Outlook Sinks ATI Shares

Shares of ATI Technologies (ATYT Quote) plunged more than 12% Thursday after the graphics chipmaker offered a disappointing outlook for its current, or fourth, quarter and missed revenue estimates for the just-completed period.

The stock's decline came even though the company's third-quarter earnings topped the Street's expectations.

The second half of the company's just-completed quarter was weaker than expected, said ATI CEO Dave Orton in an interview with TheStreet.com. The company expects its results to rebound later this year as Intel's(INTC Quote) introduction of new chips and Microsoft's(MSFT Quote) introduction of its Vista update to its Windows operating system spur PC sales, Orton said. ...