Feeds

AMD takes a $950m hit in Q2

From plucky upstart to just plucked

Top three mobile application threats

AMD has bitten the write-downs bullet and will take an $880m impairment charge on parts of its ATI Technologies acquisition in its second quarter results.

The struggling chip vendor revealed the massive write-down in an SEC filing today, which also disclosed a series of comparatively small charges which will nevertheless swell its total write-offs for the quarter to the end of June to $948m.

AMD said the $880m charge came on good will and assets associated with the handheld and DTV units of its ATI Consumer Technologies Business, which it said had not performed to expectation. It said the write-offs would not require any actual cash spending.

However, it will be paying out real cash to the workers it is currently getting rid of as it tries to claw its way back to breaking even. The company will take a $32m restructuring charge in the second quarter, which will mainly cover the cost of dumping staff. It expects further costs as it continues to axe workers, but said these will not be material.

At the same time, it will incur “other-than-temporary investment impairment charges” of $36m, including $24m on its investment in Spansion Inc and $12m on its holdings in Auction Rate Securities.

The only good news in today’s filing was that the figures would include a gain on the sale of some of its 200mm wafer fab tools, which will add $190m to its gross margin. Of course, that begs the question: How much would it make by flogging all of its chip making gear altogether?

Either way, the latest filing gave scant reassurance to investors who yesterday were reading headlines saying the firm was fighting for its life. This morning, they pushed AMD’s shares from yesterday’s low of $5 to $4.80. A year ago, they were $16. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.