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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 Oregonian2 on 12/30/2008 10:57:24 PM , Rating: 2
This didn't occur when Intel pretty much ruled the market.

It was suggested that Pentium 90's would be sold for a grand if AMD went away. Unlike in the olden Pentium 90 days, Apple didn't have the PPC processors available they do now to compete with, nor the associated prices. Such a Pentium 90 sale would NOT now be competing with what they Pentium 90 did in the old days -- it would compete with whatever the best that IBM makes now, and against current pricing made in current IBM production processes.

When was it when Intel charged 1000 times the price/performance ratio of alternative processors as was suggested (to which I responded)? If AMD goes away, Intel will still NOT be the ONLY CPU maker in the world. They would be in the catbird seat in the short term, but they could not abuse it in the way suggested because IBM still makes and uses PPC's, and many other processors (primarily for embedded use) are made by many other manufacturers.

For that matter the VIA CPU that's in some netbooks runs circles around a Pentium 90 and costs maybe ten bucks. That thousand dollar Intel Pentium 90 will outsell the VIA chip?

I don't think so, although whomever "dinged" my posting must think so.

If Intel charged a grand for a Pentium 90 *now*, and that were incorporated into all PC's (and presumably equivalent prices of maybe a hundred grand for what's now a top Intel processor) you don't think a Mac selling for one percent of the price with equivalent performance would start selling REALLY well? Did Apple products ever occur in the past where they had a hundred times the performance/price ratio (in real life, not in ads)? I don't think so.

"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs
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