Theo Valich from TG Daily writes AMD spit rumors are accelerating and heard from industry sources that this event is only weeks away. TG Daily speculated AMD might split into a chip development firm led by new CEO Dirk Meyer and a manufacturing arm were Hector Ruiz might find a new job as CEO.
Officially, there is virtually no clear information on the announcement and the direction of Asset Light/Smart provided by AMD. In the company’s Q2 earnings call, chief financial officer Bob Rivet stated the announcement will not be a 2009 event and that the company will announce it “as soon as [AMD] can get it down which is what Hector [Ruiz] is focused on.”
Ruiz told Tim Luke, an analyst with Lehman Brothers, that the company has made “enormous progress” with Asset Smart and hopes that it will be able provide details about the deal “before the end of the year.” Apparently, the company was able to remove any roadblocks that could have prevented a deal and will not have to raise additional capital – such as from the sale of manufacturing equipment. Rivet also stated that Asset Smart will not be a requirement for AMD’s break even goal – which, however, leaves out the general belief that hitting a break even point is a requirement for Asset Smart. At this point, AMD still says that it will “achieve that break even and actually make money in the back half of this year,” according to Rivet.