EETimes reports that the company is selling its iconic Lonestar campus in Austin, which currently provides room for about 2,000 employees. AMD expects to sell the property to a commercial real estate investor for about $150 to $200 million and leverage "favorable economic conditions in the Austin Southwest office submarket". AMD is not planning on moving out, but wants to sign a multi-year leaseback agreement.
Even the greatest real estate prices are little incentive for a company with a lot of cash on hand to sell their offices. However, these kind of agreements occasionally come in handy to provide extra cash, which AMD will need in the first quarter of next year. AMD just refinanced a $485 million payment required to pay off debt from a $1.5 billion convertible senior notes offering in August of 2007, but it cannot refinance a $225 million payment that is due to be paid to Globalfoundries in Q1 2013. The proceeds from the Austin campus sale should be able to cover that obligation almost entirely.
AMD's cash reserves stood at $1.30 billion at the end of September, down from $1.77 billion at the end of 2011. AMD previously stressed that it will preserve its cash supply if the economic situation will have a greater impact on its business than anticipated.
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Hopefully this cash grab can sustain them through their restructure and into growth. At least they aren't firing everyone in Austin.
It's not because Intel bribes OEMs into not to launch AMD products
It's not because Intel coerces the tech media into creating this ridiculous perception that AMD CPUs are "slow"
It's not because they've had to make hard business decisions because of the revenue losses from items #1 and #2
Remember, it's just because they are "slow"
I currently use a AMD 955, a twin socket Xeon X5680, and a mobile i5. I really don't notice a "slow" aspect on my AMD machine. Honestly, the i5 feels the fastest due to the SSD. The Xeon feels the most sluggish, I think it is has a crap hard drive. I also own a core 2 duo from '06 and it is slow as dirt, doesn't even compare to my old X4 9950.
My desktops (gaming rigs) have always been AMD and my notebooks have always been Intel and I have to say they have both been great. I would although, never recommend the old AMD turion(w/e spelling), my wife's notebook gets so hot!