AMD 2012 Annual Report Download - page 3

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Building an Industry Leader: Poised for Growth
This year we expect to see the benefits from our lower-cost operating model and more efficient business processes. Our portfolio of new
products is designed to accelerate our business and position us for improved financial results and consistent growth.
The PC business will remain a good business for AMD, but we must diversify to drive growth and take advantage of new leadership
opportunities. When I joined AMD in 2011, more than 95% of the company’s revenue came from the traditional PC space. We expect
that by the end of 2013, less than 80% of our revenue will come from the PC market. In two to three years, we expect revenue outside
the PC space to account for approximately 50% of total revenue. To become a leader in these new markets, we are building a more agile
AMD well-suited to capture new opportunities in a cloud-driven, interconnected and mobile world. Cloud computing is the big shift that
will define the next industry era, and we are embracing this shift and helping to drive the transition that will move the industry forward.
We are tremendously optimistic about what lies ahead for AMD. Our team knows that success will not come without hard work and we
are determined to take AMD to the next level. We are energized, focused and already well on our way to transforming AMD. We will
continue to build a better, stronger AMD for the industry and for you.
Sincerely,
Rory P. Read
President and Chief Executive Officer
AMD
March 2013
1Test conducted in AMD Performance Labs using FutureMark 3DMark Vantage P as a metric for GPU performance and PC Mark Vantage as
a metric for CPU performance. The AMD Z-60 APU-based system scored 455 and 1914 in 3DMark and PCMark respectively. The AMD A6-
1450 APU-based system delivers scores of 981 and 3123 in 3DMark and PCMark respectively. The platforms tested were the AMD Z-60
APU with AMD Radeon HD 6250 graphics, 2x 2GB DDR3-1066, Microsoft Windows 7 and the “Larne” reference platform with an AMD A6-
1450 Quad Core 1.0GHz APU, AMD Radeon™ HD 8280 series graphics, 2GB DDR3-1066 system memory and Microsoft Windows 7.
TEM-2
21/2 the power or twice the compute per-watt based on a comparison of same throughput achieved by 28 traditional 2P Hex Core 1U
Westmere rack servers @ 7300 total watts at 100% utilization and 64 1P SeaMicro servers in a single 10U chassis at 3,550 total watts at
100% utilization, running SPEC_intrate and SPEC_fprate workload. 1/3 the floor space or three times the compute-per-unit space is based on
a comparison of 28 1U traditional dual socket hex core servers plus 1RU rack switch and 1RU terminal versus one SeaMicro chassis at 10U.
12X throughput is based on a traditional Dual socket platform with 12 cores (2 socket x six cores) and 2x1GB NICs (2 Gig/12 cores = 167
Mbps bandwidth per core) compared to a SeaMicro single socket server 4 cores and aggregated bandwidth of up to 8 1 Gig NICs for each
socket (8 Gig/4 cores = 2Gbps bandwidth per core) 2/.167 = 12. SVR-175
CAUTIONARY STATEMENT
This letter contains forward looking statements including concerning the PC market, AMD, the timing and launch of new products and
technologies, AMD’s future growth opportunities, strategy, improved financial results and ability to return to profitability, grow its embedded and
semi-custom revenue to approximately 20% of revenue by the fourth quarter of 2013, grow APU and AMD Radeon discrete graphics add-in-board
sales, grow the percentage of its revenue from outside the PC market and reduce operating expenses by approximately 25% from early 2012
levels, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that
forward-looking statements contained herein involve risks and uncertainties that could cause actual results to differ materially from current
expectations. We urge investors to review in detail the risks and uncertainties in our Securities and Exchange Commission filings, including but
not limited to the Annual Report on Form 10-K for the year ended December 29, 2012.