AMD To Take Nearly $1B Hit For Q2
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.