ATI Technologies Inc.
on Friday reported its fourth financial quarter 2003 results, for the period ending August 31, 2003. ATI reported higher year-over-year revenue and net income.
Revenues for ATI’s fourth quarter were US$380.7 million compared to $222 million for the same quarter a year ago. Sequentially the company did better as well, as it reported revenues of $355.7 million for the third quarter of 2003. Net income for the fourth quarter came in at $22.3 million, compared to a net loss of $34.6 million for the same quarter a year ago and net income of $15 million for the previous quarter. Gross margin rose sequentially about 3.0 percentage points to 35.6 percent for the fourth quarter.
ATI Chairman and CEO K.Y. Ho noted that ATI was firing on all cylinders this pas quarter, with strong showings from the company’s consumer and business markets and growth in its cell phone graphics business as well.
ATI attributes the positive growth and income to improvements in desktop chip margins related to its sales of Radeon 9800 processors and other factors. The 9800 is available as a retail add-on for Power Mac G4 systems and can also be included as a build-to-order option on Power Mac G5s.
Operational highlights for the quarter included new chips including the release of the Mobility Radeon 9600, a graphics chip featured in Apple’s newest 17-inch and 15-inch PowerBook G4 laptops. ATI also won a deal to put its graphics technology in future Xbox products; Xbox now uses graphics technology developed by ATI rival Nvidia Corp. Nintendo, a rival of Microsoft’s in the game console space, uses ATI-derived technology in its own Gamecube console.
ATI anticipates revenues in Q1 2004 to be between $400 and $430 million. The company also expects gross margin to remain in its target range of 32-35 percent, with similar operating expenses to this previously reported quarter. All told, the company is expecting “flat to marginally higher” sequential adjusted net income.