ATI's shares fell to a two year low after the company announced a loss of $445,000 for its fiscal third quarter. Sales in the Q3 rose with 7.8 percent to $530 million.
For the third quarter ended May 31, ATI reported a loss of $445,000 (U.S.) or break even on a per-share basis, compared with a year-earlier profit of $49-million or 19 cents a share. Analysts polled by Thomson First Call had expected a profit of 4 cents for the quarter.
On June 6 the company already warned that its third quarter sales would miss targets. The company claimed it ships too many low-end products and not enough high-end products which have bigger margins.
ATI also stated at a press conference that its R520 is delayed to September. NVIDIA on the other hand released its GeForce 7800 GTX two days ago.
Analysts believe that ATI is loses sales to NVIDIA and Intel. More information at Globeinvestor