AMD 2015 Annual Report Download - page 7

PART I
ITEM 1. BUSINESS
Cautionary Statement Regarding Forward-Looking Statements
The statements in this report include forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. 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 speak only as of the date hereof or as of the dates indicated in
the statements and 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,” “anticipates,” or the negative of these words
and phrases, other variations of these words and phrases or comparable terminology. The forward-looking
statements relate to, among other things: demand for AMD’s products; the growth, change and competitive
landscape of the markets in which AMD participates; future restructuring activities; the nature and extent of
AMD’s future payments to GLOBALFOUNDRIES Inc. (GF) and the materiality of these payments; the
materiality of AMD’s future purchases from GF; sales patterns of AMD’s semi-custom System-on-Chip (SoC)
products; AMD’s expected completion of its restructuring plan announced in October 2015 (the 2015
Restructuring Plan) and the anticipated cash payments and savings from the 2015 Restructuring Plan;
statements regarding the proposed joint ventures (the JVs) between AMD and Nantong Fujitsu Microelectronics,
Co., Ltd., including the JVs’ expected future performance (including expected results of operations and financial
guidance); benefits from the proposed JVs; the JVs’ future financial condition, operating results, strategy and
plans; statements about regulatory and other approvals; the closing date for the proposed transaction; AMD’s
expected future filing of patent applications in both the United States and abroad on significant inventions;
AMD’s expectation that based on the information presently known to management, the securities class action
and the shareholder derivative suit will not have a material adverse effect on its financial condition, cash flows
or results of operations; the expected completion of AMD’s exit from its dense server business; the level of
international sales as compared to total sales; that AMD does not expect to reduce its unrecognized tax benefits
in the next 12 months; that other unrecognized tax benefits will not materially change in the next 12 months; that
AMD’s cash and cash equivalents and marketable securities balances, the savings from its restructuring plans
and the secured revolving line of credit (Secured Revolving Line of Credit) will be sufficient to fund AMD’s
operations including capital expenditures over the next 12 months; AMD’s ability to obtain sufficient external
financing on favorable terms, or at all; its dependence on a small number of customers for a substantial part of
its revenue; its hedging strategy; its expenditures related to environmental compliance and conflict minerals
disclosure requirements; and AMD does not expect to pay dividends in the future. Material factors that could
cause actual results to differ materially from current expectations include, without limitation, the following: Intel
Corporation’s dominance of the microprocessor market and its aggressive business practices may limit AMD’s
ability to compete effectively; AMD relies on GF to manufacture all of its microprocessor and APU products and
a certain portion of its GPU products, with limited exceptions. If GF is not able to satisfy AMD’s manufacturing
requirements, its business could be adversely impacted; AMD relies on third parties to manufacture its products,
and if they are unable to do so on a timely basis in sufficient quantities and using competitive technologies,
AMD’s business could be materially adversely affected; failure to achieve expected manufacturing yields for
AMD’s products could negatively impact its financial results; the success of AMD’s business is dependent upon
its ability to introduce products on a timely basis with features and performance levels that provide value to its
customers while supporting and coinciding with significant industry transitions; if AMD cannot generate
sufficient revenue and operating cash flow or obtain external financing, it may face a cash shortfall and be
unable to make all of its planned investments in research and development or other strategic investments; the
loss of a significant customer may have a material adverse effect on AMD; global economic uncertainty may
adversely impact AMD’s business and operating results; AMD may not be able to generate sufficient cash to
service its debt obligations or meet its working capital requirements; AMD has a substantial amount of
indebtedness which could adversely affect its financial position and prevent it from implementing its strategy or
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