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AMD to take a further $880 million impairment charge from ATI acquisition

by Scott Bicheno on 11 July 2008, 18:06


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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.

HEXUS Forums :: 1 Comment

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It is a huge drop, however it was artificially(somewhat) raised from around the $5.50 price 2-3 months ago in the first place so itsn't quite as big a drop, though down a long way from last year. Nvidia have pretty much been in steady decline since last Oct or so when IIRC it was at near the $40 mark, dropped till a month ago at $22ish and has gone from $22 to $12 in the last week or so.

Everyones gone down it seems since Sept/Oct of last year quite significantly.