AMD (NYSE:AMD) today reported first quarter 2008 revenue of $1.505 billion, a net loss of $358 million, or $0.59 per share, and an operating loss of $264 million. These results include an impact of $50 million, or $0.08 per share, from ATI acquisition-related charges. First quarter revenue decreased 15 percent compared to the fourth quarter of 2007 and increased 22 percent compared to the first quarter of 2007. In the fourth quarter of 2007, AMD reported revenue of $1.770 billion, a net loss of $1.772 billion, and an operating loss of $1.678 billion. In the first quarter of 2007, AMD reported revenue of $1.233 billion, a net loss $611 million, and an operating loss of $504 million. -0-
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss(1)
(Millions except per share
amounts) Q1-08 Q4-07 Q1-07
---------------------------- ------------ --------------- ------------
GAAP net loss/EPS, less: $(358)(0.59) $(1,772)$(3.06) $(611)(1.11)
---------------------------- ------------ --------------- ------------
ATI acquisition-related
charges (50)(0.08) (1,669) (2.89) (113)(0.21)
---------------------------- ------------ --------------- ------------
Tax benefit from ATI
acquisition-related
charges - - 63 0.11 - -
---------------------------- ------------ --------------- ------------
Spansion investment
impairment - - (69) (0.12) - -
---------------------------- ------------ --------------- ------------
Total net charges (50)(0.08) (1,675) (2.89) (113)(0.21)
---------------------------- ------------ --------------- ------------
Non-GAAP net loss (1) $(308) - $ (97) - $(498) -
---------------------------- ------------ --------------- ------------
-0-
Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss(1)
(Millions) Q1-08 Q4-07 Q1-07
----------------------------------------------- ------ -------- ------
GAAP operating loss, less: $(264) $(1,678) $(504)
----------------------------------------------- ------ -------- ------
ATI acquisition-related charges (50) (1,669) (113)
----------------------------------------------- ------ -------- ------
Non-GAAP operating loss(1) $(214) $ (9) $(391)
----------------------------------------------- ------ -------- ------
"A seasonally weak first quarter was amplified by a challenging economic environment for consumers and lower than expected revenues of previous generation products, resulting in lower than expected revenues in all business segments. However, we are encouraged by the market acceptance of our Quad-Core AMD Opteron(TM) server processors as well as our new chipset and graphics offerings," said Robert J. Rivet, AMD’s Chief Financial officer. "We remain committed to achieve operating profitability in the second half of the year, driven by our portfolio of new products and platforms and aggressive restructuring programs."
First quarter 2008 gross margin was 42 percent compared to 44 percent in the fourth quarter of 2007 and 28 percent in the first quarter of 2007. The decrease from the prior quarter was primarily due to decreased microprocessor unit shipments. -0-
Segment Information
vs Q4- vs Q1-
(Millions) Q1-08 07 07
-------------------------------------------------------- ------ ------
Computing Solutions
-------------------------------------------------------- ------ ------
Revenue $ 1,194 -15% 30%
-------------------------------------------------------- ------ ------
Microprocessor Units - Down Up
-------------------------------------------------------- ------ ------
Microprocessor Average Selling Price (ASP) - Flat Flat
-------------------------------------------------------- ------ ------
Graphics
-------------------------------------------------------- ------ ------
Revenue $ 230 -11% 17%
-------------------------------------------------------- ------ ------
Units - Up Up
-------------------------------------------------------- ------ ------
Average Selling Price (ASP) - Down Flat
-------------------------------------------------------- ------ ------
Consumer Electronics
-------------------------------------------------------- ------ ------
Revenue $ 81 -26% -31%
-------------------------------------------------------- ------ ------
Total AMD
-------------------------------------------------------- ------ ------
Revenue $ 1,505 -15% 22%
-------------------------------------------------------- ------ ------
Current Outlook
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.
In the seasonally down second quarter, AMD expects revenue to decrease in line with seasonality. As previously disclosed, AMD expects to record a restructuring charge in the second quarter of 2008.
Additional Quarterly Highlights -0-
-- AMD began volume shipments of Quad-Core AMD Opteron processors.
Initial systems are available now from several customers including
Dell and HP and more platforms expected to be available in the
coming weeks from our largest global customers.
-- AMD launched seven new AMD Phenom(TM) processors, including:
-- AMD Phenom X4 9100e, the industry’s first energy-efficient
desktop quad-core processor;
-- AMD Phenom X4 9850 Black Edition processor; and
-- AMD Phenom X3 8000 series, the world’s first triple-core
processor.
-- AMD introduced the 780 Series chipset, the industry’s most advanced
motherboard GPU and the first product capable of combining the
graphics power of integrated motherboard and discrete graphics to
deliver a better visual experience.
-- AMD introduced the ATI Radeon(TM) HD 3870 X2 graphics card
delivering leading performance for the enthusiast user and the ATI
Radeon HD 3400 and ATI Radeon HD 3600 series to provide outstanding
performance and unmatched value for the mainstream user. AMD also
announced software updates to enable the world’s first quad-GPU
support.
-- AMD demonstrated its first 45nm quad-core processors for servers
and desktops.
-- AMD announced its first application processor for feature-rich
multimedia mobile phones, strengthened its portfolio of discrete
media processors, and expanded its handheld graphics IP offerings.
-- AMD introduced the ATI FireGL(TM) V7700, the first commercially
available 3D workstation graphics card with DisplayPort support,
and a new 2D workstation graphics card which delivers exceptional
energy efficiency and longevity.
