Corporate Governance Committee. I'd like to call this meeting to order and welcome you to AMD's annual meeting of stockholders. I'd also like to welcome stockholders attending our virtual meeting, which is streaming live online. We want to make our meeting as accessible as possible to our shareholders, and we're pleased to give all of you the opportunity to vote or ask questions, either here in person or via the internet. I'd like to introduce to you the other board committee chairs who are here with me today. Please stand when I call your name. Mr. John E. Caldwell, chairman of the Compensation Committee. Mr. Nicholas M. Donofrio, chair of the Innovation and Technology Committee, and Dr. W. Michael Barnes, chair of the Audit and Finance Committee. Mike, stay standing.
Before continuing, I want to recognize Dr. Barnes, who after having served on AMD's board since 2003, chose not to stand for re-election this year. I'd like to thank Mike for his service, his dedication to AMD's board for the past 12 years. Thanks, Mike. I'd also like to introduce our president and chief executive officer, Dr. Lisa Su, our senior vice president and chief financial officer, Mr. Devinder Kumar, and our senior vice president, general counsel and secretary, Mr. Harry Wolin. This morning, we'll first take care of the formal business of the meeting, then Dr. Su will give her report. We'll also provide time for any questions you might have of our directors and officers. In addition, representative of Ernst & Young, our independent auditors, are available for questions.
The meeting is now called to order, and as chairman, I designate Mr. Harry Wolin as secretary of the meeting. Mr. Wolin will now conduct the formal portion of the meeting. Mr. Wolin?
Good morning. As set forth in the notice of the meeting, the official business to be conducted is as follows. First, to elect the 11 director nominees named in the proxy statement. Second, to ratify the appointment of our independent registered public accounting firm for the current fiscal year. Third, to approve the amendment and restatement of Advanced Micro Devices Inc. 2004 Equity Incentive Plan. Fourth, to approve on a non-binding advisory basis the compensation of our named executive officers. Finally, to transact any other business that may properly come before this meeting. Following formal business of the meeting, the meeting will be concluded and Dr. Su will deliver her report as president and chief executive officer of the company. A stockholder question and answer session will follow her report.
I would like to point out that management may be making forward-looking statements about the company's current plans and expectations. Actual results may differ materially from current plans and expectations. I encourage you to view our SEC filings where we discuss the risks inherent to our business. You will find particularly detailed discussions in our annual report on Form 10-K for the period ended December 27th, 2014. Please note that non-GAAP financial measures referenced during Dr. Su's report are reconciled to their most directly comparable GAAP financial measures in the slide deck. Finally, please hold your questions until after Dr. Su's report. Now, returning to the business of the meeting. I've been authorized by the board of directors to appoint Mr. William Marsh of IVS Associates as inspector of elections for the meeting.
Mr. Marsh will determine the number of shares represented at the meeting, the validity of proxies, the existence of a quorum, and the number of votes on all matters voted upon at this meeting. Before we proceed further, is there anyone present who is represented by proxy, who wishes to withdraw his or her proxy, or who otherwise desires to vote in person at this meeting? Any online participants who wish to vote at this meeting should also do so now by clicking the Vote Here button. The board of directors fixed the close of business on March 2nd, 2015, as the record date for determination of stockholders entitled to notice of this meeting and entitled to vote at this meeting.
I have a list of stockholders of the company from Computershare, our transfer agent, showing approximately 777,736,008 shares outstanding on the record date and entitled to vote at this meeting. The list has been kept at our headquarters in Sunnyvale, California for the last 10 days and is available here at the meeting for inspection by any stockholder. I also have an affidavit certifying that proxy materials for this meeting were first mailed on March 18th, 2015, to all stockholders of record on March 2nd, 2015. The affidavit is available for inspection at the registration desk by any stockholder who may wish to see it after the meeting.
