- AMD executive Devinder Kumar was named Chief Financial Officer. Kumar has been with AMD more than 28 years, serving as corporate controller of the company since 2001 and as senior vice president since 2006.
- AMD successfully amended its Wafer Supply Agreement (WSA) with GF, solidifying the company's new operating model and better aligning with PC market dynamics.
- AMD announced a collaboration with ARM that builds on the company's rich IP portfolio, including deep 64-bit processor knowledge and industry-leading AMD SeaMicro Freedom™ Supercomputing Fabric, to offer the most flexible and complete processingsolutions for the modern data center. AMD will design 64-bit ARM® technology-based processors in addition to its x86 processors for multiple markets, starting with cloud and data center servers.
- At the International Consumer Electronics Show (CES), AMD highlighted its 2013 client product offerings and customer adoption momentum including:
- Demonstrated working silicon of the company's first true system-on-chip (SoC) APUs, codenamed "Temash" and "Kabini," which will be the industry's first quad-core x86 SoCs and target the tablet and entry-level mobile markets respectively;
- Introduced the new A-series APU codenamed "Richland," which delivers visual performance increases ranging from 20 to 40 percent compared with the previous generation of AMD A-Series APUs(1);
- VIZIO joined AMD's customer portfolio and introduced a new portfolio of AMD-based platforms, including an 11.6" APU-powered tablet with a 1080p touch screen along with two high-performance ultrathin notebooks and an impressive 24" All-in-One (AiO) system.
- AMD launched several new AMD Opteron™ processors based on the "Piledriver" core architecture during the quarter. The new AMD Opteron™ 6300 Series processors strike a balance between performance, scalability and cost effectiveness to help lower total cost of ownership (TCO). The new AMD Opteron™ 4300 Series and 3300 Series also launched.
- AMD announced the AMD Open 3.0 platform, a radical rethinking of the server motherboard designed to create simplified, energy efficient servers that better meet the demands of the modern data center. AMD's new platform is compliant with the standards developed by the Open Compute Project and is designed to reduce data center power consumption and cost while increase performance and flexibility.
- AMD introduced new members of the Guinness World Record-setting(2) AMD FX family of central processing units (CPUs) based on the "Piledriver" core, expanding its offerings that deliver fully unlocked and customizable experiences for performance desktop PC users. The AMD FX 8350 delivers performance increases of 15 percent at mainstream price points(3) and has been overclocked at to 8.67 GHz to-date.
- AMD introduced the AMD Radeon™ HD 8000M Series of low-power mobile GPUs, the first mainstream notebook GPUs to be offered with the award-winning AMD Graphics Core Next (GCN) Architecture. Notebooks are already available featuring the new graphics solution, including several ultrathin notebooks.
- Nintendo launched the next-generation Wii U console, powered by custom AMD Radeon™ HD graphics technology.
- AMD introduced the "Never Settle" Bundle which packaged the holiday season's biggest PC gaming titles, including " Far Cry 3" along with " Hitman: Absolution" and " Sleeping Dogs", with the purchase of select AMD Radeon™ HD 7000 Series graphics cards. AMD also released the "Never Settle" version of its AMD Catalyst™ Driver, providing owners of AMD Radeon graphics cards with massive performance improvements in many of their favorite games.
- AMD launched the AMD FirePro™ S10000, the industry's most powerful server graphics card, designed for high-performance computing (HPC) workloads and graphics intensive applications. The AMD FirePro S10000 is the first professional-grade card to exceed one teraFLOPS (TFLOPS) of double-precision floating-point performance, helping to ensure optimal efficiency for HPC calculations(4).
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.
AMD expects revenue to decrease 9 percent, plus or minus three percent, sequentially for the first quarter of 2013.
For additional detail regarding AMD's results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.
AMD Teleconference
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 website at
www.amd.com. The webcast will be available for 10 days after the conference call.
