AMD Reports Second Quarter Results

AMD Reports Second Quarter Results

– Microprocessor Unit Shipments Increase 22% Year-Over-Year and 38% Sequentially –

SUNNYVALE, Calif. — July 19, 2007 — AMD (NYSE: AMD) today reported financial results for the quarter ended June 30, 2007.  AMD reported second quarter 2007 revenue of $1.378 billion, an operating loss of $457 million, and a net loss of $600 million, or $1.09 per share.  These results include an impact of $130 million, or $0.24 per share, from ATI acquisition-related and integration charges of $78 million, employee stock-based compensation expense of $31 million, severance charges of $16 million and debt issuance charges of $5 million.  In the first quarter of 2007, AMD reported revenue of $1.233 billion and an operating loss of $504 million.  In the second quarter of 2006, AMD reported revenue of $1.216 billion and operating income of $102 million.

“While we made solid progress in the second quarter across a number of fronts, we must improve our financial results,” said Robert J. Rivet, AMD’s Chief Financial Officer. “We achieved a 12 percent sequential revenue increase, improved the gross margin and won back microprocessor unit and revenue market share. Strong distribution channel demand, initial sales to Toshiba, and a broader adoption of AMD platforms led to a 38 percent sequential increase in microprocessor unit shipments.  In addition, our Graphics business gained momentum at the end of the quarter as we began shipping the new ATI Radeon HD™ 2000 family of graphics processors.

“We continue to focus on realigning our business model and reducing our capital expenditures and cost structure in the second half of the year.”...