Feeds

ATI exceeds expectations

But warns of tough times ahead

  • alert
  • submit to reddit

Build a business case: developing custom apps

ATI did a little better than its own predictions and analysts' expectations would have led us to believe when it released its Q1 2001 fiscals yesterday.

The graphics chip company made a profit of $11.8 million or five cents a share, above the three cents a share Canadian analysts had anticipated and Wall Street's four cents a share. The quarter, which ended 30 November 2000, saw revenues reach $350.5 million.

Both figures are well down on the year-ago quarter, which recorded revenues of $413.5 million and earnings of $54.5 million (25 cents a share).

That's based on net income - factoring in one-off items, ATI lost $45 million (seven cents a share) in its most recently completed quarter, compared to profits of $53.6 million in Q1 2000. Q1 2001's biggest one-off item related to the company's purchase of ArtX.

It blamed the fall in revenue on tougher competition - step forward, Nvidia - and a shift on the part of European OEMs to integrated graphics products rather than discrete add-in cards.

Looking ahead, ATI warned that the current quarter, due to be completed at the end of February, will generate small revenues still, down to $300 million and, despite the $5 million the company shaved off its costs during Q1 and the three per more it expects to cut in Q2, it will only break even, after adjustments.

ATI expects sales of $1.2-1.3 billion for 2001 as a whole, a little less than 2000's $1.4 billion and well under previous analyst predictions of $1.6 billion.

How ATI performs over the next few quarters will depend on the state of the PC market and thus manufacturer's demand for its graphics parts. And with PC margins falling, vendors will be looking to spend less on components such as graphics chips.

ATI is expected to rev-up its Radeon line during the year, and spring should see the launch of fresh, Radeon-based integrated graphics and North Bridge chip-sets plus system-on-a-chip parts, which should allow it to tackle the low-end PC market more effectively. ®

Related Story

Intel, ATI settle lawsuit with patent exchange

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?