ATI saw sales leap 40 per cent year-on-year and 23 per cent sequentially to $469.7 million during the three months to 30 November, the first quarter of its 2004 fiscal year.

Income for the quarter totalled $47.4 million (19 cents a share), significantly better than the $7.3 million (three cents a share) is recorded this time last year and the previous quarter's $22.3 million (nine cents a share).

Not only higher sales but higher gross margin contributed to the raised income, ATI said. Gross margin for the quarter reached 35.9 per cent, it said.

Rising revenues were driven by increasing sales of desktop graphics chips to add-in card markers and system builders, the company said.

Looking forward, ATI is not only anticipating a strong Q2, but one that will go beyond the traditionally rally this time of year. The company forecasted Q2 revenues of between $430 million and $470 million. Gross margin will fall in the 32-35 per cent range, a dip on Q1's figure, presumably as a result of newer, more costly products in the mix. ®

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