AMD 2001 Annual Report Download - page 6

PART I
ITEM 1. BUSINESS
Cautionary Statement Regarding Forward-Looking Statements
The statements in this report 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 from expectations. The
forward-looking statements relate to, among other things: operating results;
anticipated cash flows; capital expenditures; gross margins; adequacy of
resources to fund operations and capital investments; our ability to produce
AMD Athlon(TM) and AMD Duron(TM) microprocessors with the performance and in
the volume required by customers on a timely basis; our ability to maintain
average selling prices of seventh-generation microprocessors despite aggressive
marketing and pricing strategies of our competitors; our ability to increase
customer and market acceptance of our seventh- and eighth-generation
microprocessors; our ability, and the ability of third parties, to provide
timely infrastructure solutions (motherboards and chipsets) to support our
microprocessors; a recovery in the communication and networking industries
leading to an increase in the demand for Flash memory products; the effect of
foreign currency hedging transactions; the process technology transition in our
submicron integrated circuit manufacturing and design facility located in
Dresden, Germany (Dresden Fab 30); and the financing, construction and
utilization of the Fujitsu AMD Semiconductor Limited (FASL) manufacturing
facilities. For a discussion of the factors that could cause actual results to
differ materially from the forward-looking statements, see the "Financial
Condition" and "Risk Factors" sections set forth in "Management's Discussion
and Analysis of Financial Condition and Results of Operations" contained in our
2001 Annual Report to Stockholders and such other risks and uncertainties as
set forth below in this report or detailed in our other Securities and Exchange
Commission reports and filings.
General
Advanced Micro Devices, Inc. was incorporated under the laws of Delaware on
May 1, 1969. Our mailing address and executive offices are located at One AMD
Place, Sunnyvale, California 94086, and our telephone number is [phone].
Unless otherwise indicated, references in this report to "AMD," "we" and "us"
include our subsidiaries.
We are a semiconductor manufacturer with manufacturing facilities in the
United States, Europe and Asia and sales offices throughout the world. Our
products include a wide variety of industry-standard digital integrated
circuits (ICs) that are used in many diverse product applications such as
personal computers (PCs), workstations, servers, telecommunications equipment,
data and network communications equipment and consumer electronics.
For financial information about geographic areas and for segment information
with respect to sales, operating results and identifiable assets, refer to the
information set forth in Note 9 of the Consolidated Financial Statements
contained in our 2001 Annual Report to Stockholders.
For a discussion of the risk factors related to our business operations,
please see the "Cautionary Statement Regarding Forward-Looking Statements,"
"Risk Factors" and "Financial Condition" sections set forth in "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
contained in our 2001 Annual Report to Stockholders.
The IC Industry
The IC market has grown dramatically over the past decade, driven primarily
by the demand for electronic business and consumer products. Today, virtually
all electronic products use ICs, including PCs and related peripherals, voice
and data communications and networking products, facsimile and photocopy
machines, home entertainment equipment, industrial control equipment and
automobiles.
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002