Business Context and Reporting Period
Advanced Micro Devices, Inc. (AMD) filed this Form 8-K on July 17, 2002, to report financial results for the quarter ended June 30, 2002, and the first six months of 2002.
Key Financial Metrics
| Period | Sales | Net Income/Loss | EPS |
|---|---|---|---|
| Q2 2002 | $600,299,000 | ($184,938,000) | ($0.54) |
| Q1 2002 | $902,073,000 | ($9,163,000) | ($0.03) |
| Q2 2001 | $985,264,000 | $17,352,000 | $0.05 |
| YTD 6 Months 2002 | $1,502,372,000 | ($194,101,000) | ($0.57) |
| YTD 6 Months 2001 | $2,174,011,000 | $142,189,000 | $0.43 |
Segment Performance (Q2 2002):
- PC Processors: $380 million (down 35% YoY, down 44% QoQ). Desktop unit sales declined; mobile unit sales were flat.
- Memory Products: $175 million (down 45% YoY, up 9% QoQ). Flash memory unit shipments increased with record bit shipments.
The filing text does not provide specific values for cash flow, debt, liquidity, or gross margins.
Material Changes
- Revenue Decline: Q2 2002 sales fell 39% compared to Q2 2001 and 33% compared to Q1 2002. YTD sales for the first six months of 2002 declined 31% versus the same period in 2001.
- Profitability Shift: The company swung from a net income of $17.4 million in Q2 2001 to a net loss of $184.9 million in Q2 2002.
- Product Mix: Significant contraction in PC processor revenue was the primary driver of the overall sales decline, while memory sales showed sequential improvement despite a steep year-over-year drop.
Outlook and Risks
The filing text does not contain forward-looking guidance, management commentary on future strategy, or specific risk factors beyond the reported financial performance. The report focuses strictly on historical results for the period ended June 30, 2002.
Investor Verification Checklist
- Verify the magnitude of the 39% year-over-year revenue decline in Q2 2002.
- Confirm the shift from profitability in Q2 2001 to a $185 million loss in Q2 2002.
- Assess the impact of the 44% sequential drop in PC processor sales on future quarters.
- Review the full financial statements (Exhibit 99.1) for details on cash flow and liquidity not included in this summary.