Feeds

ATI slashes Q3 sales forecast

Problems shipping high-end chips?

  • alert
  • submit to reddit

3 Big data security analytics techniques

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

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.