SUNNYVALE, Calif. ‚ÄĒ8/22/2013
AMD (NYSE: AMD) today announ¬≠ced that its Sin¬≠ga¬≠po¬≠re sub¬≠si¬≠dia¬≠ry, Advan¬≠ced Micro Devices (Sin¬≠ga¬≠po¬≠re) Pte Ltd. (AMD Sin¬≠ga¬≠po¬≠re), has ente¬≠red into a con¬≠di¬≠tio¬≠nal put-and-call opti¬≠on agree¬≠ment to sell and lea¬≠se-back its Sin¬≠ga¬≠po¬≠re faci¬≠li¬≠ty loca¬≠ted at 508 Chai Chee Lane, Sin¬≠ga¬≠po¬≠re 469032 to HSBC Insti¬≠tu¬≠tio¬≠nal Trust Ser¬≠vices (Sin¬≠ga¬≠po¬≠re) Limi¬≠t¬≠ed, in its capa¬≠ci¬≠ty as trus¬≠tee of Saba¬≠na Shari‚Äôah Com¬≠pli¬≠ant Indus¬≠tri¬≠al Real Estate Invest¬≠ment Trust (Saba¬≠na REIT). The tran¬≠sac¬≠tion is expec¬≠ted to gene¬≠ra¬≠te pro¬≠ceeds of appro¬≠xi¬≠m¬≠ate¬≠ly 59 mil¬≠li¬≠on Sin¬≠ga¬≠po¬≠re dol¬≠lars (USD$46 mil¬≠li¬≠on), net of all fees, which will be reflec¬≠ted in AMD‚Äôs third quar¬≠ter 2013 finan¬≠cial state¬≠ments when repor¬≠ted on Oct. 17, 2013. AMD expects to record a gain of appro¬≠xi¬≠m¬≠ate¬≠ly $16 mil¬≠li¬≠on in the third quar¬≠ter of 2013. AMD Sin¬≠ga¬≠po¬≠re will con¬≠ti¬≠nue its ope¬≠ra¬≠ti¬≠ons in a por¬≠ti¬≠on of the Sin¬≠ga¬≠po¬≠re faci¬≠li¬≠ty and has nego¬≠tia¬≠ted a 10-year sub-lea¬≠se agree¬≠ment with Saba¬≠na REIT with exten¬≠si¬≠on opti¬≠ons to con¬≠ti¬≠nue tho¬≠se ope¬≠ra¬≠ti¬≠ons. The sub-lea¬≠se would be effec¬≠ti¬≠ve upon the clo¬≠se of the sale of the property.
Pri¬≠or to tran¬≠sac¬≠tion clo¬≠se, AMD Sin¬≠ga¬≠po¬≠re needs to secu¬≠re final appr¬≠oval from the JTC Cor¬≠po¬≠ra¬≠ti¬≠on (JTC), the Sin¬≠ga¬≠po¬≠re enti¬≠ty tas¬≠ked with mana¬≠ging the country‚Äôs indus¬≠tri¬≠al infra¬≠struc¬≠tu¬≠re. The com¬≠pa¬≠ny anti¬≠ci¬≠pa¬≠tes secu¬≠ring all requi¬≠red appr¬≠ovals from the JTC as part of clo¬≠sing the transaction.
The sale of AMD‚Äôs Sin¬≠ga¬≠po¬≠re faci¬≠li¬≠ty is in kee¬≠ping with AMD‚Äôs stra¬≠tegy to redu¬≠ce invest¬≠ments and capi¬≠tal in non-core parts of the busi¬≠ness, inclu¬≠ding real estate. AMD laun¬≠ched ope¬≠ra¬≠ti¬≠ons in Sin¬≠ga¬≠po¬≠re in 1984 and remains com¬≠mit¬≠ted to the site as a vital part of the company‚Äôs glo¬≠bal ope¬≠ra¬≠ti¬≠ons. In 2012, AMD Sin¬≠ga¬≠po¬≠re com¬≠ple¬≠ted its trans¬≠for¬≠ma¬≠ti¬≠on from a high-volu¬≠me manu¬≠fac¬≠tu¬≠ring site to an engi¬≠nee¬≠ring cen¬≠ter of excel¬≠lence and curr¬≠ent¬≠ly employs appro¬≠xi¬≠m¬≠ate¬≠ly 500 people.
