AMD 2000 Annual Report Download - page 369

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The statements in this Management's Discussion and Analysis of Financial
Condition and Results of Operations that are forward-looking are based on
current expectations and beliefs and involve numerous risks and uncertainties
that could cause actual results to differ materially. The forward-looking
statements relate to, among other things, operating results; anticipated cash
flows; capital expenditures; adequacy of resources to fund operations and
capital investments; our ability to transition to new process technologies; our
ability to produce AMD Athlon(TM) and AMD Duron(TM) microprocessors in the
volume required by customers on a timely basis; our ability, and the ability of
third parties, to provide timely infrastructure solutions (motherboards and
chipsets) to support our microprocessors; our ability to increase customer and
market acceptance of our microprocessors; our ability to maintain average
selling prices for our microprocessors; our ability to meet the demand for Flash
memory products; the effect of foreign currency hedging transactions; our new
submicron integrated circuit manufacturing and design facility in Dresden,
Germany (Dresden Fab 30); and the Fujitsu AMD Semiconductor Limited (FASL)
manufacturing facilities. See "Financial Condition" and "Risk Factors" below, as
well as such other risks and uncertainties as are detailed in our Securities and
Exchange Commission reports and filings for a discussion of the factors that
could cause actual results to differ materially from the forward-looking
statements.
The following discussion should be read in conjunction with the consolidated
financial statements included in this annual report and related notes as of
December 31, 2000 and December 26, 1999 and for each of the three years in the
period ended December 31, 2000.
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RESULTS OF OPERATIONS
In 2000, 1999 and 1998, we participated in all three technology areas within the
digital integrated circuit (IC) market--microprocessors, memory circuits and
logic circuits--through our Core Products, Voice Communications, Vantis and
Foundry Services segments. Our Core Products segment includes our PC processors,
Memory products and Other IC products. PC processors include AMD seventh-
generation microprocessors and AMD-K6(R) family microprocessors. Memory products
include Flash memory devices and Erasable Programmable Read-Only Memory (EPROM)
devices. Other IC products include embedded processors, platform products and
networking products. Our Voice Communications segment consisted of our voice
communications products subsidiary, Legerity, Inc. (Legerity), until July 31,
2000, the effective date of its sale. Our Vantis segment consisted of our
programmable logic devices subsidiary, Vantis Corporation (Vantis), until June
15, 1999, the date of its sale. Our Foundry Services segment consists of fees
for services that we provide to our former subsidiaries, Legerity and Vantis.
On August 4, 2000, we completed the sale of 90 percent of Legerity for
approximately $375 million in cash, effective July 31, 2000. We retained a ten
percent ownership interest in Legerity and a warrant to acquire approximately an
additional ten percent. As part of the transaction, we entered into various
service contracts with Legerity to continue to provide, among other things,
wafer fabrication and assembly, test, mark and pack services to Legerity.
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001