"John Lewis" wrote in message
...
| Here is the text of the latest AMD 8-K filing with the SEC:-
|
| "Item 2.06 Material Impairments
|
| On December 6, 2007, Advanced Micro Devices, Inc. (theCompany)
| concluded that the current carrying value of its goodwill which the
| Company had recorded as a result of its October 2006 acquisition of
| ATI Technologies Inc. was impaired. This conclusion was reached based
| on the results of an updated long-term financial outlook for the
| businesses of the former ATI Technologies Inc. as part of the
| Company's strategic planning cycle conducted annually during the
| Company's fourth quarter and based on the preliminary findings of the
| Company's annual goodwill impairment testing that commenced in the
| beginning of October 2007.
|
| The Company expects that the impairment charge will be material, but
| the Company has determined that, as of the time of this filing, it is
| unable in good faith to make a determination of an estimate of the
| amount or range of amounts of the impairment charge. The Company will
| file an amended report on Form 8-K/A under this Item 2.06 promptly and
| in any event within 4 business days after it makes a determination of
| such an estimate or range of estimates. "
|
| ==================================
| Finally AMD has publicly admitted its blunder in offering too much for
| ATi... The offer for ATi shares was 20% premium over market - a share
| price of $20 for a stock that had been hovering in the doldrums
| between $12 and $16 for the previous year. The real blunder was buying
| them at all on several $biillion borrowed money. It has
| catastrophically diverted AMDs attention from its core business. Core
| 2 had started shipping and garnering rave reviews a month before the
| stockholder's meeting to finally ratify the purchase, so AMD could see
| the lion's gaping mouth and had the opportunity to back out of the
| deal. Seems as if Hector's ego got the better of common-sense.
|
| AMD stock price has slumped to $8.64 this morning. AMD share price
| at the time of the ATi acquisition was ~ $25.
|
| Dave Orton must be giggling all the way to the bank.
|
| 2008 will be a very interesting make-or-break year for AMD.
|

It was a calculated risk, which they are hoping to cash in on starting in
2008. Intel was beating them in the multi-core race - even if AMD's
approach was technically better, it's usually fist to market wins. So AMD
needed another avenue to pursue along with the CPU battle. If and when they
can get a fully integrated CPU/GPU system put together, they could quickly
come to dominate many of the mobile applications out there, which was one of
the less talked about but major reason for the acquisition in the first
place. Considering that the mobile market is one of the fastest growing
tech sectors, AMD basically put a whole bunch of eggs into one basket. If
they can come through with the CPU and GPU on one die combination, the
increased optimization and massive power savings would throw them into a
leading position in the mobile computing business...

As you said, 2008 will definitely be a nail-biter for many... I'm
personally hoping AMD pulls through, the competition keeps Intel on their
toes and off the "jack up prices just cause we can" parade.

CoinSpin