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ATI announces Q4 losses

Far from signalling any significant damage to the company, ATI's Q4 loss of USD 104 million has been offset by company projections of a fifteen percent sales increase in the coming fiscal quarter for 2006.

Graphics chipset maker ATI has reported a Q4 loss of USD 104 million - but far from signalling any significant damage to the company, the loss has been offset by company projections of a fifteen percent sales increase in the coming fiscal quarter for 2006.

Based on the introduction of a new desktop product family, improved chipset margins and royalties from games consoles using ATI chips, the company's projected fifteen percent sales increase boosted its stock price by seven percent, closing at USD 14.20 per share.

The company's recently announced Radeon X1000 video cards are expected to contribute to the increase, in addition to significant partnerships with Microsoft and Nintendo, for the provision of GPUs in next generation consoles Xbox 360 and Revolution.

David Orton, ATI's CEO said: "We are entering fiscal 2006 with new products and an intense focus on operational and financial performance. We've delivered top-to-bottom technology and performance leadership with the Radeon X1000 series."

"We are aggressively implementing concrete programs in the areas of delivery performance, product cost improvements and operational efficiencies. Our new products and operational programs position us well for the future," he concluded.

Revenues for the fourth quarter were USD 470 million, a decline of USD 60 million compared to the third quarter 2005. The company's total revenue for fiscal year 2005 rose by eleven percent, to USD 2.22 billion.

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Paul Loughrey

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