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AMD takes an additional $70 million in restructuring charges

AMD and ATI have not enjoyed the success the two firms envisioned when AMD bought the graphics firm in 2006. AMD is hurting due to the global economy and announced this week that it will take an additional restructuring charge related to the $5.4 billion is spent to purchase ATI.

AMD says that it also laid off 100 more employees than it had originally announced bringing the total laid off over the quarter to 600.

As a result of the additional layoffs, AMD is recording $70 million in restructuring charges rather than the $50 million in charges it has expected. The chipmaker also says that the new cost reduction would result in additional charges though the first half of 2009, though the firm did not specify what the additional charges would be.

EWeek reports that AMD will take an additional goodwill impairment charge related to the ATI purchase from 2006. AMD says that the charge is based on an updated, long-term financial outlook. This isn’t the first impairment charge AMD has taken in relation to the ATI purchase, in June of 2006 AMD took a charge totaling $800 million. AMD will also take a $20 million impairment charge on an investment in flash maker Spansion.

AMD announced in early December that it was cutting revenue forecasts by 25%.



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RE: WRONG
By StoveMeister on 12/30/2008 3:00:30 PM , Rating: 3
Crappy? I don't think so. Mid-range (which is where the majority of sales are) Intel and AMD are pretty even (see Anand's low-mid range PC systems review). High end belongs to Intel at present, but hey, who (except hard core technophiles and FPS-happy gamers) buys bleeding edge?
IMO a lot of this is AMD still working through staffing and economy issues post spinning off their fabs, and still some (as reported) issues post-merger.
The line about cutting revenue forecasts, now that's due to the economy.
PS- while I don't own a triple-core, I'd really like one. To my mind at present (and for the next year or two) it makes way more sense than quad or more. 99% of the software we use regularly has truble with two cores fer crissake


RE: WRONG
By just4U on 12/31/2008 10:57:59 AM , Rating: 2
I own a PhenomX3 and Core2Quad based system and they are comparable at stock speeds. People would be hard pressed to notice a difference at all. The 8650 is priced in and around the C2D 7700 so it's a decent deal.


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