Sunnyvale, CA, 21 januari 2004 - AMD (NYSE:AMD) today reported sales of $1.206 billion and net income of $43 million for the quarter ended December 28, 2003. Net income amounted to $0.12 per share.
Fourth quarter sales increased by 76 percent from the fourth quarter of 2002 and increased by 26 percent from the third quarter of 2003. In the fourth quarter of 2002, AMD reported sales of $686 million and a net loss of $855 million, or $2.49 per share. In the third quarter of 2003, AMD reported sales of $954 million and a net loss of $31 million, or $0.09 per share.
The fourth quarter results include a favorable impact of $14 million, or $0.03 per share, due to an adjustment to previously recorded restructuring charges and purchase accounting related to the FASL LLC transaction. The third quarter of 2003 results included a favorable impact of $8 million, or $0.02 per share, due to an adjustment to previously recorded restructuring charges.
For the full year ended December 28, 2003, sales increased by 30 percent from 2002. For fiscal 2003, AMD reported sales of $3.5 billion and a net loss of $274 million, or $0.79 per share. AMD reported sales in 2002 of $2.7 billion and a net loss of $1.3 billion, or $3.81 per share.
“Fourth quarter profitability was driven by solid sales growth across all business lines,” said Robert J. Rivet, AMD’s chief financial officer. “Sales increased in all regions, and we saw continued penetration in emerging markets, highlighted by record sales in China and Latin America. We continued to achieve high yields across all product lines based on our leading-edge processes and award-winning fabs.
“We saw positive growth across all microprocessor brands, including strong AMD Athlon XP processor sales in the fourth quarter. Furthermore, we continue to lead the industry to pervasive 64-bit computing based on increasing adoption of AMD Athlon 64 and AMD Opteron processors. The addition of new global customers such as Daimler Chrysler, Qualcomm, Pirelli and Bristol-Myers Squibb demonstrate that we have a clear winner in our AMD Opteron processor.
“In its second quarter of existence, our Spansion Flash memory brand has increased its market share leadership in the growing NOR Flash market. We increased sales to our existing customer base and added new wireless and consumer electronics customers, especially in emerging markets. MirrorBit technology continues to earn widespread acceptance as an emerging industry standard, and was our fastest growing memory product line.”
BUSINESS OVERVIEW
As a result of 26 percent sequential sales growth, AMD recorded a fourth quarter operating profit of $46 million. Cash flow from operations was positive for the second quarter in a row and AMD ended the fourth quarter with a cash balance of $1.313 billion, up from $1.076 billion at the end of the third quarter.
Computation Products Group (CPG) sales of $581 million were up 38 percent as compared to the fourth quarter of 2002 and increased by 15 percent from $503 million in the third quarter of 2003. CPG generated operating income of $63 million in the fourth quarter, up from $19 million in the third quarter, on the strength of an improved average selling price (ASP) and higher unit volumes.
During the quarter, there was strong demand for the AMD Athlon XP desktop processor line and its superior price-performance, which helped drive the increase in ASP. In addition, momentum for AMD64 processors continued to increase. AMD Opteron processor sales grew in the fourth quarter with solid penetration in the enterprise segment. AMD Athlon 64 FX processor sales were strong, and the company believes it is becoming the platform of choice for enthusiasts. IBM, HP and Fujitsu-Siemens began selling AMD64 processor-based systems in the fourth quarter and Sun Microsystems announced plans to deliver AMD Opteron processor-based enterprise servers in the first half of 2004.
Flash memory sales of $566 million in the fourth quarter increased 34 percent from $424 million in the third quarter of 2003 and were up 161 percent from the fourth quarter of 2002. The Flash memory business narrowed its operating loss to $3 million in the fourth quarter.
Flash memory sales growth over the third quarter was attributable to large Spansion Flash memory market share gains in the wireless and consumer electronics segments and strong seasonal growth. The business also experienced an increase in average bit density in the Flash products it sold. AMD’s Flash operation successfully qualified 110 nm floating gate technology in the quarter, an important milestone on its path to expand the company’s leading-edge capacity.
Voor het complete persbericht: http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543~81697,00.html
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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.
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