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10-KPeriod: FY2013

ADVANCED MICRO DEVICES INC Annual Report, Year Ended Dec 28, 2013

Filed February 18, 2014For Securities:AMD

Summary

Advanced Micro Devices Inc. (AMD) reported a net loss of $83 million for the fiscal year ended December 28, 2013, a significant improvement from a net loss of $1.18 billion in the prior year. Net revenue for the year was $5.3 billion, a slight decrease of 2% compared to $5.4 billion in 2012. The company highlighted its progress in executing a three-phase transformation plan aimed at restructuring and repositioning AMD for growth in changing computing landscapes and adjacent high-growth markets. A key driver for revenue growth in 2013 was the Graphics and Visual Solutions segment, which saw a 55% increase primarily due to new semi-custom System-on-Chip (SOC) products for game consoles (PlayStation 4 and Xbox One), launched in late 2013. However, the Computing Solutions segment experienced a 22% decline in revenue due to challenging PC market conditions and increased competition. Despite the revenue challenges in its core computing business, AMD managed to improve its operating income to $103 million from an operating loss of $1.1 billion in 2012, largely driven by cost reductions and improved gross margins.

Financial Statements
Beta

Key Highlights

  • 1Net loss improved significantly to $83 million in 2013 from $1.18 billion in 2012.
  • 2Net revenue decreased slightly by 2% to $5.3 billion in 2013.
  • 3Graphics and Visual Solutions segment revenue surged by 55% driven by semi-custom SOC products for new game consoles.
  • 4Computing Solutions segment revenue declined by 22% due to PC market challenges and competition.
  • 5Operating income turned positive at $103 million in 2013, a substantial turnaround from an operating loss of $1.1 billion in 2012.
  • 6The company continued to focus on its transformation plan, aiming for 50% of revenue from high-growth markets by the end of 2015.
  • 7Cash, cash equivalents, and marketable securities remained stable at $1.2 billion as of year-end 2013.

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