What are the main reasons AMD is presenting non-GAAP financial measures?

AMD is presenting non-GAAP financial measures to provide investors with a clearer view of its ongoing operational performance. These measures exclude certain charges that the company believes are not indicative of its core, recurring business operations, such as costs associated with the ATI acquisition and an investment impairment charge.

What specific charges are excluded in AMD's non-GAAP reporting?

The non-GAAP net loss excludes acquisition charges related to the ATI acquisition (including amortization of acquired intangibles and integration costs), the tax benefit from these charges, and an impairment charge on AMD's investment in Spansion Inc. The non-GAAP operating loss excludes ATI acquisition-related charges.

What is Adjusted EBITDA, and why is it being reported?

Adjusted EBITDA is a non-GAAP measure calculated by adjusting net loss for depreciation and amortization, amortization of acquired intangible assets, impairment charges, interest expense, and taxes. AMD states that its management believes this metric is of interest to investors and lenders concerning the company's capital structure and borrowing capacity.

How should investors interpret these non-GAAP figures?

Investors should interpret these non-GAAP figures as supplemental information intended to provide a different perspective on the company's performance. AMD explicitly states that these measures should not be considered in isolation or as a substitute for U.S. GAAP results, and they should be read in conjunction with the company's full financial statements prepared under U.S. GAAP.

AMD 8-K: Earnings & Results & Regulation FD

Summary

This 8-K filing from Advanced Micro Devices (AMD) on April 17, 2008, primarily serves to disclose the company's financial results for the quarter ended March 29, 2008, and to provide context on its financial performance through the use of non-GAAP financial measures. The company is presenting adjusted figures to offer investors a clearer view of its ongoing operational performance, excluding certain charges related to the acquisition of ATI Technologies and an impairment charge on its investment in Spansion Inc. Investors should note that AMD is emphasizing these non-GAAP measures to highlight what management believes are not indicative of ongoing performance. This includes adjustments for acquisition-related charges, amortization of acquired intangibles, and an impairment charge on Spansion. The company is providing reconciliations to U.S. GAAP measures to ensure transparency, but investors are cautioned to consider these non-GAAP measures alongside, and not as a substitute for, GAAP financial results.

Key Highlights

1AMD filed an 8-K on April 17, 2008, to report financial results for the quarter ended March 29, 2008.
2The filing includes a press release (Exhibit 99.1) containing both U.S. GAAP and non-GAAP financial measures.
3Non-GAAP financial measures such as non-GAAP net loss and non-GAAP operating loss are presented to exclude specific charges.
4Excluded charges include those related to the acquisition of ATI Technologies, such as amortization of acquired intangibles and integration costs.
5An impairment charge related to the company's investment in Spansion Inc. is also excluded from non-GAAP net loss calculations.
6Adjusted EBITDA is provided, calculated by adjusting net loss for depreciation, amortization, interest, taxes, and other specific items.
7AMD states that these non-GAAP measures are intended to help investors better evaluate current operating performance compared to prior periods.

ADVANCED MICRO DEVICES INC 8-K Report, Financial Results (Apr 17, 2008)

Summary

Key Highlights

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