AMD Reports Fourth Quarter and Annual 2016 Financial Results
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AMD Reports Fourth Quarter and Annual 2016 Financial Results

SUNNYVALE, CA -- (Marketwired) -- Jan 31, 2017 -- AMD (NASDAQ: AMD) today announced revenue for the fourth quarter of 2016 of $1.11 billion, operating loss of $3 million and net loss of $51 million, or $0.06 per share. Non-GAAP(1) operating income was $26 million, non-GAAP(1) net loss was $8 million and non-GAAP(1) loss per share was $0.01.

                                                                            
                           GAAP Financial Results                           
                                                                            
                                                                            
                         Q4-16      Q3-16      Q4-15      2016       2015   
                      ---------- ---------- ---------- ---------- ----------
Revenue                 $1.11B     $1.31B      $958M     $4.27B     $3.99B  
Operating loss           $(3)M     $(293)M    $(49)M     $(372)M    $(481)M 
Net loss                $(51)M     $(406)M    $(102)M    $(497)M    $(660)M 
Loss per share          $(0.06)    $(0.50)    $(0.13)    $(0.60)    $(0.84) 
                                                                            
                        Non-GAAP Financial Results(1)                       
                                                                            
                                                                            
                         Q4-16      Q3-16      Q4-15      2016       2015   
                      ---------- ---------- ---------- ---------- ----------
Revenue                 $1.11B     $1.31B      $958M     $4.27B     $3.99B  
Operating income                                                            
 (loss)                  $26M       $70M      $(39)M      $44M      $(253)M 
Net income (loss)        $(8)M      $27M      $(79)M     $(117)M    $(419)M 
Earnings (loss) per                                                         
 share                  $(0.01)     $0.03     $(0.10)    $(0.14)    $(0.54) 
                                                                            

"We met our strategic objectives in 2016, successfully executing our product roadmaps, regaining share in key markets, strengthening our financial foundation, and delivering annual revenue growth," said Dr. Lisa Su, AMD president and CEO. "As we enter 2017, we are well positioned and on-track to deliver our strongest set of high-performance computing and graphics products in more than a decade."

Quarterly Financial Segment Summary

Q4 2016 Highlights

Current Outlook
AMD's outlook statements are based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.

For Q1 2017, AMD expects revenue to decrease 11 percent sequentially, plus or minus 3 percent. The midpoint of guidance would result in Q1 2017 revenue increasing approximately 18 percent year-over-year. For additional details regarding AMD's results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.

AMD Teleconference
AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its fourth quarter and fiscal year 2016 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com. The webcast will be available for 12 months after the conference call.

                                                                            
Reconciliation of GAAP to Non-GAAP Gross Margin                             
                                                                            
(Millions except percentages)         Q4-16   Q3-16   Q4-15   2016    2015  
                                     ------  ------  ------  ------  ------ 
GAAP Gross Margin                    $  351  $   59  $  283  $  998  $1,080 
GAAP Gross Margin %                      32%      5%     30%     23%     27%
  Technology node transition charge       -       -       -       -      33 
  Stock-based compensation                1       -       1       2       3 
  Charge related to the sixth                                               
   amendment to the WSA with GF           -     340       -     340       - 
Non-GAAP Gross Margin                $  352  $  399  $  284  $1,340  $1,116 
Non-GAAP Gross Margin %                  32%     31%     30%     31%     28%
                                                                            
                                                                            
Reconciliation of GAAP Operating Loss to Non-GAAP Operating Income (Loss)   
                                                                            
(Millions)                            Q4-16   Q3-16   Q4-15   2016    2015  
                                     ------  ------  ------  ------  ------ 
GAAP operating loss                  $   (3) $ (293) $  (49) $ (372) $ (481)
  Charge related to the sixth                                               
   amendment to the WSA with GF           -     340       -     340       - 
  Technology node transition charge       -       -       -       -      33 
  Restructuring and other special                                           
   charges, net                           -       -      (6)    (10)    129 
  Amortization of acquired                                                  
   intangible assets                      -       -       -       -       3 
  Stock-based compensation               29      23      16      86      63 
                                     ------  ------  ------  ------  ------ 
Non-GAAP operating income (loss)     $   26  $   70  $  (39) $   44  $ (253)
                                     ------  ------  ------  ------  ------ 
                                                                            

