PC and server chip maker Advanced Micro Devices didn't do as badly as expected in the first quarter, with revenues only down 1.7 per cent to $1.59bn. But the red ink was deeper than usual in the wake of its restructuring of its relationship with fab partner GlobalFoundries, which cost AMD a $703m writeoff in the quarter. And …
No bleeding at all, really
AMD chose to buy out their exclusive APU/CPU production contract with GloFo at a cost of ~$800 M. They didn't have to do this but it was a wake-up call for GloFo and a strategic move that will benefit AMD and GloFo. Without the buy-out AMD actually made ~$200 M profit which ain't bad considering all the re-organization costs and the acquisition of SeaMicro which will net benefits almost immediately and help AMD grow their server Biz significantly.
Poor title for story
This is a pretty disingenuous title for a financial story.