ATi reported financial results for its fiscal Q2 2004, which ended Feb. 29. Gross margin rose to 34.8 percent, nearly six percent above the prior year’s quarter. ATI posted net income for the quarter of 19 cents per share, compared to a loss of 4 cents per share in fiscal Q2 2003. ATI continued unit gains in the desktop mainstream markets and saw sequential growth in its digital TV business. The company’s PC revenues increased by about 35 percent year over year. All product categories, including desktop and notebook discrete, as well as integrated graphics processors contributed to this increase. The company’s consumer product revenues also increased eight-fold, with its Imageon device providing the key driver of growth. The company expects strong revenues for the current quarter, despite it being traditionally the industry’s weakest, seasonally. It anticipates those revenues to be in the range of $ 440 million to $ 480 million, with gross margin to be 32 percent to 35 percent. ATI anticipates its fiscal Q3 operating expenses, excluding amortization of intangible assets and other charges, to increase 5 percent to 10 percent sequentially because of increased prototyping expense as well as staffing to support new customer programs, particularly in its consumer business.

ATi reported financial results for its fiscal Q2 2004, which ended Feb. 29. Gross margin rose to 34.8 percent, nearly six percent above the prior year’s quarter. ATI posted net income for the quarter of 19 cents per share, compared to a loss of 4 cents per share in fiscal Q2 2003. ATI continued unit gains in the desktop mainstream markets and saw sequential growth in its digital TV business. The company’s PC revenues increased by about 35 percent year over year. All product categories, including desktop and notebook discrete, as well as integrated graphics processors contributed to this increase. The company’s consumer product revenues also increased eight-fold, with its Imageon device providing the key driver of growth. The company expects strong revenues for the current quarter, despite it being traditionally the industry’s weakest, seasonally. It anticipates those revenues to be in the range of $ 440 million to $ 480 million, with gross margin to be 32 percent to 35 percent. ATI anticipates its fiscal Q3 operating expenses, excluding amortization of intangible assets and other charges, to increase 5 percent to 10 percent sequentially because of increased prototyping expense as well as staffing to support new customer programs, particularly in its consumer business.