ATI Reports Q3 Adjusted Net Income of US $0.08 Per Share; Richer Chip Mix Drives Gross Margin Increase.Business Editors/High-Tech Writers 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)--June 19, 2002 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. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :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) $19.2 million or (US) $0.08 per share and a net loss, determined 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 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 , of (US) $2.0 million or (US) $0.01 per share for the third quarter ended May 31, 2002 of its 2002 fiscal year. Revenues increased marginally during the third quarter to (US) $266.2 million from (US) $266.0 million in the second quarter of fiscal 2002, and gross margin improved 1.2 percentage points to 35.0 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) $69.2 million, slightly lower than the (US) $69.8 million recorded in the second quarter. "We continue to successfully execute our aggressive strategy of introducing new products for the PC market and expanding into the consumer digital market," 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 and 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. "Over the past few months we announced a significant number of notebook See notebook computer. 1. (computer) notebook - laptop computer. 2. (tool) notebook - Labtech Notebook. wins, launched our new 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 processor line of products, and began to show the world what 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. has in store for the desktop PC, set top box, and PDA (Personal Digital Assistant) A handheld computer for managing contacts, appointments and tasks. It typically includes a name and address database, calendar, to-do list and note taker, which are the functions in a personal information manager (see PIM). markets. The upcoming introduction of our next generation of products will further enhance ATI's technology lead. For ATI, 2002 is truly a year of delivering on our ambitious goal of creating top-to-bottom technology leadership." ATI's financial position continued to strengthen in the third quarter. Cash generated from operations during the third quarter was (US) $21.1 million. The Company's cash position increased to (US) $265.7 million at May 31, 2002 from (US) $249.0 million three months earlier. Inventories increased by (US) $10.6 million during the quarter to (US) $127.7 million at May 31, 2002, while working capital increased by (US) $19.5 million to (US) $370.1 million compared to February February: see month. 28, 2002. "Our financial results are one of the key indicators that ATI is meeting its goals," said K.Y. Ho, Chairman and Chief Executive Officer, ATI Technologies Inc. "As ATI rolls out exciting new products in the full range of our product line, we will continue to expand our customer base, our market share, and our leadership in the market. These successes will drive ATI's growth and profitability for the year ahead." Outlook "In the latter half of fiscal 2002, we have been building a solid foundation for fiscal 2003," said Terry Nickerson, Senior Vice President and Chief Financial Officer, ATI Technologies Inc. "Although we expect some market softness in our fiscal fourth quarter, we continue to expect a strong beginning to fiscal 2003 due to new product revenue in the desktop and integrated markets, revenue ramping in the set top box and handheld handheld: see personal digital assistant. businesses, as well as seasonal strength from Nintendo." In the fourth quarter of fiscal 2002, ATI believes the system integrator See systems integrator. market will continue to be weak. As a result of these market conditions, the Company expects revenue to be flat to slightly down. The Company expects gross margins to be within its business model target range of 32 to 35 per cent, but in the lower half of the range. This is a result of the product transition in the fourth quarter as new products ramp and replace older products approaching end of life. 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. is expected to be up modestly because of the previously announced NxtWave acquisition and new product introduction expenses. As a result, ATI expects adjusted net income per share to be in the (US) $0.05 - (US) $0.07 range. In previous guidance, the Company has described the last two quarters of fiscal 2002 as "setting the stage" for a strong fiscal 2003. ATI continues to hold that view. The investment that the Company has made over the past two years in the development of new products is realized in our fiscal fourth quarter with production ramping in set top box, handheld and integrated graphics chipsets, as well as the introduction of our new family of discrete A component or device that is separate and distinct and treated as a singular unit. graphics processors. This, in addition to strong seasonal performance expected from Nintendo royalties Not to be confused with Royal family. Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. , all suggest that the fiscal first quarter of 2003 will have growth that is stronger than the normal seasonal expectation. With operating expense expected to show only marginal (jargon) marginal - 1. Extremely small. "A marginal increase in core can decrease GC time drastically." In everyday terms, this means that it is a lot easier to clean off your desk if you have a spare place to put some of the junk while you sort through it. 2. growth, and gross margins continuing at the same level as in the fiscal fourth quarter of 2001, earnings should be well above fourth quarter levels. Operational Highlights During the third quarter, ATI continued to announce impressive desktop, notebook and workstation workstation Computer intended for use by one person, but with a much faster processor and more memory than an ordinary personal computer. Workstations are designed for powerful business applications that do large numbers of calculations or require high-speed graphical design wins. Following the quarter end, the Company announced a series of important breakthrough wins for its new products aimed at the growing integrated, set top box and handheld PDA markets. 