ATI Reports Q2 Adjusted Earnings of US$0.07 Per Share.Business Editors MARKHAM Markham City (pop., 1991: 154,000), southeastern Ontario. It is situated on the Rouge River, northeast of Toronto. Settled in 1794, the town was named for William Markham, archbishop of York. It annexed the nearby township of Markham in 1971. , Ontario--(BUSINESS WIRE)--March 20, 2002 Design Wins, Market Share Improvement Drive Growth ATI Technologies “ATI” redirects here. For other uses, see Ati. ATI Technologies U.L.C. ATI is a major Canadian designer and supplier of graphics processing units, motherboard chipsets, and video display cards. Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : ATY ATY Air Textured Yarn (textile) ATY Watertown, SD, USA (Airport Code) ATY After-Tax Yield , NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ATYT ATYT ATI Technologies, Inc (stock symbol) ), a world leader in the supply of graphics, video and multimedia solutions, today reported adjusted net income(1) of (US) $17.6 million or (US) $0.07 per share for the second quarter ended February February: see month. 28, 2002 of its 2002 fiscal year. Revenues increased 6.4 per cent during the second quarter to (US) $266.0 million from (US) $250.0 million in the first quarter of fiscal 2002, and gross margin improved 1.8 percentage points to 33.8 per cent. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , excluding amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , were (US) $69.8 million, or 1.0 per cent higher than in the first quarter. The unadjusted net loss (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis(1)) in the second quarter of fiscal 2002 was (US) $3.0 million or (US) $0.01 per share, compared to an unadjusted net loss of (US) $10.3 million, or (US) $0.04 per share, for the previous quarter. "We are pleased with the trend we see in these numbers," said David Orton Or·ton , Joe Full name John Kingsley Orton. 1933-1967. British playwright noted for his black comedies, including Entertaining Mr. Sloane (1964) and What the Butler Saw (1969). , President & Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , ATI Technologies Inc. "Our introduction last week of the new RADEON See ATI. (TM) IGP (1) (Interior Gateway Protocol) A broad category of routing protocols that support a single, confined geographic area such as a local area network (LAN). Contrast with EGP. See routing protocol. family of powerful, feature-rich integrated graphics Refers to having the video display circuitry of a computer contained directly on the motherboard rather than on a separate plug-in card (the display adapter). Integrated graphics typically share memory with the CPU (see shared video memory) and provide a more economical alternative to the processors places ATI (ATI Technologies Inc., Markham Ontario, http://ati.amd.com) A leading manufacturer of graphics chips and display adapters. Founded in 1985 by K. Y. Ho, Benny Lau and Lee Lau, ATI chips and boards are widely used by OEMs. in a strong position in the rapidly growing integrated market. This, combined with strong acceptance of ATI's product offering, and the fact that we continue to deliver on our demanding R&D schedule, are positive indicators for fiscal 2003." ATI's financial position continued to strengthen in the second quarter. Cash generated from operations during the second quarter was (US) $28.4 million. The Company's cash position increased to (US) $249.0 million at February 28, 2002 from (US) $221.5 million three months earlier. Inventories increased by (US) $25.6 million during the quarter to (US) $117.1 million at February 28, 2002. "These financial results are further evidence that we are on track with ATI's strategic agenda," said K.Y. Ho, Chairman and Chief Executive Officer, ATI Technologies Inc. "We continue to execute on our goals of ensuring technology and product leadership across the board and this is translating into growing momentum in our core PC markets as well as in the consumer area." Outlook ATI expects revenues and earnings to grow slightly in the third and fourth quarters at the same time that the desktop business continues to evolve from a board to chip model. The Company expects to maintain margins at the current higher level. Terry Nickerson, Senior Vice President and Chief Financial Officer said, "The balance of fiscal 2002 should build the foundation for fiscal 2003. As we move into the first quarter of our next fiscal year, we expect to realize revenue from our recently announced integrated chips, our handheld handheld: see personal digital assistant. Imageon The Imageon (previously ATI Imageon) is a line of media processor line developed by ATI providing graphics acceleration and other multimedia features for handheld devices such as mobile phones and Personal Digital Assistants (PDA). product, the set-top box The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. Xilleon The ATI Xilleon video processor is a 32-bit system-on-a-chip MIPS processor, for use in set-top boxes and digital TVs, providing MPEG2 decoding and other functions for major worldwide broadcast networks (including PAL, NTSC, SECAM and ATSC). chips, and our next generation high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. desktop product. Adding this to seasonal strength from Nintendo royalties and our core PC graphics business, suggests a strong beginning for fiscal 2003." Operational Highlights During the second quarter, ATI announced important new desktop, notebook and workstation design wins, building on the momentum that began in fiscal 2001. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Mercury Research, ATI gained market share in the discrete PC market in the calendar fourth quarter of 2001. ATI's share of the total graphics chips market grew by four percentage points to 21 per cent in the calendar fourth quarter of 2001 versus the third quarter. Desktop discrete share rose by four percentage points to 26 per cent, driven by commercial design wins, and laptop Same as laptop computer. laptop - portable computer discrete share increased four percentage points to 62 per cent. In desktop, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) selected the RADEON(TM) 7000 for its NetVista A series and M series PCs during the fiscal second quarter. Apple picked the RADEON(TM) 7500 for its Power Mac G4 desktops. In addition, two leading suppliers in mainland China opted for ATI products: Founder Technology with the RADEON(TM) 7500 graphics board for its Zhuoyue A-8850 PC, and TongFang with the RAGE(TM) 128 PRO graphics controller for its ChaoYue 3500D business desktop. In the workstation market, ATI launched the FIRE GL(TM) 8800 mid-range
Hewlett-Packard - (HP) Hewlett-Packard designs, manufactures and services electronic products and systems for measurement, computation and communications. The company's products and services are used in industry, business, engineering, science, medicine and for a number of its workstations and from IBM for its IntelliStation IBM's brand name for its high-end PC workstations and POWER-based workstations, the latter originally part of the RS/6000 family. See pSeries and p5. E Pro and M Pro professional workstation systems. In addition to the introduction of the FIRE GL(TM) 8800, ATI announced the RADEON(TM) 8500 128MB graphics board for the retail market and unveiled the RADEON(TM) 8500 and RADEON(TM) 7000 for the Mac platform. In the multimedia area, the ALL-IN-WONDER The ATI All-In-Wonder (also abbreviated to AIW) is a hybrid graphics card and TV/Radio Tuner. ATI had previously used the Wonder ?moniker? on other graphics cards, however, they were not full TV/graphics combo cards. (TM) RADEON(TM) 7500 multimedia graphics card began shipping in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and the ALL-IN-WONDER(TM) RADEON(TM) 8500DV multimedia graphics card shipped to retail stores in North America. ATI products continued to gain accolades and score highly in industry comparisons. ATI products were the leading choice among retail buyers of graphics boards last year with a 42 per cent market share, according to statistics compiled by NPD NPD New Product Development NPD Nouveau Parti Démocratique (Canada) NPD Narcissistic Personality Disorder NPD Norwegian Petroleum Directorate NPD Nationaldemokratische Partei Deutschlands Intelect. In addition, the RADEON(TM) 8500 was named best high-end graphics card in Tom's Hardware Tom’s Hardware, is an online publication focused on technology that was founded in 1996 by Dr. Thomas Pabst. Tom's Hardware is owned by TG Publishing LLC, a Bestofmedia Group company, one of the top three online publishers for technology in the world . Guide's Readers' Choice Awards in an on-line users poll. Computer Gaming World Computer Gaming World (CGW) was the first magazine devoted exclusively to computer games. CGW was founded in 1981 by Russell Sipe as a semi-monthly publication. also recognized the power of this chip as the Voodoo PC, which features the RADEON(TM) 8500, took top spot in the magazine's "Ultimate Gaming Machine See video game console. " roundup. In the mobile area, Compaq (Compaq Computer Corporation, Houston, TX, www.compaq.com) Compaq was the leading PC manufacturer when it was acquired by HP in 2002. Founded in 1982 by Rod Canion, Jim Harris and Bill Murto, one year later the company shipped 53,000 PC-compatible COMPAQ Portables, resulting in $111 selected the MOBILITY(TM) RADEON(TM) 7500 for its new EvoNotebook N800 and Presario 2800 series and Toshiba Toshiba Corporation (株式会社東芝 Kabushiki-gaisha Tōshiba chose the MOBILITY(TM) RADEON(TM) graphics processor for its Satellite 1905 notebook PC. Subsequent to quarter end, IBM announced that the FIREGL(TM) 7800 and MOBILITY RADEON(TM) 7500 will power graphics in its high-end Thinkpad A family of notebook computers from Lenovo. Originally made by IBM and introduced in 1992, Lenovo acquired the ThinkPad brand along with IBM's personal computer division in 2004. ThinkPads have been widely praised for their excellent keyboard quality and innovations. A31p and A31 series notebooks, respectively. Among notebooks, the Dell Inspiron 8100, which is powered by the MOBILITY(TM) RADEON(TM) 7500 graphics processor, received Maximum PC magazine's "Kick Ass Product" designation. Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Interim Financial Results Revenue ATI revenues for the second quarter increased 6.4 per cent to (US) $266.0 million from (US) $250.0 million in the first quarter of fiscal 2002, as a result of stronger sales into the core PC market. The 20.3 per cent increase in revenues in the second quarter of 2002 compared to the same period a year ago was primarily due to higher sales in the Company's core PC markets, royalty revenue from sales of Nintendo's GAMECUBE(TM) game console See video game console. , and some recovery in the PC market. These increases were somewhat offset by the effect of ATI's system integrator See systems integrator. strategy, whereby the Company is delivering chips rather than boards into the system integrator channel, which reduces revenues but improves gross margins. Revenues for the first six months of the year were (US) $516.0 million versus (US) $563.2 million for the same period a year ago. The decrease in the current year was a result of strong sales in the first quarter of fiscal 2001, just prior to the substantial economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. affecting the PC market. Gross Margin Gross margin for the second quarter improved to 33.8 per cent of revenues compared to 32.0 per cent of revenues in the first quarter. The improvement was due to a richer mix of newer products. Gross margins improved in the second quarter and the first six months of fiscal 2002 compared to the same periods a year earlier. ATI's gross margins of 13.8 per cent for the second quarter and of 20.2 per cent for the first six months of fiscal 2001 were negatively impacted by pressures on product selling prices and an inventory of higher cost memory on boards that were sold in that period. Operating Expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. Total operating expenses, excluding amortization of intangibles, were (US) $69.8 million or about one per cent higher than in the first quarter, primarily as a result of increased R&D prototyping costs. Compared to the second quarter last year, operating expenses, excluding amortization of intangibles, increased 11.9 per cent primarily as a result of increased R&D investment as well as higher sales levels. For the first six months of this year, these expenses increased to (US) $139.0 million, versus (US) $130.2 million for the same period a year ago. The increased expense was largely a result of increased investment in R&D. Total operating expenses increased 0.7 per cent to (US) $91.0 million in the second quarter compared to the first quarter, as the amortization of intangible assets was essentially constant between the second and first quarters of fiscal 2002. Total operating expenses declined 5.1 per cent in the second quarter compared to the same period a year earlier as amortization expense declined 36.7 per cent to (US) $21.2 million. This decline was due to the Company completing its amortization of purchased in process R&D, resulting from the acquisition of ArtX ARTX Ada Real-Time Executive , during the third quarter of fiscal 2001. For the first six months of 2002, total operating expenses were (US) $181.3 million, versus (US) $197.8 million for the same period a year ago. The decrease in total operating expenses was largely a result of the completion of the amortization expense noted above, somewhat offset by higher R&D expense. Net Income Adjusted net income excludes the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. effect of gain on sale of investments, amortization of intangible assets related to the Company's acquisitions, and the deferred tax recovery of future tax liability pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to intangible assets acquired. Adjusted net income for the second quarter was (US) $17.6 million or (US) $0.07 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, compared to adjusted net income of (US) $10.4 million or (US) $0.04 per share for the first quarter. Higher sales in ATI's core PC markets and higher gross margins accounted for the increase. Adjusted net income for the second quarter of 2002 rose from an adjusted net loss of (US) $26.1 million for the same period last year. The increased adjusted net income was mainly due to higher revenues and higher gross margins; partially due to income from royalties on sales of Nintendo's GAMECUBE(TM); and also as a result of higher gross margins on the Company's graphics processors. Adjusted net income for the first six months of fiscal 2002 was (US) $28.0 million versus an adjusted net loss for the same period last year of (US) $14.3 million. The improvement in adjusted net income was primarily a result of gross margin improvement. In the second quarter of fiscal 2002, ATI's unadjusted net loss was (US) $3.0 million or (US) $0.01 per share, compared to an unadjusted net loss of (US) $10.3 million or (US) $0.04 per share in the first quarter of this year. The sequential improvement was due to higher revenues and gross margins. The decline in unadjusted net income in the second quarter of fiscal 2002 from (US) $0.6 million or (US) $0.00 per share for the same period last year was primarily the result of a gain realized in the second quarter of fiscal 2001. This gain was a result of the sale of the Company's investment in Broadcom Broadcom Corporation is an American supplier of integrated circuits (ICs) for broadband communications. Founded in 1991 by Henry Samueli (chairman and CTO) and Henry Nicholas, it became a public company in 1998 and now employs over 5,000 people worldwide. Corporation, which was only partially offset by lower amortization of intangible assets resulting from the ArtX acquisition and improved operating performance. The unadjusted net loss for the first six months of fiscal 2002 was (US) $13.4 million compared to an unadjusted net loss for