AMD 2014 Annual Report Download - page 2

It is an honor to share my vision for AMD in my first shareholder letter as President and CEO. AMD is a
company with a rich, 45 year history of being at the leading edge of technology. I joined AMD because I
believe that we have an extraordinary combination of technology assets, engineering talent, and intellectual
property to lead the next wave of innovation. My conviction in that belief grows stronger every day.
2014: BUILDING A STRONGER AMD
We made good progress in 2014 strengthening AMD. We further diversified our business, introduced
strong new products, and improved our non-GAAP financial performance while also investing in key
technology building blocks to fuel our future success.
In 2014, we introduced our most advanced A-Series APU ever, offering industry-
leading graphics and superior total compute performance. We also delivered the
world’s fastest server GPU and desktop graphics card, and took several key steps
to foster the development of robust 64-bit ARM®server and embedded
ecosystems in advance of our first ARM solutions launching in 2015.
AMD-powered game consoles from Microsoft and Sony continued gaining
momentum in the year, with their combined sales now reportedly outpacing the
previous generation by nearly 60 percent at the same point in their lifecycle.
Apple expanded its use of AMD graphics technology, introducing the
groundbreaking AMD Radeon™-powered Apple®iMac®with Retina®5K display.
Also, we doubled the number of AMD-based commercial client design wins from
the previous year as new offerings from Dell, HP, and Lenovo helped us expand
in this strategic portion of the PC market.
Finally, we took important steps improving the financial foundation of the
company, reducing annual non-GAAP operating expense approximately
11 percent and re-profiling our near-term debt maturities.
As a result, we achieved annual revenue growth for the first time since 2011
and delivered non-GAAP profitability for the year. I am optimistic we can
continue building on this momentum and deliver long-term revenue and
earnings growth as we further drive our high-performance IP into new markets.
2015 Year-End
Projecon
2014 Actual
2013 Actual
~50%
~50%
~60%
~40%
~70%
~30%
2012 Actual
~90%
~10%
CORE MARKETS GROWTH MARKETS
DIVERSIFYING TO HIGH-GROWTH AREAS
SEIZING FUTURE OPPORTUNITY
The number of connected devices is growing at an exponential rate and is expected to reach 50 billion
by 2020 as we approach the “Internet of Things” era. This will include tens of billions of smart devices
that collect data across every aspect of our lives, doubling the volume of data created and stored every
year and reaching an estimated 44 zetabytes in 2020. To put this number in context, in 2009 all the
data produced and stored in the digital universe was estimated to be 500 exabytes…or roughly 1
percent of the data we are expected to produce and store in 2020.
We are making bold and significant investments to position AMD for success in anticipation of this
explosion of devices and content. These include extending our leading-edge computing, graphics, and
visualization technologies and expanding our design, integration, and software capabilities to take
advantage of this tremendous opportunity to shape and lead the future of computing. Our goal is simple:
to become the recognized leader powering the life-changing products and experiences that allow users to
create, consume, store, process, and share seamlessly across billions of interconnected devices.