ATI posts $104 million loss, reassures X1000 availability
Canadian graphics chip maker ATI posted a loss of $104 million for the fourth quarter of fiscal 2005 one day after the company announced a new discrete graphics card family for desktop computers. Revenues for the fourth quarter were $470 million, down $60 million sequentially.
Compared to the 2004 fiscal year, 2005 revenues climbed 11 percent to $2.22 billion. Net income for the year was $17 million versus $205 million in 2004.
ATI officials did not provide detail the reasons for the significant loss during the quarter. However, it’s not an industry secret that the 4-month delay of the X1000 series of graphics card took its toll, even more so, as competitor Nvidia renewed its desktop graphic chip series and apparently was able to gain market shares. ATI’s focus now concentrates on the new products recently announced.
"We are entering fiscal 2006 with new products and an intense focus on operational and financial performance," said David Orton, ATI’s Chief Executive Officer. "We’ve delivered top-to-bottom technology and performance leadership with the 90 nm Radeon X1000 series. We are aggressively implementing concrete programs in the areas of delivery performance, product cost improvements and operational efficiencies. Our new products and operational programs position us well for the future."
Despite the new product announcements, there are still questions about the availability not only of the new X1000 family, but the recently launched Crossfire technology as well. The company said that it recently began volume shipments of Radeon Xpress 200 Crossfire Edition chipsets as well as Crossfire-enabled graphic cards. Availability of these products appears to be still scarce. Parts of the X1000 family seem to be heading into the market, with Gigabyte and MSI having announced their boards. Several US etailers told TG Daily that they expect the cards to become available with 3 to 15 days.
Probably as a reaction of the careful availability expectations mentioned by most publications that covered the X1000 launch, ATI Europe today released sent screenshots of etailer websites that state the X1000 cards are expected to arrive soon.