the same period last year of (US) $15.6 million. The decrease in the unadjusted net loss was a result of improved earnings and decreased amortization expense offset by the gain from the sale of the Company's investment in Broadcom Corporation. Liquidity and Financial Resources ATI's cash generated from operations was (US) $28.4 million in the second quarter compared to (US) $10.1 million in the first quarter, and cash used of (US) $39.8 million in the second quarter a year ago. Inventories increased by (US) $25.6 million to (US) $117.1 million at February 28, 2002, compared to (US) $91.5 million three months earlier. For the first six months of the year, cash generated from operations was (US) $38.5 million versus cash used in operations of (US) $34.3 million for the same period last year. The improvement was largely a result of increased earnings and lower inventories. ATI's financial position continued to strengthen in the second quarter. At February 28, 2002, ATI had working capital of (US) $350.6 million, compared to (US) $323.6 million as at August 31, 2001. The Company's cash position increased to (US) $249.0 million as of February 28, 2002, compared to (US) $216.5 as at fiscal 2001 year end. The increased cash position was largely due to positive earnings, offset by increased inventories. Intangible assets declined to (US) $245.6 million at February 28, 2002, from (US) $285.9 million as at August 31, 2001, as ATI continued to amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. this asset. (1) Adjusted net income excludes the after-tax effect of gain on sale of investments, amortization of intangible assets related to the Company's acquisitions, and the deferred tax recovery of future tax liability pertaining to intangible assets acquired. Please see Note 2 to the financial statements. ATI's financial statements are prepared under Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. GAAP. A reconciliation to U.S. GAAP may be found in Note 4 to the financial statements. Forward-looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and Uncertainties Certain statements in this press release, including management's Discussion and Analysis of Interim Financial Results, constitute "forward-looking statements." When used in this press release, words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "suggests," and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on current expectations and entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary various risks and uncertainties that are outlined in this press release and in the Company's 2001 Annual Report and Annual Information Form. As a result of these risks and uncertainties, the Company's operating results and common share price may be subject to significant volatility, particularly on a quarterly basis. For example, the markets for the Company's products are characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by changing market conditions, frequent new product introductions, seasonal and variable demand and rapid technology changes. Other factors that could cause the Company's results to vary include, but are not limited to, lack of anticipated growth in the demand for PC's, gaming consoles See video game console. and consumer electronic devices in which the Company's products are incorporated, reductions in the Company's average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. for its products due to competitive pressures and other factors, the introduction of new products by the Company's competitors which render the Company's products non-competitive, delays encountered by the Company in developing new products or enhancements, including integrated graphics and core logic components, in the time frame required by its customers, delays in manufacturing or unfavourable manufacturing yields experienced by the Company's independent foundries, unexpected variances in material costs, including silicon wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. , memory and printed circuit boards, and constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. on the supply of components utilized in the Company's products and in the PC industry generally. These risks and uncertainties could cause or contribute to actual results that are materially different from those anticipated or experienced in the past. Additional information concerning factors that could cause the Company's financial results to fluctuate is contained in the Company's filings with Canadian and U.S. securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . ATI disclaims any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Conference Call Information ATI Technologies Inc. will host a conference call to discuss its financial results for the second quarter, ending February 28, 2002 at 10:00 AM (EST EST electroshock therapy. EST abbr. electroshock therapy ) (7:00 AM Pacific, 9:00 AM Central, 8:00 AM Mountain) today. To participate in the conference call, please dial 416-695-5806 ten minutes before the scheduled start of the call. No password is required. A live web cast of the conference call will be available at: http://www.ati.com/companyinfo/ir/quarterlyresults.html under the Financial Information section, under 2002 Conference Calls - Q2 2002 or at: http://www.enewsservices.com/en/webcast/index.html Replays of the conference call will be available through