ATI posted record sales and a third-quarter profit that more than tripled on
Thursday, as new graphics chips for cell phones and digital televisions helped
boost demand. New products will continue to drive sales growth as it issued a
revenue forecast sharply higher than analyst expectations. ATI said its
third-quarter net income rose to $ 48.6 million, or 19 cents per share, in the
quarter ending May 31, a substantial jump from year-earlier profit of $ 15
million, or 6 cents. Revenue rose to $ 491.5 million during the quarter, up from
$ 355.7 million for the same period a year earlier.

Strong sales for desktop chips coupled with consumer products, which neared 10
percent of sales, boosted revenue. Consumer products will make up 10 to 15
percent of sales in the next quarter. Lifted by high-profit sales for consumer
products and royalty payments from Nintendo’s GameCube game console, ATI
formally increased its gross margin forecast to a range between 34 and 38
percent. ATi has announced a number of design wins for its PCI Express chips, a
new high-speed computer connection standard. It expects fourth-quarter revenue
in the range of $ 510 million to $ 550 million.

ATI posted record sales and a third-quarter profit that more than tripled on
Thursday, as new graphics chips for cell phones and digital televisions helped
boost demand. New products will continue to drive sales growth as it issued a
revenue forecast sharply higher than analyst expectations. ATI said its
third-quarter net income rose to $ 48.6 million, or 19 cents per share, in the
quarter ending May 31, a substantial jump from year-earlier profit of $ 15
million, or 6 cents. Revenue rose to $ 491.5 million during the quarter, up from
$ 355.7 million for the same period a year earlier.

Strong sales for desktop chips coupled with consumer products, which neared 10
percent of sales, boosted revenue. Consumer products will make up 10 to 15
percent of sales in the next quarter. Lifted by high-profit sales for consumer
products and royalty payments from Nintendo’s GameCube game console, ATI
formally increased its gross margin forecast to a range between 34 and 38
percent. ATi has announced a number of design wins for its PCI Express chips, a
new high-speed computer connection standard. It expects fourth-quarter revenue
in the range of $ 510 million to $ 550 million.