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 Mercury, in astronomy Mercury, in astronomy, nearest planet to the sun, at a mean distance of 36 million mi (58 million km); its period of revolution is 88 days. Research, ATI increased its market share in the total PC market in the first quarter of calendar 2002. ATI's share of the total graphics chip market grew by two percentage points to 23 per cent versus the fourth quarter of calendar 2001. ATI's desktop discrete share rose by one percentage point to 27 per cent, while laptop Same as laptop computer. laptop - portable computer discrete share remained strong at 62 per cent. During its fiscal third quarter, ATI continued to be the market share leader in the notebook area, announcing 13 design wins, including 10 design wins for its MOBILITY RADEON See ATI. 7500 graphics processor with many of the top tier notebook manufacturers, including Apple, 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 , HP and 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) . In desktop, ATI gained further business with the largest PC OEMs, including a desktop design win with its RADEON 7500 graphics card in Dell's Optiplex GX260 line of products. ATI demonstrated the clear leadership of its core graphics processor technology when John Carmack John Carmack may refer to
(games) DOOM - A simulated 3D moster-hunting action game for IBM PCs, created and published by id Software. The original press release was dated January 1993. A cut-down shareware version v1. (TM) video game, chose ATI's as-yet-unveiled next generation graphics processor to launch the eagerly anticipated new version, Doom III(TM), at E3 Expo. Said Carmack Carmack is a surname and may refer to:
ATI gained further momentum in the workstation market with design wins in the high-powered high-pow·ered also high-pow·er adj. Having great power or energy; dynamic: She's on a high-powered career track. high-powered Adjective 1. IBM 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. A31 and A31p notebooks with its FIRE GL 7800 graphics processor, as well as Compaq's Evo and IBM's 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. workstations with the FIRE GL 8800. ATI's unique 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) line of products continued to penetrate the OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and desktop segment with the ALL-IN-WONDER(TM) RADEON(TM) 8500 being offered in Compaq Presario Presario is a series of desktop computers and notebooks from Compaq. The Presario family of computers was launched for the consumer marketplace in September 1993. Although HP has since acquired Compaq, the Presario name was not discontinued due to its marketability. 6000 and 8000 series PCs, and the ALL-IN-WONDER(TM) RADEON(TM) 7500 being offered in HP Home Pavilion Pavilion may refer to:
The Company unveiled its full line of integrated graphics core logic products at the beginning of the third quarter. The new RADEON(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 products offers the world's most powerful, feature-rich integrated graphics processors for the desktop and mobile PC market segments. This advanced graphics technology supports both the Intel Pentium Pentium Family of microprocessors developed by Intel Corp. Introduced in 1993 as the successor to Intel's 80486 microprocessor, the Pentium contained two processors on a single chip and about 3.3 million transistors. (R) 4 and AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. Athlon A family of Pentium-compatible CPU chips from AMD. The first 32-bit models were introduced as Pentium III-class CPUs in 1999 with a 200 MHz system bus and CPU speeds up to 650 MHz. and Duron A value line of 32-bit, Pentium-compatible CPU chips from AMD. Introduced in 2000 to compete with Intel's Celerons, Durons were pin compatible with AMD's Athlon chips, but had less cache and slower frontside buses. platforms, giving ATI a dynamic new presence in the growing integrated graphics market. Industry analyst IDC estimates sales in this market segment at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. (US) $2.4 billion for calendar 2002. Industry reaction has been positive. Following the quarter's end, ATI announced that its RADEON(TM) IGP 320 integrated graphics processor had been chosen to power the FIC FIC First International Computer FIC Fogarty International Center (John E. Fogarty International Center for Advanced Study in the Health Sciences; National Institutes of Health) FIC Fellowship for Intentional Community AT31 FUSION, Sapphire sapphire, precious stone. A transparent blue corundum, it is classified among the most valuable of gems. Sapphires are found chiefly in Thailand, India, Sri Lanka, and Myanmar and also in Australia and in the United States (in Montana). A3-275 and PC Partner's A3MSA-275 and A3ASA-285 motherboards. In the set top box segment, ATI announced an agreement to provide its new 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). (TM) products for Scientific-Atlanta's Explorer(R) digital interactive set tops, following the quarter end. Scientific-Atlanta Scientific Atlanta Inc, a Cisco company, is a Georgia-based manufacturer of cable television, telecommunications, and broadband equipment. Both Scientific Atlanta and Cisco can trace their roots to academia. is the world's second largest manufacturer of set top boxes. This week ATI announced its first design win for the 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). (TM) 100 in Toshiba's new e740 PDA. The IMAGEON(TM) 100 is a unique product in the handheld PDA market, featuring an advanced 2D graphics engine that supports more colours and higher resolutions for brighter and crisper crisp·er n. One that crisps, especially a compartment in a refrigerator used for storing vegetables and keeping them fresh. displays. Each of these wins in the integrated, set top box and handheld PDA areas demonstrates ATI's ability to successfully widen wid·en tr. & intr.v. wid·ened, wid·en·ing, wid·ens To make or become wide or wider. wid  en·er n. the
application of its industry-leading technology to new, fast growing
markets.
