ATI's Intel chipset business drops dramatically

Posted on Thursday, Sep 07 2006 @ 15:06 CEST by Thomas De Maesschalck
ATI says it will miss its revenue estimates by up to $140 million as a result of lower than expected sales of Intel chipsets.
ATI Technologies expected revenues for the fourth quarter of fiscal 2006 to be between $620 million and $660 million. However, the company on Wednesday announced that consolidated revenue for the fourth quarter of fiscal 2006 is currently expected to be approximately $520 million.

The anticipated revenue shortfall is due primarily to lower sales volumes of integrated chipsets for Intel-based platforms, the company explained. In addition, handheld revenue was lower than expected, reflecting a supply chain adjustment by one of ATI’s major customers. “We believe this adjustment is temporary in nature and should not have a long-term impact on revenue,” the company said in a statement. Handheld and DTV businesses account for about 20% of ATI's revenue, which chipsets bring ATI roughly 26% of revenue, according to the company's Q3 FY2006 results.
More info at X-bit Labs.


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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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