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AMD Reports Record Q2 2000 Earnings
Date: Wednesday July 19, 2000
Category: Press Release
Manufacturer Link: AMD Discus -- BBS
AMD has reported record earnings for Q2 2000 of $207 million or $1.21 per diluted share.
 

AMD REPORTS SECOND QUARTER RESULTS

- AMD earns a record $207 million, or $1.21 per diluted share after taxes,

on record quarterly sales up by 97 percent from second quarter of 1999-

SUNNYVALE, CA -- July 19, 2000 -AMD today reported record sales of

$1,170,437,000, record operating income of $250,197,000, and record net

income of $207,142,000 for the quarter ended July 2, 2000. Operating income

rose by 38 percent from the immediate-prior quarter. Net income amounted to

$1.21 per diluted share after a 20 percent tax rate. (On an untaxed basis,

second-quarter earnings per diluted share would have been $1.51, up by 31

percent from the first quarter when the tax rate was zero.)

Sales grew by 7 percent from the immediate-prior quarter, for which

AMD reported sales of $1,092,029,000, operating income of $180,669,000, and

net income of $189,349,000, or $1.15 per diluted share.

-more-

Sales nearly doubled from the second quarter of 1999, for which AMD reported

sales of $595,109,000 and net income of $79,896,000, or $0.53 per diluted

share. Revenues from PC processors and flash memory products each more than

doubled from the comparable quarter of 1999. The results for the second

quarter of 1999 included a one-time, after-tax gain of $259 million from the

sale of Vantis Corporation, the company's former programmable logic

subsidiary. The results from the second quarter of 1999 also included 11

weeks of operating results from Vantis prior to the effective date of the

sale. In the second quarter of 1999, AMD incurred an operating loss of

$172,542,000.

For the first six months of 2000, AMD reported total sales of $2,262,466,000

and net income of $396,491,000, or $2.36 per diluted share. For the same

period of 1999, AMD reported total sales of $1,226,702,000 and a net loss of

$48,471,000, or a loss of $0.33 per share, including the gain on the sale of

Vantis and restructuring and other special charges.

"AMD had another great quarter," said Hector de J. Ruiz, president

and chief operating officer of AMD. "Strong revenue growth in both of our

principal product lines - PC processors and flash memory devices - again

resulted in record sales and earnings."

In what is traditionally the weakest quarter for PC processors, the company

reported that combined unit shipments of AMD Athlon, AMD Duron, and AMD

K6-2* processors remained near record levels at well in excess of 6 million

units.

"During the quarter, AMD introduced two enhanced seventh-generation PC

processors," said Ruiz. "The new AMD Athlon* processor, formerly code-named

'Thunderbird,' features 256K of on-die L2 cache memory and is targeted at

the performance sector of the PC market. AMD also commenced shipments of the

AMD Duron* processor, formerly code-named 'Spitfire,' featuring 64K of

on-board L2 cache memory. The AMD Duron processor is targeted at the value

segment of the PC market.

-more-

"Demand for AMD processors remains strong. Combined unit sales of

AMD seventh-generation processors - the AMD Athlon and AMD Duron processors

- increased by 52 percent over the immediate-prior quarter to more than 1.8

million units, meeting our previously stated goal. We are especially pleased

at the strong support we have received from our infrastructure partners

during the transition to the newest version of the AMD Athlon processor

family. With the additional production capacity of our new Dresden facility,

we believe we are on target to double unit shipments of AMD

seventh-generation processors in each of the next two quarters to 3.6

million units in the third quarter and to 7.2 million units in the fourth

quarter," said Ruiz.

Ruiz noted that AMD successfully met a number of important

challenges in the just-completed quarter. "We achieved our goal of

increasing AMD seventh-generation processor unit shipments by 52 percent

sequentially while making a successful transition to our newest AMD Athlon

and AMD Duron products. During the quarter, we converted all AMD Athlon

processor production to the new version, featuring on-chip L2 cache memory.

Fab 30 in Dresden transitioned to production status, completing an excellent

start-up phase employing our most advanced process technology - 0.18-micron

technology using copper interconnects. We are rapidly ramping production in

Fab 30, and to date we have met or exceeded every milestone along the way,"

said Ruiz.

"Our progress in flash memory was equally successful. Memory Group

sales grew by more than 10 percent over the immediate-prior quarter," Ruiz

continued.

"During the quarter, AMD introduced two advanced flash memory products for

high-end cellular telephones. Working closely with Nokia, AMD developed 32-

and 64-megabit devices with simultaneous read-write architecture and

1.8-volt operation for extended battery life. These features are critical in

adding new capabilities to cellular telephones, such as Internet

connectivity, video streaming, and the functionality of handheld information

appliances.

