If this latest figure is accurate, ATI will report an adjusted net loss of between (US) 11-13 cents/share when it releases second quarter earnings on March 28. Analysts polled by First Call/Thomson Financial had been expecting a profit of 3 cents a share.
In ATI's previous Q2 revenue projection (given January 11), ATI's Vice President & Chief Financial Officer, Terry Nickerson, predicted the company would break even in Q2. The company cited a softer market for PC sales and a one-time higher cost for memory as the primary reasons for the earnings shortfall.
"We expect to see an improvement in our business outlook by the end of the calendar year as new products are introduced and assuming the PC market strengthens," Nickerson said.
Shares of ATI Technologies dropped by 15% Thursday morning as a result of this news.