Other Corporate Developments Last week, ATI announced that it had entered into an agreement to purchase NxtWave Communications for (US) $20 million in cash. NxtWave's industry-leading technology is expected to enable ATI to offer highly integrated chipsets to its set top customers at lower cost and with greater functionality, facilitating growth of the Company's new XILLEON(TM) and next generation products in this expanding market. The transaction is expected to close on June June: see month. 28, 2002. 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 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 Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the , 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 PCs, 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 COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. which render (1) To make visible; to draw. The term comes from the graphics world where a rendering is an artist's drawing of what a new structure would look like. In computer-aided design (CAD), a rendering is a particular view of a 3D model that has been converted into a realistic image. 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 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. 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 third quarter, ending May 31, 2002 at 10:00 AM (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) (7:00 AM Pacific, 9:00 AM Central, 8:00 AM Mountain) today. To participate in the conference call, please dial 416/405-9328 ten minutes before the scheduled start of the call. No password A secret word or code used to serve as a security measure against unauthorized access to data. It is normally managed by the operating system or DBMS. However, the computer can only verify the legitimacy of the password, not the legitimacy of the user. See NCSC. 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 - Q3 2002 or at: www.startcast.com/shows/3/7-414/ Replays of the conference call will be available through June 26, 2002. Please call 416/695-5800, passcode 1161469. A web cast replay will be available at the web sites noted above. Company Background ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3D graphics and digital media silicon solutions. An industry pioneer since 1985, ATI delivers leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set top box, game console See video game console. and handheld markets. With 2001 revenues in excess of US $1 billion, ATI has more than 1,900 employees in the Americas A·mer·i·cas , the See America. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Asia. 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). Note to Editors: 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. Note (1): 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. Each of these items has been excluded from adjusted net income as they are not considered to be part of the Company's normalized ongoing operations. While the Company recognizes that adjusted net income does not have any standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. meaning described by generally accepted accounting principles, or GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , and that its adjusted net income calculation cannot be used as a comparison to other companies' financial performance, ATI believes that its adjusted net income more appropriately reflects the Company's operating performance. Please see the table titled "Adjusted Net Income Reconciliation" in the Management Discussion and Analysis of Interim Financial Results for the reconciliation between adjusted net income and net income which is determined in accordance with GAAP. 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 for the Third Quarter Ended May 31, 2002 Revenue ATI revenues for the third quarter increased slightly to (US) $266.2 million from (US) $266.0 million in the second quarter of fiscal 2002. While the Company's shipment volumes increased by just under 10 per cent, the effect of a richer chip-to-board mix restrained revenues. Revenues in the third quarter of 2002 increased by 8.5 per cent from (US) $245.5 million during the same period a year ago primarily due to higher sales and market share in the Company's core PC markets, and royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. revenue from sales of Nintendo's GAMECUBE(TM) game console. These increases were somewhat offset by the effect of ATI's add-in-board strategy, whereby the Company is delivering chips rather than boards into the system integrator as well as OEM and retail channels, which generates lower unit revenues but improves gross margins. Revenues for the first nine months of the fiscal year were (US) $782.2 million versus (US) $808.7 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, as well as the impact of the Company's add-in-board strategy. Gross Margin Gross margin for the third quarter improved to 35.0 per cent of revenues compared to 33.8 per cent of revenues in the second quarter. The improvement was due to the continuing shift to chips from boards in the Company's sales mix sales mix See product mix. , and strong margins on individual products across