-more-

"Demand for AMD flash memory products continues to exceed our production

capacity," said Ruiz. "We are adding capacity as rapidly as possible to

support our customers. During the quarter Fujitsu AMD Semiconductor Limited

(FASL) made initial shipments from a production facility in Iwate, Japan,

and qualified production in additional facilities in Aizu-Wakamatsu and

Gresham, Oregon. As announced earlier today, FASL broke ground for

construction of a third megafab for flash memory production at

Aizu-Wakamatsu, Japan. Initial production at this new facility, designated

JV3, is planned to commence in the second half of 2001.

"Today we are reaping the rewards of AMD's sustained commitment to investing

in process technology, product development, and production capacity for both

PC processors and flash memory products. AMD has the strongest product

portfolio in its 31-year history, with industry-leading products for our

target markets. We have excellent relationships with leading customers

around the world, and we continue to operate in a favorable market

environment. During my first six months at AMD, I have been very favorably

impressed with the dedication of the AMD workforce and the total commitment

to success that permeates the company," Ruiz concluded.

 

Current Outlook

The company's outlook statements are based on current expectations.

The following statements are forward-looking, and actual results could

differ materially.

Despite the loss of revenues as a result of the sale of the

Communication Products Division, AMD projects that sales will be higher in

the third quarter than in the immediate-prior quarter. The company's current

overall outlook is based on the following projections for its major product

lines:

The company projects that combined unit shipments of AMD Athlon and Duron

family processors will increase to 3.6 million units in the third quarter

and to 7.2 million units in the fourth quarter, resulting in a richer mix

and a higher blended average selling price and higher revenues for PC

processors.

-more-

 

AMD projects that Memory Group sales will grow in the 10 percent range in

the third quarter and will achieve a similar growth rate in the fourth

quarter. The company projects that demand for flash memory products will

continue to exceed supply.

AMD Teleconference

AMD will hold a teleconference for the financial community at 2:30

PM Pacific Daylight Time today to discuss second-quarter financial results.

AMD will provide a real-time audio broadcast of the teleconference on the

Investor Relations page of its web sit at http://www.amd.com or

http://www.streetfusion.com. The webcast will be available for two weeks

after the teleconference.

AMD will also provide a telephone recording of the teleconference,

which will be available at approximately 4:30 PM PT today. Interested

persons may listen to the playback of the teleconference by calling the

following toll-free number: 1-800-633-8284 and entering the code number

15676264.

Cautionary Statement

This release contains forward-looking statements, which are made pursuant to

the safe harbor provisions of the Private Securities Litigation Reform Act

of 1995. Investors are cautioned that forward-looking statements in this

release involve risks and uncertainty that could cause actual results to

differ materially from current expectations. There can be no assurance that

demand for the company's products will continue at current or greater

levels, or that the company will continue to grow revenues, operating

profits, or earnings.

-more-

There are also risks that the company will not be able to produce the AMD

Athlon and AMD Duron processors in the volume, speed mix or with the feature

set necessary to meet customer requirements and the company's plans and

goals; that Intel Corporation pricing, marketing programs, new product

introductions or other activities targeting the company's processors

business will prevent attainment of the company's current processor sales

plans; that third parties may not provide timely or adequate infrastructure

solutions to support the AMD Athlon and AMD Duron processors; and that the

company will not be able to grow demand for its PC processors sufficiently

to utilize fully its processor production capacity. We urge investors to

review in detail the risks and uncertainties in the company's Securities and

Exchange Commission filings, including but not limited to the report on Form

10-K for the year ended December 26, 1999.

About AMD

AMD is a global supplier of integrated circuits for the personal and

networked computer and communications markets with manufacturing facilities

in the United States, Europe, Japan, and Asia. AMD produces microprocessors,

flash memory devices, and support circuitry for communications and

networking applications. Founded in 1969 and based in Sunnyvale, California,

AMD had revenues of $2.9 billion in 1999. (NYSE: AMD).

-30-

WORLD WIDE WEB: Press announcements and other information about AMD are

available on the Internet via the World Wide Web. Type http://www.amd.com

at the URL prompt.

NOTE TO EDITOR: Readers may obtain additional information by calling

1-800-222-9323 or 408-749-3060. Technical Support Email: hw.support@amd.com

AMD, the AMD logo, and combinations thereof are trademarks of Advanced Micro

Devices, Inc. in the United States and other jurisdictions.

 

 

News Release

 

 

 

 

CONTACT:

John Greenagel

Strategic Communications

(408) 749-3310

 

 

 

 

 

More Press Releases-->

   10 / 23 / 2019 | 6:54AM
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