ATI Technologies' Q4 loss balloons to US$104M

[Kenazo]

Text

MARKHAM, Ont. (CP) - Graphics chipmaker ATI Technologies Inc. says its fourth-quarter loss ballooned to $104 million US after an inventory writedown totalling $67 million US.

The loss for the quarter ended Aug. 31 amounted to 41 cents a diluted share and compared with a profit of $61.2 million US or 24 cents per share a year earlier, the Markham-based company (TSX:ATY - news) reported Thursday.

Revenues totalled $470 million US, down from $572.2 million. the company reports in U.S. dollars.

Excluding the inventory writedown and stock-based compensation costs and related taxes, the net loss for the latest quarter was $29 million or 12 cents per share.

Excluding one-time items, analysts had been forecasting a fourth-quarter loss of 30 cents per share, according to Thomson Financial.

Net income for the full year was $17 million US or seven cents per diluted share, versus $205 million or 80 cents per share in 2004.

Stock-based compensation costs in the 2005 financial year totalled $42.5 million, compared with $7.6 million last year.

Excluding the inventory writedown and stock-based compensation costs and related taxes, net income for the year was $119 million or 46 cents a share.

Analysts had been forecasting a profit of 26 cents per share.

Annual revenue rose 11 per cent to $2.22 billion.

"We are entering fiscal 2006 with new products and an intense focus on operational and financial performance," CEO David Orton said in a release.

"We've delivered top-to-bottom technology and performance leadership with the 90 nm Radeon(R) X1000 series. We are aggressively implementing concrete programs in the areas of delivery performance, product cost improvements and operational efficiencies.

"Our new products and operational programs position us well for the future."

 

[Schadenfroh]

then came a 360 Revolution of integrated graphics.

 

[marvdmartian]

I can't see how their decision to lower the video card warrantee will help them much either. Eventually they might see a return of business, but their failure to keep up with nvidia in the top end graphics arena, coupled with the new 1 year warrantee, will likely hurt them, at least in the short term.

Sadly, their top end executives will probably still take home some stunning bonuses! :roll:

 

[Zim Hosein]

Their stock is up 5.51% right now!

 

[neutralizer]

Originally posted by: Kenazo
Text

MARKHAM, Ont. (CP) - Graphics chipmaker ATI Technologies Inc. says its fourth-quarter loss ballooned to $104 million US after an inventory writedown totalling $67 million US.

The loss for the quarter ended Aug. 31 amounted to 41 cents a diluted share and compared with a profit of $61.2 million US or 24 cents per share a year earlier, the Markham-based company (TSX:ATY - news) reported Thursday.

Revenues totalled $470 million US, down from $572.2 million. the company reports in U.S. dollars.

Excluding the inventory writedown and stock-based compensation costs and related taxes, the net loss for the latest quarter was $29 million or 12 cents per share.

Excluding one-time items, analysts had been forecasting a fourth-quarter loss of 30 cents per share, according to Thomson Financial.

Net income for the full year was $17 million US or seven cents per diluted share, versus $205 million or 80 cents per share in 2004.

Stock-based compensation costs in the 2005 financial year totalled $42.5 million, compared with $7.6 million last year.

Excluding the inventory writedown and stock-based compensation costs and related taxes, net income for the year was $119 million or 46 cents a share.

Analysts had been forecasting a profit of 26 cents per share.

Annual revenue rose 11 per cent to $2.22 billion.

"We are entering fiscal 2006 with new products and an intense focus on operational and financial performance," CEO David Orton said in a release.

"We've delivered top-to-bottom technology and performance leadership with the 90 nm Radeon(R) X1000 series. We are aggressively implementing concrete programs in the areas of delivery performance, product cost improvements and operational efficiencies.

"Our new products and operational programs position us well for the future."

They may have performance leadership, but the 7800GTX is still cheaper.

 

[bleeb]

Originally posted by: Schadenfroh
then came a 360 Revolution of integrated graphics.

nah mang.. after market is still HAWT.

I just got pissed at ATi because their drivers SUCK ANUS.

 

[MaxDepth]

Those canucknuckleheads are a crazy bunch. Whattaya going to do?

 

[Horus]

Originally posted by: marvdmartian
I can't see how their decision to lower the video card warrantee will help them much either. Eventually they might see a return of business, but their failure to keep up with nvidia in the top end graphics arena, coupled with the new 1 year warrantee, will likely hurt them, at least in the short term.

Sadly, their top end executives will probably still take home some stunning bonuses! :roll:

They're Canadian. I highly doubt it.

 

[Kelvrick]

Originally posted by: bleeb

Originally posted by: Schadenfroh
then came a 360 Revolution of integrated graphics.

nah mang.. after market is still HAWT.

I just got pissed at ATi because their drivers SUCK ANUS.

I actually think their drivers are better then nvidia's right now.

 

[WobbleWobble]

Originally posted by: marvdmartian
I can't see how their decision to lower the video card warrantee will help them much either. Eventually they might see a return of business, but their failure to keep up with nvidia in the top end graphics arena, coupled with the new 1 year warrantee, will likely hurt them, at least in the short term.

Sadly, their top end executives will probably still take home some stunning bonuses! :roll:

I bet the 1 year warranty was because of their financial losses. They said it was expensive to keep enough RMA inventory.