Reconciliation of GAAP Net Loss/Loss per Share to Non-GAAP Net Income (Loss)/Earnings (Loss) per Share

(Millions except per share                                                  
 amounts)                         Q4-16           Q3-16           Q4-15     
                             --------------  --------------  -------------- 
GAAP net loss /loss per                                                     
 share                       $  (51) $(0.06) $ (406) $(0.50) $ (102) $(0.13)
  Charge related to the                                                     
   sixth amendment to the                                                   
   WSA with GF                    -       -     340    0.39       -       - 
  Technology node transition                                                
   charge                         -       -       -       -       -       - 
  Restructuring and other                                                   
   special charges, net           -       -       -       -      (6)  (0.01)
  Amortization of acquired                                                  
   intangible assets              -       -       -       -       -       - 
  Stock-based compensation       29    0.03      23    0.03      16    0.02 
  Loss on debt redemption         7    0.01      61    0.07       -       - 
  Non-cash interest expense                                                 
   related to convertible                                                   
   debt                           5    0.01       1       -       -       - 
  Gain on sale of 85% of                                                    
   ATMP JV                        -       -       4       -       -       - 
  Tax provision (benefit)                                                   
   related to sale of 85% of                                                
   ATMP JV                        -       -      (1)      -       -       - 
  Tax settlement in foreign                                                 
   jurisdiction                   -       -       -       -      13    0.02 
  Equity in income (loss) of                                                
   ATMP JV                        2       -       5    0.01       -       - 
                             ------  ------  ------  ------  ------  ------ 
Non-GAAP net income (loss) /                                                
 earnings (loss) per share   $   (8) $(0.01) $   27  $ 0.03  $  (79) $(0.10)
                             ------  ------  ------  ------  ------  ------ 
                                                                            
                                                                            

        (Millions except per share                                  
         amounts)                         2016            2015      
                                     --------------  -------------- 
        GAAP net loss /loss per                                     
         share                       $ (497) $(0.60) $ (660) $(0.84)
          Charge related to the                                     
           sixth amendment to the                                   
           WSA with GF                  340    0.41       -       - 
          Technology node transition                                
           charge                         -       -      33    0.04 
          Restructuring and other                                   
           special charges, net         (10)  (0.01)    129    0.16 
          Amortization of acquired                                  
           intangible assets              -       -       3       - 
          Stock-based compensation       86    0.10      63    0.08 
          Loss on debt redemption        68    0.08       -       - 
          Non-cash interest expense                                 
           related to convertible                                   
           debt                           6    0.01       -       - 
          Gain on sale of 85% of                                    
           ATMP JV                     (146)  (0.17)      -       - 
          Tax provision (benefit)                                   
           related to sale of 85% of                                
           ATMP JV                       26    0.03       -       - 
          Tax settlement in foreign                                 
           jurisdiction                   -       -      13    0.02 
          Equity in income (loss) of                                
           ATMP JV                       10    0.01       -       - 
                                     ------  ------  ------  ------ 
        Non-GAAP net income (loss) /                                
         earnings (loss) per share   $ (117) $(0.14) $ (419) $(0.54)
                                     ------  ------  ------  ------ 
                                                                    
                                                                    

About AMD
For more than 45 years, AMD has driven innovation in high-performance computing, graphics, and visualization technologies -- the building blocks for gaming, immersive platforms, and the datacenter. Hundreds of millions of consumers, leading Fortune 500 businesses, and cutting-edge scientific research facilities around the world rely on AMD technology daily to improve how they live, work, and play. AMD employees around the world are focused on building great products that push the boundaries of what is possible. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, Facebook and Twitter pages.

Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) including, AMD's ability to deliver the strongest set of high-performance computing and graphics products in more than a decade; the features, functionality, timing, availability and expected benefits of AMD's new products and technologies; and AMD's expected first quarter 2017 revenue, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. 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 is party to a wafer supply agreement with GF with obligations to manufacture products at GF with certain 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; AMD's receipt of revenue from its semi-custom SoC products is dependent upon its technology being designed into third-party products and the success of those products; global economic uncertainty may adversely impact AMD's business and operating results; the markets in which AMD's products are sold are highly competitive; 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 fulfilling its contractual obligations; the agreements governing AMD's notes and the secured revolving line of credit impose restrictions on AMD that may adversely affect its ability to operate its business; uncertainties involving the ordering and shipment of AMD's products could materially adversely affect it; the demand for AMD's products depends in part on the market conditions in the industries into which they are sold. Fluctuations in demand for AMD's products or a market decline in any of these industries could have a material adverse effect on its results of operations; AMD's ability to design and introduce new products in a timely manner is dependent upon third-party intellectual property; AMD depends on third-party companies for the design, manufacture and supply of motherboards, software and other computer platform components to support its business; if AMD loses Microsoft Corporation's support for its products or other software vendors do not design and develop software to run on AMD's products, its ability to sell its products could be materially adversely affected; AMD's reliance on third-party distributors and AIB partners subjects it to certain risks; AMD's inability to continue to attract and retain qualified personnel may hinder its product development programs; AMD's issuance to West Coast Hitech L.P. of warrants to purchase 75 million shares of AMD's common stock, if and when exercised, will dilute the ownership interests of AMD's existing stockholders, and the conversion of the 2.125% Convertible Senior Notes due 2026 may dilute the ownership interest of AMD's existing stockholders, or may otherwise depress the price of AMD's common stock; in the event of a change of control, AMD may not be able to repurchase its outstanding debt as required by the applicable indentures and its secured revolving line of credit, which would result in a default under the indentures and its secured revolving line of credit; the semiconductor industry is highly cyclical and has experienced severe downturns that have materially adversely affected, and may continue to materially adversely affect its business in the future; acquisitions, divestitures and/or joint ventures could disrupt its business, harm its financial condition and operating results or dilute, or adversely affect the price of, its common stock; AMD's business is dependent upon the proper functioning of its internal business processes and information systems and modification or interruption of such systems may disrupt its business, processes and internal controls; data breaches and cyber-attacks could compromise AMD's intellectual property or other sensitive information, be costly to remediate and cause significant damage to its business and reputation; AMD's operating results are subject to quarterly and seasonal sales patterns; if essential equipment, materials or manufacturing processes are not available to manufacture its products, AMD could be materially adversely affected; if AMD's products are not compatible with some or all industry-standard software and hardware, it could be materially adversely affected; costs related to defective products could have a material adverse effect on AMD; if AMD fails to maintain the efficiency of its supply chain as it responds to changes in customer demand for its products, its business could be materially adversely affected; AMD outsources to third parties certain supply-chain logistics functions, including portions of its product distribution, transportation management and information technology support services; the completion and impact of the 2015 restructuring plan, its transformation initiatives and any future restructuring actions could adversely affect it; AMD may incur future impairments of goodwill; AMD's worldwide operations are subject to political, legal and economic risks and natural disasters, which could have a material adverse effect on it; worldwide political conditions may adversely affect demand for AMD's products; unfavorable currency exchange rate fluctuations could adversely affect AMD; AMD's inability to effectively control the sales of its products on the gray market could have a material adverse effect on it; if AMD cannot adequately protect its technology or other intellectual property in the United States and abroad, through patents, copyrights, trade secrets, trademarks and other measures, it may lose a competitive advantage and incur significant expenses; AMD is a party to litigation and may become a party to other claims or litigation that could cause it to incur substantial costs or pay substantial damages or prohibit it from selling its products; AMD's business is subject to potential tax liabilities; and AMD is subject to environmental laws, conflict minerals-related provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act as well as a variety of other laws or regulations that could result in additional costs and liabilities. Investors are urged to review in detail the risks and uncertainties in AMD's Securities and Exchange Commission filings, including but not limited to AMD's Quarterly Report on Form 10-Q for the quarter ended September 24, 2016.

AMD, the AMD Arrow logo, AMD Opteron, AMD Radeon and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner.

