ATI saw a 34.5 per cent increase in sequential revenues in its first trading quarter of 2003, which ended November 30.
The company returned revenues of $322 million in the quarter, up from $239.5 million in the 2002's final quarter, and up 28.8 per cent from $250 million in the first quarter 2002.
Margins fell slightly to 27.3 per cent, down from 30.1 per cent in the fourth quarter 2002; operating expenses rose $9.5 million sequentially to $79.6 million. This meant a net income of $5 million. The company lost $32.2 million in the last quarter, and $10.3 million in the year-ago quarter.
Apple adoption ATI's success was partially attributable to Apple, which has adopted the company's graphics processors in many Macs, ATI termed this a "major design win". The company also released its Radeon 9000 and 9700 product lines, which drove growth.
KY Ho, ATI's chief executive officer, promised more to come: "ATI is committed to executing on an aggressive product roadmap to deliver and expand our industry-leading visual-processing solutions."
ATI president and chief operating officer David Orton said: "We obtained key design wins in every product category, and our product strength helped ATI to gain share in all major channels and geographies. We continue to invest in research and development in order to maintain the momentum we have created."
The company expects second-quarter revenues to be approximately ten per cent down, taking into account seasonal changes.