third-quarter earnings nearly tripled from a year ago on brisk sales of its computer graphics accelerators, and the Toronto rival of
said fourth-quarter revenue will easily surpass forecasts.
ATI earned $48.6 million, or 19 cents a share, in the three months to May 31, up from $15.0 million, or 6 cents a share, last year. Revenue rose 38% to $491.5 million. Analysts had been forecasting earnings of 17 cents a share in the most recent quarter on revenue of $459 million.
The stock was recently up $1.81, or 10.7%, to $18.60.
Revenue from the company's main line of business, graphics-acceleration chips that are sold to computer companies and other makers of original-equipment technology, was $389.6 million in the latest quarter, up from $242.7 million a year ago. Revenue from the company's motherboard division slipped to $87.7 million from $110.2 million a year ago.
ATI said continued strong results in its PC processor segment and strength in the PC market should lift fourth-quarter revenue to $510 million to $550 million. Analysts had been expecting revenue of about $486 million in the quarter. The company forecast fourth-quarter gross margin at the upper end of its targeted 32% to 35% range.
nVidia was recently up 20 cents, or 1%, to $20.50 on the Instinet premarket session.