"Good luck on Thursday. I really mean that."
Luck? Nothing about ATI has been about luck but rather bad luck. I'm sitting with a loss already. Let naysayers say WTF they want, ATI will recover. Wish Orton would stop screwing around. What worked with the 9700 and 9800 should continue to work today. Somebody's dropped the ball all to easily, and conveniently for nvidia's sake, that it makes no sense. Why the fu_ck did the margins drop 5% in the span of 1-2 months after the last CC? Who was steering the ship? Orton better have answers and good ones on Thursday.
Message to Piccioni: If you're worth the money you're getting paid, you better earn it by grilling the pants off Orton for answers to WTF happened with revenues and margins. You probably don't care all too much since you know the problems will eventually be resolved but don't you even want some vindication for your stance, for once?
"Most analysts expect it will take ATI Technologies Inc. several quarters to recover from a couple of product miscalculations in recent months that have been masterfully exploited by arch rival Nvidia Corp."
TRUE. 520 basis points in gross margins and lost market/mindshare will take at least 2 quarters.
"both the Toronto-area company and California-based Nvidia are increasingly vulnerable to incursions from industry giant Intel Corp.
"I'm one of the few people with a 'sell' on ATI. And, I think, the only person with a 'sell' on both ATI and Nvidia," Piccioni says.
Somewhat true except Intel does not have the pieces in place to design or make discrete graphics. We all know about the IGP onslaught of recent years.
"First, ATI overestimated demand for chips using Intel's new PCI Express standard chips and underestimated demand for the older AGP standard chips, resulting in some lost sales opportunities. That raised some concerns."
TRUE. Orton and Co. blew it.
"Next, ATI warned on June 6 that it would not meet expectations for revenues and profit in its March-May quarter - in part, because Nvidia's dual-chip SLI products did incredibly well in the marketplace and eroded sales of ATI's high-end chips."
TRUE. I was one that thought SLI was a gimmick...I was wrong.
""They do have to do a much better job of predicting their business or, conversely, a much better job of trying to reduce manufacturing lag," says Hykawy, an analyst with Fraser Mackenzie Ltd. "
TRUE. Can you say EXECUTION?
You really can't deny the above points raised in the article were factual as most have come to pass.
small, (or is your name Piccioni?)
This guy has been a 'sell' on ATI ever since 2000! Has he finally got something he can say he called right? Well, if you say it's going to rain every f_cking day of the year, you will be right some days. BUT, does that support the analysis of a kook who doesn't really know what he's talking about? Not in my opinion!