Breaking News
FONT-SIZE Plus   Neg
Share SHARE

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

RELATED NEWS
Trade AMD now with 

According to media reports on Tuesday, struggling chip maker Advanced Micro Devices Inc. (AMD: Quote) 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.

Register
To receive FREE breaking news email alerts for Advanced Micro Devices Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Beverages giant Coca-Cola Co. reported Tuesday a profit for the third quarter that decreased 14 percent from last year, despite higher worldwide volumes, reflecting a revenue drop. Adjusted earnings per share matched analysts' expectations, even as quarterly revenues missed their estimates. Following the announcement, the company's shares are trading more than five percent lower in early deals. Apple Inc. said Monday that its fourth quarter profit rose 13% from last year, driven by strong sales of its iPhones and Mac computers. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly sales. At the same time, the company gave an upbeat revenue forecast for the current quarter, which includes the all important holiday season. Programmable chipmaker Xilinx Inc. (XLNX) said Thursday after the markets closed that its second quarter profit rose 21% from last year, helped by higher revenue and better cost control. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue....
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.