ATI reports record quarter sales
Graphics chipmaker ATI has reported a record growth in its second quarter sales this fiscal year (second quarter ending February 28, 2006).
During the three months to 28 February 2006 - ATI’s second quarter of fiscal 2006 - the graphics chip company realised revenues of $672m, up 13.7 per cent on the previous quarter and 10.5 per cent on Q2 FY2005’s total.
Comparing, however, to the same quarter last year, 2Q 2006 net income declined by 40.4%. Gross margins also declined to 28.2%, compared to 28.7% in 1Q 2006 and 34.2% in 2Q 2005.
Revenues from PC-oriented sales, which accounts for 80% of 2Q revenues went down two percent from the same period in the last year, due to lower demand for discrete desktop graphics processing units. The same trend is seen for notebook computer GPUs.
ATI is still optimistic with 2006 performance, though, as it expects third quarter sales of $640m to $680m (up from last year’s $530m), and gross margins of 30%.
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