SUNNYVALE, Calif. -- July 17, 2008 --AMD (NYSE:AMD) today reported second quarter 2008 revenue from continuing operations of $1.349 billion, a seven percent decrease compared to the first quarter of 2008 and a three percent increase compared to the second quarter of 2007. As part of its previously communicated review of its non-core businesses, AMD decided to divest its Handheld and DTV product businesses, and therefore is classifying them as discontinued operations1 for financial reporting.
In the second quarter of 2008, AMD reported a net loss of $1.189 billion, or $1.96 per share. For continuing operations, the second quarter loss was $269 million, or $0.44 per share, and the operating loss was $143 million. The results for continuing operations include a net favorable impact of $97 million, or $0.16 per share as described in the table below. Loss from discontinued operations was $920 million, or $1.52 a share, including asset impairment charges of $876 million, or $1.44 a share.
In the first quarter of 2008 AMD had revenue from continuing operations of $1.456 billion, a net loss of $358 million, a loss from continuing operations of $308 million and an operating loss of $214 million. In the second quarter of 2007 AMD had revenue from continuing operations of $1.309 billion, a net loss of $600 million, a loss from continuing operations of $531 million and an operating loss of $396 million.
"While we had a disappointing quarter financially, customer adoption of our recently introduced microprocessor and graphics products and platform offerings is strong, and we see increasing momentum across our businesses," said Robert J. Rivet, AMD's chief financial officer. "In the face of challenging macroeconomic conditions, we remain committed to achieving operating profitability in the second half of the year based on the continued ramp of new products, increased market penetration of our differentiated solutions, and continued actions designed to reduce our breakeven point."
Second quarter 2008 gross margin was 52 percent. Excluding the positive impact associated with the sale of 200mm manufacturing equipment, second quarter 2008 gross margin was 37 percent, compared to 41 percent in the first quarter of 2008 and 34 percent in the second quarter of 2007.
AMD's Current Outlook does not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after July 17. 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.
In the seasonally up third quarter, AMD expects revenue to increase in line with seasonality.
Additional Quarterly Highlights
More than 30 platforms based on Quad-Core AMD Opteron™ processors are now shipping from AMD's largest global customers including Dell, HP, IBM, and Sun Microsystems.
The benefits of AMD's scalable server technology resulted in AMD Opteron processors powering three of the top five, and seven of the top 20 supercomputer systems in the most recent Top 500® supercomputer list.
AMD introduced its next-generation graphics family and delivered the world's first teraFLOPS graphics chip, which is capable of combining cinema-quality effects rendered in real-time with game-like interactivity to produce the "Cinema 2.0 Experience." The ATI Radeon™ HD 4800 graphics products captured the performance crown at their respective price segments.
AMD announced the availability of its next-generation notebook platform, combining AMD mobile processors and ATI Radeon graphics for improved 3D and HD performance. Acer, Asus, Fujitsu, Fujitsu-Siemens Computers, HP, MSI, NEC, Toshiba, and others introduced notebooks based on the platform, which has more than 100 design wins to date.
AMD introduced AMD Business Class, an initiative dedicated to developing AMD processor-based commercial desktop and notebook solutions designed with business in mind. Acer, Dell, Fujitsu-Siemens Computers, HP and Lenovo announced AMD Business Class PCs.
AMD significantly expanded its processor offerings in the quarter, including:
Ten mainstream, four energy-efficient and four high-performance Quad-Core AMD Opteron processors
A high-performance unlocked AMD Phenom™ X4 processor, three new AMD Phenom X3 triple-core processors, and a higher performance 65W quad-core processor and 45W dual-core desktop processors
Six mobile processors, including three AMD Turion™ X2 Ultra Dual-Core processors
Three low-power, dual-core processors for the embedded market.
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 second 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.
Advanced Micro Devices (NYSE: AMD) is a leading global provider of innovative processing solutions in the computing and graphics 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.
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