The sky isn't quite blue for ATI right now.

N

NEODARK

Gawd
Joined
Aug 10, 2004
Messages
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Read on and make your own mind, but woah. This is a nice wake up call for the Canadian card maker. Read the earnings report, and take note of the conference call to be held as well:

MARKHAM, Ontario--(BUSINESS WIRE)--Aug. 29, 2005--ATI Technologies Inc. (NASDAQ:ATYT - News; TSX:ATY - News) today provided an update on expectations for its fourth quarter of fiscal 2005. ATI now expects revenues for the fourth quarter to be in the range of $465 - $480 million(1), compared to the expected range of $550 - $580 million provided on June 23, 2005. Gross margin percentage for the quarter is expected to be in the single digit range, which includes an inventory writedown that is expected to be approximately $60 - $70 million. Operating expenses, excluding the costs associated with stock-based compensation, are expected to be in the range of $143 - $148 million, which is in line with guidance.
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ATI's desktop product line missed both in units and average selling prices for the retail and add-in-board (or System Integrator) channels. All other product lines are expected to be in line with company expectations for both revenue and gross margin.

"This has clearly been a challenging and disappointing quarter for ATI and we are committed to resolving our operational issues," said David Orton, President and Chief Executive Officer of ATI Technologies. "Despite our short term difficulties, we are optimistic about the future. We continue to gain traction in our integrated and consumer businesses. We are also confident that our upcoming desktop product launch will allow us to reclaim top-to-bottom technology leadership in discrete graphics."

The company will hold a conference call today at 5:00 pm EDT to discuss the fourth quarter financial update. ATI will report its fiscal 2005 fourth quarter financial and operating results on October 6, 2005. The company will provide additional information, including a more detailed quarterly review and outlook, during its regularly scheduled conference call on that date.

Conference Call Information

ATI Technologies Inc. will host a conference call today at 5:00 pm (EDT). To participate in the conference call, please dial 416-340-2216 ten minutes before the scheduled start of the call. No password is required. Replays of the conference call will be available through September 5, 2005 by calling 416-695-5800. The passcode is 3161717.
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Source: http://biz.yahoo.com/bw/050829/295766.html?.v=1
 
danielj315 said:
Youch

Actually makes me wish i had a few K to invest in them
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I wouldn't buy right now. Another 20%-30% drop might do it though. :p
 
well it's not like they'll go out of business, they still have that whole xbox360 to make gpus for.
 
darkhorse said:
well it's not like they'll go out of business, they still have that whole xbox360 to make gpus for.
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ATI only gets a small royalty per Xenos chip. MS is handing production of it through Taiwanese fabs.

Sure it helps, but it will not nearly have a big effect on revenues like desktop chips do.
 
Regardless ATi is doing MUCH MUCH MUCH better than 3dfx was when they died, ATi will pull thru this, plus read the numbers, there raking in 400million, and it costs them aprox 200mil to run? correct? last time I checked that was still a fucking 200million profit, Serously how can you die when your making 200million in profits, the only people this effects is stock holders who want to see companys making lots of lots of money.

//Elimi'Xed
 
I wish I had gross receipts of 450 million dollars in my lifetime, let alone three months. I wouldnt sell the farm mom.
 
Elimi'Xed said:
Regardless ATi is doing MUCH MUCH MUCH better than 3dfx was when they died, ATi will pull thru this, plus read the numbers, there raking in 400million, and it costs them aprox 200mil to run? correct? last time I checked that was still a fucking 200million profit, Serously how can you die when your making 200million in profits, the only people this effects is stock holders who want to see companys making lots of lots of money.

//Elimi'Xed
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because, if what you said is true, it takes them 200mil to simply exist, 200mil profit doesnt mean they can spend 200mil on a party every quarter. they have to make a profit so they can invest that money back into the company for r&d and other stuff or they will go no where fast, and if they cant keep up, they stop making a profit.
 
Elimi'Xed said:
Regardless ATi is doing MUCH MUCH MUCH better than 3dfx was when they died, ATi will pull thru this, plus read the numbers, there raking in 400million, and it costs them aprox 200mil to run? correct? last time I checked that was still a fucking 200million profit, Serously how can you die when your making 200million in profits, the only people this effects is stock holders who want to see companys making lots of lots of money.