                                                                            
1.  In this earnings press release, in addition to GAAP financial results,  
    AMD has provided non-GAAP financial measures including non-GAAP gross   
    margin, non-GAAP operating income (loss), non-GAAP net income (loss) and
    non-GAAP earnings (loss) per share. These non-GAAP financial measures   
    reflect certain adjustments as presented in the tables in this earnings 
    press release. AMD also provided adjusted EBITDA and non-GAAP free cash 
    flow as supplemental measures of its performance. These items are       
    defined in the footnotes to the selected corporate data tables provided 
    at the end of this earnings press release. AMD is providing these       
    financial measures because it believes this non-GAAP presentation makes 
    it easier for investors to compare its operating results for current and
    historical periods and also because AMD believes it assists investors in
    comparing AMD's performance across reporting periods on a consistent    
    basis by excluding items that it does not believe are indicative of its 
    core operating performance and for the other reasons described in the   
    footnotes to the selected data tables. Refer to the data tables at the  
    end of this earnings press release.                                     
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                             
(Millions except per share amounts and percentages)                         
                                                                            
                                Three Months Ended           Year Ended     
                          -----------------------------  ------------------ 
                          December  September  December  December  December 
                          31, 2016   24, 2016  26, 2015  31, 2016  26, 2015 
                          --------  ---------  --------  --------  -------- 
Net revenue               $  1,106  $   1,307  $    958  $  4,272  $  3,991 
Cost of sales                  755      1,248       675     3,274     2,911 
                          --------  ---------  --------  --------  -------- 
Gross margin                   351         59       283       998     1,080 
Gross margin %                  32%         5%       30%       23%       27%
Research and development       264        259       229     1,008       947 
Marketing, general and                                                      
 administrative                121        117       109       460       482 
Amortization of acquired                                                    
 intangible assets               -          -         -         -         3 
Restructuring and other                                                     
 special charges, net            -          -        (6)      (10)      129 
Licensing gain                 (31)       (24)        -       (88)        - 
                          --------  ---------  --------  --------  -------- 
Operating loss                  (3)      (293)      (49)     (372)     (481)
Interest expense               (34)       (41)      (41)     (156)     (160)
Other income (expense),                                                     
 net                            (7)       (63)       (2)       80        (5)
                          --------  ---------  --------  --------  -------- 
Loss before income taxes       (44)      (397)      (92)     (448)     (646)
Provision for income taxes       5          4        10        39        14 
Equity in income (loss) of                                                  
 ATMP JV                        (2)        (5)        -       (10)        - 
                          --------  ---------  --------  --------  -------- 
Net loss                  $    (51) $    (406) $   (102) $   (497) $   (660)
Net loss per share                                                          
  Basic                   $  (0.06) $   (0.50) $  (0.13) $  (0.60) $  (0.84)
  Diluted                 $  (0.06) $   (0.50) $  (0.13) $  (0.60) $  (0.84)
                          --------  ---------  --------  --------  -------- 
Shares used in per share                                                    
 calculation                                                                
  Basic                        931        815       791       835       783 
  Diluted                      931        815       791       835       783 
                          --------  ---------  --------  --------  -------- 
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS                     
(Millions)                                                                  
                                                                            
                                Three Months Ended           Year Ended     
                          -----------------------------  ------------------ 
                          December  September  December  December  December 
                          31, 2016   24, 2016  26, 2015  31, 2016  26, 2015 
                          --------  ---------  --------  --------  -------- 
Total comprehensive loss  $    (53) $    (406) $    (95) $   (494) $   (663)
                          --------  ---------  --------  --------  -------- 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED BALANCE SHEETS (1)(2)                                
(Millions)                                                                  
                                                                            
                                  ------------  -------------  ------------ 
                                  December 31,  September 24,  December 26, 
                                      2016           2016          2015     
                                  ------------  -------------  ------------ 
Assets                                                                      
Current assets:                                                             
  Cash and cash equivalents       $      1,264  $       1,258  $        785 
  Accounts receivable, net                 311            640           533 
  Inventories, net                         751            772           678 
  Prepayment and other -                                                    
   GLOBALFOUNDRIES                          32             13            33 
  Prepaid expenses                          63             63            43 
  Other current assets                     109             78           248 
                                  ------------  -------------  ------------ 
    Total current assets                 2,530          2,824         2,320 
Property, plant and equipment,                                              
 net                                       164            161           188 
Goodwill                                   289            289           278 
Investment in ATMP JV                       59             60             - 
Other assets                               279            282           298 
                                  ------------  -------------  ------------ 
Total Assets                      $      3,321  $       3,616  $      3,084 
                                  ============  =============  ============ 
                                                                            
