AMD Reports First Quarter Results
Financial Statements; AMD Selected Corporate Data
SUNNYVALE, CA --
Advanced Micro Devices today reported a net loss of $128,367,000 on revenues of $631,593,000 for its first quarter, ended March 28, 1999. The loss amounted to $0.88 per share. The results for the first quarter include a charge of $15,016,000 for restructuring and other special charges. Without the restructuring and other special charges, the net loss would have been $0.81 per share.
Revenues declined by 20 percent from the $788,820,000 achieved in the quarter ended December 27, 1998, which resulted in net income of $22,321,000, or $0.15 per share. Revenues increased by 17 percent from the $540,856,000 reported for the quarter ended March 29, 1998, which resulted in a net loss of $62,727,000, or $0.44 per share.
"The best thing that can be said about the first quarter is that it's over," said W.J. Sanders III, chairman and chief executive officer. "The significant decline in revenues reported by AMD in the first quarter was almost entirely due to previously reported AMD-K6®-2 microprocessor yield issues. The large revenue decline in the face of high fixed costs and record spending on research and development of $160 million in the quarter precipitated the unprecedented loss. Improvements in production yields in March and in the current quarter to date presage a sharp increase in unit production in the current quarter. The last seven weeks' production results increase our confidence in achieving our previously stated goal of shipping five million units in the current quarter.
"We are seeing improving order patterns in our non-processor product lines in the aggregate, with flash memories leading the way," Sanders concluded.
This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally preceded by words such as "expects," "plans," "believes," "anticipates," or "intends." Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Forward-looking statements in this release involve the risk that the company will not be able to maintain or increase processor yields; that design or production problems will prevent the company from meeting its unit production and shipment goals; and, that customer demand for processors and other products will not continue at current or greater levels. We urge investors to review in detail the risks and uncertainties detailed in the company's Securities and Exchange Commission filings, including the most recently filed Form-10K.