//Elimi'Xed
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No one saying they're going out of business but you.

have faith in ATi dude..Geez
 
Nidhogg said:
because, if what you said is true, it takes them 200mil to simply exist, 200mil profit doesnt mean they can spend 200mil on a party every quarter. they have to make a profit so they can invest that money back into the company for r&d and other stuff or they will go no where fast, and if they cant keep up, they stop making a profit.
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But when you are still at 50% profit with your revenues, thing aren't nearly as bad as people are making it out to be. The doomsday counter isn't cranking towards zero quite yet. They've just stumbled, but chances are that they won't fall down and die.
 
Nidhogg said:
because, if what you said is true, it takes them 200mil to simply exist, 200mil profit doesnt mean they can spend 200mil on a party every quarter. they have to make a profit so they can invest that money back into the company for r&d and other stuff or they will go no where fast, and if they cant keep up, they stop making a profit.
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I realize this, and this is why stocks go up and down, but the reason I responded like that was because of the fact everyones like "OMFG ATIS GONNA DIE!!!!!!!!!!!", so my point is ati still has 200million profit to reinvest, and didn't the r3xx arcitexture that we all know and love (9xxx, X8xx) only cost them 200million to develop, and last I checked there were done/almost done developing the r5xx, in other words, they don't need to spend much more money for there next cash cow, of cource then they have to spend money on developing the r6xx, oh wait whats that they already have a very BASIC r6xx already made?, whats that ATi's basic(very basic) next gen gpu(next as in after this gen ox the 7800, and x900 or whatever ati names them) is in the xbox360 already? My god this MUST mean ATi is dieing!!!!!! not, if ATi's gonna die its not gonna be for at least another 4 years, THEN even if its all down hill from here, they have at least 4 years before they die and thats if EVEYTHING IS DOWNHILL.

//Elimi'Xed
 
Elimi'Xed said:
Regardless ATi is doing MUCH MUCH MUCH better than 3dfx was when they died, ATi will pull thru this, plus read the numbers, there raking in 400million, and it costs them aprox 200mil to run? correct? last time I checked that was still a fucking 200million profit, Serously how can you die when your making 200million in profits, the only people this effects is stock holders who want to see companys making lots of lots of money.

//Elimi'Xed
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incorrect.

last quarter revenues were MUCH better
gross margins were 29.1% , this quarter they are and i quote "single digits" so best case that 9.99%
average selling prices were higher.

and yet they still took a loss of almost half a million. (445,000 if i remember right)

so...

now factor in MUCH worse revenues
horrible gross margins in the single digits
lower average selling prices
low demand in the mid and high range - source Ati conference call today
a 60-70 million dollar write off

so do you still they they will make 200 million or even do like they did last quarter at a loss of 1/2 million.

no... its going to be MUCH MUCH worse and it wont get better in 1 quarter
this is a nv30 situation.
 
I'll bet that Nvidia isn't doing much better in their desktop GPU market either. I mean, there have been no games released since Doom 3 that have been able to push hardware. People feel no reason to upgrade because their current video cards can play all their games at high resolutions without difficulty.

Sales won't start going up until game developers can get their act together and release some new titles that aren't based on age-old engines.
 
Elimi'Xed said:
ATi will pull thru this, plus read the numbers, there raking in 400million, and it costs them aprox 200mil to run? correct? last time I checked that was still a fucking 200million profit, Serously how can you die when your making 200million in profits
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LOL, stay away from the stock market.

ATI has shown that it needs around a 30% gross margin to break even. "Single digit" gross margin wasn't put in there for nothing. That's a huge warning. ATI could lose several tens of millions for this quarter, and that's very optimistic.
 
TheTMan said:
But when you are still at 50% profit with your revenues, thing aren't nearly as bad as people are making it out to be. The doomsday counter isn't cranking towards zero quite yet. They've just stumbled, but chances are that they won't fall down and die.
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EAXCTLY WHAT I'M SAYING, sorry I'm just getting pissed at all the doom sayers, My point is regardless of how much money ati is making/losing, there STILL ALIVE, and will continue to be, oh and I am sorry about my gross miscalcualtions, I'm not eactly a bussiness man lol, but my point remains, atis got the next 2 cash cows *ALMOST* done and ready to create more revenue

//Elimi'Xed
 
Elimi'Xed said:
EAXCTLY WHAT I'M SAYING, sorry I'm just getting pissed at all the doom sayers,

//Elimi'Xed
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Dude, you're the doom slayer here. No one thinking negative about the company, just commenting on the stock drop.

