Graphics chip and card maker
on Thursday reported second quarter revenue of $672.4 million, a year-over-year boost of 11 percent and considerably higher than analysts’ expectations. Unfortunately, the company also saw a sharp decline of 40 percent in second-quarter profits as charges ate into those numbers.
Net income for ATI’s second fiscal quarter fell to $34.1 million — 13 cents per share – compared to $57.2 million — 22 cents per share — for the same quarter a year ago.
Working against ATI’s profits were $8.7 million in stock option costs, 2.3 million in amortization fees and other charges of $895,000, the company reported. ATI said that the lower net income was caused by a combination of lower gross margins and higher expenses year-over-year.
Highlights of the quarter included the launch of new Radeon and CrossFire Xpress graphics chips, new mobile graphics offerings, shipment of almost 25 million Imageon processors for the handheld markets and more. ATI’s design wins included inclusion of its Radeon X1600 graphics chip in the Intel Core Duo-based iMac and the Mobility Radeon X1600 graphics chip in the MacBook Pro.
ATI predicts third quarter revenue of $640 to $680 million.