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AMD costs for the quarter approached a billion dollars, will there be a profit?

AMD Announces Nearly $ Billion in Second Quarter Costs. To be precise, the amount is 948 million. Doll. It includes expenses of $ 32 million. Doll., related to the decision to fire 10% of employees by the end of the year. The costs will be partially offset by the sale of outdated production equipment for working with 200-mm plates for 190 million. Doll.

880 million. Doll. assessed the loss from the decrease in the value of the company’s assets associated with the low performance of the division that manufactures products for digital TV receivers and handheld devices. This business was acquired as part of ATI Technologies, but did not live up to expectations.

AMD’s cut in securities and subsidiary Spansion (last year, 13.6% of Spansion was owned by Fujitsu, 10.4% by AMD) resulted in additional losses of $ 36 million. Doll. However, the costs, despite their impressive size, are not related to any real payments for AMD.

AMD managed to increase its market share this year; partly due to the release of quad-core desktop processors. However, it is not yet clear whether the company will manage to reach positive balance sheet indicators.

Source: EE Times

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