AMD continues to struggle following its acquisition of ATI
Advanced Micro Devices, semiconductor manufacturer based in Sunnyvale California, said today that it would take an impairment charge on the goodwill value of graphics chip-maker ATI Technologies.
Having acquired ATI last year for a fee of $5.4 billion, AMD said in a regulatory filing that the goodwill impairment charge would be material, but could not provide an estimate. It said it would make a further filing once the amount of the charge had been determined.
The impairment charge will add to AMD's already deep financial problems. The company recently reported four straight quarters of losses and has struggled to compete against a new line of products from rival chip-maker Intel. Though analysts expected the acquisition of ATI to prove troublesome in the short term, many are now wondering if the deal will indeed prove beneficial in the long term.
AMD's stock prices continue to fall and analysts will be seeking further details when the company holds its analyst meeting in New York later today.
