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AMD Earnings Conference Call Summary
Date: Thursday April 13, 2000
Category: Press Release
Manufacturer Link: AMD Discus -- BBS
A summary of the April 12, 2000 AMD earnings conference call.
 

"We are currently doing almost everything right."- Jerry Sanders, CEO of AMD.

That above statement from Jerry Sanders sums up today's earnings conference call from AMD.  I have listened to the entire conference call in full, and I will summarize the key points made during the approximately 60 minute call.

As time has passed at AMD Zone I have listened to many of these calls, and this one by far has been the best from AMD.  They have shamed the estimates from so called analysts by announcing earnings of $1.15 per share.  Analysts were predicting earnings of between roughly 48 to 52 cents per share.  AMD Zone readers predicted a much more realistic 99 cents per share.  Frankly, I find no use for analysts and was appalled when Ashok Kumar was the first to ask questions.  At least the other analysts have been bullish on AMD.  Kumar, a former chipzilla marketing employee has consistently dogged AMD and their management, and I am surprised to see that he finds himself gainfully employed as I'm sure many would be AMD investors are quite upset by today's announcement and their recent performance.

The following sections are divided up into points made by each speaker at the conference call.  I thought about dividing them up into CPU, flash, etc, but settled on this approach.  I also decided to summarize what was talked about instead of posting a word by word dictation to make things quite a bit shorter in length while keeping the core information intact.

Financial Statements

  • Record sales of $1,092,029,000
  • Record net income of $189,349,000
  • Record net income of $1.15 per diluted share
  • Research and development spending of $161,297,00
  • Marketing, general and administrative expenses of $144,306,000
  • Cost of sales $605,757,000
  • Number of diluted shares 171,942,000

Fran Barton, CFO of AMD on financials

  • Revenue of $1.092 billion 73% increase over Q1 of 1999
  • Revenue of $1.092 billion 13% increase over Q4 of 1999
  • Removing Vantis shows 83% increase over Q1 off 1999
  • Gross margin up 4 1/2 points to 44.5%
  • R&D increase due to Dresden and product development
  • R&D spending on track for $650 million for 2000
  • Advertising spending decreased for seasonal reasons
  • $181 million in operating expenses is a new record
  • 129 million in capital spending, 1/2 of that in Dresden
  • 0% tax rate for fiscal year 2000
  • estimated 31% tax rate for fiscal year 2001
  • 1 million more shares per quarter
  • 175 million shares total in quarter 2
  • $800 million in capital spending for 2000, over half of that for Dresden (Fab 30)
  • 600 million dollars in depreciation for 2000

Ben Annister on the memory and communications group

  • Communications up 7% over Q4 99, up 59% over Q1 99, this in spite of seasonal decrease in demand for 900MHz phone products
  • Growth led by home networking
  • Demand for line card products strong in Latin America and Asia
  • Voice over cable and DSL lines are ramping
  • DSL chipset demand continues to grow rapidly
  • Expects Q2 communications growth to double over Q1
  • Flash memory growth 19% over Q4 99, 250% over Q1 of 99
  • memory density over 8 megabits for Q1 00, 5 megabits Q1 99
  • memory density .5 megabits higher than Q4 99
  • Sales are increasing, prices are growing higher
  • bits increased by 8% over Q4 99, will grow 100% for 2000
  • demand far exceeds supply
  • increasing production as much as possible
  • expects single digit growth for Q2
  • expects a return to double digit growth for Q3

Next

Page 2: Jerry Sanders and Q&A Session

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   07 / 19 / 2019 | 2:28AM
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