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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  • techtalk
    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.
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  • sandmanwn
    CEO fired
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