AMD 1995 Annual Report Download - page 17

information, see Item 7, Footnotes 2 and 3, Management's Discussion and Analysis
of Results of Operations and Financial Condition.)
AMD's business is subject to general economic conditions, both in the
United States and abroad. A significant decline in economic conditions in any
significant geographic area could have a material adverse effect upon the
results of AMD's operations and financial condition.
Backlog
AMD manufactures and markets standard lines of products. Consequently, a
significant portion of its sales are made from inventory on a current basis.
Sales are made primarily pursuant to (1) purchase orders for current delivery,
or (2) agreements covering purchases over a period of time, which are frequently
subject to revision and cancellation. Generally, in light of current industry
practice and experience, AMD does not believe that such agreements provide
meaningful backlog figures or are necessarily indicative of actual sales for any
succeeding period.
Competition
The markets for AMD's products are characterized by rapid innovation and
technological developments, evolving industry standards, changes in customer
requirements, frequent new product introductions and enhancements and short
product life cycles. AMD's success substantially depends upon its ability, on a
cost-effective and timely basis, to continue to enhance its existing products
and to develop and introduce new products that take advantage of technological
advances. An unexpected change in one or more of the technologies related to
its products or in market demand for products based on a particular technology
could have a material adverse effect on AMD's results of operations or financial
condition. There can be no assurance that AMD will be able to develop new
products in a timely and satisfactory manner to
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Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 1996