Feeds

AMD takes a $950m hit in Q2

From plucky upstart to just plucked

Remote control for virtualized desktops

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. ®

Remote control for virtualized desktops

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
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.