Vocabulary and Practice of Organizational Finance
The company Advanced Micro Devices, Inc., otherwise known as AMD, has been a well-known company to produce semiconductors with facilities around the world. It incorporated in 1969 and went public in 1972. Since then they have grown into a company worth billions whereas they started with $100,000 alone. They have produced some of the most sought out processors and graphics, video, and multimedia products to date. This company’s products are used extensively from business systems to home use.
In this module, the company’s finances will be examined and explained. AMD’s 2010 annual report on form 10-K will be used to discuss their finances at that time. The 10-K is required by law to be sent into the Securities and Exchange Commission so as investors can make more sound decisions on the companies worth and try to get a glimpse of the company’s future to make better decisions for the investors.
Their presentation of 2010 financial information shows how their worth had increased from 2006 to 2010. Their net revenue had increased from $5.6 billion to $6.4 billion in that timeframe. In that timeframe they had actually increased by $1 billion from 2009 where it had net revenue of $5.4 billion, which was actually a $400 million loss from 2008. This gives credit to the fact that AMD deconsolidated GLOBALFOUNDRIES, Inc. (GF). With this cut, there was an expected loss of course.
This information was known to investors and established more trust in the company for not hiding its loss. This is present since the company bounced back from the loss and made substantial income for 2010. They also had large comprehensive settlements with Intel in late 2009 and again with Samsung in late 2010. These settlements were roughly a $284 million increase in net revenue alone.
GF may have showed as a loss for them early on and probably gave them the radical idea to drop them from their investment totals for 2010 and...