AMD Reports Third Quarter Results; AMD Reports Record Sales, Record
Operating Income, and Record Net Income of $409 Million; Sales Up by 82
Percent From Third Quarter of 1999
WEDNESDAY, OCTOBER 11, 2000 5:15 PM
- BusinessWire
SUNNYVALE, Calif., Oct 11, 2000 (BUSINESS WIRE) -- AMD today reported record sales of
$1,206,549,000, record operating income of $262,844,000, and record net income of $408,567,000 for
the quarter ended October 1, 2000. Net income amounted to $1.18 per diluted share. The company's
third-quarter results included a one-time gain of $336,899,000 resulting from the sale of the
company's voice communications business (Legerity) during the quarter, and charges of $22,980,000
relating to the retirement of senior secured notes. Net income excluding one-time gains and charges
was $219,301,000, or $0.64 per diluted share, also a record.
Aggregate sales of the company's flagship products - PC processors and flash memory devices -
more than doubled from the third quarter of 1999, and grew by more than 10 percent sequentially from
the second quarter of 2000. Total sales grew by 82 percent from the third quarter of 1999.
Notwithstanding the absence of sales from the company's voice communications business, which
was sold during the quarter, total sales grew by slightly more than 3 percent from the immediate-prior
quarter.
In the immediate-prior quarter, AMD reported sales of $1,170,437,000, operating income of
$250,197,000, and net income of $207,142,000, or $0.60 per diluted share. In the like period of 1999,
AMD reported sales of $662,192,000, an operating loss of $98,990,000, and net loss of
$105,545,000, or a loss of $0.36 per share.
For the first nine months of 2000, AMD reported sales of $3,469,015,000, operating income of
$693,710,000, and net income of $805,058,000, or $2.36 per diluted share. For the same period of
1999, AMD reported total sales of $1,888,894,000, an operating loss of $392,642,000, a net loss of
$154,016,000, or a loss of $0.52 per share. The results for the first nine months of 1999 included a
one-time, after-tax gain of $259,236,000 from the sale of Vantis Corporation, and restructuring and
other special charges of $32,530,000.
The earnings per share and number of shares used in the earnings-per-share data for all periods
presented reflect the two-for-one stock split that was effective August 21, 2000.
"Sales growth was led by continuing extraordinary demand for AMD flash memory devices, whose
sales more than doubled over the same period of 1999 and grew by 17 percent sequentially on record
unit sales," said W.J. Sanders III, chairman and chief executive officer. "Demand for AMD flash
memory products continues to exceed supply. Demand also continues to be broadly based,
reflecting strength in cellular telephones, set-top boxes, automotive applications, Internet
infrastructure products, and mobile Internet appliances.
"In a tougher market than anticipated, AMD achieved record PC processor revenues on record unit
sales, which were up more than 50 percent year-on-year and 10 percent sequentially," Sanders said.
"We continued our excellent operational execution and met our aggressive goal of sequentially
doubling combined AMD Athlon(tm) and AMD Duron(tm) processor sales to more than 3.6 million
units. Our position as the reliable provider of the world's fastest PC processors contributed
immensely to our success in gaining market share worldwide, particularly in the performance sector.
"The newest version of the AMD Athlon processor, featuring performance-enhancing on-chip L2 cache
memory, is an overwhelming success, and demand remains strong. The recently introduced AMD
Duron processor is the performance leader in the value space, and is on the steepest ramp of unit
shipments of any processor in AMD's history. We continue to work closely with our customers and
infrastructure partners to meet the challenge of providing the best performing personal computers at
all price points," Sanders concluded.
The company's total bookings in the third quarter were a record, with a book-to-bill ratio greater than
1:1.
Current Outlook
The company's outlook statements are based on current expectations. The following statements are
forward-looking, and actual results could differ materially. The company's current outlook is based on
the following projections for its flagship products.
In the fourth quarter, the company again expects to sell out its production of AMD Athlon processors.
The company expects that sales of AMD Athlon processors, AMD Duron processors, and PC
processors in the aggregate will set new records, individually and collectively, in both units and
dollars. For the year, the company expects that total sales of PC processors will easily exceed
earlier projections of 25 million units, with the final tally projected to be approximately 28 million
units, compared to last year's 18.8 million units. The company projects that sales of AMD PC
processors will be between 8 and 9 million units in the fourth quarter based on a total market
projected to be between 43 and 45 million units.
The company's production capacity ramp will be the limiting factor in growth in sales of AMD flash
memory products in the fourth quarter. The company projects that demand for AMD flash memory
products will continue to exceed supply for the foreseeable future.
The company projects that total sales will grow in the high-single-digit range sequentially, resulting in
annual sales of approximately $4.8 billion, compared to approximately $2.9 billion in 1999.
