ATI Technologies Revises Q2 Forecast DownwardNews from
E-InSite
Graphics chipmaker ATI Technologies Inc. today announced that it
expects revenues forthe second fiscal quarter to be about $230
million, lower than previously expected andmore than $100 million
below revenues reported in the previous quarter. The
Markham,Ontario-based company is also predicting a loss of 11 cents
to 13 cents per share for thequarter ended Feb. 28.
For the first quarter, ATI reported revenues of $350.5 million, 5
cents dilutedearnings per share and net income of $11.8 million.
Weak personal computer sales is the reason for the revision, the
company (nasdaq: ATYT)said. ATI will report financial results March
28.
ATI's shares were trading at $4.31 in the early afternoon, down
nearly 18 percentfrom Wednesday's closing price of $5.25 per share.
Lower revenue and a one-time higher cost for memory are the
company's main reasonsfor missing its previous target. ATI said it
expects net income, before adjustments, to beabout even with the
comparable quarter.
“We expect to see an improvement in our business outlook by the end
of thecalendar year as new products are introduced and assuming the
PC market strengthens,”said Terry Nickerson, vice president and
chief financial officer, in a statement.
ATI said its financial results should perk up in the third quarter
and the companybelieves it will continue to grow, specifically in
the consumer electronics market.
isHyperActive's affliated US site.