Graphics chip and card maker
ATI Technologies Inc.
reported its earnings for its second quarter of fiscal year 2003, which ended on February 28, 2003. The company reported revenues of US$318.5 million in revenue with a net loss of $8.3 million for the quarter.
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Those results compare to a net income of $5.0 million for the first quarter of 2003 and a net loss of $3.0 million for the same period a year ago. There was a 3.5 million drop in revenue from quarter to quarter, which ATI attributes to a decline in royalty income. The company’s gross margins improved modestly during the quarter, and operating expenses increased $0.7 million to $80.3 million.
ATI attributes most of the $8.3 million loss to a combined $16 million in one-time charges the company saw during the quarter, including the settlement of a class action lawsuit, costs incurred by an investigation to a stock investigation ordered by the Ontario Securities Commission, a plant closing in Europe, and building lease termination charges.
Despite the net loss, ATI Chairman and CEO K.Y. Ho said that customer demand for his company’s products continued to build during its second quarter, a time when companies often see a slowdown. He also lauded ATI’s delivery of its one millionth Radeon 9700 graphics chip as “the best new product” in the graphics industry, ever.
The Radeon 9700 still remains “available soon” to Mac users who buy a built-to-order Power Mac G4 from Apple’s online store, and is not yet available as a discrete Mac retail product.
ATI anticipates third quarter revenue around $300 million, with an improvement in gross margin and an increase in operating expenses, as well. The company expense improved net income throughout the remainder of its fiscal 2003.