The count immediately before the commencement of this meeting of shares present in person or by proxy indicated that 601,186,983 shares of the company's voting stock were present, representing 77.29% of the outstanding shares of common stock as of March 2nd, 2015. Based on this number, a quorum is present. I now declare the polls open. I expect polls to close in approximately 10 minutes. A copy of the minutes of the annual meeting of stockholders of Advanced Micro Devices held on May 8, 2014, is at the registration desk for inspection by any stockholder who wishes to inspect it. We will dispense with the reading of those minutes this morning. The election of directors is the first item on the agenda. The slate of directors recommended by the board of directors is described in the 2015 proxy statement.
The 11 individuals that have been nominated for election are Mr. John E. Caldwell, Mr. Henry W.K. Chow, Mr. Bruce L. Claflin, Ms. Nora M. Denzel, Mr. Nicholas M. Donofrio, Mr. Martin L. Edelman, Mr. John R. Harding, Mr. Joseph A. Householder, Mr. Michael J. Inglis, Dr. Lisa T. Su, and Mr. Ahmed Yahia. The board of directors unanimously amends that you vote for the election of each of these directors. AMD has adopted a majority voting standard for the election of directors with respect to uncontested elections such as this one. The standard requires each director to receive a majority of votes cast to be elected. I now declare the nominations closed. The second item is a ratification of the appointment of Ernst & Young as independent registered public accounting firm for the company for the current year.
The vote required to approve this proposal is the affirmative vote of a majority of shares of common stock entitled to vote and represented in person or by proxy at this meeting. The board of directors unanimously recommends for ratification. The third item is to approve the amendment and restatement of Advanced Micro Devices, Inc. 2004 Equity Incentive Plan to amend the existing plan to increase the number of shares authorized for issuance under the 2004 plan by 20 million shares, increase the limits on the number of authorized shares that may be awarded to a service provider in a calendar year or during his or her initial 12 months of service, and require a one-year minimum vesting period for awards granted under the 2004 plan, subject to limited exceptions.
The vote required to approve this proposal is the affirmative vote of a majority of the shares of common stock entitled to vote and represented in person or by proxy at the meeting. The board of directors unanimously recommends that you vote for this amendment and restatement. The fourth item is to approve on a non-binding advisory basis the compensation of our named executive officers as disclosed in the 2015 proxy statement pursuant to the compensation disclosure rules of the Securities and Exchange Commission. The vote required to approve this proposal on a non-binding advisory basis is the affirmative vote of a majority of the shares of common stock entitled to vote and represented in person or by proxy at this meeting. The board of directors unanimously recommends that you vote for this approval.
I now direct the Inspector of Elections to conduct the voting of the items now before the meeting. The shares of any stockholder who has filed a proxy will be voted by the proxy holders in the manner specified on the proxy form. If there is anyone present who has not filed a proxy and wishes to do so, please do that now. If there is anyone present who wishes to withdraw his or her proxy and vote personally by ballot, please see Mr. Marsh at the back of the room. Any online participants who wish to vote at this meeting should also do so now by clicking the Vote Here button. It is now 10:11 A.M. Eastern Time, and I now declare the polls to be closed. Mr. Marsh, can you please present the report of the Inspector of Elections?
Yes, Mr. Wolin. I am pleased to announce that each of the nominees for director has been elected by the affirmative vote of a majority of votes cast, and the appointment of Ernst & Young as the company's independent registered public accounting firm has been ratified by the affirmative vote of a majority of the shares of common stock entitled to vote and represented in person or by proxy at the meeting. The proposal regarding the Advanced Micro Devices, Inc. 2004 amended and restated Equity Incentive Plan passed by the affirmative vote of a majority of the shares of common stock entitled to vote and represented in person or by proxy at this meeting.
The proposal concerning the advisory vote on the compensation of named executive officers passed by the affirmative vote of a majority of the shares of common stock entitled to vote and represented in person or by proxy at this meeting. If there are any stockholders interested in the vote tallies on specific items, you may see me after the meeting for the results.
