Advanced Micro Devices, Inc. (AMD: chart)
Q1 2010 Earnings Call Transcript
April 15, 2010, 5:00 p.m. ET

Executives

Ruth Cotter – Director, Investor Relations
Derrick R. Meyer – President and Chief Executive Officer
Thomas J. Seifert – Senior Vice President and Chief Financial Officer

Analysts

Timothy Luke – Barclays Capital
Uche Orji – UBS
Glen Yeung – Citigroup
John Pitzer – Credit Suisse
Cody Acree – Williams Financial
Shawn Webster – Macquarie Capital
Ross Seymore – Deutsche Bank
David Wong – Wells Fargo Securities
Stacy Rasgon – Sanford C. Bernstein
Doug Freedman – Broadpoint AmTech
James Covello – Goldman Sachs
Craig Berger – FBR Capital Markets
Hans Mosesmann – Raymond James
Patrick Wang – Wedbush Morgan
Jake Kemeny – Morgan Stanley
Srini Pajjuri – CLSA

Presentation

Operator

Good afternoon. My name is Saeed and I will be the conference Operator for today. At this time, I would like to welcome everyone to AMD''s First Quarter 2010 Earnings Conference Call. All lines have been placed in a listen-only mode at this time. After the speakers'' remarks, you''ll be invited to participate in a question-and-answer session. As a reminder, this conference is being recorded today. I would now like to turn the conference over to Ms. Ruth Cotter, Director of Investor Relations and Treasury for AMD. Ma''am, please go ahead.

Ruth Cotter

Thank you, and welcome to AMD''s first quarter earnings conference call. Our participants today are Dirk Meyer, our President and CEO and Thomas Seifert, our Chief Financial Officer. This is a live call and will be replayed via webcast on AMD.com. There will also be a telephone replay. The number is 888-266-2081. Outside of the United States, the number is 703-925-2533. The access code for both is 1446133. The telephone replay will be available for the next 10 days starting later this evening.

Before we start, I would like to highlight that AMD will attend UBS'' investment conference on June 9, in New York and that our second quarter quiet time will begin at the close of business on Friday, June 11. Last January, we announced that we deconsolidated Global Foundries as of the first quarter of 2010 and began accounting for our ownership interest under the equity method of accounting.

AMD has an ownership stake in Global Foundries which is reflected in the equity and net loss of investee line of our statement of operations. For your information, our Class A preferred share ownership decreased from 83% to 82% as a result of the capital call that took place on the first of April.

ATIC participated in the cash call and AMD did not. As a result, AMD''s ownership on a fully diluted basis also decreased to approximately 30% as of the second quarter of 2010. Reconciliation of all non-GAAP financial measures are included in our financial tables that accompany our earnings release, available in the investor relations section of AMD.com.

Before we begin today''s call, I would like to caution everyone that we will be making forward-looking statements about management''s expectations. Investors are cautioned that those statements are based on current beliefs, assumptions and expectations, speak only as of the current date and involve risks and uncertainties that could cause actual results to differ materially from our current expectations.

The semiconductor industry is generally volatile and market conditions are particularly difficult to forecast, especially in light of the current state of the economy. We encourage you to review our filings with the SEC where we discuss the risk factors that could cause actual results to differ materially from our expectations.

You''ll find detailed discussions about such risk factors in our most recent SEC filings, AMD''s annual report on Form 10-K for the year ended December 26, 2009.

With that, let me now hand it over to Dirk.

Derrick R. Meyer

Thanks, Ruth and thanks to everybody on the call for joining us today. As I said at our analyst event back in November, our priorities this year are to deliver compelling platforms, increase access to customer demand and transform our business model.

In the first quarter of this year, we made good progress on each of these priorities. And, in an improving global economic environment, we delivered record first quarter revenue coupled with good operating performance.