Feeds

ATI reports record quarter

But income down year on year

The Power of One Brief: Top reasons to choose HP BladeSystem

ATI last night reported its highest quarterly sales yet. During the three months to 28 February 2006 - ATI's second quarter of fiscal 2006 - the graphics chip company realised revenues of $672m, up 13.7 per cent on the previous quarter and 10.5 per cent on Q2 FY2005's total.

It wasn't all good news, though. While the quarter's net income under Canadian GAAP rules - $34.1m (13 cents a share) - was up 159.2 per cent sequentially it was down 40.4 per cent on the $57.2m it earned in Q2 FY2005.

Gross margins were down to 28.2 per cent in the quarter, from 28.7 per cent in Q1 FY2006 and 34.2 per cent in Q2 FY2005.

PC-oriented sales accounted for 80 per cent of the quarter's revenues - the rest came from consumer applications, such as digital TV chips. PC revenues were down two per cent year on year thanks to lower demand for discrete desktop GPUs. Sales of notebook GPUs were down year on year too.

Consumers sales, by contrast, were up 127 per cent year on year, with handheld-product sales up 250 per cent and digital TV chips up 75 per cent, ATI said.

ATI said it expects Q3 FY2006 to yield sales of $640-680m - both well up on the $530m it posted for Q3 FY2005 - with gross margins rising to 30 per cent. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
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.