Thank you, Mr. Marsh. The report of the Inspector of Elections will be on file for inspection by stockholders. On behalf of Mr. Claflin, the formal portion of the meeting is concluded. At this time, we'll show a brief video followed by remarks from AMD's President and Chief Executive Officer, Dr. Lisa T. Su.
We're dreamers, innovators, pioneers. Together, we are AMD. AMD. AMD. What we do is much bigger than technology. We're driven to make our industry a better place. We envision the future users want and turn those dreams into reality. We're bold, imaginative, unconstrained by convention. It's in our DNA. Together, we pioneer technology that frees people to push the limits of what is possible, because we believe that when you give people the freedom to innovate today, amazing things will happen tomorrow. At AMD, we design, we integrate, and we innovate. We do this every day, and you make it happen. We are AMD. Enabling today, inspiring tomorrow.
Good morning, and thank you all for attending our shareholder meeting, both in person and online. I'm deeply honored to be here today as it's my first shareholder meeting as AMD's President and CEO. What I'd like to do is give you a little bit of a report on where we are as a company, our accomplishments in 2014, our focus in 2015, and then we will be happy to take questions from the audience, both online and in person. To start, let me just get our. Maybe we can get the slides. There we go. To start, as you saw in the video, AMD really is a company of rich heritage and innovation. What we see here is we have a history of 45 years of always being on the leading edge of technology, and that is something that we're very proud of.
If you think of the highest points for AMD, it's when we put out the latest generation technology, as we were the first to a gigahertz processor, a first for dual-core x86 processors, a first as we looked at bringing industry's first quad-core technology to market, and then most recently with our wins in the game consoles. This is the heritage that we have, and it's what we will continue to work towards as we go over the next five years. Moving forward to where our business is today, we have reshaped our business in a significant way over the past couple of years. We have now really organized the business in two complementary business segments. The first business segment is our Computing and Graphics business.
Our Computing and Graphics business has historically serviced the PC portion of the market, and we have desktop and notebook processors, chipsets, discrete graphics, as well as professional graphics in this segment of the market. Our new segment is our Enterprise, Embedded, and Semi-Custom business. This is a business that we're quite proud of in terms of our growth over the past several years. It is a set of newer markets for us and markets that we believe will sustain growth going forward. These include our server processors, embedded processors, our semi-custom SOCs, which include those products that go into game consoles, as well as engineering services and royalties. The idea that AMD can form deep customer engagements where we can actually be co-engineering with customers is one of the key areas where we can differentiate ourselves and has helped us with these key customer relationships.
Now, a few of the highlights for each of the businesses. In the Computing and Graphics segment, our focus has been on leading generation APU technology that combines our computing and graphics capability onto both single chips as well as in discrete chips. What we have seen in 2014 is that we've made progress in this segment. We've increased our mobile average selling prices in these devices as well as our revenue, and we have a richer mix of higher-end products, which means that our products are going into more sophisticated systems as they move forward. We've also successfully doubled our commercial design wins, and when you look at the history of AMD in the computing segment, we've been primarily in the lower end of the consumer devices, and by increasing our commercial design wins, we will increase the balance of our business.
We've also grown our professional graphics revenue by over 20%, the marquee design win there is one that we have with Apple in terms of their Mac Pro devices, which are very sophisticated engineering workstations. Much of our work in this area has also been to rightsize our investments to ensure that the R&D and the overall investments in this segment are coincident with where we think the market is going as we move forward. In the enterprise, embedded, and semi-custom segment, we have seen very substantial growth. In 2014, we actually grew this business by over 50% to a $2.4 billion business. In particular, this was highlighted by the Sony and Microsoft game consoles, which doubled their units annually.
