Graphics chip and card maker
ATI Technologies Inc.
announced financial results for the fourth quarter and year ending August 31, 2002. The company reported a fourth quarter loss but saw profit for the year.
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ATI reported US$239.95 million, a 10 percent quarter to quarter drop, but five percent better for the same quarter last year. Net losses for the quarter were $32.2 million, or about $0.14 per share. Net income for the year, however, came in at $49.7 million, compared to a $16.3 million loss for 2001.
ATI explained that gross margins and revenues dropped for the fourth quarter because of a weaker notebook market — the company manufactures graphics chips designed for mobile systems — as well as “a richer chip mix.” The company hopes to improve gross margins by 2.4 to 5.6 percent for the first quarter.
Operating expenses increased the fourth quarter by $12.7 million; ATI attributes the rise to the writedown of core technology and goodwill associated with its prior acquisitions of ArtX and Chromatic Research, along with other factors.
While ATI continues to support the Mac market with its own branded graphics cards, the company has gradually migrated its business in the PC market from card manufacturing to chip making supported by third-party graphics card makers. ATI senior Vice President and CFO Terry Nickerson said that this transition has improved the company’s margins and increased profitability compared to last year.
Looking forward to 2003, the company expects “a double-digit percentage increase in revenues” for the first quarter based on its Radeon 9700 products (expected to debut on the Mac early next year) and other factors.