ATI Technologies Inc.
has again slashed projections for its just-ended fiscal second quarter, and instead of breaking even, the company expects to post a loss due to weaker personal-computer sales world-wide.
The Canadian graphics chipmaker said Thursday it now expects an adjusted net loss of 11 cents to 13 cents a share for the quarter because of lower revenue and higher memory costs. Revenue is forecast at about $230 million. ATI is scheduled to report second-quarter results on March 28.
The announcement marks the second time ATI has lowered its fiscal second-quarter guidance. Last quarter, the company posted a narrow return on revenues of $350.5 million, while revenues for the second quarter of 2000 came in at $413.5 million.
Looking forward, ATI expects “modest” revenue growth in the fiscal third quarter, which will move adjusted net income back toward the break-even mark. ATI said it expects its business outlook to improve by the end of the calendar year 2001 as new products are introduced and the PC market improves.