ATI Q4 earnings... when?

[Geeforcer]

We are in the second week of October - does anyone know when their Q4 earnings are going to come out?

 

[Geo]

I'm guessing maybe never. The old stockholders won't care anymore, and there may be no responsibility to the new stockholders to report for a period prior to the sale.

The stockholder meeting is tomorrow, btw, at 9am ET, and apparently will be webcast.

But if they haven't scheduled an earnings report Conf Con for 4Q yet --and they haven't-- then it seems highly unlikely that they are going to.

 

[Geeforcer]

I'm guessing maybe never. The old stockholders won't care anymore, and there may be no responsibility to the new stockholders to report for a period prior to the sale.

The stockholder meeting is tomorrow, btw, at 9am ET, and apparently will be webcast.

But if they haven't scheduled an earnings report Conf Con for 4Q yet --and they haven't-- then it seems highly unlikely that they are going to.

If I were an AMD stockholder, I would have probably liked to take a look at those numbers before voting on it tomorrow.

 

[Geo]

AMD stockholders aren't voting on it. Just ATI ones, and their price per share is fixed by the deal.

Edit: Assuming ATI's shareholders approve the sale tomorrow, then possibly there might be some q&a on ATI's recent results on the AMD call on Oct 18th at 2:30pm PT.

 

[Geeforcer]

My bad - I managed to mix up which stockholders vote for what tomorrow. Still, I presume AMD shareholders as well as SEC would want to know that as some point.

 

[Geo]

Re the SEC, I'm not sure what the law would be. What's the statutory requirement and the time-limit? If a company goes out of existance before hitting the statutory requirement, does that have some impact on the legal situation? I'd think it would.

I'm not saying AMD shareholders wouldn't want to know --I'm just not sure that they are going to get it in the detail that they would have if ATI had done it themselves. I'd think the analysts on AMD's call on the 18th will be digging into it.

 

[Maintank]

I would imagine they still have to be stated because people buying AMD will be looking at what kind of drag or push this acquisition will bring to the company.

 

[Geeforcer]

So... yeah. We are in the third week of October - the quarter has been over for a while. There are no earnings or even a faintest hint at when we might see them. Which brings up the next question - have/will AMD shareholders vote(ed) on the proposal?

 

[Dave Baumann]

AMD shareholders don't vote, only ATI shareholds and that has already happened.

 

[Geo]

Did anybody listen to the AMD call on Wednesday, and did it contain any ATI info? I guess I'm going to have to start doing that.

The deal is supposed to be final, final, final this week (i.e. everybody gets paid out). AMD shareholders could have, I suppose, forced an emergency board meeting and raised hell, but apparently there weren't enough inclined to do so.

Edit:

As previously mentioned, we are not providing any guidance today that includes ATI operations. We look forward to providing you with additional financial details for the combined company at our December 14th analyst day in New York. At the time, we will provide fourth-quarter acquisition charges and 2007 guidance. We look forward to seeing you there. Now, I will turn it over to Hector.

 

[3dcgi]

To expand on why AMD shareholders don't get to vote: it's because this is mostly a cash deal. AFAIK shareholders only get to vote when their stock is involved.

 

[Geeforcer]

Looking at the marketshare numbers, the chances are very good ATI will be a drag on AMDs results this quarter.

 

[Geeforcer]

So, are there any indications regarding how former ATI units are performing financially?

 

[Geo]

Almost-not-quite the entire quarter fell under "AMD", so I'd think the next AMD results call that the analysts will dig after that kind of thing. Tho I don't think we'll ever get it in the kind of detail we did when ATI was standalone.

 

[Geeforcer]

AMD made a point to exclude ATI from yesterday's warning, which to me sounds like the numbers for graphics devision would be pretty bad. I think we can expect negative EPS for the combined company, with margins in the low-40s.

 

[Jawed]

AMD made a point to exclude ATI from yesterday's warning, which to me sounds like the numbers for graphics devision would be pretty bad. I think we can expect negative EPS for the combined company, with margins in the low-40s.

Yeah, it's interesting that AMD has an "excuse" for lowered margins in that ATI historically has had much lower margins. But it seems unlikely the analysts won't have a field day with this, therefore the "truth" will out.

Jawed

 

[Geo]

Conf con is on the forum calendar, so I imagine we'll find out then.

 

[Geeforcer]

While there is no reason to suggest right now that the merger was a mistake (and regardless what happens, it looks like a win for ATI shareholders), nothing that happened since the acquisition so far has sway me from the notion that AMD has overpaid for ATI. I know we had this conversation a few months ago - since then, nothing took place that would have helped ATI's stock had it still been an independent company, and unless it would have behaved significantly different had it still been independent, I think it could have been had for a billion+ less then what AMD paid.

 

[Geo]

"overpay" suggests that they could have gotten it for less. Given it was a cooperative buyout (i.e. ATI management embraced the deal and helped sell it), rather than a hostile (which would have had a great many more costs associated with it), then what makes you think so? You'd have to get past that first hurdle --getting ATI management's blessing. ATI was not a commodity you could pick up at 7-11. And I still think its pretty silly to judge a $5B deal on the first 3 months, particularly one like this where it's going to have significant longterm tech fallout. We're probably looking at mid-2009 before we can judge the success or failure of this deal fully.

 

[Razor1]

On a side note AMD's profits went down the toilet this quarter, AMD has issues profit warnings.

http://www.forbes.com/2007/01/12/ad...ity-cx_jl_0112markets10.html?partner=yahootix