ATI has issued a Q4 financial update, revising its predicted revenue figures. The bad news is, their initial predictions were off the mark by a considerable amount.
Q4 revenues were expected to be in the region of $550 - $580 million US, which was predicted on June 23, 2005, but the update says ATI now expects revenues to the more like $465 - $480 million US, a drop of around $70 million US.
ATI President and CEO, David Orton, said that "This has clearly been a challenging and disappointing quarter for ATI and we are committed to resolving our operational issues."
Desktop product shipments and prices were lower than expected, likely down to NVIDIA's strong position with its current product line-ups. However, Orton expects that ATI's new products will turn the tables: "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 time its taking ATI to get their new products to the market is hitting them hard.
