Business Context and Reporting Period
Advanced Micro Devices, Inc. (AMD) filed this Form 8-K on October 16, 2002, to report financial results for the quarter ended September 29, 2002, and the first nine months of 2002.
Key Financial Metrics
| Period | Sales | Net Loss | Loss Per Share (GAAP) |
|---|---|---|---|
| Q3 2002 | $508,227,000 | $254,171,000 | $0.74 |
| Q3 2001 | $765,870,000 | $186,929,000 | $0.54 |
| Q2 2002 | $600,299,000 | $184,938,000 | $0.54 |
| 9 Months 2002 | $2,010,599,000 | $448,272,000 | $1.31 |
| 9 Months 2001 | $2,939,881,000 | $44,739,000 | $0.14 |
The filing does not provide specific values for cash flow, debt, liquidity, or gross margins.
Material Changes
- Quarter-over-Quarter: Q3 2002 sales declined 15% from Q2 2002. Net loss increased from $184.9 million in Q2 2002 to $254.2 million in Q3 2002.
- Year-over-Year: Q3 2002 sales declined 34% from Q3 2001. Net loss widened significantly from $186.9 million in Q3 2001 to $254.2 million in Q3 2002.
- Year-to-Date: Sales for the first nine months of 2002 declined 32% compared to the same period in 2001. The company shifted from a net loss of $44.7 million in the first nine months of 2001 to a net loss of $448.3 million in 2002.
Outlook, Risks, and Unusual Items
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the reported financial decline.
Unusual Items (2001 Comparison): The 2001 results included significant special charges that impacted comparability. For the third quarter and first nine months of 2001, these charges included:
- Restructuring and other special charges: $89.3 million
- Impaired investments: $22.0 million
- Additional inventory provisions: $6.9 million
Excluding these charges, AMD reported net income of $44.8 million for the first nine months of 2001.
Investor Verification Checklist
- Verify the specific causes of the 34% year-over-year sales decline in Q3 2002.
- Confirm the composition of the $254 million Q3 2002 net loss to determine if it includes new restructuring or inventory charges.
- Review the full financial statements (Exhibit 99.1) for cash flow and liquidity data not included in this summary.
- Assess the impact of the 2001 special charges on the year-over-year loss comparison.