Liabilities and Stockholders'                                               
 Equity (Deficit)                                                           
Current liabilities:                                                        
  Short-term debt                 $          -  $           -  $        230 
  Accounts payable                         440            582           279 
  Payable to GLOBALFOUNDRIES               255            284           245 
  Payable to ATMP JV                       128            144             - 
  Accrued liabilities                      391            384           472 
  Other current liabilities                 69             25           124 
  Deferred income on shipments to                                           
   distributors                             63             54            53 
                                  ------------  -------------  ------------ 
    Total current liabilities            1,346          1,473         1,403 
Long-term debt, net                      1,435          1,632         2,007 
Other long-term liabilities                124            126            86 
                                                                            
Stockholders' equity (deficit):                                             
  Capital stock:                                                            
    Common stock, par value                  9              9             8 
    Additional paid-in capital           8,334          8,258         7,017 
    Treasury stock, at cost               (119)          (127)         (123)
  Accumulated deficit                   (7,803)        (7,752)       (7,306)
  Accumulated other comprehensive                                           
   loss                                     (5)            (3)           (8)
                                  ------------  -------------  ------------ 
    Total Stockholders' equity                                              
     (deficit)                             416            385          (412)
                                  ------------  -------------  ------------ 
Total Liabilities and                                                       
 Stockholders' Equity (Deficit)   $      3,321  $       3,616  $      3,084 
                                  ============  =============  ============ 
                                                                            
(1) Amounts reflected adoption of FASB ASU 2015-17, Balance Sheet           
 Classification of Deferred Taxes beginning in the first quarter of 2016.   
                                                                            
(2) Amounts reflected adoption of FASB ASU 2015-03, Simplifying the         
 Presentation of Debt Issuance Costs beginning in the first quarter of      
 2016.                                                                      
                                                                            
                                                                            
                                                                            

ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS                              
(Millions)                                                                  
                                                                            
                                                Three Months                
                                                   Ended        Year Ended  
                                               -------------  ------------- 
                                               December 31,   December 31,  
                                                    2016           2016     
                                               -------------  ------------- 
                                                                            
Cash flows from operating activities:                                       
  Net loss                                     $         (51) $        (497)
  Adjustments to reconcile net loss to net                                  
   cash provided by (used in) operating                                     
   activities:                                                              
    Net gain on sale of equity interests in                                 
     ATMP JV                                               -           (146)
    Equity in loss of ATMP JV                              1              2 
    Depreciation and amortization                         34            133 
    Provision for deferred income taxes                    -             11 
    Stock-based compensation expense                      29             86 
    Non-cash interest expense                             10             21 
    Loss on debt redemption                                7             68 
    Fair value of warrant issued related to                                 
     sixth amendment to the WSA                            -            240 
    Other                                                 (3)            (8)
  Changes in operating assets and liabilities:                              
    Accounts receivable                                  329            222 
    Inventories                                           21            (73)
    Prepayment and other - GLOBALFOUNDRIES               (19)             1 
    Prepaid expenses and other assets                    (32)          (166)
    Payable to ATMP JV                                   (16)           128 
    Payable to GLOBALFOUNDRIES                           (29)            10 
    Accounts payable, accrued liabilities and                               
     other                                               (93)            58 
                                               -------------  ------------- 
Net cash provided by operating activities      $         188  $          90 
                                               -------------  ------------- 
                                                                            
Cash flows from investing activities:                                       
  Purchases of property, plant and equipment             (21)           (77)
  Net proceeds from sale of equity interests                                
   in ATMP JV                                             (4)           342 
  Other                                                   (1)             2 
                                               -------------  ------------- 
Net cash provided by (used in) investing                                    
 activities                                    $         (26) $         267 
                                               -------------  ------------- 
                                                                            
