Legit Reviews

SUNNYVALE, Calif. — Oct. 16, 2008 — AMD (NYSE:AMD) today reported third quarter 2008 revenue from continuing operations of $1.776 billion, including process technology license revenue of $191 million. Third quarter 2008 revenue increased 32 percent compared to the second quarter of 2008 and 14 percent compared to the third quarter of 2007.

In the third quarter of 2008, AMD reported a net loss of $67 million, or $0.11 per share. For continuing operations, third quarter 2008 income was $41 million, or $0.07 per share, including the process technology license revenue of $191 million, or $0.31 a share. Third quarter 2008 operating income was $131 million. Loss from discontinued operations was $108 million, or $0.18 a share.
In the second quarter of 2008, AMD had revenue from continuing operations of $1.349 billion, a net loss of $1.189 billion, a loss from continuing operations of $269 million and an operating loss of $143 million. In the third quarter of 2007, AMD had revenue from continuing operations of $1.558 billion, a net loss of $396 million, a loss from continuing operations of $344 million and an operating loss of $181 million.

“We achieved a significant milestone with the recent announcement of our Asset Smart strategy, which will transform both AMD and the industry through the creation of ‘The Foundry Company’,” said Dirk Meyer, AMD’s president and CEO. “AMD will be assured access to leading-edge manufacturing processes without the obligation to make the capital investment required to maintain a world-class manufacturing operation. We look forward to the successful closing of this joint venture early in 2009.”

“We are pleased to have reached our goal of operational profitability this quarter while increasing gross margin to 51 percent,” said Robert J. Rivet, AMD’s chief financial officer. “Improved execution across all of our businesses was punctuated by a refresh of our graphics product line-up, driving 55 percent sequential revenue growth and market share gains. In addition, customer adoption of our quad-core microprocessors was strong, with unit shipments increasing 46 percent sequentially.”

Third quarter 2008 gross margin was 51 percent, and 45 percent excluding process technology license revenue. This compares favorably to both the second quarter 2008 non-GAAP gross margin of 37 percent, and third quarter of 2007 gross margin of 41 percent.

Current Outlook

AMD’s outlook statements are based on current expectations of its continuing operations. 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.

Third quarter 2008 revenue was $1.585 billion, not including process technology license revenue. In light of the current macroeconomic conditions, AMD expects fourth quarter 2008 revenue from continuing operations to be roughly flat to that number.

Additional Highlights

· As the cornerstone of its Asset Smart strategy, AMD and the Advanced Technology Investment Company (ATIC) of Abu Dhabi announced an agreement to create a U.S.-headquartered, leading-edge semiconductor manufacturing company to address growing demand for independent foundry production capabilities. The new global company will serve this need by combining advanced process technology, industry-leading manufacturing facilities and aggressive plans to expand its global capacity footprint.

· AMD announced that Mubadala Development Corporation will increase its stake in AMD from 8.1 percent to 19.3 percent of outstanding shares on a fully diluted basis through the purchase of 58 million newly issued shares and warrants for 30 million additional shares.

· AMD introduced the entire ATI Radeon HD 4000 family of graphics cards with 10 new products spanning all market segments. From the ATI Radeon HD 4870 X2, the world's fastest graphics card designed for the ultra-enthusiast, to the ATI Radeon HD 4350 providing a great visual experience for the value-minded market. AMD also strengthened its workstation graphics product offerings with the introduction of two new ATI FirePro graphics products.

· Dell and HP introduced new quad-core server platforms designed specifically to take advantage of the virtualization performance advantages of the quad core AMD Opteron processor.

· AMD expanded its desktop consumer and commercial processor line-up, introducing:

o Six new desktop processors, including three quad-core and three triple-core processors;

o Four new AMD Business Class processors, extending the B-series product offerings to a total of 11 processors that support the essential security and manageability requirements of business users.

· Acer, Dell, NEC, Samsung, Toshiba, and others introduced new notebook systems powered by the recently introduced AMD Turion X2 Ultra notebook platform.

· 10 of the largest motherboard partners introduced new products based on the AMD 790GX desktop chipset, delivering best-in-class 3D graphics performance, enhanced scalability and stability for high-performance gaming and multimedia.

· AMD launched a new corporate brand campaign under a new tagline, "The Future is Fusion." The campaign focuses on how the unique AMD combination of technologies, coupled with close relationships with computer manufacturers and a deep understanding of customer needs, results in exciting next-generation capabilities and experiences at work, at home, and at play.

AMD Teleconference
AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its third quarter financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its Web site at http://www.amd.com. The webcast will be available for 10 days after the conference call.

About AMD
Advanced Micro Devices (NYSE: AMD) is an innovative technology company dedicated to collaborating with customers and partners to ignite the next generation of computing and graphics solutions at work, home and play. For more information, visit http://www.amd.com.