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Graphics Chip Firms Continue To Display Some Solid Numbers; Rivals ATI, Nvidia Both On Roll; ATI's latest results show big gains and beat views, but changes at top worry some.(INTERNET & TECHNOLOGY)
Byline: JAMES DETAR
Computers and other devices are selling well and getting fancier. And since fancier often means better graphics, these are good trends for makers of the special chips that power such features.
This strength in graphics was displayed Wednesday, when chipmaker ATI Technologies swung to a solid profit on much higher revenue for its most recent quarter. ATI vies with Nvidia for the market-share lead among companies that specialize in graphics chips.
ATI said sales rose 48% to $463.3 million for its second fiscal quarter, ended Feb. 29. It reported a per-share profit of 19 cents vs. a 4-cent loss in the year-ago quarter. Analysts expected 16 cents.
The results continued a strong two-week-plus run for the stocks of both ATI and Nvidia.
"The key is it was a strong quarter across the entire product line of desktop and consumer products," said ATI President Dave Orton.
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