March 27, 2002. Replay information is as follows: Replay: 416-695-5800 / 1-800-408-3053 Passcode 1086757. A web cast replay will be available at the web sites noted above. Company Background Founded in 1985, ATI Technologies Inc. is a world leader in the supply of graphics, video and multimedia solutions for the personal computer and Mac platforms. The pioneer, innovator and market leader in the graphics industry, ATI provides cutting-edge technologies for the PC, workstation, set-top box, game console and other consumer appliances markets. The Company has more than 1,900 employees supporting customers from its headquarters in Markham, Ontario Markham (2006 Population 261,573[0]) is located in York Region, directly north of Toronto, and is part of Toronto's CMA. It is larger than many Canadian cities. Despite its qualifications regarding population, it has not had the title of city conferred upon it by the , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , as well as from offices in Barbados Barbados (bärbā`dōz), island state (2005 est. pop. 279,300), 166 sq mi (430 sq km), in the West Indies. The capital and largest city is Bridgetown. Land, People, and Economy The island, E of St. , France, Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. , Japan, Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. , the United Kingdom and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (ATY). Copyright 2002 ATI Technologies Inc. All rights reserved. ATI and ATI product and product feature names are trademarks and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. registered trademarks of ATI Technologies Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice. For media or industry analyst support, please visit our Web site at http://www.ati.com or contact: Anne Anne, British princess Anne (Anne Elizabeth Alice Louise), 1950–, British princess, only daughter of Queen Elizabeth II and Prince Philip, duke of Edinburgh. She was educated at Benenden School. Ferguson Ferguson, city (1990 pop. 22,286), St. Louis co., E Mo., a suburb of St. Louis; inc. 1894. It is primarily residential. , Acting Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Manager, ATI Technologies Inc., at (416) 422-7154 or aferguson@bmporternovelli.com Pedro Pedro. For Spanish and Portuguese rulers thus named, use Peter. Pedro in marrying former mistress of enemy. [Ger. Opera: d’Albert, Tief land, Westerman, 371–374] See : Innocence Cabezuelo, Senior Counsellor, BenchMark Porter Novelli Porter Novelli International is a leading, global PR and lobbying firm. It is part of the Omnicom Group of advertising and marketing companies, the world's largest advertising conglomerate. The following article on Porter Novelli was obtained from "Sourcewatch. , at (416) 422-7164 or pcabezuelo@bmporternovelli.com For investor relations Investor relations The process by which the corporation communicates with its investors. support, please contact: Janet Janet: see Clouet, Jean. JANET - Joint Academic NETwork Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. , Director, Investor Relations, ATI Technologies Inc., at (905) 882-2600, Ext. 2631 or jcraig@ati.com
ATI TECHNOLOGIES INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of US dollars, except per share amounts)
Three months ended
February 28 February 28
2002 2001
-----------------------------------------------------------
(unaudited)
Revenues $265,979 100.0% $221,026 100.0%
Cost of goods sold 175,965 66.2% 190,561 86.2%
-----------------------------------------------------------
Gross Margin 90,014 33.8% 30,465 13.8%
Expenses
Selling and marketing 19,728 7.4% 17,947 8.1%
Research and development 41,754 15.7% 35,187 15.9%
Administrative 8,357 3.1% 9,277 4.2%
Amortization of
intangible assets 21,164 8.0% 33,441 15.2%
-----------------------------------------------------------
91,003 34.2% 95,852 43.4%
-----------------------------------------------------------
Loss from operations (989) (0.4%) (65,387) (29.6%)
Interest and other income 1,343 0.5% 687 0.3%
Gain on long-term
investments, net - - 54,852 24.8%
Interest expense (1) - (556) (0.2%)
-----------------------------------------------------------
Income (loss) before
income taxes 353 0.1% (10,404) (4.7%)
Income taxes 3,392 1.2% (11,011) (5.0%)
-----------------------------------------------------------
Net income (loss) $ (3,039) (1.1%) $607 0.3%
===========================================================
Net income (loss)
per share
Basic $ (0.01) $0.00
Diluted $ (0.01) $0.00
===========================================================
Weighted average
number of shares
(000's)
Basic 234,154 230,504
Diluted - net
income (loss) 234,154 239,249
Diluted - adjusted
net income (loss) 249,318 230,504
===========================================================
Outstanding number of
shares at the end of
the quarter (000's) 234,787 230,850
===========================================================
See accompanying notes to interim consolidated financial statements
ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER SHARE
(Note 2)
(Thousands of US dollars, except per share amounts)
Adjusted net income
(loss) $17,644 $(26,088)
Adjusted net income
(loss) per share
Basic $0.08 $(0.11)
Diluted $0.07 $(0.11)
===========================================================
Six months ended
February 28 February 28
2002 2001
-----------------------------------------------------------