We've also increased our embedded processor revenue, which has been substantial, and added really a different set of customers to AMD's customer set, including customers like Airbus, Arista, Boeing, and QNAP to broaden our overall portfolio. We will continue to drive this segment going forward as it's a large piece of our growth over the next several years. If you look at the progress overall, you'll see that when we looked at our revenue in 2012, comparing our computing and graphics business to our enterprise embedded and semi-custom business, we were over 90% in computing and graphics in 2012. Over the last several years, we've successfully diversified the business so that ending 2014, we were about 60/40, as we go towards the end of 2015 into 2016, we believe that mix will be around 50/50 going forward.
This is right on track with where we expect it to be for this revenue diversification. Moving on to 2015. We reported our first quarter financial results several weeks ago, the first quarter of 2015 did start off slow. There were several factors for this. Some were macroeconomic factors, particularly with some of the weaker currencies. There were also several market-related factors relative to the PC market being slower than expected in the first quarter of 2015. As a result, our financial results were revenue of $1.03 billion, and we showed a non-GAAP net income loss. This is certainly something that we would not like to do, we will continue to work on some of the strategic areas to improve our profitability going forward. These include reducing our AMD downstream channel inventory.
We certainly made progress on that in the first quarter of 2015, we will continue to do that as we go through the second quarter of 2015. We also made a strategic decision to exit the server systems business. This was part of our SeaMicro acquisition several years ago. This was upon looking at our overall portfolio, where we believed that we would get the most benefit in terms of our both core competencies and our investment dollars for future growth. We are very focused on ensuring that we are putting enough R&D investment into the key growth areas for us, those include x86 and ARM server and enterprise products that we believe will drive future growth going forward. Our 2015 focus are in several areas.
We will be doing a very comprehensive view of our long-term strategy next week, actually here in New York at our Financial Analyst Day. I'll be very brief on these focus items, but there are a couple of areas. First of all, placing the PC business on a healthy trajectory is obviously important for us. We do expect the second half of 2015 to be stronger than the first half of 2015, given normal seasonal trends. We will continue to drive our higher mix into our business. These are things like our FX products and our PRO products that go into the commercial business. In terms of a strong product portfolio, we're getting ready to launch several new products in the coming weeks. We're excited about those product launches, and you'll be hearing more about them as those launch.
Of course, investing in building next-generation products at our core to ensure that we continue the innovation going forward. With that, I'll conclude my presentation and say, from a long-term standpoint, there's no question that AMD is a technology company. We're focused on sustaining our innovation pipeline and our leadership in these areas to ensure that we're delivering long-term revenue and profitability growth. In terms of the areas that we are focused on as a company and when I started as CEO, where I would like our employees to focus, it's really very simple in getting back to the basics of running a technology company. Without a doubt, building great products is our number one priority. We have 6,000 engineers within AMD, and they are all focused on ensuring that happens. It's very rewarding to work with them actually, in terms of their progress there.
Diving deeper customer relationships is also important for us, moving our business from less of a transactional focus into more of a strategic focus with our customers. We are at our best when we're innovating with our customers. We have shown tremendous value when we do that, and we'll continue to do that going forward. Finally, simplifying our business. We are, from one sense of word, a company who has a 45-year history. This is our opportunity to also remake the next number of years for us by simplifying our overall operations. With that concludes my presentation. Thank you very much for your attention. We'll now take questions. We have members of the board, officers of the company, and Ernst & Young, our independent auditors. We'll also be happy to respond to any questions, whether they are here in the room or they're submitted online. Questions?
If you would be an investor, would you buy AMD today? Tell me why?
Thank you for that question. I'm sorry, did we need him to repeat? Sure. Just with the microphone. Excuse us. Just with the microphone.
If you would be an investor, would you buy AMD today, why?
Well, I think that's a great question, I think I am an investor. All of us are investors. The reason to buy AMD is really we have a tremendous set of technology and IP assets that are very, very unique in the industry. With that capability and where the industry is going, we can use those assets to drive shareholder value. When I talk about that, I mean it in a very broad sense. The semiconductor industry is one that is driving many of the things that are changing the way we live every day. If you think about everything that's happened over the last 20 years with semiconductor innovation, there's very strong capabilities that will be delivered over the next 5 to 10 years in that innovation.
