Feeds

AMD takes a $950m hit in Q2

From plucky upstart to just plucked

Choosing a cloud hosting partner with confidence

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.