MARKHAM, Ontario -- Multimedia chip set supplier ATI Technologies Inc. today (March 28) reported an adjusted net loss of $26.1 million on sales of $232.4 million in the company's second fiscal quarter, ended Feb. 28. A stock transaction in the quarter resulted in a pre-tax gain of $54.9 million, pushing the company's total net income to $607,000 in the fiscal period.
In the current fiscal quarter, ATI said it now expects modest revenue growth with a net income moving back toward a breakeven point. The company's revenues declined 38.9% in the second fiscal quarter from $380.1 million in the period last year. The company posted a net income of $51.1 million in the period last year.
"Second quarter sales results were significantly impacted by the greater-than-expected slowdown in the global personal computer market," said David Orton, president and chief operating officer at ATI. "Profitability for the quarter was affected by the lower revenue and a reduction in average selling prices for the company's board products."