AMD Reports First Quarter Results
AMD today reported first quarter 2009 results. For financial reporting purposes, AMD consolidates the operating results of GLOBALFOUNDRIES in its results as of March 2, 2009 and has created the Foundry segment as of the start of the fiscal year. References to "AMD" in this announcement include these consolidated operating results which are reported for GAAP purposes. "AMD Product Company" refers to AMD, excluding the operating results of the Foundry segment and intersegment eliminations.
AMD reported revenue for first quarter of 2009 of $1.177 billion. First quarter 2009 revenue was flat compared to the fourth quarter of 2008 and decreased 21 percent compared to the first quarter of 2008.
"AMD's sequential microprocessor unit and revenue growth in difficult economic conditions demonstrate we can grow in an environment where customers are looking for maximum value," said Dirk Meyer, AMD president and CEO. "We delivered on a number of important priorities in the first quarter. We launched GLOBALFOUNDRIES, maintained our cadence of new product and platform introductions, and made solid progress on our restructuring activities. The result is a more nimble AMD, capable of achieving long-term success based on our strengths designing and integrating industry-leading computing and graphics technologies."
In the first quarter of 2009, AMD reported a net loss attributable to AMD common stockholders of $416 million or $0.66 per share, which includes a net unfavorable impact of $22 million, or $0.04 per share, as described in the table below3. AMD's operating loss was $308 million.
In the fourth quarter of 2008, AMD had revenue from continuing operations of $1.162 billion, a net loss of $1.437 billion and an operating loss of $1.274 billion. In the first quarter of 2008, AMD had revenue from continuing operations of $1.487 billion, a net loss of $351 million and an operating loss of $234 million.
In the first quarter of 2009, AMD Product Company reported an adjusted non-GAAP net loss of $189 million and an adjusted non-GAAP operating loss of $124 million.
First quarter 2009 AMD gross margin was 43 percent, including a positive impact of 5 percentage points due to a $64 million benefit from the sale of inventory written down in the fourth quarter of 2008. Fourth quarter 2008 gross margin was 23 percent, including a negative impact of 20 percentage points due to a $227 million inventory write down. First quarter 2009 AMD Product Company non-GAAP gross margin was 35 percent.
AMD's outlook statements are based on current expectations. 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.
Considering current macroeconomic conditions, limited visibility and historical seasonal patterns, AMD expects its Product Company revenue to be down for the second quarter of 2009.
- AMD completed its Asset Smart transaction with the Advanced Technology Investment Company (ATIC) and Mubadala Development Company of Abu Dhabi, creating GLOBALFOUNDRIES, a leading-edge semiconductor manufacturing company.
- AMD unveiled the "Yukon" platform for ultrathin notebook PCs, which debuted in the award-winning HP Pavilion dv2 notebook that received CES "Best-of-Show" recognition from Laptop Magazine.
- AMD launched "Dragon" platform technology designed for high-definition gaming, video processing and entertainment at an affordable price. "Dragon" systems powered by AMD Phenom II quad-core processors are available from more than 40 AMD partners worldwide, including Dell, Alienware and HP. AMD also broadened its desktop product lineup with additional AMD Phenom II quad-core processors and the industry's first 45nm triple-core processor.
- AMD expanded its award-winning Mobility Radeon series of graphics processors to include the ATI Radeon HD 4000 series. Dell, HP, IBM and Sun updated their AMD-based server offerings to take advantage of new Quad-Core AMD Opteron processors targeting both low-power and high-performance designs.
- As part of its strategy to further penetrate the workstation graphics market, AMD unveiled the ATI FirePro 2450 graphics processor targeting energy-efficient workstations and the ATI FirePro V7750 for high-performance workstations.
- AMD demonstrated the AMD Fusion Render Cloud, which has been designed to use the power of the ATI Radeon 4800 series graphics chips to stream HD quality gaming and multimedia experiences to virtually any device with a web browser.
- AMD was named to the Global 100 Most Sustainable Companies in the World and 100 Best Corporate Citizens lists for 2009. Additionally, AMD's Lone Star campus in Austin, TX achieved gold certification under the U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) Green Building Rating System.