AMD (NYSE: AMD) designs and inte¬≠gra¬≠tes tech¬≠no¬≠lo¬≠gy that powers mil¬≠li¬≠ons of intel¬≠li¬≠gent devices, inclu¬≠ding per¬≠so¬≠nal com¬≠pu¬≠ters, tablets, game con¬≠so¬≠les and cloud ser¬≠vers that defi¬≠ne the new era of sur¬≠round com¬≠pu¬≠ting. AMD solu¬≠ti¬≠ons enable peo¬≠p¬≠le ever¬≠y¬≠whe¬≠re to rea¬≠li¬≠ze the full poten¬≠ti¬≠al of their favo¬≠ri¬≠te devices and appli¬≠ca¬≠ti¬≠ons to push the boun¬≠da¬≠ries of what is pos¬≠si¬≠ble. For more infor¬≠ma¬≠ti¬≠on, visit www.amd.com.
This docu¬≠ment con¬≠ta¬≠ins for¬≠ward-loo¬≠king state¬≠ments con¬≠cer¬≠ning AMD, the con¬≠sum¬≠ma¬≠ti¬≠on of a sale-lea¬≠se¬≠back tran¬≠sac¬≠tion, the expec¬≠ted cash gene¬≠ra¬≠ted from the tran¬≠sac¬≠tion, secu¬≠ring requi¬≠red appr¬≠ovals from the JTC, the expec¬≠ted gain from the tran¬≠sac¬≠tion and AMD‚Äôs stra¬≠tegy to redu¬≠ce invest¬≠ments and capi¬≠tal in non-core parts of the busi¬≠ness, which are made pur¬≠su¬≠ant to the safe har¬≠bor pro¬≠vi¬≠si¬≠ons of the Pri¬≠va¬≠te Secu¬≠ri¬≠ties Liti¬≠ga¬≠ti¬≠on Reform Act of 1995. For¬≠ward-loo¬≠king state¬≠ments are com¬≠mon¬≠ly iden¬≠ti¬≠fied by words such as ‚Äúbelie¬≠ves, ‚Äúexpects,‚ÄĚ ‚Äúmay,‚ÄĚ ‚Äúwill,‚ÄĚ ‚Äúshould,‚ÄĚ ‚Äúseeks,‚ÄĚ ‚Äúintends,‚ÄĚ ‚Äúpro for¬≠ma,‚ÄĚ ‚Äúesti¬≠ma¬≠tes,‚ÄĚ ‚Äúanti¬≠ci¬≠pa¬≠tes,‚ÄĚ ‚Äúplans,‚ÄĚ ‚Äúpro¬≠jects,‚ÄĚ and other terms with simi¬≠lar mea¬≠ning. Inves¬≠tors are cau¬≠tio¬≠ned that the for¬≠ward-loo¬≠king state¬≠ments in this release are based on cur¬≠rent beliefs, assump¬≠ti¬≠ons and expec¬≠ta¬≠ti¬≠ons, speak only as of the date of this release and invol¬≠ve risks and uncer¬≠tain¬≠ties that could cau¬≠se actu¬≠al results to dif¬≠fer mate¬≠ri¬≠al¬≠ly from cur¬≠rent expec¬≠ta¬≠ti¬≠ons. Risks include the pos¬≠si¬≠bi¬≠li¬≠ty that Intel Corp.‚Äôs pri¬≠cing, mar¬≠ke¬≠ting and reba¬≠ting pro¬≠grams, pro¬≠duct bund¬≠ling, stan¬≠dard set¬≠ting, new pro¬≠duct intro¬≠duc¬≠tions or other acti¬≠vi¬≠ties may nega¬≠tively impact the company‚Äôs plans, that the com¬≠pa¬≠ny will requi¬≠re addi¬≠tio¬≠nal fun¬≠ding and may be unable to rai¬≠se suf¬≠fi¬≠ci¬≠ent capi¬≠tal on favorable terms, or at all; that cus¬≠to¬≠mers stop buy¬≠ing the company‚Äôs pro¬≠ducts or mate¬≠ri¬≠al¬≠ly redu¬≠ce their ope¬≠ra¬≠ti¬≠ons or demand for the company‚Äôs pro¬≠ducts; that the com¬≠pa¬≠ny may be unable to deve¬≠lop, launch and ramp new pro¬≠ducts and tech¬≠no¬≠lo¬≠gies in the volu¬≠mes that are requi¬≠red by the mar¬≠ket at matu¬≠re yields on a time¬≠ly basis; that the company‚Äôs third par¬≠ty foundry sup¬≠pli¬≠ers will