Relax...
 
when i saw the title of this thread these were my exact thoughts


oh god please not another ati thread about their new video card relese, i read 3 and im tired of them all,........and i just read 3

people..........serriously, can we really have a heart to heart.......

lets talk one to one here, man to man.......stop these lame threads that dont have any valid or usefull information, please just want for the freeking thing to come out please......i beg you, ill hunger strike in front of Kyles H2, ill cuff myself to Brent's house

please if you have any heart, youll stop making threads that have to do with the R520, R500 core chip, or pcb, or anything to do with ATI untill that card comes out and [H]OCP has a chance to review it in Crossfire mode and such


and to be on topic, who cares about the stock market, its controled way to much by goverment and crap (puts on his tinfoil hat)


soulsaver_8229
 
the sky isn't quite blue for ATI right now.
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ROFL, I know that's 'cause Hurricane Katrina is over them.

yeah that does look like some bad news, they might retliate.
 
soulsaver_8229 said:
and to be on topic, who cares about the stock market, its controled way to much by goverment and crap (puts on his tinfoil hat)


soulsaver_8229
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soulsaver_8229 please go back to mars.
 
GVX said:
I'll bet that Nvidia isn't doing much better in their desktop GPU market either. I mean, there have been no games released since Doom 3 that have been able to push hardware. People feel no reason to upgrade because their current video cards can play all their games at high resolutions without difficulty.

Sales won't start going up until game developers can get their act together and release some new titles that aren't based on age-old engines.
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You mean like HL2, BF2, SCCT,

I hear ATI is losing OEM deals left and right
 
whoami said:
soulsaver_8229 please go back to mars.
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its safer there my friend, they have secret shuttles that leave to Mars every other friday night at..........oh my god i said to much........there coming for me.............
 
soulsaver_8229 said:
its safer there my friend, they have secret shuttles that leave to Mars every other friday night at..........oh my god i said to much........there coming for me.............
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and you're how old?.....


anyway, I'm not to sure they're going to be making much of a profit on their new Motherboards they want to sell because there are so many other better mobos :cough: DFI ASUS:cough: that will rule them over in the mobo market. they are just trying to enter something new with their problems now? ha ha.
http://www.ati.com/buy/promotions/sapphiremobo/index.html
ha ha, "top enthusiast board" I'm sorry but that just sounds like crap. I think all they really went for on this motherboard was for it to look cool. we'll get it and it sucks. They need to stick to their video cards cause I think they are just going to waste money trying to produce motherboards. and they really need to stop it with the daul card setups too because eeveryone clearly knows they stole it from Nvidia of course and everything ATI rips off from Nvidia ussually sucks anyway.
 
Kaiga said:
and you're how old?.....


anyway, I'm not to sure they're going to be making much of a profit on their new Motherboards they want to sell because there are so many other better mobos :cough: DFI ASUS:cough: that will rule them over in the mobo market. they are just trying to enter something new with their problems now? ha ha.
http://www.ati.com/buy/promotions/sapphiremobo/index.html
ha ha, "top enthusiast board" I'm sorry but that just sounds like crap. I think all they really went for on this motherboard was for it to look cool. we'll get it and it sucks. They need to stick to their video cards cause I think they are just going to waste money trying to produce motherboards. and they really need to stop it with the daul card setups too because eeveryone clearly knows they stole it from Nvidia of course and everything ATI rips off from Nvidia ussually sucks anyway.
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did you even see who quoted to say its a "top enthusiast board"? and im 23, why would you care? is this a singles dating service? age doesnt mean your mature.......

and how about dont dog products you yourself havent seen any reviews on, nor have used or plan on using, you make yourself look like a fan boi with nothing but a mouth and nothing to back it up with........find me some reviews showing that mobo is bad or not good or cant preform well in anything k?


soulsaver_8229
 
soulsaver_8229 said:
did you even see who quoted to say its a "top enthusiast board"? and im 23, why would you care? is this a singles dating service? age doesnt mean your mature.......

and how about dont dog products you yourself havent seen any reviews on, nor have used or plan on using, you make yourself look like a fan boi with nothing but a mouth and nothing to back it up with........find me some reviews showing that mobo is bad or not good or cant preform well in anything k?


soulsaver_8229
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You are contributing nothing by posting that. I think you need to get back into line.



