AMD Takes $880 Million Charge Related To ATI Acquisition
Preceding its Q2 earnings release due this Thursday, AMD today said there will be another big ATI write-down. The company announced in a filing with the Securities and Exchange Commission (SEC) that the goodwill and intangible asset impairment charges will be approximately $880 million.
In December 2007, AMD announced a $1.606 billion non-cash impairment charge as a result of an overestimated value of the company when it was acquired by AMD in 2006.
AMD said it also expects record a restructuring charge of approximately $32 million in the second quarter of 2008 as well as investment impairment charges of approximately $36 million.
On the positive side, AMD was finally able to sell some of its 200 mm production equipment, which is expected to add about $190 million to the Q2 bottom line.
They can't fire Ruiz. They literally cannot afford his severance package. The more he runs AMD into the ground, the longer he stays CEO. Sad process.
Their only hope is that he steps down and takes a board position or some other "sit there and look pretty" position.
AMD was not expecting to negate losses this quarter, where do you get your information?? This will be a couple more years before they are in the black. They will be fine though.