Graphics chip maker ATI Technologies Inc. on Thursday reported a quarterly loss of US$445,000 — break-even per share — compared with a net income of $49 million for the same quarter a year ago (19 cents per share). The company reported quarterly revenue of $530 million. ATI manufactures the graphics chips used in many Mac and PC models.
Excluding $10.4 million in stock-based compensation costs, ATI posted a profit of $8.5 million. Gross margins dropped from 35.1 to 29.1 percent thanks to a shift in sales to lower-margin products and manufacturing issues, the company reported.
ATI said the loss was the result of lower than anticipated revenue and gross margin in the company’s PC business. ATI CEO David Orton said his company is looking for continued growth in its core markets going forward.
ATI expects $550 -$580 million in revenue for the fourth quarter, lower than the $600 million the company previously estimated. ATI anticipates gross margins in the 29 to 30 percent range.