AMD 2003 Annual Report Download - page 6

Table of Contents
PART I
ITEM 1. BUSINESS
Cautionary Statement Regarding Forward-Looking Statements
The statements in this report include forward-looking statements. These forward-looking statements are based on current expectations and beliefs and
involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. These forward-looking statements should not be
relied upon as predictions of future events as we cannot assure you that the events or circumstances reflected in these statements will be achieved or will occur.
You can identify forward-looking statements by the use of forward-looking terminology including “believes,” “expects,” “may,” “will,” “should,” “seeks,”
“approximately,” “intends,” “plans,” “pro forma,” “estimates,” or “anticipates” or the negative of these words and phrases or other variations of these words
and phrases or comparable terminology. The forward-looking statements relate to, among other things, our ability to be profitable, our revenues, depreciation
and amortization, operating results; anticipated cash flows; capital expenditures; gross margins; adequacy of resources to fund operations and capital
investments; customer and market acceptance of our AMD Opteron™ and AMD Athlon™ 64 microprocessors, and the AMD64 technology upon which they are
based; customer and market acceptance of FASL LLC’s Spansion ™ Flash memory products based on MirrorBit™ and floating gate technology; the ability to
produce these products in the volumes required by the market at acceptable yields and on a timely basis; our and FASL LLC’s ability to maintain the level of
investment in research and development that is required to remain competitive; our and FASL LLC’s ability to transition to new products and technologies in a
timely and effective way; our and FASL LLC’s ability to achieve cost reductions in the amounts and in the timeframes anticipated; our ability to produce
microprocessors in the volume required by customers on a timely basis; our ability to maintain or improve average selling prices of our products despite
aggressive marketing and pricing strategies of our competitors; our ability, and the ability of third parties, to provide timely infrastructure solutions, such as
motherboards and chipsets, to support our microprocessors; the process technology transitions in our wafer fabrication facilities located in Dresden, Germany
(Fab 30) and FASL LLC’s wafer fabrication facilities in Austin, Texas (Fab 25) and in Aizu-Wakamatsu, Japan (JV1, JV2 and JV3); and the financing and
construction of our 300-millimeter wafer fabrication facility (Fab 36) in Dresden, Germany. For a discussion of the factors that could cause actual results to
differ materially from the forward-looking statements, see the “Financial Condition” and “Risk Factors” sections set forth in “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” beginning on page 20 below and such other risks and uncertainties as set forth below in this report
or detailed in our other Securities and Exchange Commission reports and filings.
General
We are a semiconductor manufacturer with manufacturing facilities in the United States, Europe and Asia and sales offices throughout the world. We
design, manufacture and market industry-standard digital integrated circuits that are used in many diverse product applications such as desktop and mobile
personal computers, or PCs, workstations, servers, communications equipment and automotive and consumer electronics. Our products include microprocessors,
Flash memory devices and embedded microprocessors for personal connectivity devices, which we refer to as our Personal Connectivity Solutions, or PCS,
products.
Developments in 2003
During 2003, we endeavored to position our company to take advantage of anticipated growth opportunities within the semiconductor market and
anticipated increased demand for semiconductor products in 2004. In April 2003, we introduced our AMD Opteron microprocessors for servers and workstations,
and in September 2003, we introduced our AMD Athlon 64 microprocessors for desktop and mobile PCs. We designed these high-performance microprocessors
for both 32-bit and 64-bit processing, enabling users to protect their information technology investments by continuing to use their 32-bit software applications
while implementing 64-bit software applications on the timetable of their choice.
1
Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004