ATI slid an earnings warning in under the radar on Monday while much of the high tech world was paying attention to Intel and reading the tea leaves left by Paul Otellini. The market responded with equanimity as ATI had already laid the groundwork for this one. The company announced that its revenues for the fourth quarter will be in the range of $235-240 million. The company said its revenues are going to fall short of guidance offered in June 2002 as a result in weakness in the PC and notebook market. The company was surprised by less enthusiastic sales in the notebook segment but overall the company expects to see improvement in the fall quarter when ATI’s new products the Radeon 9700 for the desktop and the Mobility Radeon 9000 get more play and back to school sales pick up.
As we say, the market responded calmly, but Nvidia’s stock did see a slight bump in response to ATI’s news as well.