Record Q3 profits for ATI as sales rocket
Graphics giant ATI has reported record profits in its third quarter results, with net profit more than trebling to reach $48.6 million thanks to increased sales across its wide range of graphics products, including consoles and PC graphics cards.
Graphics chipset manufacturer ATI has reported record profits in its third quarter results, with net profit more than trebling to reach $48.6 million thanks to increased sales across its wide range of graphics products, including consoles and PC graphics cards.
The company, which provides chips to a host of devices including mobile phones, laptops, PCs, consoles and televisions, reported a 38 per cent year on year rise in quarterly revenues, to $491 million.
Two key gaming areas helped to drive this success - the arrival of PCI Express graphics cards on the PC, which are replacing the older AGP cards and provided a significant revenue boost, and the continued strong sales of the GameCube console, for which ATI provides the graphics chip.
ATI has already signed on to provide graphics hardware to both Nintendo and Microsoft for their next-generation consoles, with the Microsoft console likely to make an impact on ATI's figures from late 2005 while the new Nintendo hardware should arrive in 2006.
The company also raised its revenue estimate for the fourth quarter of this year, with forecasts going up from $486.5 million to between $510 and $550 million.