There aren’t many positive to say about the situation at AMD, no Barcelona chips are shipping and the economy is far from stable. The economical bit might improve now though as it is trying to write down the value of the goodwill of the ATI purchase. Of the 5.6 billion USD AMD paid for ATI, 3.2 billion was labeled goodwill, which is an estimated value of the intangible assets, such as the influence of the company or even the morale of the employees. Anything that can boost the sales. AMD now claims that it simply overpaid for ATI and that the value should be written down.
“AMD has lost $1.6 billion through September, though sales continue to pick up. Analysts will be looking for more details about the company’s financial outlook when AMD holds its financial analyst day Thursday in New York.”
We will have to wait and see how the Securities and Exchange Commission handles AMD’s request, but it’s pretty clear that acquisition of ATI has been troublesome, which is also what most analysts said it would be even before the deal.
