AMD 2005 Annual Report Download - page 6

Table of Contents
PART I
ITEM 1. BUSINESS
Cautionary Statement Regarding Forward-Looking Statements
The statements in this report include forward-looking statements. 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 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,” or “anticipates” or the negative of these words and phrases or other variations of these words and phrases or
comparable terminology. The forward-looking statements relate to, among other things: our sales; capital expenditures; depreciation and amortization
expenses; the adequacy of resources to fund operations and capital expenditures; operating expenses; tax rate; the development and timing of the introduction of
new products and technologies; customer and market acceptance of our microprocessors; our ability to remain competitive and maintain or increase our market
position; our ability to maintain and develop key relationships with our existing and new customers and suppliers; the ability to produce our products in the
volumes and mix required by the market either in our own facilities or at foundries, at acceptable yields and on a timely basis; our ability to maintain the level of
investment in research and development and capacity that is required to remain competitive; our ability to transition to advanced manufacturing process
technologies in a timely and effective way; our ability to achieve cost reductions in the amounts and in the timeframes anticipated; the process technology
transitions in our wafer fabrication facilities; our ability to gain market share in high-growth global markets such as China, Latin America, India and Eastern
Europe; Spansion’s ability to implement 300-millimeter wafer manufacturing capacity; and customer and market acceptance of Spansion ™ Flash memory
products based on MirrorBit™ and floating gate technology, including the ORNAND architecture.
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” beginning on page 24 below
and such other risks and uncertainties as set forth below in this report or detailed in our other Securities and Exchange Commission (SEC) reports and filings.
We assume no obligation to update forward-looking statements.
General
We are a leading semiconductor company with manufacturing or testing facilities in the United States, Europe and Asia, and sales offices throughout the
world. We design, manufacture and market microprocessor solutions for the computing, communications and consumer electronics markets. These solutions
include embedded microprocessors for personal connectivity devices and other consumer markets. Prior to the closing of the initial public offering, or IPO, of
Spansion Inc. on December 21, 2005, which is described in more detail below, we also manufactured and sold Flash memory devices through our formerly
consolidated, majority owned subsidiary, Spansion LLC.
Effective June 30, 2003, we and Fujitsu Limited, a company incorporated in Japan, formed a Delaware limited liability company named FASL LLC to
integrate AMD’s and Fujitsu’s Flash memory businesses. On June 28, 2004, FASL LLC changed its name to Spansion LLC. As part of the new joint venture, we
and Fujitsu each contributed various assets to Spansion LLC and became Spansion LLC’s two members. The contribution of assets included certain intellectual
property, equipment and real estate. We owned 60 percent of the membership interests of Spansion LLC, and Fujitsu owned 40 percent of the membership
interests of Spansion LLC. Because Spansion LLC was our majority owned subsidiary, its results of operations, financial position and cash flows were
consolidated with ours.
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Source: ADVANCED MICRO DEVIC, 10-K, February 27, 2006