Graphics chip maker ATI Technologies Inc. on Thursday reported US$572.2 million in revenue for its fourth financial quarter, which ended August 31, 2004. That’s a 50.3 percent revenue increase for the same quarter a year ago, with net income almost tripling from $22.3 million to $61.2 million. With net income of $0.24 per share, ATI easily beat Wall Street estimates of $0.21 per share.
ATI attributes the strong annual growth to increased demand for its diverse product portfolio, which now ranges from PCI Express-based 3D graphics acceleration hardware for personal computers to graphics chips used in cell phones and digital televisions. ATI’s mobile graphics chips are used in Apple’s iBook line and its 15-inch and 17-inch PowerBook G4s, and its desktop chips are used in the eMac and some Power Mac G5 configurations.
ATI is anticipating revenue for the first quarter of its fiscal 2005 to fall in the range of $600 to $640 million, with gross margin roughly the same as this past quarter — 33 to 34 percent. Operating expenses are expected to grow between 5 and 10 percent from the fourth quarter of 2004. The company expects seasonal drops in revenue and profit for its second and third quarters.