Tuesday, October 21, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Google Play Music App To Follow Your Mood
Login To Google Using A USB Security Key
Toshiba Debuts New 2-in-1 Convertible PC with a 360-Degree Design
Acer Leads The Growing Chromebook Market
China Denies Apple's iCloud Hack Allegations
Samsung Galaxy KNOX Devices Approved for U.S. Government Classified Use
iPhone 6 Demand Help ARM's Growth
SK Hynix Develops High Density 16GB NVDIMM
Active Discussions
Copied dvd's say blank in computer only
How to generate lots of different CDs quickly
Yamaha CRW-F1UX
help questions structure DVDR
Made video, won't play back easily
Questions durability monitor LCD
Questions fungus CD/DVD Media, Some expert engineer in optical media can help me?
CD, DVD and Blu-ray burning for Android in development
 Home > News > Graphics Cards > ATI rev...
Last 7 Days News : SU MO TU WE TH FR SA All News

Tuesday, June 07, 2005
ATI revenue warning 5% below previous estimate


Shares in ATI Technologies Inc. fell Monday after the video chip-maker warned third-quarter revenues will fall below estimates, a drop observers say reflects tough competition for sales of graphics cards to gaming enthusiasts.

ATI stock (TSX:ATY) fell $1.65, or nearly nine per cent, to $17.38 on the Toronto Stock Exchange after it said revenues for the quarter ended May 31 will total about $530 million, about five per cent below the low end of the revenue range it provided in March.

Analysts surveyed by Thomson Financial had forecast revenues of $584 million for the quarter.

ATI further said it expects revenues for the fourth quarter of its current fiscal year to be about $600 million - well below the $659.8 million expected by analysts.

ATI traditionally collects about 90 per cent of its sales from the PC market - providing graphics chips installed directly into a computer motherboard. However, it has been attempting to increase its presence in the consumer market - graphics and multimedia products for handheld communication devices, digital televisions, cellphone and game consoles.

ATI said revenues from DTV and handset communicators were "within expectations." However, the company said sales fell below previous estimates in the so-called "discrete market" for graphics cards that consumers can install into a desktop or laptop computer - the kinds of cards gamers purchase to improve the speed at which graphics are processed, resulting in a clearer, smoother picture.

It's not the first time ATI has missed analysts' expectations: in December, the company's stock dropped after disclosing that sales for its September-November period rose 30 per cent, which was below outside forecasts.

ATI's chairman, K.Y. Ho, is also currently embroiled in an insider trading case with the Ontario Securities Commission enforcement branch, that alleges that Ho and his wife, Betty, received a total of $7 million in benefits through transactions in April 2000 with the help of undisclosed material information.

The couple deny knowing at the time that ATI couldn't deliver expected sales and profitability for the fiscal third quarter of its 2000 financial year.

The cause of ATI's reduced revenue expectations is the intense competition for sales of graphics cards to gamers from Nvidia Corp. Nvidia's SLI system includes a motherboard that supports two connectors capable of having two of Nvidia's graphics cards plugged into them.

However, the impact Nvidia's graphics cards are having on ATI is surprising. It does not make economic sense that gamers would fork out money for two $500 graphics cards they could plug into a PC.

ATI has answered Nvidia's SLI technology with its dual-slot Radeon Xpress 200 CrossFire platform, aimed at "blistering-fast visuals" for "gaming and multimedia enthusiasts alike."

However, CrossFire will not be shipped until late July or early August, leaving no credible opportunity for this problem to be rectified before ATI's fiscal year ends on Aug. 31.


Previous
Next
AudioDev to deliver signal test equipment for Xbox 360        All News        Apacer introduces 150X 2GB SD Flash Card
Nvidia Licenses ARM Multicore Processor     Graphics Cards News      ATI Unveils Radeon X800 XT for Notebooks

Get RSS feed Easy Print E-Mail this Message

Related News
Sony To Release Android Lollipop To Its Entire Xperia Xperia Z Series
Native Instruments Announces TRAKTOR KONTROL S8 DJ system
Sony Xperia Z3 Coming To The US
Imation Unveils Secure Hard Drives With Cloud Connectivity
Imation Introduces NST4000 Hybrid Storage Appliance
Sony Xperia Z3 Specs Leaked
Imagination Introduces Tiny Android GPU
New Sony Software Upgrade For Xperia T2 Ultra
Imation IronKey Workspace W700 Flash Drive Now Available
Creative Introduces the MUVO mini Weatherproof Bluetooth Portable Wireless Speaker
Sony Launches The Xperia C3 For Selfies
Some Sony TVs Get Support for PS3 Games

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .