ATI Q3 turns loss to profit
ATI today reported Q3 2003 income of $12.4 million (five cents a share) on sales of $342.1 million.
Those figures represent both year-on-year and sequential gains. This time last year, ATI said it lost $2 million on sales of $266.2 million, 22.2 per cent below the most recently completed quarter's sales. During Q2 3003, ATI made sales totalling $318.5 million, seven per cent below today's figure. Last quarter the company lost $8.3 million.
Gross margins for the quarter, which ended on 31 May, were 32.9 per cent, up from 28.9 per cent in Q2 and 27.3 per cent in Q1. Operational expenses excluding charges rose $9.1 million above the Q2's figure to $89.4 million.
After exceptional items, ATI's adjusted income for the quarter was $17.5 million.
ATI pointed to improved notebook sales as a driver of the growth it achieved during the quarter, but the critical success of its Radeon 9800 Pro part seems to have driven sales of that and other desktop chips too.
Looking ahead, the company said it expects Q4 revenue to come in between $335 million and $365 million, leading to a slight increase in gross margins. But it also warned that operating expenses will rise. ®