AMD Expects Sizable Write-Down For ATi

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In a Securities and Exchange Commission filing, AMD said it doesn't know the size of the write-down for its declining value of the ATI purchase saying only that it would be "substantial."

The chipmaker said it's planning to write off the value it assigned to the ATI acquisition that was above the actual value of ATI's assets, otherwise known as "goodwill" in accounting jargon. That's because AMD has since found the value of these intangible assets has declined since it recorded the ATI acquisition on its books last year.
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Who gets to say how much the value has declined? They could potentially negate a ton of liabilities this way but how do they make sure it's legit? I've always wondered how that "goodwill" stuff is appreciated. I only took some intro accounting courses and nearly all of it was gibberish to me but this part especially.
 
Ouch.

The between-the-lines of that release said, "Be prepared for our stock to tumble."

OUCH.
 
Goodwill is essentially things that you cannot easily put monetary value on. For example, the quality of the employees, the teamwork, the workmanship, ect. Basically they are saying that they way overvalued all that :eek:
 
i love amd... and i love ati...

but i have seen an bad trend and i hope it stops soon...

amd is releasing out of date products, late. they need to catchup or release something new/groundbreaking before they fall further behind.

blaming it on poor sales, or ati's shortcomings is not going to solve the fact that their new cpus are slower then we hoped and that they are re-selling old vid cards under a new name (although cheaper).

what happened to z-cache (super cache) that was suppose to enhance performance?
what happened to multi-core vgas rather then thinking sli is what the average person will have?

why do they have no support for physics processing... make a mini onboard cheap or mb chip... that would be nice

i just think they are pushing old tech... rather then releasing something fresh. i fear that they have no future plans from ati in the vc world... or they will release a faster version of hte last gen cards... and then make motherboards with 4x sli slots saying its as fast as 1 nvidia card.. that would be retarded.

i just miss their innovation... where has it gone? what happend to widespread 64bit support? could they not invest a million dollars in top 20 most popular titles... to encourage 64bit optimizations... who knows... its better then releasing 3core cpu thats a barrily faster then my 2core cpu.
 
i kinda love ati for the work theyve done on the hardware part, man thats good compared to the nvidia cards ive had, they cant compare, cause of every nvidia card ive had have been fucked up either at arrival or a week after ive gotten it.

Im very pleased with my 2900 XT, YES ITS OVERCLOCKED LIKE SHIT, watercooled and such, makes the money worth it.

other than that, the 2900 xt was a shit ass card except for linux GAMING only though.

they arrived with 3850 and 3870, the 3850 isnt just half the price of a good 8800 GT, it performs really well, who would think a so cheap card can do 1900x1200 resolution and max settings in UT3 ?.

The hd3870 is alot cheaper than the 8800 GT over here in norway, which makes it a good deal, if it had been in stock though, we get crazy big shipments of 3850's over here, and they sell really well.

I like amd, but not the phenom, at the time being, the 45 Watt dualcore is really well for SFF builds, the amd7 series aswell are really well, but i still aint seing no phenom thats worth anything for a user that plays games, and want a overclocking cpu, or anything like that.

Amd, give me a cpu i can buy thats worth the bucks.

I love ati's cf though, tried out dual 2900 XT oc'd, smashed games quite hard :|
 
They're spreading themselves too thin, IMHO. In the old days they just focused on beating Intel in the CPU race. Now they have much much more to do.
 
Hi,

To me it sounds like " ...Crap we just paid too freakin' much for this company and it is an albatross to us. Our accounts said we could write the whole thing off as goodwill to save face. Maybe we can restructure things to become competitive again..."

Personally, I didn't know what to think about them [AMD] buying ATI there might have been something shown in which peaked the interests of AMD saying we should jump on it. However, in the end those prospects might have "disappeared" after the buy and it came close to a fraud like position. This might be AMD's way of trying to save face knowing they just lost valuable time and resources to develop a new processor line.

As a loyal AMD buyer for many years starting with the K6-2 (first home/ custom built machine I owned. A computer shop let me help build it), I changed my buying position to Intel this past Summer due to the fact none of the AMD tech was worth buying. I am very satisfied with my Intel purchase in the C2D line of CPUs. I do hope AMD comes up with some extraordinary to make my purchasing decision come back to thier line of CPUs. I was not disappointed before just with the current line up. It seems many people have the same position that I have.

Later,
shaggy
 
shaggy77 said:
Hi,

To me it sounds like " ...Crap we just paid too freakin' much for this company and it is an albatross to us. Our accounts said we could write the whole thing off as goodwill to save face. Maybe we can restructure things to become competitive again..."
Click to expand...

hehe, to me that sounds an awful lot like buyer's remorse :p
 
ATi was worth nearly 2/3 the amount of AMD when they "purchased" them. They totally overextended themselves. Both companies needed to wait a few years and continue staying on top of their direct competitors.
 
That or ATI was better at vc and AMD was better at mb/cpus....
maybe they got rid of the wrong people when they compiled dbs? lol
 
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