AMD:
Lige så usikker som altid. Måske det var en fejl...dem har man jo lavet nogle stykker af de sidste mange måneder.
Hvor meget værre det mon kan blive. Sikkert meget værre.
AMD takes more charges from ATI acquisition
Analyst says chip maker has now written off more than 50% of purchase price
By Dan Gallagher, MarketWatch
Last update: 10:42 a.m. EDT July 11, 2008Comments: 3SAN FRANCISCO (Marketwatch) -- Shares of Advanced Micro Devices Inc. hit a new low early Friday after the company said it will take nearly $1 billion in charges for the second quarter, mostly due to its acquisition of ATI Technologies two years ago.
In a filing with the Securities and Exchange Commission, the chip maker (AMD:Advanced Micro Devices, Inc
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AMD 4.71, -0.25, -5.1%) also said it will take charges for layoffs and for the impairment of certain short-term investments -- including its investment in flash-memory maker Spansion Inc., a joint venture which spun off into its own company.
Shares of AMD were trading as low as $4.60 Friday morning, down 7% from the previous close and setting a new 52-week low for a stock that has shed more than two-thirds of its value over the past 12 months.
In its filing, the company said an internal audit found that the handheld and DTV reporting units of the Consumer Electronics segment that it acquired from ATI Technologies "have not performed in accordance with the company's expectations." As a result, AMD said it will take a goodwill and intangible asset impairment charge of $880 million for the quarter ended June 28.
AMD acquired ATI Technologies in July of 2006 in a deal valued at $5.4 billion. But the company has struggled to make the expensive deal pay off. The debt from the deal has also weighed the company down as it fights to compete with the much-larger Intel Corp. (INTC:Intel Corporation
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Analyst Brian Piccioni of BMO Capital Markets said in a report Friday that -- with the latest charges -- AMD has effectively now written off more than half of the total ATI purchase price. The company had taken a previous write-down of about $1.5 billion late last year from the merger.
Another past deal is haunting AMD. Spansion was a joint venture of AMD and Fujitsu that makes flash memory chips. The company was spun off as a new public entity in late 2005, but has since fallen on hard times. Its shares have plunged from their $12 initial public offering price to their current level around $2.
AMD said Friday that it will take a $24 million charge for the impairment of its investment in Spansion plus another $12 million in charges for its holdings in auction-rate securities.
In addition, the company said it will take charges of $36 million related to recent restructuring activities, which mostly include severance charges for employees laid off in a cost-cutting program.
Somewhat offsetting the charges will be a gain of about $190 million to the company's gross margins stemming from the sale of chip manufacturing equipment.