(unaudited)
Revenues $516,017 100.0% $563,213 100.0%
Cost of goods sold 345,925 67.0% 449,560 79.8%
-----------------------------------------------------------
Gross Margin 170,092 33.0% 113,653 20.2%
Expenses
Selling and marketing 40,017 7.8% 39,855 7.0%
Research and development 81,824 15.9% 72,464 12.9%
Administrative 17,138 3.3% 17,920 3.2%
Amortization of
intangible assets 42,354 8.2% 67,573 12.0%
-----------------------------------------------------------
181,333 35.2% 197,812 35.1%
-----------------------------------------------------------
Loss from operations (11,241) (2.2%) (84,159) (14.9%)
Interest and other income 3,072 0.6% 279 -
Gain on long-term
investments, net - - 54,852 9.7%
Interest expense (3) - (1,166) (0.2%)
-----------------------------------------------------------
Income (loss) before
income taxes (8,172) (1.6%) (30,194) (5.4%)
Income taxes 5,186 1.0% (14,629) (2.6%)
-----------------------------------------------------------
Net income (loss) $ (13,358) (2.6%)$(15,565) (2.8%)
===========================================================
Net income (loss)
per share
Basic $ (0.06) $(0.07)
Diluted $ (0.06) $(0.07)
===========================================================
Weighted average
number of shares
(000's)
Basic 233,325 230,126
Diluted - net
income (loss) 233,325 230,126
Diluted - adjusted
net income (loss) 247,117 230,126
Outstanding number
of shares at the
end of the quarter
(000's) 234,787 230,850
===========================================================
ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER SHARE
(Note 2)
(Thousands of US dollars, except per share amounts)
Adjusted net income
(loss) $28,029 $(14,328)
Adjusted net income
(loss) per share
Basic $0.12 $(0.06)
Diluted $0.11 $(0.06)
===========================================================
ATI TECHNOLOGIES INC.
INTERIM CONSOLIDATED BALANCE SHEETS
(Thousands of US dollars)
February 28 August 31
2002 2001
-----------------------------------------------------------------
(unaudited)
Assets
Current Assets
Cash and cash equivalents $ 229,021 $ 171,455
Short-term investments 20,017 45,000
Accounts receivable 164,774 134,852
Inventories 117,139 98,970
Prepayments and sundry receivables 23,395 20,704
Future income tax assets 4,100 4,658
-----------------------------------------------------------------
Total current assets 558,446 475,639
Capital assets 75,196 71,487
Intangible assets 245,583 285,869
Long-term investments 11,008 11,008
Future income tax assets - long-term 1,701 4,887
-----------------------------------------------------------------
Total Assets $ 891,934 $ 848,890
=================================================================
Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness $ 11,614 $ 8,749
Accounts payable 122,941 79,719
Accrued liabilities 57,795 48,965
Deferred revenue 417 354
Income taxes payable 8,779 9,573
Future income tax liabilities 6,330 4,719
-----------------------------------------------------------------
Total current liabilities 207,876 152,079
Future income tax liabilities - long-term 8,031 15,176
Shareholders' Equity
Share capital 556,864 551,217
Contributed surplus 4,136 2,033
Retained earnings 106,753 120,111
Currency translation adjustment 8,274 8,274
-----------------------------------------------------------------
Total shareholders' equity 676,027 681,635
-----------------------------------------------------------------
Total Liabilities and
Shareholders' Equity $ 891,934 $ 848,890
=================================================================
See accompanying notes to interim consolidated financial statements
ATI TECHNOLOGIES INC.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of US dollars)
Three months ended Six months ended
February 28 February 28
2002 2001 2002 2001
-----------------------------------------------------------------
(unaudited) (unaudited)
Cash provided by (used in):
Operating activities:
Net income (loss) $(3,039) $607 $(13,358) $(15,565)
Add items not affecting
working capital:
Future income taxes (495) (6,100) (1,790) (13,200)
Depreciation 5,334 5,267 10,631 10,519
Amortization of
intangible assets 21,164 33,441 42,354 67,573
Gain on long-term
investments - (54,852) - (54,852)
Foreign exchange
(gain) loss 137 (33) 161 298
Net changes in non-cash
working capital balances
relating to operations:
Accounts receivable 13,543 35,842 (29,922) 17,605
Inventories (25,592) 54,433 (18,169) 36,335
Prepayments and sundry
receivables (2,892) 5,366 (2,691) 9,574
Accounts payable 16,360 (97,856) 43,222 (83,469)
Accrued liabilities 3,433 (8,739) 8,830 (8,884)
Deferred revenue 188 (587) 63 (1,950)
Income taxes payable 302 (6,613) (794) 1,668
-----------------------------------------------------------------
28,443 (39,824) 38,537 (34,348)
-----------------------------------------------------------------
Financing activities:
Increase in bank
indebtedness 2,369 3,086 2,865 3,086
Issuance of common shares 6,444 1,418 7,750 2,851
-----------------------------------------------------------------
8,813 4,504 10,615 5,937
-----------------------------------------------------------------
Investing activities:
Purchase of short-term
investments - - (4,601) -
Maturity of short-term
investments 4,584 - 29,584 4,403
Additions to capital
assets (9,602) (5,484) (14,340) (14,949)
Investment in other assets - (2,500) - (2,500)
Proceeds from sale of
