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.
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Doah!
AMD wants to come back with the excellent graphics cards its producing and knocking off Nvidia, but all these charges are going to hurt even more and more. This was the quarter when AMD was expected to comeback negate the losses.
CEO fired
CEO fired
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.
there is another hope... he gets hit by lightning like 200 times.... that might help? no severance then. :-p
FIRED!
AMD wants to come back with the excellent graphics cards Video card its producing and knocking off Nvidia, but all these charges are going to hurt even more and more. This was the quarter when AMD was expected to comeback negate the losses.
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.
While their graphics cards are looking better at the moment, this is a very recent development and will not really have much effect on this quarter. Also, their CPU sales are still not looking very good. If they can increase their CPU revenues and maintain a lead in the graphics market they should be able to have a better second half of the year (though still recording a loss).