SUNNYVALE, CA - July 17, 2003 - AMD (NYSE:AMD) today reported sales of $645 million and a net loss of $140 million for the quarter ended June 29, 2003. The net loss amounted to $0.40 per share.
Second quarter sales increased by seven percent from the second quarter of 2002 and decreased by 10 percent from the first quarter of 2003. In the second quarter of 2002, AMD reported total sales of $600 million and a net loss of $185 million, or $0.54 per share. In the first quarter of 2003, AMD reported sales of $715 million and a net loss of $146 million, or $0.42 per share.
“We are pleased we lowered our operating breakeven point to below $800 million and continued to realize improvements that better position us for growth and a return to profitability,” said Robert J. Rivet, chief financial officer. “Despite the effects of the SARS epidemic and weaker than anticipated channel sales in some of our international markets, we reduced our net loss by 24 percent and increased our gross margin as a result of year-on-year sales growth and effective cost management. Quarter-on-quarter, in spite of a sales decline of $69 million, we still managed to reduce our loss and improve our gross margin.
“Our second quarter operating costs of $769 million compared favorably to $897 million in the second quarter of 2002 and to $840 million in the first quarter of 2003. We increased our positive EBITDA quarter-to-quarter and ended the second quarter with a cash balance of $739 million. In addition, we extended our $200 million revolving line of credit, currently untapped, for four years.
“Our recently introduced AMD Opteron processor for servers and workstations is gaining traction in the marketplace. We look forward to the introduction of AMD Opteron processor-based systems from IBM, Fujitsu Siemens and others in the near future. In addition, our AMD Athlon 64 processor for the desktop and mobile PC sectors remains on schedule for a September launch.
“With the successful launch of a single entity that integrates Fujitsu’s and AMD’s Flash memory operations, we believe we are on target to become the number one provider of Flash memory solutions and are focused on establishing Spansion Flash memory as the pre-eminent brand in the Flash memory market.”
Business Overview
PC processor sales of $402 million were up 7 percent year-on-year and decreased by 14 percent from the $468 million reported in the first quarter of 2003. Increased second quarter sales to our Tier One OEM customer base were more than off-set by a decline in the desktop segment, especially in the Asian and European market geographies, where sales were off significantly.
Initial interest and demand for AMD Opteron processors has been tremendous. End-user installations and testing are producing outstanding results in performance and reduced total cost of ownership. AMD expanded its family of AMD Opteron processors with availability of the new AMD Opteron processor 800 Series, for 4-way and 8-way servers and the 100 Series, for 1-way servers and workstations. During the second quarter, AMD also introduced several new processor offerings including the AMD Athlon XP processor 3200+ for desktop computers, and three new mobile processors designed for both thin-and-light and desktop replacement notebook computers. With the upcoming launch of the AMD Athlon 64 processor on September 23, AMD will introduce the world’s first 64-bit PC processor, providing users superior performance and full binary compatibility with today’s 32-bit applications as well as a seamless migration path to pervasive 64-bit computing.
AMD memory sales of $211 million for the second quarter were down slightly from the $218 million reported in the first quarter of 2003. Year-over-year, memory sales were up 20 percent compared to the $175 million in the second quarter of 2002. While the SARS epidemic caused a decline in demand for cellular handsets and resulted in significantly lower memory sales for AMD in Asia, this decline was almost entirely off-set by increased memory sales in North America and Europe. We continued our share gains in the high-end cellular handset market and maintained our leadership position in high density Flash. Bit shipments grew for the seventh consecutive quarter, once again to record levels. Our average Flash density nearly doubled compared to the second quarter of 2002.
In March, AMD signed an MOU with Fujitsu to consolidate the two companies’ Flash memory operations into a single entity. The two companies recently completed the transaction and announced the formation of a new Flash memory semiconductor company, owned 60 percent by AMD, that markets its solutions under the Spansion brand. As a result of the consolidation of FASL LLC, at the start of the third quarter AMD’s consolidated balance sheet will take on incremental assets and liabilities of approximately $1 billion, which includes $180 million in cash and $190 million in debt. With state-of-the-art wafer fab facilities, leading edge process technology, innovative product design, approximately 7,000 employees and total assets of nearly $3 billion, we believe the company will be the world’s number one Flash memory provider.
Klik hier voor het complete Engelstalige persbericht
-------------
Over AMD
AMD (NYSE: AMD) is wereldwijd leverancier van integrated circuits (Flash Memory), onder andere toepasbaar in mobiele telefoons, en leverancier van processoren voor desktop-pc’s, workstations, servers en notebooks. De producten worden gefabriceerd in Europa, de Verenigde Staten, Japan en Azië. AMD, opgericht in 1969, is een Fortune 500- en Standard & Poors 500-bedrijf. Het hoofdkantoor bevindt zich in Sunnyvale, Californië. Voor meer informatie: www.amd.com.
Voor meer informatie:
AMD
Anne Salin
Telefoon: +33 616 753 836
E-mail: anne.salin@amd.com
Whizpr
Winnie Silvertand
Telefoon: +31 (0)317 410 483
E-mail: amd@whizpr.nl