AMD 2011 Annual Report Download - page 7

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,” “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:demand for our products; the timing of new product releases and technology transitions; the growth and
competitive landscape of the markets in which we participate; the nature and extent of our future payments to
GLOBALFOUNDRIES Inc. (GF) under the wafer supply agreement (WSA) and the materiality of these
payments; manufacturing yields at GF and constrained supply of products from GF; the 2011 restructuring plan,
including the timing of actions in connection with the plan and anticipated restructuring charges, cash
expenditures, operational savings, and our intention to use these savings to fund certain strategic initiatives; the
level of international sales as compared to total sales; the availability of external financing; our ability to sell
our auction rate securities in the next twelve months; that our cash, cash equivalents and marketable securities
and anticipated cash flow from operations and available external financing will be sufficient to fund our
operations over the next twelve months; our dependence on a small number of customers; our hedging strategy;
the continued shortage of hard disk drives as a result of the floods in Thailand; and the adequacy of our existing
facilities for our present purpose. Material factors and assumptions that were applied in making these forward-
looking statements include, without limitation, the following: the expected rate of market growth and demand for
our products and technologies (and the mix thereof); manufacturing yields and wafer volumes from our third-
party wafer foundry suppliers; our expected market share; our expected product costs and average selling price;
our overall competitive position and the competitiveness of our current and future products; our ability to
introduce new products, consistent with our current roadmap; our ability to raise sufficient capital on favorable
terms; our ability to make additional investment in research and development and that such opportunities will be
available; our ability to realize the anticipated benefits of our fabless business model; the expected demand for
computers; and the state of credit markets and macroeconomic conditions. Material factors that could cause
actual results to differ materially from current expectations include, without limitation, the following: that Intel
Corporation’s pricing, marketing and rebating programs, product bundling, standard setting, new product
introductions or other activities may negatively impact our plans; that we may be unable to develop, launch and
ramp new products and technologies in the volumes that are required by the market at mature yields on a timely
basis; that our third party wafer foundry suppliers will be unable to transition our products to advanced
manufacturing process technologies in a timely and effective way or to manufacture our products on a timely
basis in sufficient quantities and using competitive process technologies; that we will be unable to obtain
sufficient manufacturing capacity or components to meet demand for our products or will not fully utilize our
projected manufacturing capacity needs at GFs microprocessor manufacturing facilities in 2012 and beyond;
that customers stop buying our products or materially reduce their operations or demand for our products; that
we may be unable to maintain the level of investment in research and development that is required to remain
competitive; that there may be unexpected variations in market growth and demand for our products and
technologies in light of the product mix that we may have available at any particular time or a decline in
demand; that we will require additional funding and may be unable to raise sufficient capital on favorable terms,
or at all; that global business and economic conditions will not improve or will worsen; that demand for
computers will be lower than currently expected; and the effect of political or economic instability, domestically
or internationally, on our sales or supply chain.
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