AMD seems to be in an increasingly difficult position, with share price reaching the lowest value since 1992. This prompted the company to cut down $880 millions from the value of two divisions of ATI, the company it bought in 2006 for $5.4 billion.

The two divisions that Advanced Micro Devices considers that have not performed as they were expected are the handheld and digital television units of ATI. The two units have had a 31 percent decline in revenues in the first quarter and have cost the company $8 million in losses.

However, AMD still considers that the acquisition of ATI has been a good idea and that the deal will benefit the company over time. The move was made in 2006 as a way for AMD to better compete with rival Intel. Until now, the deal hasn’t worked as planned for AMD, since the company is still behind Intel in sells, and ATI has proved to cost the company more that it thought it would.

The whole idea behind the acquisition was that AMD might find a way to integrate its technology and the one ATI develops on the same chip. This has proved to be difficult until now, but AMD still hopes that the fact that it is the only company on the market to have intellectual property in both technologies is a good thing.

The announcement comes soon after one of the company’s well known clients, the animation studio DreamWorks SKG, said that it will use Intel chips for the devices it plans to create its future 3D animation movies on.