Advertisement

HindustanTimes Wed,23 Jul 2014

AMD selling Texas campus to raise cash

PTI  Houston, December 03, 2012
First Published: 16:48 IST(3/12/2012) | Last Updated: 16:50 IST(3/12/2012)
Advanced Micro Devices (AMD) Inc is putting up for sale its Austin, Texas campus to raise cash, which analysts say is a positive move for the chip giant.
    


AMD said it will sell and lease back its 58-acre Austin, Texas campus for USD 150 million to USD 200 million. It hopes to close the deal in the second quarter of 2013.
    
AMD has struggled with a weakening PC market, aggravated by an uncertain economy.
    
Early this week, Chief Executive Rory Read said AMD is wrapping up a "perfect storm" of a year, with a "choppy" business environment anticipated in 2013.
    
Problems arose mainly due to the introduction of mobile gadgets like the smartphone and tablet, PCs have seen a strong decline in sales.
     
"I think it’s a smart move," Williams Financial analyst Cody Acree said noting that AMD has to make investments as it faces "a secular decline in the PC space".
     
Evercore Partners analyst Patrick Wang said in a note that the move is "but a temporary fix," adding: "The quick cash fix would help alleviate management’s current cash crunch over the next two to three quarters."
    
AMD is currently looking to sneak into other markets. In late October, the chip maker announced it was making 64-bit ARM processors for multiple markets. It's starting with its Piledriver Opteron 6300 Series, which will replace the Bulldozer-equipped Opteron 6200 Series.

Advertisement
more from Business

Rupee rises 15 paise vs dollar to end at over 1-week high

The rupee on Wednesday appreciated by 15 paise to close at over one-week high of 60.09 against the American unit following bullish local equities and sustained capital inflows, extending gains for the second straight day.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved