Legit Reviews

SUNNYVALE, Calif. — Jan. 17, 2008 — AMD (NYSE: AMD) today reported fourth quarter 2007 revenue of $1.770 billion, an 8 percent increase compared to the third quarter of 2007 and flat compared to the fourth quarter of 2006. In the fourth quarter of 2007, AMD reported a net loss of $1.772 billion, or $3.06 per share, and an operating loss of $1.678 billion. Fourth quarter net loss included charges of $1.675 billion, or $2.89 per share, of which $1.669 billion were operating charges. The non-cash portion of the fourth quarter charges was $1.606 billion. In the third quarter of 2007, AMD reported revenue of $1.632 billion, a net loss of $396 million, and an operating loss of $226 million. In the fourth quarter of 20062, AMD reported revenue of $1.773 billion, a net loss $576 million, and an operating loss of $529 million.

For the year ended December 29, 2007, AMD achieved revenue of $6.013 billion, a 6 percent increase from 20062. The fiscal 2007 net loss was $3.379 billion. Included in the 2007 net loss were non-cash charges of $2.007 billion. AMD reported revenue of $5.649 billion and a net loss of $166 million for fiscal 20062. Details of the various charges are described in the tables below.



Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss)

(Millions except per share amounts) Q4-07 Q3-07 Q4-062 2007 20062
GAAP net loss/EPS, less: $(1,772) $(3.06) $(396) $(0.71) $(576) $(1.08) $(3,379) $(6.06) $(166) $(0.34)
ATI impairment of goodwill and acquired intangible assets (1,608) (2.78) - - - - (1,608) (2.88) - -
ATI other acquisition-related and severance charges (61) (0.11) (78) (0.14) (551) (1.04) (346) (0.62) (557) (1.13)
Tax benefit from ATI acquisition-related charges 63 0.11 - - - - 63 0.11 - -
Spansion investment impairment (69) (0.12) (42) (0.08) - - (111) (0.20) - -
Debt-related net charges

- - - - - - (5) (0.01) (10) (0.02)
Total net charges (1,675) (2.89) (120) (0.22) (551) (1.04) (2,007) (3.60) (567) (1.15)
Non-GAAP net income (loss)1 $(97) $(276) $(25) $(1,372) $401

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

(Millions) Q4-07 Q3-07 Q4-062 2007 20062
GAAP operating loss, less: $ (1,678) $ (226) $ (529) $ (2,865) $ (47)
ATI Impairment of goodwill and acquired intangible assets (1,608) - - (1,608) -
ATI other acquisition-related and severance charges (61) (78) (551) (346) (557)
Total ATI acquisition-related and severance charges (1,669) (78) (551) (1,954) (557)
Non-GAAP operating income (loss)1 $ (9) $ (148) $ 22 $ (911) $ 510

“We were close to break-even operationally for the quarter, reducing our fourth quarter non-GAAP operating loss to $9 million1. We improved gross margin by three points sequentially, driven by increased shipments of new products, higher average selling prices and cost containment actions,” said Robert J. Rivet, AMD’s Chief Financial Officer. “We shipped a record number of microprocessor units in the quarter, including nearly four hundred thousand quad-core processors.”

Fourth quarter 2007 gross margin was 44 percent, compared to 41 percent in the third quarter of 2007 and 36 percent in the fourth quarter of 20062.

Computing Solutions

Fourth quarter Computing Solutions segment revenue was $1.402 billion, a 9 percent sequential increase. Server, mobile and desktop processor revenue each increased quarter-over-quarter, driving an 11 percent sequential increase in microprocessor revenue. Record desktop and mobile processor unit shipments drove a 7 percent sequential increase in overall microprocessor unit shipments, resulting in record microprocessor unit shipments. Server processor unit shipments increased 22 percent sequentially, driven by a significant increase in quad-core AMD Opteron™ processor shipments.

Graphics

Graphics segment revenue was $259 million, a three percent sequential increase. The growth was due to demand for AMD’s new ATI Radeon HD™ 3800 series and continued adoption of the ATI Radeon HD 2000 series of graphics processors.

Consumer Electronics

Fourth quarter Consumer Electronics segment revenue was $109 million, a 12 percent increase compared with $97 million in the third quarter of 2007. The increase was driven largely by increased game console royalties and sales of products for the handheld market.

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 first quarter, AMD expects revenue to decrease in line with seasonality.

Additional Quarterly Highlights

· The Quad-Core AMD Opteron processor was named Chip of the Year by CRN. The publication called the processor a "game changer" because of its blend of "blazing" speed and energy efficiency.

· AMD launched its new desktop platform, “Spider,” empowering enthusiasts with the ultimate computing experience. Spider combines AMD Phenom™ quad-core processors, ATI Radeon HD 3800 series graphics processors and the AMD 7-Series chipset.

· Since their introduction, ATI Radeon HD 3800 series cards have won more than 25 editorial awards worldwide, including HardOCP.com’s prestigious Gold Award in the US, Clubic.com’s ‘Tres Bon’ award in France, and Hexus.net’s ‘Good Value Gaming’ award in the UK.

· Toshiba launched its first AMD-based business notebooks, the Satellite Pro A210 Series, and expanded its AMD-based consumer notebook offerings.

· AMD received net investment proceeds of $608 million from a wholly-owned subsidiary of Mubadala Development Company, a strategic investment and development company headquartered in Abu Dhabi, the capital of the United Arab Emirates (UAE).

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 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 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.