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Analyzing AMD's Presentation of Their Financial Information

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What does AMD's presentation of their financial information tell you about how they use financial information to inform investors? AMD is using their financial information to inform investors about the possible opportunities and challenges for the firm. This is designed to provide them with further guidance about future results (based upon non GAAP standards). When this happens, investors and analysts can make more informed decisions as to how these factors will impact earnings. ("2011 Annual Report," 2011) Evidence of this can be seen in the annual report. Inside this document, AMD disclosed how they were facing challenges and flat revenue growth. Yet, they also have the opportunity to increase these numbers from the Graphics and APU units with the CEO saying, "We executed well to our financial goals in 2011, and renewed our operational efficiency efforts implementing several initiatives to help reduce costs, streamline processes and speed time to market. While revenue was largely flat year-over-year, solid improvements in non-GAAP adjusted free cash flow allowed us to strategically reduce our debt by more than $200 million in principal value and strengthen our balance sheet. Further, we delivered non-GAAP net income in every quarter. We believe that consistent operational and financial performance will strengthen our ability to strategically invest in the areas of our business that will provide sustainable returns over the long-term. We shipped more

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