Feeds

ATI slashes Q3 sales forecast

Problems shipping high-end chips?

  • alert
  • submit to reddit

Security for virtualized datacentres

ATI has warned that its Q3 revenues will be around five per cent below the range it forecast when it published its Q2 figures on 24 March.

Back then, it said Q3 sales would lie between $560m and $600m. This week, it said the figure would be closer to $530m, 12 per cent below the top of that range.

That's still 7.8 per cent up on Q3 FY2004's total, $491.5m, but it marks a 12.8 per cent decline on Q2 FY2005's $608m sales. However, unit shipments will be up five per cent sequentially, it said.

ATI blamed the dip on growing demand for its lower-end products, which reduced gross margins to 29 per cent from around 34 per cent in the previous quarter.

The chip maker also pointed to "lower-than-anticipated yields on certain products due to operational issues in the packaging and test area of the manufacturing process". It's tempting to speculate that was the result of the fire last month at Advanced Semiconductor Engineering's Chungli chip packaging and testing plant, though ATI made no comment this week on the effect of the fire. ATI is an ASE customer. At the time of the blaze, however, Credit Suisse First Boston claimed the impact of the fire could be "material" as the blaze tightens an "already short" supply of flip-chip substrates.

"The combination of tight supply and a four- to six-week substrate cycle time could disrupt ATI's high-end shipments through at least June," CSFB said. And, indeed, ATI's Q3 has been characterised by a shift away from sales of high-end products.

On the positive side, ATI said its desktop chipset business "exceeded expectations" during the quarter by "growing dramatically". It said it expects Q4 FY2005 revenues to reach $600m.

ATI will publish its Q3 figures on 23 June. ®

Related stories

ATI unveils CrossFire
Nvidia preps GeForce 7800 GFX
Crytek: new ATI chip will support Shader 3.0
ASE factory blaze impact 'limited'
ATI posts 'strong' Q2 sales gains

Security for virtualized datacentres

More from The Register

next story
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
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?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.