AMD invests $264 m in a JV with Fujitsu

CIOL Bureau
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SAN FRANCISCO: Advanced Micro Devices Inc.'s cost to acquire a stake in FASL LLC, a computer memory chip joint venture with Fujitsu Ltd., is $264 million, the company said in a filing with securities regulators.

That figure includes mostly non-cash assets, including a fabrication plant, and a small amount of cash, an AMD spokesman said.

AMD also loaned FASL $120 million, the Sunnyvale, California-based company, said in its quarterly filing with the U.S. Securities and Exchange Commission.

AMD owns 60 percent and Fujitsu owns 40 percent of the joint venture, which was formed to supply flash memory for cell phones and personal computers.

AMD also reported in the filing that its capital expenses for the fourth quarter are expected to be $192 million. For the full year, the company expects to spend about $600 million for capital expenditures.

AMD President and Chief Executive Hector Ruiz told analysts last week that he expects higher sales of both microprocessors and flash memory in the fourth quarter as consumer spending and corporate investment improve.

He also said he doesn't expect the company to lose money in the quarter, but declined to give any specific guidance.

Analysts, on average, expect the company to post fourth-quarter income of 3 cents a share, within a range of a loss of 3 cents to a profit of 10 cents, on revenue of $1 billion.