Late Monday afternoon graphics chip maker
ATI Technologies Inc.
updated its guidance for the first quarter of its 2004 fiscal year, which ends November 30, 2003. The good news caused the company’s stock to rise more than 11 percent in Tuesday trading.
ATI said in a statement on Monday that it expects revenue to be in the range of US$440 to $470 million. The company also suggested that net earnings will come in between $0.16 and $0.20 per share. Driving the higher than initially anticipated revenue is what ATI calls “broad-based demand” for the company’s PC products.
Wall Street had expected ATI to report revenue of about $425 million for the quarter, with net earnings of about $0.13 cents per share. The better than expected guidance buoyed ATI’s stock, which rose more than 11 percent to $15.40 in afternoon trading.
ATI manufactures graphics chips that are used in a wide range of OEM and retail graphics cards. ATI makes retail graphics cards for the Mac market, and Apple also uses several of ATI’s chip designs to power the graphics technology in several of its Mac models.