AMD takes an ATI charge
AMD SAID IT it will take a "goodwill impairment charge" over its acquisition of ATI Technologies.
The chip maker revealed the decision, to take charge, taken December 6th, in a SEC filing yesterday.
The firm said it, "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."
Which essentially means AMD thinks it won't make as much money as it thought it might have done when it waded in to buy up the Canadian graphics and chipset specialist in the first place.
This conclusion, it said, "was reached based on the results of an updated long-term financial outlook for the businesses of the former ATI Technologies Inc."
AMD said it didn't yet have much as clue as how how much the charge might amount to.
The firm is due to go cap in hand to see Wall Street analysts tomorrow. µ
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What does that jebrish mean? English please!
I'm still on the fence as to whether the ATI buyout by AMD was a good or bad thing for the consumer. Still, I miss the old ATI. They were Canadian, produced quality products and knew how to make a buck.
What would the sentence "The company does not worth as much as it previously stated" mean to investors?
Canadian? Hardly. The CEO was American, and all of the recent 3D graphics hardware (most notably R300 and XBOX 360) was designed in America.
With the dollar dropping at unprecedented rate and AMD becoming mired in false starts I can see ATI pulling the reins eventually. Just like Time Warner did to AOL and sent it packing. No market synergy here.
We need to get Dirk Meyer back in development of new cpu's and chipsets and find someone with experience to rebuild what current manager has destroyed. Sadly amd is worth less than what they paid for ATI and 

many loyal small shops like myself have go
back to Intel because customers demand quality. 2008 will not be much better than 2007 for AMD. Thank you Inquirer for the great news that you provide.
When company A buys company B for say $100 and the real tangible assets of company B are worth only $75, the $25 is accounted for as goodwill or the earning potential of company B owing to the reputation it enjoys in the marketplace. If later, it is found that the earlier valuation is wrong and the earning potential is actually lower that previously estimated, some of the goodwill needs to be written off as a loss.
The market seems to have quite low expectations for this AMD thing right now. It's a few hundred percent off it's highs from just two years ago. So I'd say this merger has gone about as s&&& as one could expect.
And the three founders were Chinese.
Ok, so since ATi's CEO was American then ATI is an American company.. really? So AMD is a Mexican German company then? It's CEO was born in Mexico and it's main R&D plant is based out of Germany.

Seriously. That has to be one of the most retarded statements I've ever heard.
I remember a few years ago The Economist did a retrospective of tech mergers. They concluded that tech mergers rarely create value for the shareholder. Rather, they mostly serve to enrich the top management of the companies involved. That is certainly the case with the AMD/ATI merger.
Fine. I stipulate that an American CEO does not an American company make. However, I maintain that giving the Canadians credit for designing the parts I mentioned is a long stretch. The design centers for these were all in the US.
AMD blames ATI for it's faith? Be my guest... They obvously are imploding and will die just like an old witch.