ATY se fait massacrer, baisse de 50%
ATI Technologies Sees Loss In 3rd Quarter Ending May 31
(Dow Jones Online News, 05/24/2000 07:43)
TORONTO -(Dow Jones)- ATI Technologies Inc. (ATYT) said it expects to report a loss of 6 cents to 7 cents a share for the third quarter ending May 31, before adjustments for the amortization of acquired in-process research and development, other intangible costs, and a writedown of inventory of about $56 million,
In a press release, the company also said it expects to report lower-than-expected revenues of about $300 million. It said its financial results will be hurt by the growing worldwide computer-component shortage, causing a slowdown in the system integrator or system builder channel, a key ATI market. It said another factor contributing to these results is the "aggressive pricing by newly-consolidated graphics board vendors managing excess inventories."
ATI said it expects operating gross margins for the third quarter to decline to about 21% of sales versus 33.2% for the second quarter. It noted that the consensus of financial analysts' earnings estimates for the third quarter was 13 to 14 cents a share.
It said it will report its third-quarter financial results on July 6.
The company said a significant factor behind the revised outlook was "a severely constrained supply of components to the computer industry, including such items as CPUs, DVDs and capacitors. This caused particular hardships to system builders, as component suppliers preferentially allocated parts to their top-tier accounts. System builders comprise a major portion of European sales where the effects of shortages were particularly pronounced."
"Although current market conditions are likely to continue for the next few months, it is expected that ATI's financial results will immediately improve in July, with the initial production shipment of its latest product, the RADEON graphics chip," the company said. "Based on current knowledge, the company expects fourth-quarter revenues to be slightly above the third quarter, margins to begin to improve and moderate operating cost increases. Further financial improvements are expected in (the first quarter of fiscal 2001)."
ATI Technologies supplies graphics chips.
Company Web site - ati.com.
-John Moritsugu, Dow Jones Newswires; 416-306-2100 |
