ATI suffers from lower than anticipated yields


— 12:49 AM on June 7, 2005

ATI's preliminary third quarter results reveal that revenues will be lower than expected, at least in part due to poor yields with some products:

The product mix shift towards the lower end of the desktop and notebook discrete market contributed to a decline in gross margin for the quarter. In addition, gross margin was impacted by our desktop IGP products, which have margins that are well below the corporate average. Lower than anticipated yields on certain products due to operational issues in the packaging and test area of the manufacturing process, also negatively impacted gross margin.
Unfortunately, the press release doesn't elaborate on which products suffered from lower than anticipated yields, or whether the mentioned operational issues will affect the release of ATI's next-gen graphics chip.
 
   
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