Feeds

AMD braces for financial mayhem from ATI acquisition

In search of life raft

Website security in corporate America

AMD, Intel's on-again, off-again rival, has given another example how it's mostly been off again over the past year, disclosing plans to take a "material" goodwill impairment charge for its $5.6bn acquisition of ATI Technologies.

AMD says it is unable, at least in good faith, to estimate the dollar range of this charge, but based on the language in Wednesday's press release, we're sure it will be, well, material. The conclusion was based on results from its annual "strategic planning" review and goodwill impairment testing.

From the start, savvy analysts recognized the ATI acquisition, which was announced 17 months ago, as fraught with risk. Not only did it threaten to distract AMD from its core competency of making microprocessors, it also offered little opportunity for streamlining manufacturing. Oh, AMD had to borrow $2.5bn to finance the purchase.

Since then, AMD's stock has lost more than half its value as Intel at last regained its footing with last year's release of the Core 2 Duo. AMD hasn't been helped by manufacturing problems that have made Barcelona, the four-core version of its Opteron processor, a scarce commodity. Last month, an investment firm from Abu Dhabi chucked AMD a life line in the form of a stock purchase in the range of $622m.

All of which begs the question: whither AMD?

AMD has said little about its plans for a turnaround, so the rumor mill has stepped in to fill the void. Rumor No. 1 was that CEO Hector Ruiz planned to step down. AMD appears to have quashed that talk in an article published on Tuesday by Reuters. Speculation remains that AMD may outsource manufacturing rather than run its own fabs, but so far the company isn't commenting.

The company has scheduled an analysts' conference for Thursday in New York. With serious concerns about cashflow, buggy products, manufacturing plans and the wisdom of an acquisition that 17 months ago AMD swore was central to its future viability, there's no shortage of topics to talk about. We can hardly wait. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.