MARKHAM, Ontario -- Graphics and multimedia chip supplier ATI Technologies Inc. today reported an adjusted net loss of $4.2 million for the company's fiscal third quarter, ended May 31, on sales of $255.9 million, which was a 10.1% sequential increase form the prior three-month period.
"ATI made substantial progress with our product and operational programs, enabling us to improve our third quarter revenues and bottom line performance," said David Orton, president and chief operating officer of the Canadian company. "While we acknowledge that there is more work to be done, we remain confident that we are on the right track."
The company said its balance sheet improved during the quarter with cash and cash equivalents of $156.9 million, an increase of more than $58 million from the previous quarter. Inventory levels decreased more than $60 million to $140.0 million in the quarter, ATI said.
ATI said it now expects revenues in the current fiscal quarter to decline slightly from the fiscal third quarter as it transitions to its new business strategy. Last month, ATI said it will license its technology to high-volume board suppliers in Taiwan and refocus its efforts on chip design (see May 31 story).