Cash flows from financing activities:                                       
  Proceeds from issuance of common stock, net                               
   of issuance costs                                      (1)           667 
  Proceeds from issuance of convertible senior                              
   notes, net of issuance costs                          101            782 
  Proceeds from issuance of common stock under                              
   stock-based compensation equity plans                   8             20 
  Repayments of long-term debt                          (265)        (1,113)
  Repayments of borrowings, net                            -           (230)
  Other                                                    1             (4)
                                               -------------  ------------- 
Net cash provided by (used in) financing                                    
 activities                                    $        (156) $         122 
                                               -------------  ------------- 
Net increase in cash and cash equivalents                  6            479 
                                               -------------  ------------- 
Cash and cash equivalents at beginning of                                   
 period                                        $       1,258  $         785 
                                               -------------  ------------- 
Cash and cash equivalents at end of period     $       1,264  $       1,264 
                                               -------------  ------------- 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
SELECTED CORPORATE DATA                                                     
(Millions)                                                                  
                                                                            
                                 Three Months Ended           Year Ended    
-------------------------------------------------------- -------------------
Segment and Category        December September  December  December  December
 Information                31, 2016  24, 2016  26, 2015  31, 2016  26, 2015
-------------------------------------------------------- -------------------
                                                                            
  Computing and Graphics                                                    
   (1)                                                                      
    Net revenue            $    600  $    472  $    470  $  1,967  $  1,805 
    Operating loss         $    (21) $    (66) $    (99) $   (238) $   (502)
                                                                            
  Enterprise, Embedded and                                                  
   Semi-Custom (2)                                                          
    Net revenue            $    506  $    835  $    488  $  2,305  $  2,186 
    Operating income       $     47  $    136  $     59  $    283  $    215 
                                                                            
  All Other (3)                                                             
    Net revenue                   -         -         -         -         - 
    Operating loss         $    (29) $   (363) $     (9) $   (417) $   (194)
                                                                            
  Total                                                                     
    Net revenue            $  1,106  $  1,307  $    958  $  4,272  $  3,991 
    Operating loss         $     (3) $   (293) $    (49) $   (372) $   (481)
                                                                            
-------------------------------------------------------- -------------------
                                                                            
Other Data                                                                  
                                                                            
  Depreciation and                                                          
   amortization, excluding                                                  
   amortization of                                                          
   acquired intangible                                                      
   assets                  $     34  $     33  $     34  $    133  $    164 
  Capital additions        $     21  $      9  $     32  $     77  $     96 
  Adjusted EBITDA (4)      $     60  $    103  $     (5) $    177  $    (89)
  Cash and cash                                                             
   equivalents             $  1,264  $  1,258  $    785  $  1,264  $    785 
  Non-GAAP free cash flow                                                   
   (5)                     $    167  $     20  $     27  $     13  $   (322)
  Total assets             $  3,321  $  3,616  $  3,084  $  3,321  $  3,084 
  Total debt               $  1,435  $  1,632  $  2,237  $  1,435  $  2,237 
                                                                            
-------------------------------------------------------- -------------------
                                                                            
                                                                            
(1) Computing and Graphics segment primarily includes desktop and notebook  
    processors and chipsets, discrete graphics processing units (GPUs) and  
    professional graphics.                                                  
(2) Enterprise, Embedded and Semi-Custom segment primarily includes server  
    and embedded processors, semi-custom System-on-Chip (SoC) products and  
    technology for game consoles. We also license portions of our           
    intellectual property portfolio.                                        
(3) All Other category primarily includes certain expenses and credits that 
    are not allocated to any of the operating segments. Also included in    
    this category is stock-based compensation expense. In addition, the     
    Company also included charges related to: restructuring and other       
    special charges, net for 2016, the fourth quarter of 2015 and 2015, the 
    sixth amendment to the WSA with GF for the third quarter of 2016 and    
    2016 and amortization of acquired intangible assets for 2015.           
                                                                            
