ATI makes $29 million loss in fiscal Q4 2005

The Inquirer reports ATI made a net loss of $29 million during its fiscal Q4 2005.

The company's fourth quarter revenues dropped from $530 million to $470 million because of lower sales in the PC segment. This segment accounted for approx. 80 per cent of the company's quarterly revenues.

The main reason for the drop appears to be the delay of the Radeon X1800 and others as ATI states the decline was due lower sales of performance and enthusiast desktop products in the add-in-board and retail channels.

But the decline was partially offset by better sales of ATI's desktop chipsets with integrated graphics.

It declared a $67 million write down in inventory for the period, and turned in a net loss of $104 million on the turnover of $470 million. Without the writedown and other sundries, the net loss amounted to $29 million.

For the financial year 2005, ATI declared a net profit of $17 million. But David Orton, the firm's CEO, said it's entering its financial 2006 year with new products and focusing on operational and financial performance. He said its new products and programmes position it well for the future.