Outlook Deflates ATI Tech
ATI Technologies
(ATYT)
Thursday reported higher second-quarter profit but offered guidance that fell short of analysts' expectations.
The Canadian-based computer graphics company said net income hit $57 million, or 22 cents a share, vs. $48 million, or 19 cents a share, a year ago. Revenue rose 31% to $608 million, thanks to strong sales in its personal computer and digital consumer segments.
Excluding stock-based compensation costs and other items, net income was $66 million, or 25 cents a share, compared with $50 million, or 20 cents a share, in the second quarter of fiscal 2004.
Analysts expected 24 cents a share, according to Thomson First Call.
"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," the company said.
For the third quarter, ATI forecast revenue of $560 million to $600 million. The consensus forecast is about $615 million.
Shares fell 34 cents, or 2%, to $16.48 in premarket trading.