ATI Q3 Results

Sales for the period were $255.9 million, an increase of 10 percent over the previous quarter. The adjusted net loss of $4.2 million, a figure better than ATI management had previously indicated, amounted to a loss of about 2 cents per common share. The company also managed to reduce its inventory levels for the quarter by more than $60 million, and now total approximately $140 million. ATI management stated that they believe the company is on the right track following last month's decision to follow in Nvidia's footsteps and license its board and driver designs to outside manufacturers while continuing to pursue its OEM business. Management anticipated that revenues would dip in the fourth quarter as the company completed its transition to its new business, and anticipated a return to profitability in 2002. The company is also factoring in revenues from royalties on Gamecube sales, for which ATI-owned ArtX developed the graphics subsystem.