Graphics card and chip maker
ATI Technologies Inc. on Tuesday reported the results for the first quarter of its fiscal year 2005, which ended November 30, 2004. The company reported revenues of US$613.9 million, a 30.7 percent increase for the same quarter a year ago. Net income for the quarter was $71.4 million; net income per share was $0.28. ATI exited the quarter with $620.6 million in cash.
ATI attributed its continued success to strong sales of the add-in boards it sells and licenses to third parties and to design wins with PC makers who are adopting the company’s PCI Express-based products. ATI’s revenues in the discrete desktop market grew 20 percent. Likewise, notebook revenues rose by about 20 percent from the same quarter a year ago. ATI is also making a strong push in the burgeoning handheld device market, and the company saw its revenues in that area rise 80 percent for the same quarter a year ago.
The company anticipates “seasonal weakness” in consumer and game console businesses (its chips power Nintendo’s GameCube video game console). Guidance for the second quarter is “similar to the first quarter within a range of plus or minus $20 million.” ATI said that operating expenses will be about 10 percent higher thanks to higher prototyping costs and the rising value of the Canadian dollar.