AMD Projects Impairment Charge Due to Weak Graphics, Multimedia Business Performance.

SRTDodge05 · 12-12-2007, 08:53 PM

Just one day ahead of its meeting with financial analysts Advanced Micro Devices said that the value it paid for graphics and multimedia chip designer ATI Technologies last year was too high and the actual revenues the company gets and will be able to obtain from its graphics and multimedia businesses are below expectations.
AMD: ATI Is Guilty of Everything

According to a statement with the U.S. Security and Exchange Commission (SEC), AMD concluded that the current carrying value of its goodwill which it had recorded as a result of its October 2006 acquisition of ATI Technologies was impaired. The write down will allow AMD to easily explain financial analysts why its current market capitalization ($4.97 billion at press time) is below the price of ATI it paid last year as well as poor financial results and losses with problems that allegedly existed at ATI before the merge.

X-bit labs - AMD Projects Impairment Charge Due to Weak Graphics, Multimedia Business Performance.

**Sandog** · 12-13-2007, 10:01 AM

I still feel AMD bought ATI as a way of diverting attention to Conroe. I expected AMD to have an answer waiting for Conroe as they indeed knew what was coming even though they acted in denial. Now it appears it was even more of a hipshot to buy ATI. They paid way more than it was worth, they had to know where ATI stood against NVidia at the time, and they knew that buying ATI would kill off Intels use of ATI's chipsets. AMD got caught with its pants down and went shopping with a credit card. Will Fusion ever materialize as a working product? Will it be superior, cheaper, or perform faster than contemporary products? Will there even be desktop PC's anymore when this chip materializes? AMD will need to sell 5.4B dollars worth of ATI video cards and chipsets to pay this off.

**Sandog** · 12-13-2007, 10:38 AM

IMO after AMD rubbed salt in Intels wounds, Intel went to the gym like Rocky. They took a good look at themselves and changed everything they were doing to do it better. Now Intel stays focused on the competition more. I doubt AMD will come out with anything that Intel will not have a direct and quick answer for. Even if that answer has little merit or won't provide a lucrative business. Take SkullTrail vs. QuadFather for example. The same will happen with Fusion. Is Intel copying? Maybe but who cares. I don't complain when AMD copies either. They are taking care of business. Intel is resolved to stay ahead of the competition. It is much easier to stay ahead when the coffers are being filled than to have to come from behind and Intel knows this. (justmy2centsandacupofcoffee).

12-12-2007, 08:53 PM	#1
SRTDodge05 Grab Life By The Balls Join Date: Jan 2003 Location: Michigan Posts: 7,835	AMD Projects Impairment Charge Due to Weak Graphics, Multimedia Business Performance. Just one day ahead of its meeting with financial analysts Advanced Micro Devices said that the value it paid for graphics and multimedia chip designer ATI Technologies last year was too high and the actual revenues the company gets and will be able to obtain from its graphics and multimedia businesses are below expectations. AMD: ATI Is Guilty of Everything According to a statement with the U.S. Security and Exchange Commission (SEC), AMD concluded that the current carrying value of its goodwill which it had recorded as a result of its October 2006 acquisition of ATI Technologies was impaired. The write down will allow AMD to easily explain financial analysts why its current market capitalization ($4.97 billion at press time) is below the price of ATI it paid last year as well as poor financial results and losses with problems that allegedly existed at ATI before the merge. X-bit labs - AMD Projects Impairment Charge Due to Weak Graphics, Multimedia Business Performance.
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12-13-2007, 10:01 AM	#2
Sandog Moderator Join Date: May 2003 Posts: 6,688	Re: AMD Projects Impairment Charge Due to Weak Graphics, Multimedia Business Performa I still feel AMD bought ATI as a way of diverting attention to Conroe. I expected AMD to have an answer waiting for Conroe as they indeed knew what was coming even though they acted in denial. Now it appears it was even more of a hipshot to buy ATI. They paid way more than it was worth, they had to know where ATI stood against NVidia at the time, and they knew that buying ATI would kill off Intels use of ATI's chipsets. AMD got caught with its pants down and went shopping with a credit card. Will Fusion ever materialize as a working product? Will it be superior, cheaper, or perform faster than contemporary products? Will there even be desktop PC's anymore when this chip materializes? AMD will need to sell 5.4B dollars worth of ATI video cards and chipsets to pay this off.
(Offline)

12-13-2007, 10:38 AM	#3
Sandog Moderator Join Date: May 2003 Posts: 6,688	Re: AMD Projects Impairment Charge Due to Weak Graphics, Multimedia Business Performa IMO after AMD rubbed salt in Intels wounds, Intel went to the gym like Rocky. They took a good look at themselves and changed everything they were doing to do it better. Now Intel stays focused on the competition more. I doubt AMD will come out with anything that Intel will not have a direct and quick answer for. Even if that answer has little merit or won't provide a lucrative business. Take SkullTrail vs. QuadFather for example. The same will happen with Fusion. Is Intel copying? Maybe but who cares. I don't complain when AMD copies either. They are taking care of business. Intel is resolved to stay ahead of the competition. It is much easier to stay ahead when the coffers are being filled than to have to come from behind and Intel knows this. (justmy2centsandacupofcoffee).
(Offline)

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