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ATI reports loss, stock soars
ATI reports loss, stock soars-October 2024
Oct 22, 2024 2:04 AM

  For most companies, a report of losing more than $100 million dollars in a quarter would spell doom for its reputation on Wall Street. Fortunately for ATI Technologies, who enter their new fiscal year $103.5 million lighter, the future is looking as pretty as the visuals its graphics chips produce.

  ATI told investors that it forecasts a 15-percent increase in sales for the upcoming quarter, which would mean revenue roughly in the neighborhood of $540 million. The positive outlook sent the stock up 7 percent (94 cents) to a day-high of $14.74, the highest the stock has been since June. The stock closed at $14.20 a share.

  This year's Q4 was almost a mirror image of last year's for ATI. For the same period last year, ATI took in $61.2 million. Had ATI excluded stock-based compensation and a $67 million inventory write-down, the loss would have been a much less significant $29 million.

  Revenue for the quarter fell to $470.2 million, or 18 percent from last year's $572.2 million.

  The Canadian company is looking toward strong sales of desktops and laptops as well as royalties from gaming consoles that use its chips to lead the 15-percent increase in the current quarter. The new Radeon graphics chips announced this week are only expected to account for 10 percent of revenues, according to a Reuters report.

  ATI will also be making the GPUs for the Xbox 360 and Nintendo Revolution.

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