AMD 2014 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 within the meaning of the Private
Securities Litigation Reform Act of 1995. 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 speak only as of the date hereof or as of the dates indicated in
the statements and 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,” “anticipates,” or the negative of these words
and phrases, other variations of these words and phrases or comparable terminology. The forward-looking
statements relate to, among other things: the timing, features and functionality of our future products; future
patent applications; demand for our products; the growth, change and competitive landscape of the markets in
which we participate; the nature and extent of our future payments to GLOBALFOUNDRIES Inc. (GF) and the
materiality of these payments; the materiality of our future purchases from GF; sales patterns of our semi-
custom System-on-Chip (SoC) products; consumer PC market conditions; the success of our transformation
strategy; our ability to transform our business to attain revenue from high-growth markets; expected Enterprise,
Embedded and Semi-Custom segment research and development costs; expected restructuring charge and cash
payments to be made in connection with our restructuring plan announced in October 2014 (the 2014
Restructuring Plan); expected benefits of the 2014 Restructuring Plan and our transformation initiatives;
suitability and adequacy of our existing facilities; the level of international sales as compared to total sales; our
ability to reduce our unrecognized tax benefits over the next twelve months; that other unrecognized tax benefits
will not materially change in the next 12 months; that our cash, cash equivalents and marketable securities
balances, the savings from our 2014 Restructuring Plan and our senior secured asset based line of credit will be
sufficient to fund our operations including capital expenditures over the next 12 months; our ability to obtain
sufficient external financing on favorable terms, or at all; our dependence on a small number of customers; our
hedging strategy; and our expenditures related to environmental compliance and conflict minerals disclosure
requirements. Material factors that could cause actual results to differ materially from current expectations
include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its
aggressive business practices may limit our ability to compete effectively; we rely on GF to manufacture most of
our microprocessor and APU products and certain of our GPU and semi-custom products. If GF is not able to
satisfy our manufacturing requirements, our business could be adversely impacted; we rely on third parties to
manufacture our products, and if they are unable to do so on a timely basis in sufficient quantities and using
competitive technologies, our business could be materially adversely affected; failure to achieve expected
manufacturing yields for our products could negatively impact our financial results; the success of our business
is dependent upon our ability to introduce products on a timely basis with features and performance levels that
provide value to our customers while supporting and coinciding with significant industry transitions; if we
cannot generate sufficient revenue 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; we may not be able to successfully implement our business strategy to refocus our business to
address markets beyond our core PC market to high-growth adjacent markets; the completion and impact of the
2014 Restructuring Plan and our transformation initiatives could adversely affect us; global economic
uncertainty may adversely impact our business and operating results; we may not be able to generate sufficient
cash to service our debt obligations or meet our working capital requirements; we have a substantial amount of
indebtedness which could adversely affect our financial position and prevent us from implementing our strategy
or fulfilling our contractual obligations; the agreements governing our notes and our senior secured asset based
line of credit for a principal amount up to $500 million (Secured Revolving Line of Credit) impose restrictions on
us that may adversely affect our ability to operate our business; the markets in which our products are sold are
highly competitive; the loss of a significant customer may have a material adverse effect on us; our receipt of
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