What was AMD's overall financial performance in Q4 2002?

AMD reported net sales of $686.4 million and a significant net loss of $854.7 million ($2.49 per share) for the fourth quarter ended December 29, 2002. This loss was substantially impacted by approximately $620 million in one-time charges.

How did AMD's performance in Q4 2002 compare to Q4 2001 and Q3 2002?

Compared to Q4 2001, net sales decreased by 28%. However, net sales increased by 35% from Q3 2002, indicating sequential improvement in revenue. The net loss in Q4 2002 was significantly larger than the $15.8 million loss reported in Q4 2001.

What were the main reasons for the large net loss in Q4 2002?

The substantial net loss was primarily due to approximately $620 million in one-time charges. These included $331 million for restructuring and severance, $46 million for research and development expenses, and a $243 million income tax expense charge to establish a valuation allowance against net deferred tax assets.

What was AMD's full-year financial performance for 2002?

For the full year ended December 29, 2002, AMD reported sales of $2.7 billion, a 31% decline from 2001. The company recorded a net loss of $1.3 billion ($3.81 per share). On an ongoing operations basis (excluding one-time charges), the net loss was $683.4 million ($2.00 per share), a significant change from the $0.09 per share net income from ongoing operations in 2001.

AMD 8-K SEC Disclosure — Jan 21, 2003

Summary

Advanced Micro Devices, Inc. (AMD) filed an 8-K on January 20, 2003, reporting its financial results for the fourth quarter and full year ended December 29, 2002. The company reported significant net losses for both periods, impacted by substantial one-time charges. For the fourth quarter of 2002, AMD reported a net loss of $854.7 million, or $2.49 per share, which included approximately $620 million in one-time charges related to restructuring, R&D expenses, and a valuation allowance against deferred tax assets. Excluding these charges, the net loss from ongoing operations for the fourth quarter was $235.1 million, or $0.68 per share. Full-year 2002 sales declined 31% to $2.7 billion, with a reported net loss of $1.3 billion, or $3.81 per share. On an ongoing operations basis, the full-year net loss was $683.4 million, or $2.00 per share, a significant deterioration from the $0.09 per share net income reported for ongoing operations in 2001. Investors should note the substantial revenue decline year-over-year and the significant impact of one-time charges on the reported net loss.

Key Highlights

1Reported Q4 2002 net sales of $686.4 million, a 28% decrease year-over-year but a 35% increase sequentially from Q3 2002.
2Recorded a Q4 2002 net loss of $854.7 million ($2.49 per share), heavily influenced by approximately $620 million in one-time charges.
3Excluding charges, Q4 2002 net loss from ongoing operations was $235.1 million ($0.68 per share).
4Full-year 2002 net sales decreased 31% to $2.7 billion, with a reported net loss of $1.3 billion ($3.81 per share).
5Full-year 2002 net loss from ongoing operations was $683.4 million ($2.00 per share), compared to a net income of $28.9 million ($0.09 per share) from ongoing operations in 2001.
6One-time charges in Q4 2002 included $331 million for restructuring, $46 million for R&D, and $243 million for a tax valuation allowance.
7The company's operating loss (excluding one-time charges) for Q4 2002 improved sequentially but remained substantial at $217.4 million.

ADVANCED MICRO DEVICES INC 8-K Report (Jan 21, 2003)

Summary

Key Highlights

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