ATI's product line. Gross margins improved in the third quarter and the first nine months of fiscal 2002 compared to the same periods in fiscal 2001. ATI's gross margins of 24.1 per cent for the third quarter of 2001 and 21.4 per cent for the first nine months of that year resulted from pressures on product selling prices and an inventory of higher cost memory on boards that were sold in last year's second quarter. Operating Expense Total operating expenses, in the third quarter, excluding amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. , were (US) $69.2 million, (US) $0.6 million lower than in the second quarter, primarily as a result of lower R&D prototyping (1) Creating a demo of a new system. Prototyping is essential for clarifying information requirements. The design of a system (functional specs) must be finalized before the system can be built. costs, somewhat offset by higher one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. administrative expense. Compared to the third quarter last year, operating expenses, excluding amortization of intangibles, increased (US) $4.3 million or 6.7 per cent primarily as a result of increased R&D investment related to new product introductions, as well as increased variable sales expense as a result of higher unit volumes. For the first nine months of this year, these expenses increased to (US) $208.2 million, versus (US) $195.1 million for the same period in fiscal 2001. The increased expense was largely a result of the additional investment in R&D related to new product development. Total operating expenses, including amortization of intangibles, increased marginally in the third quarter compared to the same period a year earlier. This slight increase was due to higher R&D costs, largely offset by the Company having completed 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 nine months of fiscal 2002, total operating expenses, including amortization of intangibles, were (US) $272.2 million, versus (US) $288.5 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. Interest and Other Income Interest and other income declined (US) $1.6 million in the third quarter compared to the second quarter of this year. The decrease is largely a result of an unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on foreign exchange and a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. on fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → related to the Company's move into its new corporate headquarters. Net Income In order to provide additional information concerning the Company's operating performance, ATI uses adjusted net income as a measure of its performance in addition to its disclosure contained in its financial statements. 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. Each of these items has been excluded from adjusted net income as they are not considered to be part of the Company's normalized ongoing operations. While the Company recognizes that adjusted net income does not have any standardized meaning described by generally accepted accounting principles, or GAAP, and that its adjusted net income calculation cannot be used as a comparison to other companies' financial performance, ATI believes that its adjusted net income more appropriately reflects the Company's operating performance. A table titled "Adjusted Net Income Reconciliation" can be found at the end of the Management Discussion and Analysis for the reconciliation between adjusted net income and net income which is determined in accordance with GAAP. Adjusted net income for the third quarter was (US) $19.2 million or (US) $0.08 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) $17.6 million or (US) $0.07 per share for the second quarter. Stronger unit shipments and an improved gross margin associated with a richer product mix accounted for the increase. Adjusted net income for the third quarter of 2002 rose from an adjusted net loss of (US) $4.2 million, or (US) $0.02 per share, for the same period last year. The increase was due to higher revenues from stronger sales into the PC market, royalties received on sales of Nintendo's GAMECUBE(TM), and higher gross margins on the Company's graphics processors. Adjusted net income for the first nine months of fiscal 2002 was (US) $47.3 million versus an adjusted net loss for the same period last year of (US) $18.5 million. The improvement in adjusted net income was primarily a result of gross margin improvement. In the third quarter of fiscal 2002, ATI's net loss was (US) $2.0 million or (US) $0.01 per share, compared to a net loss of (US) $3.0 million or (US) $0.01 per share in the second quarter of this year. The sequential One after the other in some consecutive order such as by name or number. improvement was due to higher gross margins. The reduction in net loss in the third quarter of fiscal 2002 from a net loss of (US) $27.0 million or (US) $0.12 per share for the same period last year was primarily the result of higher sales and margins. The net loss for the first nine months of fiscal 2002 was (US) $15.3 million compared to a net loss for the same period last year of (US) $42.6 million. The decrease in the