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ATI: financial report for the last quarter

ATi reports the results of the third quarter of the 2021 fiscal year, which ended for the company on May 31. So, the sales volume was $ 255.9 million., that is, 10.1% more than in the previous quarter (mainly due to the growth in sales of mobile computer chips), but the net loss (after taxes) amounted to $ 4.2 million., that is, minus $ 0.02 per share (respectively, $ 26.1 million. loss, or $ 0.11 per share in the last quarter). Nevertheless, the result is slightly better than predicted by analysts.

Looking ahead, the company says that ATi also expects some decline in sales volumes in the fourth quarter, while gross margins will increase slightly due to the transition to a new business strategy (see. our newsletter “ATi: said – done” dated June 25), which mainly consists of the sale of graphics chips to third companies. Also, in connection with the new line, the company’s internal expenses are expected to increase, and, moreover, for several quarters in advance.

In fiscal 2021 (which starts for ATi as early as September 1, 2021), the company expects to be profitable. Of course, everyone expects an increase in market activity in the second half of 2021, and ATi in this sense is no exception. In the fall, after the start of sales of the Nintendo GAMECUBE game console, the corresponding royalties will begin to arrive, and the influx of royalties for graphics chips sold to third parties should increase. Also, in addition to the release of new generations of graphic chips, the company hopes for serious financial receipts from the corporate market (bundling with graphic cards of computers from Micron PC, Compaq, Dell, Fujitsu, Hewlett-Packard, IBM, Siemens, supplies of ATI RAGE MOBILITY (128) for bundling iBook laptop from Apple and others.).

Everyone is waiting for a quick “revival” of the market, each company is preparing its new products for this moment. Will it be that turbulent and profitable? In any case, ATi does not intend to give up and, it seems, has every chance to improve its financial situation.

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