AMD Projects Impairment Charge Due to Weak Graphics

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.

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.

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Amd is a great company. Never been a fan of Ati and saw it as a mistake for them to buy them. Then I got my laptop with the Ati chipset and vga. It has been doing alright, but my 6800gt still kicks butt. I know, desktop graphics and onboard laptop are not even close, but my point being that I've loved Nvidia and Amd, will continue to do so. I'm here for you Amd, make some good quad cores!!

I think it's about time AMD stopped playing the name game ie: 2.0GHz x64 x2 performs like it was an I'lltell 3.8GHz to me thats always been a load of ********. Its about time they matched them clock for clock and stop ***** footing around, just imagine the sh@t storm that'd create for i'lltell more work being done at the same clock speed 3.8GHz c2d versus 3.8GHz AMD x64 x2 is something i'd like to see. maybe then we'd see a fairer comparison. ATI are another big sob story AMD should never have bought them out shure partner up but dont get married till you know all the dirty little secrets in the closet i think had they not been bought out they would be doing a hell of a lot better than they are now and who knows they may get the driver issues ironed out and crossfire will begin to scream like a cut cat but until they do i'm seriously thinking about nVidia as my next gpu and not about CF on my ATI CFxpress 3200 board...

Just because a company isn't the fastest doesn't make them a bad company. As long as their products are priced lower to make up for it.

I'm not in any competition to beat someone elses benchmarks. I could really care less.

It was a case of AMD wanting to "artificially inflate" the worth of ATI.. it happens all the time.. pay over the odd for somehing and the market usually falls into line and accepts that as it's true worth.. It's just that for some unknown reason it didn't work this time, that what the analysts are REALLY questioning, not AMD's loses.

Ok so how much are they in debt? Someone please give me a number?

If it's anything below 1 billion, I would just give them the money (if I was Bill Gates).

Turbonium said,
Ok so how much are they in debt? Someone please give me a number?

If it's anything below 1 billion, I would just give them the money (if I was Bill Gates).

AMD's debt was just announced a week ago, unfortunately I can't find the link for the time being.

The number was 5.5 billion $.

My last graphics card was an ATI 9800 Pro and was considered a "top-of-the-line" card when I got it. Too bad it was full of bugs and problems.

1. DVI output was always flaky. I couldn't rely on it. Anytime I got a duel monitor setup going, something would freak out and the DVI connection would stop recognizing a monitor connected to it.
2. VGA output started to be flaky (after 3 years).
3. 3d graphics started going crazy (after 2 years).
4. 2d graphics started going crazy (after 3 years).
5. Linux driver support from ATI has always been **** poor.
6. Drivers from ATI never worked in Windows Vista for me. Always gave me an error message about not having compatible hardware or something. Had to use the pre-installed microsoft one.
7. Graphics card finally got to the point of not being usable. Screwy textures in 3d, misplaced pixels in 2d. Unplugging the card from the AGP port and re-installed would clear up for about an hour and then problems came back.

When the card worked, the graphics and performance were top-notch. Maybe I just got a bad card. I called ATi about it and they said I could send it back and have them repair it.... but considering I didn't want to go weeks without my computer working and I could get the card to work if I fiddled with it I never sent it to them. I might try now that I have a new nVidia graphics card and can afford to go without it.

Always have had good luck with AMD processors and will continue to consider them when I upgrade my machine. Don't think I'll ever buy an ATi Graphics Card again though....

I had one too, it lasted less than two weeks. I've had a lot of ATI cards, many of them had problems with the dinky little fans dying but the 9800 was the first card that just up and died on me completely (I checked the fan and it still worked so I'm not sure what happened). I'm still using an ATI card though, I guess I just got unlucky with that one. The way things are going this will probably be my last though.

AMD had a vision of having a processor with graphics processing capabilities. It would appear that they bought ATI to further that vision. The finished products with these capabilities is the whole "Fusion" processor, which has mutliple cores (the "Bulldozer" cores). For specialized processors, some of the cores are either replaced with specialized cores, or the Bulldozers are able to take on specialized roles - I can't remember which. Either way, the concept sounds intriguing, and I'm very much looking forward to seeing what such a system will be capable of. Let's just hope AMD sticks around long enough to release it.

I really wouldn't want that personally, I know I upgrade my graphics card far more often than my processor. With this idea you'd have to upgrade both every time. You'd also have less choice; maybe I want an AMD processor with an NVIDIA graphics chip for example. I just don't like the idea at all.

TRC said,
I really wouldn't want that personally, I know I upgrade my graphics card far more often than my processor. With this idea you'd have to upgrade both every time. You'd also have less choice; maybe I want an AMD processor with an NVIDIA graphics chip for example. I just don't like the idea at all.

I don't think that's how it's gonna be. Remember the story posted on the front page a while back, talking about how some dude setup his 8800 to crack codes? It did it in WAY less time than a regular CPU. What I think AMD is going to do, is employ a GPU in the CPU dye to assist in number crunching and things of that nature. You'll still have a graphics card. Maybe.

