ATI Technologies — the folks who make, among other things, graphics cards for certain Mac models — has reported adjusted net income of US$17.6 million, or $0.07 per share for the second quarter ended Feb. 28, of its 2002 fiscal year.
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This year ATI unveiled the RADEON 8500 and RADEON 7000 for the Mac platform. The company is also seeing a financial boost from the use of its chips in Nintendo’s new GameCube game console.
Revenues increased 6.4 per cent during the second quarter to US$266 million from $250 million in the first quarter of fiscal 2002, and gross margin improved 1.8 percentage points to 33.8 per cent. Operating expenses, excluding amortization of intangible assets, were $69.8 million, or 1.0 per cent higher than in the first quarter.
The unadjusted net loss was $3 million, or $0.01 per share, compared to an unadjusted net loss of $10.3 million, or $0.04 per share, for the previous quarter. Cash generated from operations during the second quarter was $28.4 million. ATI’s cash position increased to $249.0 million as of Feb. 28 from $221.5 million three months earlier. Inventories increased by $25.6 million during the quarter to $117.1 million.
In announcing the financial results, David Orton, ATI’s president and chief operating officer, said they were “pleased” with the results. The company feels that the introduction of the new RADEON IGP family of graphics processors, recently announced integrated chips, handheld Imageon product, and the set-top box Xilleon chips “are positive indicators for fiscal 2003” and beyond.
ATI expects revenues and earnings to grow slightly in the third and fourth quarters at the same time that the desktop business continues to evolve from a board to chip model. The company expects to maintain margins at the current higher level, according to Terry Nickerson, senior vice president and chief financial officer.