ATI turns in a loss, Challenging quarter, CEO says

I find this shocking.  Not that I pay a ton of attention to ATI, its stock price, or it's financials, but...  I used to own NVDA stock.  I do follow developments in graphics cards with some interest.  NVDA and ATI have been fairly even in the head to head battle for the last year or so.  Before that, ATI was clearly ahead.  How badly do you have to mismanage your finances that a little improvement by the competition can cause you a loss for the quarter?  Hmm, I might need to try to understand better what is going on here so I'm not so shocked in the future.