ATI posts $104M loss

[peat moss]

[news=http://www.ati.com/images/categories/company/about_ati.jpg]Graphics card and chip maker ATI Technologies, Inc. has reported its fourth quarter and fiscal year 2005 results. The company reported revenues of US$470 million, and a net loss of $170 million — results in line with guidance the company offered at the end of August, when it warned investors it was cutting its Q4 sales forecasts. ATI makes graphics hardware used across the board in Macintosh designs.

The gloomy financial results are offset by ATI’s guidance for its Q1 2006 results, where the company expects to post 15 percent revenue improvement, thanks to growth in the desktop discrete, chipset and handset business. The company also anticipates higher gross margins thanks to the introduction of a new desktop product family.

Revenues for FY2005 were $2.22 billion, up 11 percent year-over-year. Gross margin was 27.6 percent. Net income for the year was $17 million, compared to $205 million for FY2004.

ATI attributes the poor fourth quarter showing to lower sales in the PC segment, which accounts for about 80 percent of their quarterly revenues. The company saw lower sales of performance and enthusiast products in its Add-in-Board and retail channels. That, combined with lower selling prices, led to the decline in revenues, they said.

While desktop sales dropped, ATI saw an increase in integrated graphics system sales for notebook computers — a 60 percent increase. ATI said the revenue reflects a continued trend towards notebooks.

ATI CEO David Orton said his company is focusing on operational and financial performance in 2006. “We are aggressively implementing concrete programs in the areas of delivery performance, product cost improvements and operational efficiencies,” said Orton in a statement. “Our new products and operational programs position us well for the future.”

Source: http://www.macworld.com/news/2005/10/07/ati/index.php[/news]

[twisterX]

That sucks for them. Guess Nvidia must be doing better now.

[Skiz]

It's no shock really. It's all about the advertisement. nVidia smears their name all over everything.

And the fact that they don't have crappy software that hogs resources, their driver are a snap to upgrade, and in my opinion they build a better card.

[peat moss]

Good point Skizo , I'v only ever owned an Ati 9700 pro with no complaints but with out competition what are the options ? I like to think they keep each other honest .

[true_neo]

It's no shock really. It's all about the advertisement. nVidia smears their name all over everything.

And the fact that they don't have crappy software that hogs resources, their driver are a snap to upgrade, and in my opinion they build a better card.

What he said.