AMD 2013 Annual Report Download - page 4

In dense servers, we remained on track to launch one of the industry’s first 64-bit ARM server SoCs in 2014. Our unique
position offering both x86 and ARM solutions combined with our years of experience in the server market and industry-
leading fabric technology differentiates us as we bring an expanding set of solutions to this important market. Verizon
selected AMD to drive its high-performance public cloud — one of the largest public cloud deployments in the world —
choosing our best-in-class reliability powered by SeaMicro SM15000™ servers. We collaborated with Verizon to co-
develop a tailored global cloud solution that provides unprecedented performance and high reliability.
In our traditional server business, we launched AMD Opteron™ X-Series processors, the industry’s highest performance
small core x86 server processors.2In our mainstream graphics business, we launched a new family of discrete mobile
GPU products in the AMD Radeon™ R9, R7, and R5 M200 Series mobile GPUs – all powered by our award-winning
Graphics Core Next (GCN) architecture and bolstered by our groundbreaking Mantle technology, which enables game
developers to more easily harness the full capabilities of AMD graphics silicon across PCs and consoles and deliver
unmatched levels of performance and image quality to users. These new Radeon offerings include the fastest3desktop
and notebook graphics solutions in the world for enthusiasts wanting the best PC gaming experience the market has to
offer. Our mainstream graphics and semi-custom businesses have enabled AMD to become the world’s leading silicon
provider in gaming, and we expect to regain share in the graphics market in 2014 based on continued channel
momentum, secured wins for our new AMD Radeon R7 and R9 discrete mobile GPUs.
Earlier in 2013, we unleashed new additions to our A-Series and E-Series Mobile Accelerated Processing Units (APUs)
for notebooks and desktop PCs, focusing on increased performance and power efficiency, as well as superior gaming
and graphics capabilities. We launched the 2013 AMD Elite Mobility APU (codenamed “Temash”) – the world’s first
28nm, quad-core x86 SoC APU designed for touch small form-factor notebooks, tablets, and hybrids, and the 2013 AMD
Mainstream APU (codenamed “Kabini”) – the first and only quad-core x86 SoC solution for entry-level and small-form
factor touch notebooks. AMD APUs are enabling our customers and partners to win. As an example, AMD worked with
HP to sell over one million APU-powered HP laptops to high school graduates in India’s northern state of Uttar Pradesh
in 2013. In addition, our commercial client business in India has also grown tremendously, and in 2013 one in three
commercial notebooks in India was powered by AMD APUs.
And as we deliver exciting new products, we remain mindful of our environmental, social and governance performance.
AMD consistently ranks very highly in this area and has been recognized by third party groups, such as the Dow Jones
Sustainability Indexes. In 2013, we were added to Corporate Responsibility magazine’s 100 Best Corporate Citizens list,
listed as a Prime Environmental, Social and Governance Investment by Oekom Research and received Grade “A” in the
2013 Intangible Asset Rating from Morgan Stanley Capital International . These ratings and awards reflect our strong
and supportive culture, which makes AMD a great place to work, innovate, and win.
The Road Ahead: Managing our Business
We began 2014 the same way we ended 2013, with a focus on consistently executing our new product introduction
commitments for the year and building on the positive progress our Company made in the second half of 2013.
It is easy to sound cliché, but cloud computing truly does change everything. The cloud resets consumer expectations for
not only when and how they access their data but for how this information is presented in a consistent, easy-to-consume
manner independent of a device’s technical specifics. Continued consumer adoption of cloud-dependent devices
presents new challenges and opportunities for the providers of server computers, as well. The industry must work to find
new ways to deliver this ever increasing need to store and access the data that defines the modern computing
experience in vast data centers in the most energy and space efficient way possible.
Our industry continues to evolve, and the companies who will win will be the ones who embrace the changes being
driven by the increasing proliferation of cloud-based computing. AMD is one of these companies, and we are well-
positioned to leverage our unique IP to capitalize in the growth markets we have targeted. In 2014, we expect to realize
the following indicators of continued progress:
• Consistent execution and increased revenue year-over-year.
• Net income profitability for the year.
• Non-GAAP operating expenses in the range of approximately $420 million to $450 million per quarter.
• Remaining at the optimal cash balance target of $1 billion at the end of the year.
Our focus is on developing winning, leadership products, and becoming a stronger company with a more predictable,
profitable and balanced business. I am confident we will deliver. We are midway through our multi-year turnaround
strategy and are motivated by the progress we have made. We remain on track to generate approximately 50 percent of
our revenue from high growth markets by the end of 2015. This is possible thanks to our most important competitive
advantage – our people. We are building strong leaders aligned with the AMD Way of ownership and commitment,
customer focus and innovation leadership. Together we are determined to win, and to do what it takes to continue to
improve our performance.