net loss was a result of improved margins and decreased amortization expense offset by the gain from 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. Liquidity and Financial Resources ATI's cash generated from operations was (US) $21.1 million in the third quarter compared to (US) $28.4 million in the second quarter, and (US) $66.0 million in the third quarter a year ago. Inventories increased by (US) $10.6 million to (US) $127.7 million at May 31, 2002, compared to (US) $117.1 million three months earlier. For the first nine months of the year, cash generated from operations was (US) $59.6 million versus (US) $31.6 million for the same period last year. The improvement was largely a result of a reduction in net loss. ATI's financial position continued to strengthen in the third quarter. At May 31, 2002, ATI had working capital of (US) $370.1 million, compared to (US) $323.6 million as at August 31, 2001. The Company's cash position increased to (US) $265.7 million as of May 31, 2002, compared to (US) $216.5 as at fiscal 2001 year end. The increased cash position was largely due to a reduction in net loss. Intangible assets, largely consisting of goodwill associated with the acquisition of ArtX in April 2000, declined to (US) $223.9 million at May 31, 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. Adjusted Net Income - Reconciliation 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 Nine months
(Thousands of US dollars, ended ended
except per share amounts) May 31 May 31
2002 2001 2002 2001
----------------------------------------------------------------------
(unaudited) (unaudited)
Net loss -
GAAP basis $ (1,951) $ (27,007) $ (15,309) $ (42,572)
Gain on long-term
investments - - - (54,852)
Amortization of
intangible assets 21,679 25,805 64,033 93,378
Net tax on gain on
sale of investment - - - 991
Deferred tax recovery
of future tax liability
on intangible assets (490) (2,957) (1,457) (15,432)
----------------------------------------------------------------------
Adjusted net
income (loss) $ 19,238 $ (4,159) $ 47,267 $ (18,487)
----------------------------------------------------------------------
Adjusted net income
(loss) per share
Basic $ 0.08 $ (0.02) $ 0.20 $ (0.08)
Diluted $ 0.08 $ (0.02) $ 0.19 $ (0.08)
----------------------------------------------------------------------
Weighted average number
of shares (000's):
Basic 236,082 231,328 234,244 230,527
Diluted 248,382 231,328 247,539 230,527
----------------------------------------------------------------------
Forward-Looking Statements and Uncertainties Certain statements in the Management's Discussion and Analysis of Interim Financial Results, constitute "forward-looking statements." When used in this document, 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 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 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 PCs, gaming consoles and consumer electronic devices in which the Company's products are incorporated, reductions in the Company's average selling prices 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, memory and printed circuit boards, and constraints 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. 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.
ATI TECHNOLOGIES INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of US dollars, except per share amounts)
Three months ended
May 31 May 31
2002 2001
-----------------------------------------------------------------
(unaudited)
Revenues $266,225 100.0% $245,464 100.0%
Cost of goods sold 172,996 65.0% 186,298 75.9%
-----------------------------------------------------------------
Gross Margin 93,229 35.0% 59,166 24.1%
Expenses
Selling and marketing 19,427 7.3% 18,164 7.4%
Research and development 39,935 15.0% 37,372 15.2%
Administrative 9,852 3.7% 9,342 3.8%
Amortization of
intangible assets 21,679 8.1% 25,805 10.5%
-----------------------------------------------------------------
90,893 34.1% 90,683 36.9%
-----------------------------------------------------------------
Income (loss) from
operations 2,336 0.9% (31,517) (12.8)%
Interest and other income (306) (0.1)% 642 0.2%
Gain on long-term
investments, net - - - -
Interest expense:
Short term (77) - (2) -
Long term (171) (0.1)% - -
-----------------------------------------------------------------
Income (loss) before
income taxes 1,782 0.7% (30,877) (12.6)%
Income taxes 3,733 1.4% (3,870) (1.6)%
-----------------------------------------------------------------
Net loss $(1,951) (0.7)% $(27,007) (11.0)%
=================================================================
Net loss per share
Basic $(0.01) $(0.12)
Diluted $(0.01) $(0.12)
=================================================================
Weighted average number
of shares (000's)
Basic 236,082 231,328
Diluted 236,082 231,328
Outstanding number of
shares at the end of
the quarter (000's) 236,620 231,529
=================================================================
See accompanying notes to interim consolidated financial statements
Nine months ended
May 31 May 31
2002 2001
-----------------------------------------------------------------
(unaudited)
Revenues $782,242 100.0% $808,677 100.0%
