AMD expects write-down for declining value of ATI purchase
Posted by Dennis Sellers 
Dec 12, 2007 at 12:30pm
Advanced Micro Devices (AMD) expects to take a sizable write-down in the fourth quarter for the declining value of intangible assets related to its US$5.4 billion acquisition of graphics chipmaker ATI Technologies, reports CNET.
AMD, in a Securities and Exchange Commission filing, said it doesn’t yet know the exact size of the write-down but expects it to be “material” when it concludes its review. 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, notes CNET. 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, the article adds.
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