Buy ATI stocks
 
soulsaver_8229 said:
did you even see who quoted to say its a "top enthusiast board"? and im 23, why would you care? is this a singles dating service? age doesnt mean your mature.......

and how about dont dog products you yourself havent seen any reviews on, nor have used or plan on using, you make yourself look like a fan boi with nothing but a mouth and nothing to back it up with........find me some reviews showing that mobo is bad or not good or cant preform well in anything k?


soulsaver_8229
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you = my ignore list.

schweet...tiz getting igger :)
 
nobrainer said:
You are contributing nothing by posting that. I think you need to get back into line.



Buy ATI stocks
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i could easily say the same about your post, minus the buy ati stocks of course......no worries tho :p think as you wish


and to whoami *HUGGLES* FREEND!!! :D

soulsaver_8229
 
whoami said:
Thanks for that burst of common knowledge. Woopeeedooo!
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Its not common knowledge to the people who think because a company dropped, that they are going bankrupt.
 
Kaiga said:
and you're how old?.....


anyway, I'm not to sure they're going to be making much of a profit on their new Motherboards they want to sell because there are so many other better mobos :cough: DFI ASUS:cough: that will rule them over in the mobo market. they are just trying to enter something new with their problems now? ha ha.
http://www.ati.com/buy/promotions/sapphiremobo/index.html
ha ha, "top enthusiast board" I'm sorry but that just sounds like crap. I think all they really went for on this motherboard was for it to look cool. we'll get it and it sucks. They need to stick to their video cards cause I think they are just going to waste money trying to produce motherboards.
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there will be motherboards from dfi with ati chipsets, im sure you will be able to buy one from asus also

and they really need to stop it with the daul card setups too because eeveryone clearly knows they stole it from Nvidia of course and everything ATI rips off from Nvidia ussually sucks anyway.
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ati did dual gpu's on one board before nvidia, they also did dual cards before nvidia.
 
I say the stock will go down at lest another 20-30% before they get a decent product line out to start a recovery. Mabey even 50% I'll buy around $8 or so depending on when they start releasing R5XX cards and how they look when the reviews start coming out.

At 100mil/quarter loss it's going to take a while to get back up though. I think the grouper/halibut boards are going to kick major ass. All they need is a slight performance advantage over nvidia and to make sure all the little stuff like usb ports, ethernet, etc. is flawless and they'll be able to take some market share away from nVidia. The Nforce series sucked hardcore when it first came out and look at it now, it still has some issues that should've been ironed out long ago. And to the guy that said something about ASUS or DFI or whatever, who the hell do you think ATi will be selling their chipsets to? ATi doesn't manufacture motherboards, fool, nor does nVidia.

And why hasn't anyone mentioned that ATi has at least 3 class-action lawsuits brought by their investors because of this very situation...If they lose those that 100mil loss will be compounded...hostile takeover anyone?
 
Its true ATI is having a bad year but they are still in very good shape. ATI Technologies Inc. is the world leader in the design and manufacture of innovative 3D graphics and digital media silicon solutions. An industry pioneer since 1985, ATI is the world's foremost graphics processor unit (GPU) provider and is dedicated to deliver leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld device markets. With 2004 revenues of US $2 billion,. ATI will come back stronger than before soon you will see. ! bad year is ok Its when you have bad year after bad year.
 
danielj315 said:
Youch


Actually makes me wish i had a few K to invest in them
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heh... like a rubber mallet in the gut... OOOF!

Yes - buy ATi now.. this is the time... er, wait for it to go down more, rather... once the R520 comes out it will be sure to rise, at least by some. :) They still have a lot of money so their not going OOB anytime soon. :)
 
Spank said:
ati: 2001
nvidia: 2004
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ATI didn't have dual card rendering in 2001. MAXX was a single card and a bad one at that. Remember how quickly ATI dropped it?

ATI still hasn't released a dual card solution yet. And this is 2005.
 
and they really need to stop it with the daul card setups too because eeveryone clearly knows they stole it from Nvidia.
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And does anybody care? Every company in competition with another steals ideas, if this is a new fact of life to you I suggest you get out of the house more. Funny you question someone else's age when you make childish statements like this one
 
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