Feeds

Hercules waves the ATI flag

Guillemot loses interest in Nvidia?

  • alert
  • submit to reddit

Hercules, the graphic retail board sub of Guillemot, is to mainline on ATI chips for high-end products. It has won exclusive European retail and distribution channel rights to ATI's latest ALL-In-Wonder products.

Which beggars the question: what does this mean for Guillemot's relationship with Nvidia, the supplier of graphics chips to Hercules' current high-end offerings and ATI's arch-rival.

At the very least, it is a warning shot from a major customer across Nvidia's bows. Today's deal with ATI marks a "strategic shift for Hercules to meet the expectations of both the digital generation and the most demanding gamers," Claude Guillemot, President of Hercules Technologies, says in a statement.

He reckons that ATI delivers "the most advanced technology for both 3D gaming and digital PCTV applications".

Products featuring this technology will be branded under the Hercules Prophet range and are due to ship next month.

The deal marks another step forward in the performance retail channel for ATI. Historically, the Canadian graphics chipmaker's strengths lie in the PC OEM market. But with PC manufacturing suffering, and Nvidia winning market share in this sector, ATI is feeling some pain too.

This week, ATI announced Q1, 2002 sale (warning PDF) were down nearly 27 per cent on the same period last year. Some of this is technical - the company is shifting its system integrator business from supplying complete boards to supplying chips only. This means higher margins, but lower top-linerevenues. ATI says its suffered from the slowdown in PC sales but has not published an estimated cost to its business.

ATI's Q1 results were, all things considered, rather good, with higher margins from a better product mix, and more cash generated on the back of improved inventory management. The company expresses optimism for performance in Q2. ®

®

Whitepapers

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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.