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ATI Tech Earnings Drop: PC Division Down 10%

ATI Technologies' (ATYT) first-quarter earnings dropped from a year ago due to lower revenue, lower margins and a charge. ATI said revenue from its personal computer division fell 10% from a year ago to $466 million, while sales in its consumer segment rose 31% to $125 million. It is interesting to see the PC side down with the launch of their chipsets and new video card series.

Revenues for the first quarter were $591 million, a 26% increase relative to the fourth quarter of fiscal 2005. Gross margin percentage was 28.7%. Net income according to GAAP for the quarter was $7.6 million ($0.03 per diluted share). Non-GAAP adjusted net income for the quarter was $26.8 million ($0.10 per diluted share). "We are pleased with our overall progress in the quarter and remain intensely focused on technology leadership and operational execution," said David Orton, ATI's Chief Executive Officer. "Our PC business is benefiting from strong demand for the new X1000 series GPUs as well as significant growth in integrated chipsets. Our Consumer segment continued to record solid growth with handheld shipments up nearly 60% sequentially and surpassing 21 million units in the quarter."

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Posted by | Wed, Dec 21, 2005 - 10:15 AM