updated 05:00 pm EDT, Wed June 19, 2002
ATI today warned that, despite meeting third-quarter adjusted estimates, the company would fall short of expectations for the fourth fiscal quarter. The graphics chipset maker lowered earnings estimates to five cents per share for the fourth-quarter; ATI also expects revenues to be either flat or "down slightly." Gross margins for the fourth quarter are also expected to fall to as low as 32 percent, down from a third-quarter margin of 35 percent. ATI was down in trading in both the Canadian and U.S. markets. Financial analyst Thomson Kernaghan likes ATI's strategy, but his firm "[does] not like continuing softness in the PC market." Yesterday, Apple warned of a weak third quarter as a result of weakening PC demand.