Feeds

AMD takes a $950m hit in Q2

From plucky upstart to just plucked

Beginner's guide to SSL certificates

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. ®

Beginner's guide to SSL certificates

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
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
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.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.