be unable to tran¬≠si¬≠ti¬≠on the company‚Äôs pro¬≠ducts to advan¬≠ced manu¬≠fac¬≠tu¬≠ring pro¬≠cess tech¬≠no¬≠lo¬≠gies in a time¬≠ly and effec¬≠ti¬≠ve way or to manu¬≠fac¬≠tu¬≠re the company‚Äôs pro¬≠ducts on a time¬≠ly basis in suf¬≠fi¬≠ci¬≠ent quan¬≠ti¬≠ties and using com¬≠pe¬≠ti¬≠ti¬≠ve pro¬≠cess tech¬≠no¬≠lo¬≠gies; that the com¬≠pa¬≠ny will be unable to obtain suf¬≠fi¬≠ci¬≠ent manu¬≠fac¬≠tu¬≠ring capa¬≠ci¬≠ty or com¬≠pon¬≠ents to meet demand for its pro¬≠ducts or will not ful¬≠ly uti¬≠li¬≠ze its pro¬≠jec¬≠ted manu¬≠fac¬≠tu¬≠ring capa¬≠ci¬≠ty needs at GLOBALFOUNDRIES (GF) micro¬≠pro¬≠ces¬≠sor manu¬≠fac¬≠tu¬≠ring faci¬≠li¬≠ties; that the company‚Äôs requi¬≠re¬≠ments for wafers will be less than the fixed num¬≠ber of wafers that it agreed to purcha¬≠se from GF or GF encoun¬≠ters pro¬≠blems that signi¬≠fi¬≠cant¬≠ly redu¬≠ce the num¬≠ber of func¬≠tion¬≠al die it recei¬≠ves from each wafer; that the com¬≠pa¬≠ny is unable to suc¬≠cessful¬≠ly imple¬≠ment its long-term busi¬≠ness stra¬≠tegy; that the com¬≠pa¬≠ny inac¬≠cu¬≠ra¬≠te¬≠ly esti¬≠ma¬≠tes the quan¬≠ti¬≠ty or type of pro¬≠ducts that its cus¬≠to¬≠mers will want in the future or will ulti¬≠m¬≠ate¬≠ly end up purcha¬≠sing, resul¬≠ting in excess or obso¬≠le¬≠te inven¬≠to¬≠ry; that the com¬≠pa¬≠ny is unable to mana¬≠ge the risks rela¬≠ted to the use of its third-par¬≠ty dis¬≠tri¬≠bu¬≠tors and add-in-board (AIB) part¬≠ners or offer the appro¬≠pria¬≠te incen¬≠ti¬≠ves to focus them on the sale of the company‚Äôs pro¬≠ducts; that the com¬≠pa¬≠ny may be unable to main¬≠tain the level of invest¬≠ment in rese¬≠arch and deve¬≠lo¬≠p¬≠ment that is requi¬≠red to remain com¬≠pe¬≠ti¬≠ti¬≠ve; that the¬≠re may be unex¬≠pec¬≠ted varia¬≠ti¬≠ons in mar¬≠ket growth and demand for the company‚Äôs pro¬≠ducts and tech¬≠no¬≠lo¬≠gies in light of the pro¬≠duct mix that it may have available at any par¬≠ti¬≠cu¬≠lar time; that glo¬≠bal busi¬≠ness and eco¬≠no¬≠mic con¬≠di¬≠ti¬≠ons, inclu¬≠ding PC mar¬≠ket con¬≠di¬≠ti¬≠ons, will not impro¬≠ve or will wor¬≠sen; that demand for com¬≠pu¬≠ters will be lower than curr¬≠ent¬≠ly expec¬≠ted; and the effect of poli¬≠ti¬≠cal or eco¬≠no¬≠mic insta¬≠bi¬≠li¬≠ty, dome¬≠sti¬≠cal¬≠ly or inter¬≠na¬≠tio¬≠nal¬≠ly, on the company‚Äôs sales or sup¬≠p¬≠ly chain. Inves¬≠tors are urged to review in detail the risks and uncer¬≠tain¬≠ties in the company‚Äôs Secu¬≠ri¬≠ties and Exch¬≠an¬≠ge Com¬≠mis¬≠si¬≠on filings, inclu¬≠ding but not limi¬≠t¬≠ed to the Quar¬≠ter¬≠ly Report on Form 10‚ÄĎQ for the quar¬≠ter ended June 29, 2013.