BIG DATA

Microprocessor Unit Shipments Increase 22% Year-Over-Year and 38% Sequentially: AMD reported financial results for the quarter ended June 30, 2007. AMD reported second quarter 2007 revenue of $1.378 billion, an operating loss of $457 million, and a net loss of $600 million, or $1.09 per share. These results include an impact of $130 million, or $0.24 per share, from ATI acquisition-related and integration charges of $78 million, employee stock-based compensation expense of $31 million, severance charges of $16 million and debt issuance charges of $5 million. In the first quarter of 2007, AMD reported revenue of $1.233 billion and an operating loss of $504 million. In the second quarter of 2006, AMD reported revenue of $1.216 billion and operating income of $102 million. “While we made solid progress in the second quarter across a number of fronts, we must improve our financial results,” said Robert J. Rivet, AMD’s Chief Financial Officer. “We achieved a 12 percent sequential revenue increase, improved the gross margin and won back microprocessor unit and revenue market share. Strong distribution channel demand, initial sales to Toshiba, and a broader adoption of AMD platforms led to a 38 percent sequential increase in microprocessor unit shipments. In addition, our Graphics business gained momentum at the end of the quarter as we began shipping the new ATI Radeon HD 2000 family of graphics processors. “We continue to focus on realigning our business model and reducing our capital expenditures and cost structure in the second half of the year.” Second quarter 2007 gross margin was 34 percent, excluding stock-based compensation expense, acquisition-related and severance charges, compared to 31 percent in the first quarter of 2007 and 57 percent in the second quarter of 2006. The increase from the prior quarter was largely due to increased microprocessor unit shipments. The second quarter gross margin was impacted by a write-off of older microprocessor inventory of approximately $30 million. Computing Solutions Second quarter Computing Solutions segment revenue was $1.098 billion, compared with $918 million in the first quarter of 2007. The 20 percent sequential increase was primarily due to a 38 percent increase in microprocessor unit shipments, offset partially by lower average selling prices (ASPs) for desktop microprocessors. Second quarter server, mobile, and desktop microprocessor revenue increased sequentially. Mobile processor unit shipments increased 21 percent sequentially and 82 percent year-over-year. Additional Highlights: * Sun Microsystems unveiled its new Blade 6000 server based on AMD Opteron processors. * AMD announced that initial revenue shipments of the industry’s first native x86 quad-core processor, “Barcelona,” will commence in the third quarter in both standard and low-power versions. * AMD broadened its portfolio of product offerings in the quarter with the introduction of three new AMD Opteron processors, models 1222 SE, 2222 SE, and 8222 SE. * The Italian stock exchange, Borsa Italiana, joined the growing roster of global exchange customers running their business on AMD Opteron processor based technology, including NYSE Group, Inc., the International Securities Exchange’s Stock Exchange, London Stock Exchange, Luxembourg Stock Exchange, Montréal Exchange and Philadelphia Stock Exchange.