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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: Reality 101
By StevoLincolnite on 12/30/2008 10:36:13 PM , Rating: 2
It was never a clear-cut leader back in the older days, Cyrix was a great cheap processor, however it had stupidly bad floating point performance.

AMD's K6 was a great and cheap alternative to the Pentium 2 and early Pentium 3 Katmai's but it's Floating point wasn't up to Intel standards at the time.

Enter the K7 which completely pummeled Intel Pentium 3 Katmai, and Pentium 2's and fixed the floating point performance issues.

However the Athlon quickly lost ground when Intel introduced the Coppermine with it's on-die L2 cache giving it a massive advantage.

Then AMD decided to do add an On-Die L2 Cache to the Athlon around the 800mhz mark, which gave it a massive advantage over the coppermine.
At this point AMD and Intel were in an arms race to reach 1ghz.

The Duron wiped the floor with the Celeron, during this time there seemed to be a new processor released every week, and prices were dropping like flies.

Then Enter the Tualatin, a test chip if you will for a new die shrink which added a larger L2 cache and other goodies, It was very competitive to the Athlon at the time, and it gave the Celeron the needed juice to compete against the Duron.

Unfortunately the Tualatin was short lived and Intel launched the Willamette which was out-performed not only by it's older Tualatin and some of the Higher-end Coppermine chips but by the Duron and the Athlon as well, coupled with the expensive RDRAM and the Athlon was the shining night that everyone needed.

AMD pretty much remained on top, until Intel hit around the 2.8ghz area with the Northwoods, then the Athlons just didn't seem to scale all that well in-comparison to the Pentium 4.

Then AMD released a massive Hammer, the Athlon 64 which pummeled Intel and made AMD the leader in performance for many years.

So yes AMD had superior CPU's but that "Superiority" was never constant.

I remember the early Athlons and how people complained about the heat they produced... If only we knew what the Prescott would bring...

“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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