AMD 2006 Annual Report Download - page 153

Table of Contents
Supplementary Financial Information
In 2005 and 2006, the Company used a 52- to -53 week fiscal year ending on the last Sunday in December. All of the quarters in 2005 and 2006 except for
the quarter ended July 2, 2006 consisted of 13 weeks. The quarter ended July 2, 2006 consisted of 14 weeks.
2006 and 2005 by Quarter
(Unaudited)
2006 2005
Dec. 31(1) Oct. 1(2) Jul. 2 Mar. 26 Dec. 25(3) Sep. 25 Jun. 26 Mar. 27
(In millions, except per share amounts)
Net revenue $ 1,773 $ 1,328 $ 1,216 $ 1,332 $ 1,838 $ 1,523 $ 1,260 $ 1,227
Cost of sales 1,132 645 526 553 986 896 766 808
Gross margin 641 683 690 779 852 627 494 419
Research and development 385 277 279 264 329 289 273 253
Marketing, general and administrative 296 279 309 256 317 259 228 212
In-process research and development 416(4) — — — — — — —
Amortization of intangible assets and integration charges 73(5) 6 — — — — — —
Operating income (loss) (529) 121 102 259 206 79 (7) (46)
Interest Income 22 31 35 28 13 10 7 7
Interest expense (67) (18) (18) (23) (24) (31) (26) (24)
Other income (expense), net 2 (2) 7 (20) (13)(6) (4) (4) (3)
Income (loss) before minority interest, equity in net loss of Spansion Inc.
and other and income taxes (572) 132 126 244 182 54 (30) (66)
Minority interest in consolidated subsidiaries (8) (7) (7) (6) 19 21 38 47
Equity in net loss of Spansion Inc. and other (5) (10) (12) (18) (107)(7) — — —
Income (loss) before income taxes (585) 115 107 220 94 75 8 (19)
Provision (benefit) for income taxes (9) (21) 18 35 (1) (1) (3) (2)
Net income (loss) $ (576) $ 136 $ 89 $ 185 $ 95 $ 76 $ 11 $ (17)
Net income (loss) per common share
Basic $ (1.08) $ 0.28 $ 0.18 $ 0.40 $ 0.23 $ 0.19 $ 0.03 $ (0.04)
Diluted $ (1.08) $ 0.27 $ 0.18 $ 0.38 $ 0.21 $ 0.18 $ 0.03 $ (0.04)
Shares used in per share calculation
Basic 531 486 485 464 412 399 395 393
Diluted 531 497 500 495 452 444 406 393
Common stock market price range
High $ 25.69 $ 27.90 $ 36.08 $ 42.70 $ 30.65 $ 24.03 $ 18.34 $ 22.37
Low $ 19.90 $ 16.90 $ 23.46 $ 30.16 $ 20.22 $ 16.63 $ 14.08 $ 14.63
(1) Includes the operations of ATI for the period from October 25 through December 31, 2006. As a result, the quarter ended December 31, 2006 is not fully
comparable to prior quarters.
(2) In connection with the ATI acquisition, the Company reclassified integration related expenses of $6 million from marketing, general and administrative to
amortization of intangible assets and integration charges.
(3) Consolidated Statement of Operations data for the fourth quarter of 2005 includes the results of Memory Products segment through December 20, 2005.
From December 21, 2005, the date with Spansion Inc. closed its initial public offering, through December 31, 2006, the Company used the equity method
of accounting to reflect its share of Spansion’s net loss and included this information as “Equity in net income (loss) of Spansion, Inc. and other”.
(4) Represents a write off of in-process research and development in connection with the ATI acquisition.
(5) Represents amortization of acquisition related intangible assets acquired as part of the ATI acquisition and charges incurred to integrate the operations of
ATI with the Company’s operations.
(6) Includes a charge of approximately $32 million associated with the Company’s exchange of $201 million of its 4.50% Notes for common stock and a
charge of approximately $14 million in connection with the prepayment of the Dresden Term Loan.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007