Cost of goods sold 518,921 66.3% 635,858 78.6%
-----------------------------------------------------------------
Gross Margin 263,321 33.7% 172,819 21.4%
Expenses
Selling and marketing 59,444 7.6% 58,019 7.2%
Research and development 121,759 15.6% 109,836 13.6%
Administrative 26,990 3.4% 27,262 3.4%
Amortization of
intangible assets 64,033 8.2% 93,378 11.5%
-----------------------------------------------------------------
272,226 34.8% 288,495 35.7%
-----------------------------------------------------------------
Income (loss) from
operations (8,905) (1.1)% (115,676) (14.3)%
Interest and other income 2,766 0.3% 921 0.1%
Gain on long-term
investments, net - - 54,852 6.8%
Interest expense:
Short term (80) - (1,168) (0.2)%
Long term (171) - - -
-----------------------------------------------------------------
Income (loss) before
income taxes (6,390) (0.8)% (61,071) (7.6)%
Income taxes 8,919 1.2% (18,499) (2.3)%
-----------------------------------------------------------------
Net loss $(15,309) (2.0)% $(42,572) (5.3)%
=================================================================
Net loss per share
Basic $(0.07) $(0.18)
Diluted $(0.07) $(0.18)
=================================================================
Weighted average number
of shares (000's)
Basic 234,244 230,527
Diluted 234,244 230,527
Outstanding number of
shares at the end of
the quarter (000's) 236,620 231,529
=================================================================
See accompanying notes to interim consolidated financial statements
ATI TECHNOLOGIES INC.
INTERIM CONSOLIDATED BALANCE SHEETS
(Thousands of US dollars)
May 31 August 31
2002 2001
-------------------------------------------------------------------
(unaudited) (audited)
Assets
Current assets
Cash and cash equivalents $ 216,008 $ 171,455
Short-term investments 49,649 45,000
Accounts receivable 161,642 134,852
Inventories 127,727 98,970
Prepayments and sundry receivables 22,817 20,704
Future income tax assets 4,435 4,658
-------------------------------------------------------------------
Total current assets 582,278 475,639
Capital assets 95,667 71,487
Intangible assets 223,904 285,869
Long-term investments 11,008 11,008
Future income tax assets - long-term 1,727 4,887
-------------------------------------------------------------------
Total Assets $ 914,584 $ 848,890
===================================================================
Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness $ 12,258 $ 8,749
Accounts payable 124,645 79,719
Accrued liabilities 60,832 48,965
Deferred revenue 338 354
Income taxes payable 8,081 9,573
Obligation under capital lease - current 570 -
Future income tax liabilities 5,490 4,719
-------------------------------------------------------------------
Total current liabilities 212,214 152,079
Obligation under capital lease - long-term 16,266 -
Future income tax liabilities - long-term 7,162 15,176
Shareholders' Equity
Share capital 561,143 551,217
Contributed surplus 4,723 2,033
Retained earnings 104,802 120,111
Currency translation adjustment 8,274 8,274
-------------------------------------------------------------------
Total shareholders' equity 678,942 681,635
-------------------------------------------------------------------
Total Liabilities and
Shareholders' Equity $ 914,584 $ 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 Nine months ended
May 31 May 31
----------------------------------------------------------------------
2002 2001 2002 2001
----------------------------------------------------------------------
(unaudited) (unaudited)
Cash provided by (used in):
Operating activities:
Net loss $ (1,951) $ (27,007) $ (15,309) $ (42,572)
Add items not
affecting working
capital:
Future income taxes (2,070) (3,486) (3,860) (16,686)
Depreciation 5,721 5,160 16,352 15,679
Amortization of
intangible assets 21,679 25,805 64,033 93,378
Gain on long-term
investments - - - (54,852)
Foreign
exchange loss 623 186 784 484
Net changes
in non-cash
working capital
balances relating
to operations:
Accounts receivable 3,132 15,340 (26,790) 32,945
Inventories (10,588) 66,323 (28,757) 102,658
Prepayments and
sundry receivables 578 (2,614) (2,113) 6,960
Accounts payable 1,704 (30,542) 44,926 (114,011)
Accrued liabilities 3,037 9,998 11,867 1,114
Deferred revenue (79) (799) (16) (2,749)
Income taxes payable (698) 7,621 (1,492) 9,289
----------------------------------------------------------------------
21,088 65,985 59,625 31,637
----------------------------------------------------------------------
Financing activities:
Increase in bank
indebtedness 644 2,206 3,509 5,292
Principal payment
under capital lease
obligation (181) - (181) -
Issuance of common
shares 4,866 571 12,616 3,422
----------------------------------------------------------------------
5,329 2,777 15,944 8,714
----------------------------------------------------------------------
Investing activities:
Purchase of short-term
investments (49,632) - (54,233) -
Maturity of short-term
investments 20,000 - 49,584 4,403
Additions to capital
assets (9,930) (7,068) (24,270) (22,017)
Investment in
other assets - - - (2,500)
Proceeds from sale of
long-term investments - - - 65,061
