AMD 2015 Annual Report Download - page 2

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DEAR SHAREHOLDERS:
For more than 46 years, AMD has been defined by innovating at the leading edge of technology. Our greatest successes have come from our steadfast
belief that our unique technology assets, engineering talent, and intellectual property (IP) provide us with an opportunity to create differentiated,
leadership products. And, thanks to the fast pace of change within our industry, bold companies willing to invest in big technology bets can re-shape
the market.
2015 HIGHLIGHTS
In 2015 we laid a solid foundation that will allow us to leverage our unique technology assets to deliver high-performance gaming products, immersive
platforms, and datacenter computing solutions capable of fueling sustainable growth and improved financial results, including:
• Strengthening our product offerings with the launch of our 6th Generation A-Series APUs (codenamed “Carrizo”) and introducing the industry’s first
GPUs featuring innovative die-stacked high-bandwidth memory (HBM). We also launched the Radeon™ Fury Nano, the world’s smallest and most
energy-efficient enthusiast graphics card and expanded our product portfolio to include 64-bit ARM solutions with the introduction of our first
datacenter-class ARM SoC, the AMD Opteron™ A1100.
• Improving the performance of our Computing and Graphics segment in the second half of the year, delivering two straight quarters of sequential
double-digit revenue growth.
• Diversifying our client compute revenue by further expanding our presence in the profitable commercial PC market, highlighted by HP selecting our
newest AMD PRO Series commercial APUs as the exclusive launch processors for its latest EliteBook commercial client systems – a first for AMD.
• Becoming the exclusive supplier of discrete GPUs spanning Apple’s entire line of consumer and professional computers.
• Setting a record for annual semi-custom unit shipments as a critical and trusted partner powering the latest game consoles from Microsoft and Sony.
• Cementing our position as the #1 embedded processor provider for the thin client market.
• Sharpening our emphasis on visual and immersive computing with the formation of the Radeon Technologies Group to drive a singular focus on
developing and delivering industry-leading graphics technology.
• Simplifying our business with the formation of a joint venture with Nantong Fujitsu Microelectronics that combines our assembly, test, mark,
and pack facilities with NFME’s established outsourced semiconductor assembly and test expertise.
While I am proud of these accomplishments, our 2015 annual revenue decreased to $4 billion and we recorded a net loss. 2015 was an important transition
year for us as we executed our long-term technology roadmap and continued to invest in gaming, immersive platforms, and the datacenter. I am confident
that we can consistently improve on our financial performance over the coming years based on the foundation we have built.
OUR OPPORTUNITIES IN 2016 AND BEYOND
The industry is entering a new era defined by billions of connected devices and the emergence of immersive computing experiences that seamlessly
blend the physical and digital worlds to fundamentally change how we interact with technology. These trends will drive increased demand for our
high-performance computing and graphics technologies and represent a $60 billion market for AMD. To take full advantage of these opportunities
we have developed a sustained, high-performance roadmap intended to significantly grow our presence in the PC and datacenter markets, fuel our
expansion into new compute-intensive markets, and provide incremental opportunities to strategically monetize our IP through complementary
licensing and partnerships.
MARCH 2016