ATI Releases Q2 2005 Fiscal Results

ATI, a major graphic processing chip manufacturer which is of particular interest to game developers through its PC graphics card rivalry with Nvidia, as well as its forthcoming inclusion as the GPU for both next-generation Xbox and Nintendo's Revolution console, has released its financial results for the second quarter of fiscal year 2005. Compared to the same quarter in fiscal year 2004, ATI's revenues, even before manufacturing of next-generation consoles start, are up 31% to $608 million USD, and net income is up 20% to $57 million USD. Net income per share finished at 22 cents. The increase in profitability was attributed to a growing client base, as more computer manufacturers begin to use ATI products. The company's chips are also showing up in cellular phones, which are increasingly taking advantage of the mobile video game market. As a result of an increase in those areas, as well as TV sets with ATI chips inside, the company expects their revenue for Q3 to hit a similar target of $560-$600 million USD. "Strong sales of discrete PC products helped to offset the anticipated seasonal weakness in our digital consumer business, which we expect will rebound nicely in the second half. With the best solutions for visual applications in the PC and digital consumer markets, we're excited about our prospects for the rest of 2005 and beyond," said David Orton, ATI's CEO.