Feeds

Investors braced for weak ATI Q1 results

Outlook for Q2 doesn't look too good either

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Canada's answer to Wall Street has given ATI the thumbs down - at least as far as the 3D graphics company's next-but-one set of quarterly results go.

ATI's Q1 results are due later today, but it is expected to details its forecast for Q2 too, and it's about these that analysts are sceptical, according to Bloomberg.

The problem is the declining PC market. With system sales slowing during ATI's first quarter, which ended 30 November 2000, OEMs will be ordering fewer graphics chips and cards during Q2. And that's clearly bad news for ATI.

And customers may turn to other suppliers. Apple, for one, recently decided to fit Nvidia chips into three of its four pro-oriented desktop machines. Until then it was an all-ATI house. Despite its strong position in the retail market, ATI makes most of its money from selling chips and add-in cards to PC vendors. A fall in sales here will hit it hard.

ATI is expected to announce earnings of three cents a share before one-off items, according to an average calculated by IBES International. This time last year, the company made 25 cents a share. ®

Register blows own trumpet, no. 94

Oh and yes, the patent cross-licensing deal between Intel and ATI that was announced yesterday, was indeed related to the now-defunct Read3D's action against ATI, just as we reckoned in our report (). Intel bought Real3D's patents when the latter collapsed back in October 1999. ®

Related Story

Intel, ATI settle lawsuit with patent exchange

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.