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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (5356)	9/9/2002 9:21:23 PM
From: Return to Sender	Respond to of 95610

Chipmaker ATI Warns on Revenue and Earnings By K.C. Swanson Staff Reporter 09/09/2002 07:29 PM EDT thestreet.com Graphics chipmaker ATI (ATYT:Nasdaq - news - commentary - research - analysis) said today that revenue and earnings for the quarter ending in August will come in short of guidance. It blamed the shortfall on weakness in the PC market, particularly in notebook computers. The Canadian-based company, which designs and manufactures 3-D graphics chips, said revenue would be in the range of $235 million to $240 million, with earnings flat to 2 cents per share. It had predicted in June that fiscal fourth-quarter earnings would be 5 cents to 7 cents, with revenue flat to slightly down from the third quarter's $266 million. In after-hours trading, shares of ATI lost 25 cents, or 4.4%, to $5.40. The stock closed down 3.3% in Monday trading. Rival graphics chipmaker Nvidia (NVDA:Nasdaq - news - commentary - research - analysis) also fell, closing down a penny, or 0.1%, to $9.25. ATI has lost 55% of its value since the beginning of 2002. But despite the downward revision for the just-ended quarter, ATI has a more optimistic forecast going forward. In the first quarter of its fiscal year, the company said it expects to notch sequential double-digit growth, an assessment based on shipments of its integrated graphics products and what it called broad acceptance of its new Radeon 9700 line. It said operating expenses should improve compared with the fourth quarter of 2002, measured on the basis of percentage of revenue. Gross margins should stay relatively steady. In a prepared statement, President David Orton said the company has "gained momentum with design wins in all of our business segments and we believe this momentum will translate into market-share gains. ATI has the strongest product lineup in history, and is very well positioned to outperform the PC market in 2003." The company's fiscal fourth-quarter financial results will be released on Oct. 2.