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
Dairy giant Saputo Inc. is voluntarily recalling certain Gouda cheese products in the U.S. due to potential listeria contamination. Saputo said one of its suppliers, Deutsch Kase Haus, LLC of Middlebury, Indiana, notified the company that some specialty Gouda cheese products that it supplied to Saputo's Green Bay, Wisconsin facility may have been contaminated with Listeria monocytogenes. Amazon is exploring the possibility of using parachutes to drop drone-delivered packages. The e-commerce giant has been granted a patent titled, "Maneuvering a package following in-flight release from an unmanned aerial vehicle". U.S. food maker Kraft Heinz Co. (KHC) Friday confirmed that it has made a comprehensive proposal to Anglo-Dutch consumer goods company Unilever Plc or Unilever NV. The cash and stock offer values $143 billion. Further, Kraft Heinz noted that Unilever has declined the proposal, however it go ahead...
comments powered by Disqus
Follow RTT