long-term investments - 65,061 - 65,061
Acquisitions, net of
cash acquired (1) - (2,068) -
-----------------------------------------------------------------
(5,019) 57,077 8,575 52,015
-----------------------------------------------------------------
Foreign exchange gain
(loss) on cash held in
foreign currency (137) 33 (161) (298)
=================================================================
Increase in cash 32,100 21,790 57,566 23,306
Cash and cash equivalents
- beginning of period 196,921 76,351 171,455 74,835
-----------------------------------------------------------------
Cash and cash equivalents
- end of period 229,021 98,141 229,021 98,141
Short-term investments 20,017 - 20,017 -
-----------------------------------------------------------------
Cash position -
end of period $ 249,038 $ 98,141 $ 249,038 $ 98,141
=================================================================
Cash position is defined as cash and cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. See accompanying notes to interim consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . ATI TECHNOLOGIES INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2002 (unaudited) The principal business activities of ATI Technologies Inc. (the "Company") are the design, manufacture and sale of graphics and multimedia products for personal computers and consumer electronics devices. The Company markets its products to original equipment manufacturers, system builders  This article's grammar usage needs improvement. Please edit this article in accordance with Wikipedia's . , distributors and retailers primarily in
North America, Europe and Asia-Pacific.
1. SIGNIFICANT ACCOUNTING POLICIES: The accompanying unaudited financial statements are prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Canadian generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting for interim financial statements and do not include all the information required for complete financial statements. These interim financial statements and notes related thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. should be read in conjunction with the Company's most recent annual consolidated financial statements, as at and for the year ended August 31, 2001. These interim consolidated financial statements follow the same accounting policies and methods of their application as the most recent annual consolidated financial statements with the exception of the Company's adoption of the new accounting standard for earnings per share with effect from September 1, 2001, as required by the revised Handbook
This article is about reference works. For the subnotebook computer, see .
Under this new standard, basic earnings per share is computed by dividing the net income or loss before discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and extraordinary items by the weighted average number of shares outstanding during the reporting periods. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options, if dilutive. The number of additional shares is calculated by the treasury stock method, assuming that the outstanding stock options are exercised and the proceeds from such exercises were used to acquire shares of common stock at the average market price during the reporting periods. The basic and diluted earnings per share for the comparable interim periods of the immediately preceding fiscal year have been adjusted retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin to reflect the adoption of this new standard for earnings per share.
The following table presents a reconciliation of the numerators
and denominators of the basic and diluted earnings per share
calculations:
Three months ended Six months ended
February 28 February 28
(Thousands of US dollars,
except per share amounts) 2002 2001 2002 2001
-----------------------------------------------------------------
(unaudited) (unaudited)
Net income (loss) $(3,039) $607 $(13,358) $(15,565)
Adjusted net income
(loss) - note 2 17,644 (26,088) 28,029 (14,328)
-----------------------------------------------------------------
Average number of common shares outstanding:
Basic 234,154 230,504 233,325 230,126
Effect of stock options - 8,745 - -
-----------------------------------------------------------------
Diluted - net income
(loss) 234,154 239,249 233,325 230,126
Effect of stock options 15,164 (8,745) 13,792 -
-----------------------------------------------------------------
Diluted - adjusted net
income (loss) 249,318 230,504 247,117 230,126
Earnings per share:
Basic - net income
(loss) $ (0.01) $ 0.00 $ (0.06) $ (0.07)
Basic - adjusted net
income (loss) $ 0.08 $ (0.11) $ 0.12 $ (0.06)
Diluted - net income
(loss) $ (0.01) $ 0.00 $ (0.06) $ (0.07)
Diluted -adjusted net
income (loss) $ 0.07 $ (0.11) $ 0.11 $ (0.06)
=================================================================
ATI TECHNOLOGIES INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
February 28, 2002
(unaudited)
2. ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER
SHARE
The table below presents adjusted net income (loss) and adjusted
net income (loss) per share, which excludes the after-tax effect of
gain on sale of investments, amortization of intangible assets related
to the Company's acquisitions, and deferred tax recovery of future tax
liability pertaining to intangible assets acquired, related to the
Company's acquisitions.
