ATI's last night reported solid second quarter figures with big gains over the year-ago quarter and a small rise in income over the previous three-month. However, it warned investors not to expect sequential gains going forward.
Q2 2004 sales totalled $463.3m, down just 1.4 per cent on Q1's $469.7m, but up 47.8 per cent on the same period last year, when sales reached just $318.5m.
Those revenues yielded a Q2 net income of $47.6m (19 cents a share), up fractionally on the previous quarter's $47.4m (19 cents a share), and significantly better than the $8.3m (nine cents a share) ATI lost during Q2 2003.
Gross margins were down slightly sequentially, dropping from 35.9 per cent to 34.8 per cent. ATI's cash reserves increased $88.5m during the quarter to $468.5m.
Looking ahead, ATI said it expects sales to remain flat during Q3, falling between $440m and $480m. This would still yield a big jump over Q3 2003, and if ATI can keep revenues flat rather than down, it will have held its head high through one of the business' traditional weak spots.
The company is expected to release its next major chip, the R420, during Q3 and begin its shift toward the new PCI Express interface. ®