ATI generated $10.3 million in adjusted net income (4 cents per share) for the quarter ended November 30, down from $11.8 million last year. Additionally, revenues were down 27% from last year, to $250 million. The battle in the board market took its toll on the company, as revenues from that segment dropped from $201 million last year to $119 million this year.
However, ATI's Q1 results were in line with analysts' expectations, the company's cash holdings have increased greatly since last year, and shares of the company are trading near their 52-week high.
The company said it expects earnings to improve in the coming quarters as it begins to focus more heavily on the system integrator channel and takes in more royalty revenue from sales of Nintendo's Gamecube.
