AMD to Recognize Q1’11 $492M Non-Cash Gain from Globalfoundries Investment

Advanced Micro Devices, Inc. (AMD) said on Sunday it would record a $492 million, noncash gain in the first quarter, related to the dilution of its equity interest in Globalfoundries Inc, a company which AMD jointly created in early 2009 along with Advanced Technology Investment Co.

According to a statement released from the co., the non-cash gain has to do with a change in accounting for AMD’s investment in, and contribution to, Globalfoundries Inc.

Separately, the U.S. chipmaker, announced the amendment of a wafer-supply agreement with Globalfoundries [GF]. The primary purpose of the amendment was to revise and fix the pricing methodology applicable to wafers delivered this year for AMD’s microprocessor and accelerated processing unit, APU, products. AMD said it will pay a quarterly amount to Globalfoundries in 2012, if the supplier meets availability conditions.

AMD expects to pay the supplier about $1.1 billion to $1.5 billion in 2011, and $1.5 billion to $1.9 billion in fiscal 2012, for wafer purchases under the amended agreement. In 2010, AMD paid GF approximately $1.2 billion for wafer purchases.

AMD closed at $8.37 p/sh on Friday.

1 Comment on AMD to Recognize Q1’11 $492M Non-Cash Gain from Globalfoundries Investment

  1. Investors should be wary of Intel’s monopolistic bribes and threats.

    Through recent antitrust litigation, internal documents from Intel and computer manufacturers show that Intel engaged in a worldwide, secret scheme to control AMD’s market share.

    Intel bribed and threatened Dell with 6-BILLION DOLLARS or financial damage – to ensure that Dell would not make or sell AMD products.

    Intel bribed/threatened HP with “hundreds of millions” of dollars in exchange for keeping AMD’s market share (from HP) under 5%.

    Intel bribed and threated IBM with 130-MILLION dollar bribe (and threat) to scuttle the launch of an AMD product line.

    Intel did a lot more than this. It is all listed in the NY AG’s Intel Complaint – publicly available via Google search.

    Intel is a truly corrupt monopolist. Investors in AMD should beware.

Leave a Reply

Your email address will not be published.


*