logo
Share SHARE
FONT-SIZE Plus   Neg

Reports: AMD Denies Speculation It Is Exploring Options, Including Sale

According to media reports on Tuesday, struggling chip maker Advanced Micro Devices Inc. (AMD) has denied a Reuters report earlier in the day that it is exploring options, including a potential sale of the company. The company's shares declined almost 2 percent in extended trade after gaining 5 percent in the regular trading session.

According to media reports, a spokesman for Advanced Micro Devices said the company is "not actively pursuing a sale of the company or significant assets at this time."

The spokesman reportedly said, "AMD's board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD's highly-differentiated technology assets is the right approach to enhance shareholder value."

Earlier in the day, Reuters reported that AMD has hired JPMorgan Chase & Co. (JPM) to explore options, including a sale of the company. According to the report, an outright sale of the company was not the main option, and other choices include a sale of its portfolio of patents. AMD has a market capitalization of $1.49 billion as of Monday's close.

In mid-October, AMD reported a third-quarter loss as revenues and margins dropped sharply reflecting weak demand for PCs and notebooks, with consumers preference turning to tablets and smartphones amid a weak global economy. The company also announced plans to lay off 15 percent of its global workforce, in an effort to curb its operating expenses.

AMD's revenues for the third quarter plunged 25 percent, struggling as it has been for the past few quarters.

The chip maker's top line is heavily dependent on sales of PCs and notebooks, however soft market conditions coupled with consumers now preferring tablets and smartphones - which uses chips made by other manufacturers- have impacted AMD very much. Worsening global economic conditions, especially in Europe and China have also put pressure on the company's bottom line.

AMD closed Tuesday's regular trading session at $2.09, up $0.10 or 5.03 percent on a volume of 59.97 million shares. However, in after-hours, the stock declined $0.04 or 1.91 percent to $2.05.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Netflix offers a bunch of popular movies, Netflix originals, new TV shows, and documentaries in the month of December 2016, including the second season of the hit sitcom 'Fuller House' and 2016 blockbuster 'Captain America: Civil War', as all are getting ready for the holidays. SpaceX, the space transport company of Tech entrepreneur Elon Musk, is likely to launch its first Falcon 9 rocket since September's launchpad explosion on December 16. SpaceX's satellite launch customer Iridium Communications Inc. announced Thursday that its next-generation global satellite constellation, Iridium NEXT, will be launched on SpaceX's Falcon 9 rocket. Bank holding company Wells Fargo & Co., amid struggles to re-establish itself after the fake-account scandal, on Thursday said it has separated the roles of the Chairman and Chief Executive Officer formally, by amending the company's By-Laws. The amendment is also for the Chairman and Vice Chairman of the Board to be independent directors. The amendments were effective immediately.
comments powered by Disqus
Follow RTT