AMD 2006 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: the features of new products and technologies and the timing of new
product releases; the growth and competitive landscape of the markets in which we participate; our supply chain; our revenues; our level of international sales;
our capital expenditures; our operating expenses; our stock-based compensation expenses; acquisition related integration charges in connection with the
acquisition of ATI Technologies Inc. (ATI); our aggregate contractual obligations; our capacity expansion plans for Fab 36; the conversion of Fab 30 from a
200-millimeter manufacturing facility to a 300-millimeter facility; the addition of a potential new fabrication facility in Luther Forest, New York; availability of
external financing; the adequacy of resources to fund operations and capital expenditures; the timing of manufacturing process technology transitions; the
impact of our acquisition of ATI on us; our exposure to interest rate risk; our interest income; and our interest expense. The material factors and assumptions
that were applied in making these forward-looking statements include, without limitation, the following: (1) the expected rate of market growth and demand for
our products and technologies (and the mix thereof); (2) our expected market share; (3) our expected product and manufacturing costs and average selling
prices; (4) our overall competitive position and the competitiveness of our current and future products; (5) our ability to expand our capacity and effect
transitions to more advanced manufacturing process technologies, consistent with our current plans in terms of timing and capital expenditures; (6) our ability
to raise sufficient capital on favorable terms; and (7) our ability to make additional investment in research and development and that such opportunities will be
available. The material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: (1) that
Intel Corporation’s pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities may negatively
impact sales; (2) any inability to realize all of the anticipated benefits of our recent acquisition of ATI because, among other things, the revenues, cost savings,
growth prospects and any other synergies expected from the transaction may not be fully realized or may take longer to realize than expected; (3) additional
capital requirements and any inability to raise sufficient capital, on favorable terms or at all, particularly in light of the requirement that we repay our credit
facility with Morgan Stanley Senior Funding Inc. using, among other things, 100 percent of the net cash proceeds from any debt incurred by us or a restricted
subsidiary, 50 percent of net cash proceeds from the issuance of any capital stock by us and 50 percent of any excess cash flow; (4) unexpected variations in
market growth and demand for our products and technologies in light of the product mix that we may have available at any particular time or even a decline in
demand; (5) uncertainty with respect to the impact of the recent release of Microsoft ® Windows Vista ™ on the demand for our products in 2007; (6) any
inability to transition to advanced manufacturing process technologies in a timely and effective way, consistent with planned capital expenditures; (7) any
inability to develop, launch and ramp new products and technologies in the volumes and mix required by the market at mature yields and on a timely basis;
(8) any inability to maintain the level of investment in research and development and capacity that is required to remain competitive; (9) any inability to obtain
sufficient manufacturing capacity (either in our own facilities or at foundries) or components to meet demand for our products or that we may under-utilize our
microprocessor manufacturing facilities; and (10) the effect of political or economic instability internationally on our sales or production.
For a discussion of the factors that could cause actual results to differ materially from the forward-looking statements, see “Part I, Item 1A—Risk
Factors” and the “Financial Condition” section set forth in “Part II,
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007