Raining on the parade
In a filing with the Securities and Exchange Commission (SEC) today, AMD announced that it has “performed an interim impairment analysis of its goodwill and intangible assets associated with its Handheld and DTV reporting units of the Consumer Electronics segment that it acquired from ATI Technologies.”
The analysis concluded that “The Company’s estimate is that the goodwill and intangible asset impairment charges will be approximately $880 million.” These charges will be included in the financial statements for the quarter ended 28th June 2008, which are scheduled to be announced next Thursday, 17th July.
On top of that, it will take a $32 million charge related to its restructuring – specifically paying off people it made redundant in the last quarter. It expects to complete the restructuring by the end of fiscal 2008.
It will also take a $36 million charge on its investment in two companies: $24 million of it from Spansion and $12 million from Auction Rate Securities.
Set against all that is the sale of “certain 200mm wafer fabrication tools” that AMD expects to yield $190 million.
AMD’s shares are currently trading at around $4.70. On 17th June they were trading at $7.72.