In terms of high-performance processors, graphics and visualization technology, our ability to integrate that, I think our assets are quite unique. What we need to do with those assets is put them over higher growth market segments. That is the transition that we're making as a company. That's why I believe investors should invest in AMD, that is the roadmap that we're laying out for the next three to five years.
Thank you.
Thank you.
How has corporate culture changed since you took over as CEO?
It's a great question, and it's one that has surprised me a little bit in the sense that the corporate culture does change. You would think with a company that's 10,000 people, it would change slowly, but I think it actually changes relatively quickly. I think the focus on our products and the focus on our customers has changed substantially. When I talk about product focus, what I mean is more than a piece of hardware, but it's how we deliver the full end-user experience to our customers. Actually, I'll tell you a little story.
For our AMD executive team, we have a monthly operations meeting. One of the things that I did in my first month as CEO was insist that we spend a lot of time actually hands-on with our products at the senior executive level, because it gives us an opportunity to give tremendous feedback to the team while they're developing the products. That's a key piece of the culture. I think the other piece is from an engineering standpoint, we're here to build things and ensuring that we remove all of the barriers on what it takes to build things is what I'm focused on.
Lisa, we have some questions coming in online.
Okay.
Just while the rest of the room is thinking about some more questions. You point to 2015 being sort of some near-term challenges, and one of our holders would like to know what kind of product launches that you also referenced do you have coming this year that will help address some of those challenges? Is there any incremental details you can provide?
Yeah. As I mentioned, we will be giving a fairly detailed product update next week at our Financial Analyst Day. In terms of the key products for 2015, we will be launching Carrizo, our sixth-generation APU. We believe this is the strongest mobile processor, certainly from our lineup, but competes very well with Broadwell, and we will be showing some head-to-head demos around how that works. We will also be launching next-generation graphics technology, and that will significantly improve our lineup across the board in our graphics, both OEM as well as channel business. We'll also be launching Seattle, which is our Opteron-based, ARM-based server chip as well, and that will go into production this year.
Great. We have another one online in terms of recognizing how the team has reprofiled debt to be further out than previously. Cash has declined more recently, and is that something we should be concerned about as shareholders? Do you expect that trend to continue?
Yeah, I'll make a comment, and then I'll also ask Devinder, our CFO, to comment as well. Clearly, our overall cash balance is an important metric for us as we go forward. I think we've done a very good job over the past several years in terms of both cash management as well as reprofiling the debt. That will continue to be a focus as we go through the next several quarters to ensure that it is not a concern. Devinder?
Elena, you might pass Devinder the mic.
Yeah. I think from a cash standpoint, as Lisa said, if you go back and look at the last several years, we've managed the cash well within the optimal range between $900 million and $1 billion. The other thing we have done specifically is as we had the 2013 and 2014 timeframe, we reprofiled the debt. We have no significant near-term debt maturities. In fact, May 1st, we pay off $42 million of the convertible note that's left over. If you look at the debt profile structure all the way until 2019, there is no term debt maturities, and that should help us very much in terms of managing our cash from a long-term standpoint.
Thank you. Are there any other questions in the room? If not, Grace.
I was wondering if you could comment on your ARM server development.
Yes. The ARM server development is our chip codename Seattle. That started sampling last year, actually the first half of last year, and it has been widely deployed in software vendors as well as OEMs and system partners. We have gotten a lot of feedback on the ARM server development. Some of it has been very positive in the sense of how quickly we were able to bring up operating systems and applications on ARM-based servers. We've also gotten some feedback on some areas that we've needed to improve, and so those are on the next generation, and those will launch into production in the second half of 2015.
Any other questions from the floor? Okay, Lisa, that completes the question and answer session, and I'll hand it back to you to close.
Very good. Well, again, thank you very much for attending our annual shareholders meetings. As I started, it's really an honor to be here, and I look forward to many years and sharing our progress with you each year. Thank you.