Reconciliation of GAAP to Non-GAAP Gross Margin (1)
---------------------------------------------
(Millions except percentages) Q4-12 Q3-12 Q4-11 2012 2011
----------------------------------------------------------------------------
GAAP Gross Margin $ 178 $ 392 $ 773 $ 1,235 $ 2,940
----------------------------------------------------------------------------
GAAP Gross Margin % 15% 31% 46% 23% 45%
----------------------------------------------------------------------------
Lower of cost or market
charge related to GF take-
or-pay obligation (273) - - (273) -
----------------------------------------------------------------------------
Limited waiver of exclusivity
from GF - - - (703) -
----------------------------------------------------------------------------
Payment to GF - - - - (24)
----------------------------------------------------------------------------
Legal settlement - - - (5) (5)
----------------------------------------------------------------------------
Non-GAAP Gross Margin $ 451 $ 392 $ 773 $ 2,216 $ 2,969
----------------------------------------------------------------------------
Non-GAAP Gross Margin % 39% 31% 46% 41% 45%
----------------------------------------------------------------------------
Reconciliation of GAAP Operating Income (Loss) to Non-GAAP
Operating Income (Loss)
---------------------------------------------
(Millions) Q4-12 Q3-12 Q4-11 2012 2011
----------------------------------------------------------------------------
GAAP operating income (loss) $ (422) $ (131) $ 71 $(1,056) $ 368
----------------------------------------------------------------------------
Lower of cost or market
charge related to GF take-
or-pay obligation (273) - - (273) -
----------------------------------------------------------------------------
Limited waiver of exclusivity
from GF - - - (703) -
----------------------------------------------------------------------------
Payment to GF - - - - (24)
----------------------------------------------------------------------------
Legal settlement - - - (5) (5)
----------------------------------------------------------------------------
Amortization of acquired
intangible assets (4) (4) (3) (14) (29)
----------------------------------------------------------------------------
Restructuring charges, net (90) (3) (98) (100) (98)
----------------------------------------------------------------------------
SeaMicro acquistion costs - - - (6) -
----------------------------------------------------------------------------
Non-GAAP operating income
(loss) $ (55) $ (124) $ 172 $ 45 $ 524
----------------------------------------------------------------------------
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
----------------------------------------------
(Millions except per share
amounts) Q4-12 Q3-12 Q4-11
----------------------------------------------------------------------------
GAAP net income (loss) /
Earnings (loss) per share $(473) $(0.63) $(157) $(0.21) $(177) $(0.24)
----------------------------------------------------------------------------
Lower of cost or market
charge related to GF take-
or-pay obligation (273) (0.37) - - - -
----------------------------------------------------------------------------
Limited waiver of
exclusivity from GF - - - - - -
----------------------------------------------------------------------------
Dilution gain in investee,
net - - - - - -
----------------------------------------------------------------------------
Impairment of investment in
GF - - - - (209) (0.28)
----------------------------------------------------------------------------
Payment to GF - - - - - -
----------------------------------------------------------------------------
Legal settlement - - - - - -
----------------------------------------------------------------------------
Amortization of acquired
intangible assets (4) (0.01) (4) (0.01) (3) -
----------------------------------------------------------------------------
Restructuring charges, net (90) (0.12) (3) - (98) (0.13)
----------------------------------------------------------------------------
SeaMicro acquistion costs - - - - - -
----------------------------------------------------------------------------
Tax benefit related to
SeaMicro acquisition - - - - - -
----------------------------------------------------------------------------
Impairment charge on certain
marketable securities (4) - - - - -
----------------------------------------------------------------------------
Loss on debt repurchase - - - - (1) -
----------------------------------------------------------------------------
Loss from discontinued
operations - - - - (4) (0.01)
----------------------------------------------------------------------------
Non-GAAP net income (loss) /
Earnings (loss) per share $(102) $(0.14) $(150) $(0.20) $ 138 $ 0.19
----------------------------------------------------------------------------
-------------------------------
(Millions except per share
amounts) 2012 2011
-------------------------------------------------------------
GAAP net income (loss) /
Earnings (loss) per share $(1,183) $(1.60) $ 491 $ 0.66
-------------------------------------------------------------
Lower of cost or market
charge related to GF take-
or-pay obligation (273) (0.37) - -
-------------------------------------------------------------
Limited waiver of
exclusivity from GF (703) (0.95) - -
-------------------------------------------------------------
Dilution gain in investee,
net - - 492 0.66
-------------------------------------------------------------
Impairment of investment in
GF - - (209) (0.28)
-------------------------------------------------------------
Payment to GF - - (24) (0.03)
-------------------------------------------------------------
Legal settlement (5) (0.01) (5) (0.01)
-------------------------------------------------------------
Amortization of acquired
intangible assets (14) (0.02) (29) (0.04)
-------------------------------------------------------------
Restructuring charges, net (100) (0.14) (98) (0.13)
-------------------------------------------------------------
SeaMicro acquistion costs (6) (0.01) - -
-------------------------------------------------------------
Tax benefit related to
SeaMicro acquisition 36 0.05 - -
-------------------------------------------------------------
Impairment charge on certain
marketable securities (4) (0.01) - -
-------------------------------------------------------------
Loss on debt repurchase - - (6) (0.01)
-------------------------------------------------------------
Loss from discontinued
operations - - (4) (0.01)
-------------------------------------------------------------
Non-GAAP net income (loss) /
Earnings (loss) per share $ (114) $(0.16) $ 374 $ 0.50
-------------------------------------------------------------
