AMD 1994 Annual Report Download - page 400

MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
On May 25, 1994, the Securities and Exchange Commission declared effective
the company's shelf registration statement covering up to $400 million of
its securities, which may be either debt securities, preferred stock,
depositary shares representing fractions of shares of preferred stock,
common stock, warrants to purchase common stock, or any combination of the
foregoing which the company may offer from time to time in the future. The
nature and terms of the securities will be established at the time of their
sale. The company may offer the securities through underwriters to be named
in the future, through agents or otherwise. The net proceeds of any
offering will be used for general corporate purposes, which may include the
reduction of outstanding indebtedness, working capital increases and
capital expenditures. To date, the company has not offered or sold any
securities registered under the $400 million registration statement.
On February 10, 1995, the company called for redemption of all outstanding
shares of its $30.00 Convertible Exchangeable Preferred Stock (the "Preferred
Shares") on March 13, 1995 (the "Redemption Date"); and pursuant to the
provisions of a depositary agreement between the company and The First National
Bank of Boston as Depositary, the Depositary called for redemption, on the
Redemption Date, all of the outstanding Depositary Convertible Exchangeable
Preferred Shares (the "Depositary Shares"), each representing one-tenth of a
Preferred Share. The redemption price is $50.90 per Depositary Share, plus $.73
of accrued and unpaid dividends from December 15, 1994 to the Redemption Date.
Each group of ten Depositary Shares, representing one whole share of
Preferred Stock, is convertible, at the option of the holders, into 19.873
shares of common stock of the company at any time prior to 5:00 p.m. Eastern
Standard Time on the Redemption Date. No accrued dividends will be paid in
respect of any Depositary Shares which are converted. If fewer than all of the
outstanding Depositary Shares are properly surrendered for conversion, the
company has arranged for Donaldson, Lufkin & Jenrette Securities Corporation and
Salomon Brothers Inc. to purchase directly from the company up to such whole
number of shares of common stock as would have been issuable upon the conversion
of any Depositary Shares not surrendered for conversion. The proceeds from any
such sale will be used by the company to redeem the Depositary Shares which are
not surrendered for conversion.
The company believes that cash flows from operations and current cash
balances, together with current and anticipated available long-term financing,
will be sufficient to fund operations, capital investments, and research and
development projects currently planned for the foreseeable future.
Am386 and Am486 are registered trademarks of Advanced Micro Devices, Inc.
K86 is a trademark of Advanced Micro Devices, Inc.
10 ADVANCED MICRO DEVICES, INC.
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1995