AMD 2011 Annual Report Download - page 27

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designers, manufacturers, AIBs and suppliers of motherboards and other components decrease their support for
our product offerings, our business could be materially adversely affected.
If we lose Microsoft Corporation’s support for our products or other software vendors do not design and
develop software to run on our products, our ability to sell our products could be materially adversely affected.
Our ability to innovate beyond the x86 instruction set controlled by Intel depends partially on Microsoft
designing and developing its operating systems to run on or support our microprocessor products. With respect to
our graphics products, we depend in part on Microsoft to design and develop its operating system to run on or
support our graphics products. Similarly, the success of our products in the market, such as our AMD APU
products, is dependent on independent software providers designing and developing software to run on our
products. If Microsoft does not continue to design and develop its operating systems so that they work with our
x86 instruction sets or does not continue to develop and maintain their operating systems to support our graphics
products, independent software providers may forego designing their software applications to take advantage of
our innovations and customers may not purchase PCs with our products. In addition, some software drivers sold
with our products are certified by Microsoft. If Microsoft did not certify a driver, or if we otherwise fail to retain
the support of Microsoft or other software vendors, our ability to market our products would be materially
adversely affected.
The loss of a significant customer may have a material adverse effect on us.
Collectively, our top five customers accounted for approximately 51% of our net revenue in 2011. On a
segment basis, during 2011, five customers accounted for approximately 56% of the net revenue of our
Computing Solutions segment and five customers accounted for approximately 55% of the net revenue of our
Graphics segment. We expect that a small number of customers will continue to account for a substantial part of
revenues of our microprocessor and graphics businesses in the future. If one of our top microprocessor or
graphics business customers decided to stop buying our products, or if one of these customers were to materially
reduce its operations or its demand for our products, our business would be materially adversely affected.
Our inability to continue to attract and retain qualified personnel may hinder our product development
programs.
Much of our future success depends upon the continued service of numerous qualified engineering,
marketing, sales and executive personnel. If we are not able to continue to attract, train, and retain qualified
personnel necessary for our business, the progress of our product development programs could be hindered, and
we could be materially adversely affected.
If we cannot generate sufficient revenues and operating cash flow or obtain external financing, we may face a
cash shortfall and be unable to make all of our planned investments in research and development or other
strategic investments.
Although we make substantial investments in research and development, we cannot be certain that we will
be able to develop, obtain or successfully implement new products and technologies on a timely basis. Our
ability to fund research and development expenditures depends on generating sufficient cash flow from
operations and the availability of external financing, if necessary. Our research and development expenditures,
together with ongoing operating expenses, will be a substantial drain on our cash flow and may decrease our cash
balances. If new competitors, technological advances by existing competitors or other competitive factors require
us to invest significantly greater resources than anticipated in our research and development efforts, our operating
expenses would increase. If we are required to invest significantly greater resources than anticipated in research
and development efforts without an increase in revenue, our operating results could decline.
We regularly assess markets for external financing opportunities, including debt and equity financing.
Additional debt or equity financing may not be available when needed or, if available, may not be available on
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