Operating Income, and Record Net Income of $409 Million; Sales Up by 82
Percent From Third Quarter of 1999
WEDNESDAY, OCTOBER 11, 2000 5:15 PM
- BusinessWire
SUNNYVALE, Calif., Oct 11, 2000 (BUSINESS WIRE) -- AMD today reported record sales of
$1,206,549,000, record operating income of $262,844,000, and record net income of $408,567,000 for
the quarter ended October 1, 2000. Net income amounted to $1.18 per diluted share. The company's
third-quarter results included a one-time gain of $336,899,000 resulting from the sale of the
company's voice communications business (Legerity) during the quarter, and charges of $22,980,000
relating to the retirement of senior secured notes. Net income excluding one-time gains and charges
was $219,301,000, or $0.64 per diluted share, also a record.
Aggregate sales of the company's flagship products - PC processors and flash memory devices -
more than doubled from the third quarter of 1999, and grew by more than 10 percent sequentially from
the second quarter of 2000. Total sales grew by 82 percent from the third quarter of 1999.
Notwithstanding the absence of sales from the company's voice communications business, which
was sold during the quarter, total sales grew by slightly more than 3 percent from the immediate-prior
quarter.
In the immediate-prior quarter, AMD reported sales of $1,170,437,000, operating income of
$250,197,000, and net income of $207,142,000, or $0.60 per diluted share. In the like period of 1999,
AMD reported sales of $662,192,000, an operating loss of $98,990,000, and net loss of
$105,545,000, or a loss of $0.36 per share.
For the first nine months of 2000, AMD reported sales of $3,469,015,000, operating income of
$693,710,000, and net income of $805,058,000, or $2.36 per diluted share. For the same period of
1999, AMD reported total sales of $1,888,894,000, an operating loss of $392,642,000, a net loss of
$154,016,000, or a loss of $0.52 per share. The results for the first nine months of 1999 included a
one-time, after-tax gain of $259,236,000 from the sale of Vantis Corporation, and restructuring and
other special charges of $32,530,000.
The earnings per share and number of shares used in the earnings-per-share data for all periods
presented reflect the two-for-one stock split that was effective August 21, 2000.
"Sales growth was led by continuing extraordinary demand for AMD flash memory devices, whose
sales more than doubled over the same period of 1999 and grew by 17 percent sequentially on record
unit sales," said W.J. Sanders III, chairman and chief executive officer. "Demand for AMD flash
memory products continues to exceed supply. Demand also continues to be broadly based,
reflecting strength in cellular telephones, set-top boxes, automotive applications, Internet
infrastructure products, and mobile Internet appliances.
"In a tougher market than anticipated, AMD achieved record PC processor revenues on record unit
sales, which were up more than 50 percent year-on-year and 10 percent sequentially," Sanders said.
"We continued our excellent operational execution and met our aggressive goal of sequentially
doubling combined AMD Athlon(tm) and AMD Duron(tm) processor sales to more than 3.6 million
units. Our position as the reliable provider of the world's fastest PC processors contributed
immensely to our success in gaining market share worldwide, particularly in the performance sector.
"The newest version of the AMD Athlon processor, featuring performance-enhancing on-chip L2 cache
memory, is an overwhelming success, and demand remains strong. The recently introduced AMD
Duron processor is the performance leader in the value space, and is on the steepest ramp of unit
shipments of any processor in AMD's history. We continue to work closely with our customers and
infrastructure partners to meet the challenge of providing the best performing personal computers at
all price points," Sanders concluded.
The company's total bookings in the third quarter were a record, with a book-to-bill ratio greater than
1:1.
Current Outlook
The company's outlook statements are based on current expectations. The following statements are
forward-looking, and actual results could differ materially. The company's current outlook is based on
the following projections for its flagship products.
In the fourth quarter, the company again expects to sell out its production of AMD Athlon processors.
The company expects that sales of AMD Athlon processors, AMD Duron processors, and PC
processors in the aggregate will set new records, individually and collectively, in both units and
dollars. For the year, the company expects that total sales of PC processors will easily exceed
earlier projections of 25 million units, with the final tally projected to be approximately 28 million
units, compared to last year's 18.8 million units. The company projects that sales of AMD PC
processors will be between 8 and 9 million units in the fourth quarter based on a total market
projected to be between 43 and 45 million units.
The company's production capacity ramp will be the limiting factor in growth in sales of AMD flash
memory products in the fourth quarter. The company projects that demand for AMD flash memory
products will continue to exceed supply for the foreseeable future.
The company projects that total sales will grow in the high-single-digit range sequentially, resulting in
annual sales of approximately $4.8 billion, compared to approximately $2.9 billion in 1999.
