Graphics chip and card maker
ATI Technologies, Inc.
today announced reported net income for the quarter of US$2.2 million. The company said that its margins are improving and its cash position has been strengthened significantly.
Although ATI saw revenues decline about 6.7 percent quarter over quarter, to $229.1 million, but gross margin improved, rising 5.5 percent to 29.6 percent. The company also saw operating expenses drop to $88.3 million, 2.7 percent less quarter over quarter and 15.4 percent lower year over year. ATI reduced inventory levels as well, dropping to $41.1 million for the quarter to $99.0 million.
ATI, like other companies, has been affected by the slowdown in PC sales worldwide — the company reported $1.04 billion in revenues for FY2001, down 19.1 percent from last year — the adjusted net loss to ATI for 2001 was about $16.3 million.
ATI president and COO David Orton said that despite current economic conditions, ATI is endeavoring to deliver on “the most aggressive schedule” of new product introductions in the company’s history.
“We have successfully refocused the business, changed our strategy to partner with third-party board makers and put a highly experienced management team in place,” said Orton. He also staked high hopes on his company’s position as the graphics chip supplier to Nintendo for its new GameCube console, which recently debuted in Japan and will go on sale in North America in mid-November.
ATI introduced a new generation of its Radeon graphics hardware over the summer, and it anticipates “improved performance” based on increasing customer acceptance of the new hardware. Although ATI has not yet officially unveiled a Mac version of the new Radeon 8500 graphics card, the graphics chip and card maker has made it no secret that a Mac version of its new technology is on the way.
ATI previous indicated that it expected modest growth and increased profitability for the first quarter of its fiscal year 2002. The company instead now offers a cautionary approach for investors looking for new details about about the Q1 outlook.
“… based on recent developments and the resulting economic uncertainty, the Company is not providing specific guidance at this time on revenue growth and earnings,” said ATI.