Advanced Micro Devices announced Friday it will take an $880 million impairment charge for the second quarter related to the Handheld and DTV units of its Consumer Electronics Group (CEG). Several more charges were included in a Friday 8-K filing by Sunnyvale, Calif.-based AMD with the Securities & Exchange Commission that bring the total of additional charges the chip maker will take for Q2 to just under $1 billion.
In addition to the $880 million in goodwill and intangible asset impairment charges related to formerly ATI-held portions of AMD's CEG, the company will also take a restructuring charge of $32 million related primarily to employee severance payments from downsizing which began in the second quarter, $24 million in investment impairment charges related to AMD's ownership of Spansion stock and $12 million to do with the chip maker's Auction Rate Securities holdings.
AMD acquired graphics chip maker ATI in 2006 for $5.4 billion.
AMD also offered a more positive preview of its second-quarter earnings call, scheduled for July 17 at market close. The company said it "expects to recognize a gain in connection with sales of certain 200mm wafer fabrication tools" which AMD predicted would have a favorable impact on Q2 gross margin to the tune of $190 million.
|
Five Companies That Dropped The Ball This Week For the week ending Feb. 10, CRN looks at five companies that were either asleep at the wheel or just didn't make good decisions. |
|
Five Companies That Came To Win This Week For the week ending Feb. 10, CRN looks at five companies that brought their 'A' game and made moves to beat out competitors |
|
10 Challenges That HP Wants Partners To Tackle Right Now CRN speaks with HP's business unit chiefs to get a sense of where they'd like partners to focus in the coming year, as well as how CEO Meg Whitman is making a difference. |
 More
Slide Shows |
