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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 amanojaku on 12/30/2008 4:51:42 PM , Rating: 2
I think the triple core CPU was one of the most brilliant moves by AMD. They are really defective quad cores. One of the cores is bad, which is common in manufacturing, so AMD has a choice of scrapping the CPUs (waste of money, time, materials, power, man power, etc...) or selling them as a different product. I think AMD is smart to take in any money it can to offset the costs, and maybe even make a profit, too.

Kind of like selling crap as manure.


RE: WRONG
By Darkk on 12/31/2008 1:18:37 AM , Rating: 2
Kinda like what Intel did years ago with the 486 processors for the DX and SX line. SX is exactly the same as the DX with the exception the math co-processor been disabled due to defect found during manufacturing.

Intel made a nice profit from the SX line.


RE: WRONG
By Chocobollz on 1/1/2009 10:18:22 PM , Rating: 2
Yeah, disabling several parts within the CPU is a normal manufacturer's practice so there's no need to be a big fuss over that matter. Even the Pentium Dual Core sold by Intel (like my Pentium Dual Core T2330) is a Merom core which have a defective L2 cache.


"And boy have we patented it!" -- Steve Jobs, Macworld 2007

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