AMD Reports Fourth Quarter Results
SUNNYVALE, Calif. -1/21/2010
AMD1 (NYSE:AMD) today reported revenue for the fourth quarter of 2009 of $1.646 billion, an increase of 18 percent compared to the previous quarter and 42 percent compared to the fourth quarter of 2008.
In the fourth quarter of 2009, AMD reported net income attributable to AMD common stockholders of $1.178 billion, or $1.52 per share, which includes a net favorable impact of $1.238 billion, or $1.57 per share. AMD reported operating income of $1.288 billion in the quarter, including a net favorable impact of $1.224 billion. The net favorable impacts were primarily from a legal settlement with Intel Corp2.
For the year ended Dec. 26, 2009, AMD reported revenue of $5.403 billion. Fiscal 2009 net income attributable to AMD common stockholders was $304 million. AMD reported revenue of $5.808 billion and a net loss attributable to AMD common stockholders of $3.129 billion for fiscal 2008.
As of the first quarter of 2010, AMD will report operating results for what was formerly referred to as AMD Product Company only and will no longer consolidate the financial results of GLOBALFOUNDRIES. AMD's investment in GLOBALFOUNDRIES will be accounted for using the equity method.
"AMD's quarter marks another milestone in our transformation and underscores our growing momentum," said Dirk Meyer, AMD president and CEO. "We enter 2010 having completed the transition to a fabless business model, reached a historic antitrust settlement, and made significant progress strengthening our balance sheet. Our innovative strategy for designing the world's most vivid digital experiences continues to generate demand."
In the third quarter of 2009, AMD had revenue of $1.396 billion, a net loss attributable to AMD common stockholders of $128 million and an operating loss of $77 million. In the fourth quarter of 2008, AMD had revenue of $1.162 billion, a net loss attributable to AMD common stockholders of $1.436 billion and an operating loss of $1.274 billion.
In the fourth quarter of 2009, AMD Product Company reported non-GAAP net income of $80 million and non-GAAP operating income of $169 million. In the third quarter of 2009, AMD Product Company reported non-GAAP net income of $2 million and a non-GAAP operating income of $47 million3. AMD Product Company adjusted EBITDA for the fourth quarter was $282 million, up from $169 million in the prior quarter3.
Fourth quarter 2009 AMD gross margin was 45 percent compared to 42 percent in the prior quarter. Fourth quarter 2009 AMD Product Company non-GAAP gross margin was 41 percent compared to 38 percent in the prior quarter3.
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 the "Cautionary Statement" below.
AMD expects revenue to be down seasonally for the first quarter of 2010.
- Intel and AMD announced a comprehensive agreement to end all outstanding legal disputes. Both companies obtained patent rights under a new cross-license agreement, Intel agreed to abide by a set of fair business practice provisions, and Intel paid AMD $1.25 billion.
- AMD redeemed the remaining amount outstanding of its 7.75% Senior Notes due 2012 (approximately $390 million), reduced the aggregate amount outstanding of its 5.75% Convertible Senior Notes due 2012 by approximately $1 billion and issued $500 million of 8.125% Senior Notes due 2017. In the fourth quarter, AMD decreased its debt due in 2012 by nearly $1.4 billion, to $485 million.
- Lenovo announced its first AMD-powered notebooks, including the Lenovo ThinkPad Edge and Lenovo ThinkPad X100e commercial notebooks based on VISION Pro Technology from AMD.
- Acer, Dell, HP and Lenovo began selling consumer PCs based on the latest AMD Athlon™ II mainstream processors that offer low energy consumption and reduced heat and noise.
- AMD powers four of the top five supercomputers in the world, including the world's highest-performing supercomputer. AMD GPUs also power the world's highest-performing supercomputer featuring graphics processors.
- AMD extended its next-generation ATI Radeon™ HD 5000 graphics cards, bringing the industry's only DirectX 11-capable cards to additional market segments and enabling new levels of graphics performance for the mobile market. AMD shipped more than two million DirectX 11 GPUs within three months of the launch of the initial products.
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 fourth 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 an innovative technology company dedicated to collaborating with customers and technology partners to ignite the next generation of computing and graphics solutions at work, home and play. For more information, visit http://www.amd.com