Acquisitions,
net of cash acquired - (2,700) (2,068) (2,700)
----------------------------------------------------------------------
(39,562) (9,768) (30,987) 42,247
----------------------------------------------------------------------
Foreign exchange gain
(loss) on cash held
in foreign currency 132 (186) (29) (484)
======================================================================
Increase (decrease)
in cash (13,013) 58,808 44,553 82,114
Cash and
cash equivalents
- beginning of period 229,021 98,141 171,455 74,835
----------------------------------------------------------------------
Cash and
cash equivalents
- end of period 216,008 156,949 216,008 156,949
Short-term investments 49,649 - 49,649 -
----------------------------------------------------------------------
Cash position
- end of period $ 265,657 $ 156,949 $ 265,657 $ 156,949
======================================================================
Cash position is defined as cash and cash equivalents and
short-term investments. See accompanying notes to interim consolidated
financial statements.
ATI TECHNOLOGIES INC. 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 May 31, 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 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. , Europe and Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). .
1. Significant Accounting Policies The accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. unaudited financial statements are prepared in accordance with Canadian generally accepted accounting principles 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 conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. 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 September: see month. 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. Pending Accounting Standards (a) CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) Handbook Section 3870, Stock-based compensation and other stock-based payments Effective September 1, 2002, the Company will adopt The Canadian Institute of Chartered Accountants ("CICA") Section 3870, Stock-based compensation and other stock-based payments. This Section establishes standards for the recognition, measurement and disclosure of stock-based compensation and other stock-based payments made in exchange for goods and services. The Company has not yet determined the impact the adoption of Handbook Section 3870 will have on its financial statements. (b) CICA Handbook Section 1581, Business Combinations, and Section 3062, Goodwill and Other Intangible Assets Effective September 1, 2002, the Company will adopt the CICA Sections 1581 Business Combinations, and Section 3062 Goodwill and Intangible Assets. These Statements are the result of a convergence convergence Mathematical property of infinite series, integrals on unbounded regions, and certain sequences of numbers. An infinite series is convergent if the sum of its terms is finite. project with the FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). and the CICA and, therefore, were developed and issued concurrently con·cur·rent adj. 1. Happening at the same time as something else. See Synonyms at contemporary. 2. Operating or acting in conjunction with another. 3. Meeting or tending to meet at the same point; convergent. with those of the FASB. The Company has not yet determined the impact the adoption of Handbook Section 1581 and Section 3062 will have on its financial statements. The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations:
(Thousands of Three months ended Nine months ended
US dollars, except May 31 May 31
per share amounts) 2002 2001 2002 2001
======================================================================
(unaudited) (unaudited)
Net loss $ (1,951) $ (27,007) $ (15,309) $ (42,572)
Average number
of common shares
outstanding:
Basic 236,082 231,328 234,244 230,527
Effect of
stock options - - - -
----------------------------------------------------------------------
Diluted 236,082 231,328 234,244 230,527
Net loss per share:
Basic $ (0.01) $ (0.12) $ (0.07) $ (0.18)
Diluted $ (0.01) $ (0.12) $ (0.07) $ (0.18)
2. Capital Lease
In February 1999, the Company entered into a 50% ownership joint
venture agreement for the purpose of constructing a new building
facility in Markham, Ontario. The facility was completed during the
current quarter of 2002. The completed cost of this facility amounts
to $33.3 million. The Company entered into a lease agreement with the
joint venture, which is recorded in the current quarter as a capital
lease. The building under capital leases is initially recorded at the
present value of minimum lease payments at the inception of the lease.
Depreciation is provided using the straight-line method over a period
of 15 years.
In October 1999, the joint venture arranged interim construction
financing, which it intends to convert to mortgage financing secured
by the underlying asset. The joint venture is currently in discussions
with a lender to place a mortgage on the property. As of May 31, 2002,
the Company's proportional share of the construction financing amounts
to $12.3 million. The underlying liability is denominated in Canadian
dollars.