(4) Reconciliation of GAAP Operating Loss to Adjusted EBITDA*               
                                Three Months Ended           Year Ended     
                          -----------------------------  ------------------ 
                          December  September  December  December  December 
                          31, 2016   24, 2016  26, 2015  31, 2016  26, 2015 
                          --------  ---------  --------  --------  -------- 
    GAAP operating loss   $     (3) $    (293) $    (49) $   (372) $   (481)
    Charge related to the                                                   
     sixth amendment to                                                     
     the WSA with GF             -        340         -       340         - 
    Restructuring and                                                       
     other special                                                          
     charges, net                -          -        (6)      (10)      129 
    Technology node                                                         
     transition charge           -          -         -         -        33 
    Stock-based                                                             
     compensation expense       29         23        16        86        63 
    Amortization of                                                         
     acquired intangible                                                    
     assets                      -          -         -         -         3 
    Depreciation and                                                        
     amortization               34         33        34       133       164 
                          --------  ---------  --------  --------  -------- 
    Adjusted EBITDA       $     60  $     103  $     (5) $    177  $    (89)
                          ========  =========  ========  ========  ======== 
                                                                            
(5) Non-GAAP free cash flow reconciliation**                                
                                Three Months Ended           Year Ended     
                          -----------------------------  ------------------ 
                          December  September  December  December  December 
                          31, 2016   24, 2016  26, 2015  31, 2016  26, 2015 
                          --------  ---------  --------  --------  -------- 
    GAAP net cash provided                                                  
     by (used in)                                                           
     operating activities $    188  $      29  $     59  $     90  $   (226)
    Purchases of property,                                                  
     plant and equipment       (21)        (9)      (32)      (77)      (96)
                          --------  ---------  --------  --------  -------- 
    Non-GAAP free cash                                                      
     flow                 $    167  $      20  $     27  $     13  $   (322)
                          ========  =========  ========  ========  ======== 
                                                                            
                                                                            
*   The Company presents "Adjusted EBITDA" as a supplemental measure of its 
    performance. Adjusted EBITDA for the Company is determined by adjusting 
    operating income (loss) for depreciation and amortization and stock-    
    based compensation expense. In addition, the Company excluded a charge  
    related to the sixth amendment to the WSA with GF for the third quarter 
    of 2016 and 2016, restructuring and other special charges, net for      
    2016, the fourth quarter of 2015 and 2015, a technology node transition 
    charge and amortization of acquired intangible assets for 2015. The     
    Company calculates and communicates Adjusted EBITDA because the         
    Company's management believes it is of importance to investors and      
    lenders in relation to its overall capital structure and its ability to 
    borrow additional funds. In addition, the Company presents Adjusted     
    EBITDA because it believes this measure assists investors in comparing  
    its performance across reporting periods on a consistent basis by       
    excluding items that the Company does not believe are indicative of its 
    core operating performance. The Company's calculation of Adjusted       
    EBITDA may or may not be consistent with the calculation of this        
    measure by other companies in the same industry. Investors should not   
    view Adjusted EBITDA as an alternative to the GAAP operating measure of 
    operating income (loss) or GAAP liquidity measures of cash flows from   
    operating, investing and financing activities. In addition, Adjusted    
    EBITDA does not take into account changes in certain assets and         
    liabilities as well as interest and income taxes that can affect cash   
    flows.                                                                  
                                                                            
**  The Company also presents non-GAAP free cash flow as a supplemental     
    measure of its performance. Non-GAAP free cash flow is determined by    
    adjusting GAAP net cash provided by (used in) operating activities for  
    capital expenditures. The Company calculates and communicates non-GAAP  
    free cash flow in the financial earnings press release because the      
    Company's management believes it is of importance to investors to       
    understand the nature of these cash flows. The Company's calculation of 
    non-GAAP free cash flow may or may not be consistent with the           
    calculation of this measure by other companies in the same industry.    
    Investors should not view non-GAAP free cash flow as an alternative to  
    GAAP liquidity measures of cash flows from operating activities. The    
    Company has provided reconciliations within the earnings press release  
    of these non-GAAP financial measures to the most directly comparable    
    GAAP financial measures.                                                
                                                                            

Media Contact
Drew Prairie
512-602-4425

drew.prairie@amd.com 

Investor Contact
Laura Graves
408-749-5467

laura.graves@amd.com