Graphics card and chipmaker ATI Technologies Inc. posted profits for the third quarter of its financial year, which ended May 31, 2003 -- a big improvement both year over year and sequentially.
For Q3/2003, ATI posted revenues of US$342.1 million compared to $318.5 million for the second quarter. Gross margin rose 4 percentage points to 32.9 percent, with a $9.1 million increase in operating expenses to $89.4 million.
Net income for the quarter was $12.4 million, $0.05 per share, compared to an $8.3 million loss last quarter and a net loss of $2.0 million for the same quarter a year ago.
ATI Chairman and CEO K.Y. Ho attributed the strong showing to improved customer demand. He's also sanguine about the company's fourth-quarter prospects, adding "our product line-up has never been stronger."
ATI is targeting $335 - $365 million for its fourth quarter revenue, with improved net income relative to the third quarter.
Operational highlights for the quarter included the introduction of new high-performance graphics processors aimed at the mobile market, new integrated desktop products, refreshed mainstream graphics cards, and key design with with OEMs and system integrators. ATI also announced a technology development agreement to create new products for Nintendo, with whom Nintendo already has a manufacturing partnership ATI makes the graphics chips used in Nintendo's GameCube console).
Earlier this week Apple introduced the Power Mac G5, which features standard-issue graphics cards both from ATI and rival Nvidia Corp. ATI's flagship Radeon 9800 graphics card is a build-to-order option on the new G5 as well.
This story, "ATI posts profit for Q3" was originally published by PCWorld.