Three months ended Six months ended
February 28 February 28
(Thousands of US dollars,
except per share amounts) 2002 2001 2002 2001
-----------------------------------------------------------------
(unaudited) (unaudited)
Net income (loss) $(3,039) $607 $(13,358) $(15,565)
Gain on long-term
investments - (54,852) - (54,852)
Amortization of
intangible assets 21,164 33,441 42,354 67,573
Net tax on gain on
sale of investment - 991 - 991
Deferred tax recovery of
future tax liability on
intangible assets (481) (6,275) (967) (12,475)
-----------------------------------------------------------------
Adjusted net income
(loss) $17,644 $(26,088) $28,029 $(14,328)
-----------------------------------------------------------------
Adjusted net income
(loss) per share
Basic $ 0.08 $ (0.11) $ 0.12 $ (0.06)
Diluted $ 0.07 $ (0.11) $ 0.11 $ (0.06)
-----------------------------------------------------------------
Weighted average number of shares (000's):
Basic 234,154 230,504 233,325 230,126
Diluted 249,318 230,504 247,117 230,126
=================================================================
ATI TECHNOLOGIES INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
February 28, 2002
(unaudited)
3. SEGMENTED INFORMATION
The Company operates in one operating segment, that being the
design, manufacture and sale of graphics and multimedia products for
personal computers and consumer electronics devices.
The following tables provide revenues by geographic area and by
product, as well as capital and intangible assets by geographic area:
Three months ended Six months ended
February 28 February 28
(Thousands of US dollars) 2002 2001 2002 2001
-----------------------------------------------------------------
(unaudited) (unaudited)
Revenues:
Canada $ 5,190 $ 5,922 $ 9,885 $ 15,072
United States 80,787 69,721 154,906 180,183
Europe 44,918 62,179 86,110 151,760
Asia-Pacific 135,084 83,204 265,116 216,198
-----------------------------------------------------------------
Consolidated revenues $ 265,979 $ 221,026 $ 516,017 $ 563,213
-----------------------------------------------------------------
Product revenues:
Components $ 130,435 $ 97,939 $ 253,747 $ 235,119
Boards 129,364 121,620 248,957 323,137
Other 6,180 1,467 13,313 4,957
-----------------------------------------------------------------
Consolidated revenues $ 265,979 $ 221,026 $ 516,017 $ 563,213
-----------------------------------------------------------------
Capital and intangible
assets:
Canada $ 58,584 $ 47,649
United States 256,587 343,335
Europe 4,836 5,189
Asia-Pacific 772 773
-----------------------------------------------------------------
Consolidated capital and
intangible assets $ 320,779 $ 396,946
-----------------------------------------------------------------
ATI TECHNOLOGIES INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
February 28, 2002
(unaudited)
4. U.S. GAAP
The following table reconciles the net income as reported on the
consolidated statements of operations prepared in accordance with
Canadian GAAP to the consolidated net income that would have been
reported had the financial statements been prepared in accordance with
U.S. GAAP:
Three months ended Six months ended
February 28 February 28
(Thousands of US
dollars, except per
share amounts) 2002 2001 2002 2001
=================================================================
(unaudited) (unaudited)
Net income (loss)
in accordance with $(3,039) $607 $(13,358) $(15,565)
Canadian GAAP
Tax effect of stock
options exercised (923) (268) (996) (268)
Amortization of
purchased in-process - 12,563 - 25,266
research and development
Amortization difference
between Canadian 583 1,527 1,185 3,408
and U.S. GAAP
=================================================================
Net income (loss)
in accordance
with U.S. $(3,379) $14,429 $(13,169) $12,841
GAAP
=================================================================
Net income (loss)
per share
Basic $(0.01) $0.06 $(0.06) $0.06
Diluted $(0.01) $0.06 $(0.06) $0.05
=================================================================
Weighted average
number of shares
(000's):
Basic 234,154 230,504 233,325 230,126
Diluted 234,154 239,249 233,325 239,252
=================================================================
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