RAID 0 said,

I don't think that's how it's gonna be. Remember the story posted on the front page a while back, talking about how some dude setup his 8800 to crack codes? It did it in WAY less time than a regular CPU. What I think AMD is going to do, is employ a GPU in the CPU dye to assist in number crunching and things of that nature. You'll still have a graphics card. Maybe.

NO, one chip would have meant one part controlling two factors, the previous post was right.

I hated the idea also for the exact same reasons..

amd bought ati in a bad position, i mean with toshiba and dell getting amd chips instead of being intel exclusive they should increased their marketplace.

Getting ati its a bad choice and they are paying for it....

TRC said,
I predict AMD will soon file for bankruptcy or be bought out.

Bought out by nvidia, employees consolidated, ati dies.

It could happen. :nuts:

ReLapse said,

Bought out by nvidia, employees consolidated, ati dies.

It could happen. :nuts: :laugh:


That would be terrible news for us consumers. Without the competition, there would have been no 8800GT or a 9 series coming early next year.

Yeah, not sure why anyone would be happy about it. Even if you hate ATI it would be foolish to want them to go under. With no competition Nvidia's prices would go up and innovation would slow to a crawl.

They do need to step it up. Isnt intel planning on moving the memory controller onto the cpu also and planning on their own better gpu or gpu on the cpu? Amd really has to come up with a killer processor or gpu and quick.

Yes, it's supposed to be coming when Intel releases Nehalem in 2008. I can't wait to see what that baby can do!
I really don't think AMD is going to have an answer to Nehalem. Along with the integrated memory controller, they plan to re-introduce Hyper Threading. Rumor says it's going to be 4-8 cores, with HT. AMD better come up with something, and fast.

i still want a phenom, and am looking very seriously at a 3870 too.

What AMD would be wise to do, in my opinion, would be to carry on positioning themselves as the budget leader. IOntel chips may be faster, but for £160 with a current AM2 rig and X2 inside, my best option still, is a Phenom upgrade rather than buying a whole new intel based system. May not be the fastest, but then the same amount of money only gets me a Q6600, which are only marginally faster. Up to the consumer, but hopefully people will see through all this, and buy what is best fo rtheir budget and requirements.

Me, as a gamer but never highest end, the Athlon X2 and Nvidia 7900GS was the best way to go for my money just over a year ago, and i belive that a phenom and either a 3870 or a 8800GT will still be the cheapest upgrade for this system. AMD still has some money to make out of me yet.

graigchq said,
i still want a phenom, and am looking very seriously at a 3870 too.

What AMD would be wise to do, in my opinion, would be to carry on positioning themselves as the budget leader. IOntel chips may be faster, but for £160 with a current AM2 rig and X2 inside, my best option still, is a Phenom upgrade rather than buying a whole new intel based system. May not be the fastest, but then the same amount of money only gets me a Q6600, which are only marginally faster. Up to the consumer, but hopefully people will see through all this, and buy what is best fo rtheir budget and requirements.

Me, as a gamer but never highest end, the Athlon X2 and Nvidia 7900GS was the best way to go for my money just over a year ago, and i belive that a phenom and either a 3870 or a 8800GT will still be the cheapest upgrade for this system. AMD still has some money to make out of me yet.

3870 isnt a bad card
yes its slower..but its also cheaper..its proportional imo
only reason i didnt go with it on my crossfire board was cause..there are endless issues with SLI/Crossfire in vista and it wudd abeen easer in future to just get a new card if i ever needed to upgrade

I, like many others, used to be a big AMD fan. When I got my Athlon 64, they were the best chips on the market by far and Intel had no excuse.
But that's just it, were the A64's really all that great, or was it just because the P4's sucked so much? I get the feeling it's the latter and AMD just got lucky, or AMD just got sloppy. Or both.

AMD's latest efforts have been appalling. I wanted them to pull it back, I wanted them to put up the fight that they'd been giving intel for years, but in the space of a couple of months they lost ALL of the marketshare they'd gained in the previous year. Then they went and bought ATI.
2 or 3 years ago if someone had told me that AMD was going to lose so much value in it's own company in such a short period of time, I'd have said "yeah right, they'd have to really **** something up to do that". I guess they did.

used to be an AMD/ATI fan for a while
my current system is using x1950pro 512 and 4800+x2
my system im getting later today(yay) is a E6850 with a geforce 8800 ultra...after tons of research etc
the benchmarks and the prices speak for them selves..ati/amd maybe cheaper..but they arent the bang for the buck nor are htey gonna last me as a gamer very long

that sux ... but they should have seen the trend ati was going ... they were unable to keep up ... was just a matter of time .... than again ... who knows ... might rebound or maybe they could be another voodoo which i astill have one and is rock solid ...