ATI Technologies
While the company clearly wants to be known as the producer of the baddest motherboards in the business, much of its revenue growth is coming far less vociferously, from the installation of its technology into cell phones and digital televisions.
Yesterday, ATI reported record revenue of $491.5 million for the third quarter of fiscal 2004. That was an increase of 38.2% from a year earlier. Net income rose to $48.6 million, or $0.19 per share, from $15 million, or $0.06 per share, over the same period last year. And gross margin actually climbed 2.7% to 35.3%. The company credited sales growth in the graphics add-in-board, notebook, handheld chip, and digital television sectors for the strong results.
For the fourth quarter, it expects revenue to be $510 million to $550 million as a result of the improving market for PCs. However, ATI is expecting its operating margin to fall back into its target range of 32% to 35% and operating expenses to increase by 5% as it releases and markets new products.
ATI has managed to match primary competitorNVIDIA's
Fool contributor Mark Mahorney doesn't own shares of any companies mentioned.