ATI Reports Results for Third Quarter of Fiscal 2006

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ATI Technologies Inc. today announced financial results for the third quarter of fiscal 2006 ended May 31, 2006. Revenues for the third quarter were $652.3 million. Gross margin percentage was 30.1%. Net income determined in accordance with Canadian generally accepted accounting principles (GAAP) for the quarter was $31.9 million ($0.12 per diluted share). Non-GAAP adjusted net income for the quarter was $42.5 million ($0.16 per diluted share). Shares of ATI (ATYT) are down for the day trading at $14.31 per share, which is down -$1.19 (-7.68%).

PC revenues increased 8.5% year-over-year to $499.7 million. Sales of desktop and notebook integrated products increased more than 200% year-over-year with the continued success of the Radeon Xpress 200 product line. The increase in sales of integrated products was partially offset by an approximate 15% decline in sales of desktop discrete products due to lower average selling prices resulting from a mix shift towards mainstream and value products in the add-in-board (AIB) channel. On a sequential basis, desktop discrete sales declined approximately 10% reflecting a seasonal decline in the market for discrete GPUs. Sales of notebook discrete solutions were also lower year-over-year as a result of the increased use of integrated graphics in notebook platforms.

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