ATI misses Wall Street's estimates

ATI's consolidated revenues for the third quarter of fiscal 2006 increased 23.0 percent to $652.3 million as compared to the third quarter last year.

The PC and consumer segments accounted for 77 percent and 23 percent, respectively, of consolidated revenues in the third quarter. A new quarterly record was achieved for total units shipped.

Net income determined in accordance with GAAP was $31.9 million or $0.12 per diluted share in the third quarter of fiscal 2006, as compared with a net loss $0.4 million, or breakeven, in the same period last year.

For the May quarter, American Technology Research projected ATI (Markham, Ontario) would report revenue of $650 million and $0.15 EPS, versus Wall's Street estimates of $664 million and $0.15. ATI is suffering from a slowdown in the PC market and order delays for handset ICs from Motorola, according to an analyst.

Given anticipated near-term PC market conditions, revenues for the fourth quarter of fiscal 2006 are expected to be between $620 million and $660 million.