AMD Takes $880 Million Charge Related To ATI Acquisition
Preceding its Q2 earnings release due this Thursday, AMD today said there will be another big ATI write-down. The company announced in a filing with the Securities and Exchange Commission (SEC) that the goodwill and intangible asset impairment charges will be approximately $880 million.
In December 2007, AMD announced a $1.606 billion non-cash impairment charge as a result of an overestimated value of the company when it was acquired by AMD in 2006.
AMD said it also expects record a restructuring charge of approximately $32 million in the second quarter of 2008 as well as investment impairment charges of approximately $36 million.
On the positive side, AMD was finally able to sell some of its 200 mm production equipment, which is expected to add about $190 million to the Q2 bottom line.