion, and an operating loss of $1.678 billion. In the first quarter of 2007, AMD reported revenue of $1.233 billion, a net loss $611 million, and an operating loss of $504 million.

Reconciliation of GAAP Net Loss to Non-GAAP Net Loss

(Millions except per share amounts) Q1-08 Q4-07 Q1-07
GAAP net loss/EPS, less: $(358) (0.59) $(1,772) $(3.06) $(611) (1.11)
ATI acquisition-related charges (50) (0.08) (1,669) (2.89) (113) (0.21)
Tax benefit from ATI acquisition-related charges - - 63 0.11 - -
Spansion investment impairment - - (69) (0.12) - -
Total net charges (50) (0.08) (1,675) (2.89) (113) (0.21)
Non-GAAP net loss 1 $(308) - $(97) - $(498) -

Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss1

(Millions) Q1-08 Q4-07 Q1-07
GAAP operating loss, less: $(264) $(1,678) $(504)
ATI acquisition-related charges (50) (1,669) (113)
Non-GAAP operating loss1 $(214) $(9) $(391)

“A seasonally weak first quarter was amplified by a challenging economic environment for consumers and lower than expected revenues of previous generation products, resulting in lower than expected revenues in all business segments. However,

we are encouraged by the market acceptance of our Quad-Core AMD Opteron™ server processors as well as our new chipset and graphics offerings,” said Robert J. Rivet, AMD’s Chief Financial officer. “We remain committed to achieve operating profitability in the second half of the year, driven by our portfolio of new products and platforms and aggressive restructuring programs.”

First quarter 2008 gross margin was 42 percent compared to 44 percent in the fourth quarter of 2007 and 28 percent in the first quarter of 2007. The decrease from the prior quarter was primarily due to decreased microprocessor unit shipments.

Segment Information

(Millions) Q1-08 vs Q4-07 vs Q1-07
Computing Solutions
Revenue $ 1,194 -15% 30%
Microprocessor Units - Down Up
Microprocessor Average Selling Price (ASP) - Flat Flat
Graphics
Revenue $230 -11% 17%
Units - Up Up
Average Selling Price (ASP) - Down Flat
Consumer Electronics
Revenue $ 81 -26% -31%
Total AMD
Revenue $1,505 -15% 22%


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.

In the seasonally down second quarter, AMD expects revenue to decrease in line with seasonality. As previously disclosed, AMD expects to record a restructuring charge in the second quarter of 2008.

Additional Quarterly Highlights

· AMD began volume shipments of Quad-Core AMD Opteron processors. Initial systems are available now from several customers including Dell and HP and more platforms expected to be available in the coming weeks from our largest global customers.

· AMD launched seven new AMD Phenom™ processors, including:

o AMD Phenom X4 9100e, the industry’s first energy-efficient desktop quad-core processor;

o AMD Phenom X4 9850 Black Edition processor; and

o AMD Phenom X3 8000 series, the world’s first triple-core processor.

· AMD introduced the 780 Series chipset, the industry’s most advanced motherboard GPU and the first product capable of combining the graphics power of integrated motherboard and discrete graphics to deliver a better visual experience.

· AMD introduced the ATI Radeon™ HD 3870 X2 graphics card delivering leading performance for the enthusiast user and the ATI Radeon HD 3400 and ATI Radeon HD 3600 series to provide outstanding performance and unmatched value for the mainstream user. AMD also announced software updates to enable the world’s first quad-GPU support.

· AMD demonstrated its first 45nm quad-core processors for servers and desktops.

· AMD announced its first application processor for feature-rich multimedia mobile phones, strengthened its portfolio of discrete media processors, and expanded its handheld graphics IP offerings.

· AMD introduced the ATI FireGL™ V7700, the first commercially available 3D workstation graphics card with DisplayPort support, and a new 2D workstation graphics card which delivers exceptional energy efficiency and longevity.

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 http://www.amd.com. The webcast will be available for 10 days after the conference call.

About AMD

Advanced Micro Devices (NYSE: AMD) is a leading global provider of innovative processing solutions in the computing, graphics and consumer electronics markets. AMD is dedicated to driving open innovation, choice and industry growth by delivering superior customer-centric solutions that empower consumers and businesses worldwide. For more information, visit http://www.amd.com.

[Zertz]

600 million loss isn't too bad considering previous quarters

[ibleet]

I think its funny, but deep down I wish AMD would push a little harder to keep Intel on their toes. They're making it too easy.

[stev]

"...AMD Phenom X3 8000 series, the world’s first triple-core processor...."

Yes! I'm looking for reviews on the X3 processors. Mostly about the OCing abilities.

[Apoptosis]

"...AMD Phenom X3 8000 series, the world’s first triple-core processor...."

Yes! I'm looking for reviews on the X3 processors. Mostly about the OCing abilities.

ours is done, been done for weeks, just can't post it even though you can buy them... NDA's are a pain some times.

[JuneBug]

"...AMD Phenom X3 8000 series, the world’s first triple-core processor...."

Yes! I'm looking for reviews on the X3 processors. Mostly about the OCing abilities.

ours is done, been done for weeks, just can't post it even though you can buy them... NDA's are a pain some times.

That sucks, and i take it these are the processors that use the same steeping system as the first phenom ones?

[Apoptosis]

nope, the new 50 series triple-cores... the original ones were indeed just 'old phenoms'

[hercules71185]

any kind of overclocking or is that what we are not allowed to know

[bmaverick]

any kind of overclocking or is that what we are not allowed to know

He can't say until the NDA or public knowledge becomes available. So we sit hog tied until then.

[hercules71185]

Man if I was AMD I'd be like release EVERYTHING AND MORE!! they need to get their heads in the game again.