ATI Shows Loss for Q3 2005

Posts: 2723 · Posted: Mon Jun 27, 2005 8:10 am Post subject: ATI Shows Loss for Q3 2005

The financial statements for ATI's Q3 2005 have been reported as required by government accounting officials, and despite the widespread availability and popularity of the x800 series GPUs ATI has reported losses for the quarter. ATI's Q3 2005 net income was -$445,000.

ATI CEO, Dave Orton, describes Q3 as "a challenging quarter for ATI, particularly within [their] PC business where [they] came in well below [their] expectations for both revenue and gross margin." However, Orton is quick to ensure investors and the public that ATI has "achieved important milestones in [their] core GPU business."

With the release of ATI's x900 series GPU on the horizon it may be possible for the company to pull themselves out of a slump and back into the green. ATI will have to make sure the launch goes well to ensure future success when the card eventually makes it to the mainstream. Capturing the mainstream, integrated (and more recently console) GPU sales is perhaps the most important piece of the pie for video card companies.

Luckily for ATI, its GPUs will be used in the upcoming xBox 360 and Revolution gaming consoles. This could turn out to be very positive for ATI's future.

Rival nVidia has signed with Sony for the next generation of consoles and its RSX GPU will be powering the PS3. It is still too early to tell which console will capture the majority of the market, but the xBox 360 will have a leg up on both the Revolution and PS3 since it will hit retail shelves this winter months before the PS3.