The Company's obligation under capital lease owed to the third
party venturer, which is denominated in Canadian dollars, is as
follows:
(Thousands of US dollars)
--------------------------------------------------------
Year ending August 31:
2002 $ 404
2003 1,617
2004 1,617
2005 1,617
2006 1,617
2007 1,683
Later years, through 2017 17,930
--------------------------------------------------------
Total minimum lease payments $ 26,485
Less : amount representing
interest at 6.31% 9,649
--------------------------------------------------------
Present value of net minimum
capital lease payments $ 16,836
Current portion of obligation
under capital lease 570
--------------------------------------------------------
Interest of $0.17 million relating to capital lease obligation has
been included in interest expense.
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:
(Thousands of Three months ended Nine months ended
of May 31 May 31
US dollars) 2002 2001 2002 2001
======================================================================
(unaudited) (unaudited)
Revenues:
Canada $ 2,857 $ 4,466 $ 12,742 $ 19,538
United States 74,756 69,711 229,662 249,894
Europe 39,020 59,782 125,130 211,542
Asia-Pacific 149,592 111,505 414,708 327,703
----------------------------------------------------------------------
Consolidated revenues $ 266,225 $ 245,464 $ 782,242 $ 808,677
======================================================================
Product revenues:
Components $ 147,913 $ 123,589 $ 401,660 $ 358,708
Boards 112,053 119,811 361,010 442,948
Other 6,259 2,064 19,572 7,021
----------------------------------------------------------------------
Consolidated revenues $ 266,225 $ 245,464 $ 782,242 $ 808,677
======================================================================
Capital and intangible
assets:
Canada $ 78,363 $ 49,558
United States 235,198 314,371
Europe 4,768 5,110
Asia-Pacific 1,242 763
----------------------------------------------------------------------
Consolidated capital
and intangible assets $ 319,571 $ 369,802
======================================================================
4. U.S. GAAP
The following table reconciles the net loss as reported on the
consolidated statements of operations prepared in accordance with
Canadian GAAP to the consolidated net loss that would have been
reported had the financial statements been prepared in accordance with
U.S. GAAP:
(Thousands of Three months ended Nine months ended
US dollars, except May 31 May 31
per share amounts) 2002 2001 2002 2001
======================================================================
(unaudited) (unaudited)
Net loss
in accordance
with Canadian GAAP $ (1,951) $ (27,007) $ (15,309) $ (42,572)
Tax effect
of stock options
exercised (812) - (1,808) (268)
Amortization
of purchased
in-process research
and development - 4,886 - 30,151
Amortization difference
between Canadian
and U.S. GAAP 621 1 ,683 1,806 5,091
Stock compensation
expenses (A) 1,085 (355) (3,741) (355)
----------------------------------------------------------------------
Net loss
in accordance
with U.S. GAAP $ (1,057) $ (20,793) $ (19,052) $ (7,953)
======================================================================
Net loss per share
Basic $ 0.00 $ (0.09) $ (0.08) $ (0.03)
Diluted $ 0.00 $ (0.09) $ (0.08) $ (0.03)
======================================================================
Weighted average number
of shares (000's):
Basic 236,082 231,328 234,244 230,527
Diluted 236,082 231,328 234,244 230,527
======================================================================
Note (A): Under U.S. GAAP, options granted after January 18, 2001,
with an exercise price denominated in a currency other than the
currency of the primary economic environment of either the employer or
the employee, should be accounted for under the variable accounting
method. Under Canadian GAAP, there is currently no equivalent
requirement. The comparative figures for the three months and nine
months ended May 31, 2001 have been amended to include the impact of
this difference between Canadian and U.S. GAAP.
5. Subsequent Events
On June 12, 2002, ATI announced that it has entered into an
agreement to purchase NxtWave Communications Inc. for (US) $20 million
cash. NxtWave Communications is an acknowledged technology leader in
delivering broadband communications silicon using proprietary digital
signal processing technologies adapted for applications in digital,
terrestrial and cable receivers. The transaction is expected to close
on June 28, 2002.
ATI TECHNOLOGIES INC.
1 Commerce Valley Drive East
Markham, Ontario Canada L3T 7X6
Telephone: 905/882-2600
Facsimile: 905/882-2620
www.ati.com
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion