ATI lowers its quarterly sales forecast
AMD's acquisition of ATI is beginning to have some negative effects for the red team. Following multiple reports that ATI intends to progressively pull out of the Intel chipset market, EE Times now reports that the company has lowered its quarterly sales forecast by up to $140 million. To blame for the lower expected revenue is a sudden drop in demand for ATI's Intel chipsets, which ATI CEO Dave Orton said occurred "much sooner than ... expected" after the acquisition announcement. ATI previously expected revenue of $620-$660 million for the June-August fiscal quarter, but this forecast has now been reduced to $520 million—a drop of as much as 21.2%. Despite that drop, though, Orton stated that ATI's other product lines, including graphics processors as well as digital TV and handheld products, are "quite healthy."