ATI Technologies Inc. Announces Strong Second Quarter Results; Sales Increase 63 Percent.TORONTO--(BUSINESS WIRE)--April 8, 1999--ATI Technologies Inc(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) ) (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 .) Adjusted earnings increase 45 percent 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:ATY, NASDAQ:ATYT) the world leader in 3D graphics/video acceleration and multimedia solutions, today continued a consistent record of strong quarterly reports and announced financial results for the Company's second quarter ended February February: see month. 28, 1999. All financial results are expressed in US dollars. Historical US dollar financial statements can be found on the Company's website at www.atitech.com. Sales for the three months ended February 28, 1999 were US$297.2 million, an increase of 63 percent from US$182.0 million for the same period last year. Adjusted net income for the second quarter, which excludes the amortization of purchased in-process R&D and other acquired intangibles as discussed below, rose 45 percent to US$39.0 million or 18 cents US per share compared with US$27.0 million or 13 cents US per share for the same period last year. All per share amounts are expressed on a fully 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. On November November: see month. 20, 1998, 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. completed the acquisition of Chromatic chromatic /chro·mat·ic/ (kro-mat´ik) 1. pertaining to color; stainable with dyes. 2. pertaining to chromatin. chro·mat·ic adj. 1. Relating to color or colors. Research, Inc. (Chromatic) a developer of system-on-a-chip System-on-a-chip or system on chip (SoC or SOC) refers to integrating all components of a computer or other electronic system into a single integrated circuit (chip). technology for approximately US$70.9 million including acquisition related costs (see Note 1). As a result, the Company took a charge of US$17.3 million or eight cents US per share on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. for the amortization of purchased in-process R&D and other acquired intangibles related to its purchase of Chromatic during the second quarter. Actual net income for the second quarter, including the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. amortization of purchased in-process R&D and other acquired intangibles related to the purchase of Chromatic, was US$21.7 million or ten cents Ten Cents has several meanings:
"Our second quarter continues the momentum of our consistent financial performance", said K.Y. Ho, ATI's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We are pleased to be on track to meet our fiscal 1999 objectives, including increasing total market share." Financial Highlights Sales in the second quarter continued to be strong, illustrating ATI's comprehensive product lineup A criminal investigation technique in which the police arrange a number of individuals in a row before a witness to a crime and ask the witness to identify which, if any, of the individuals committed the crime. . The Company began volume shipments of its RAGE 128 products to robust demand and positive analysts' reviews, at the same time seeing increasing sales for its RAGE LT PRO-based products and maintaining solid gains from its previous-generation RAGE PRO family. Gross margins were within Company objectives at 36.7 percent for the second quarter and compares with 37.9 percent in the same quarter last year. The overall gross margin percentage can change with fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. material costs and differences in product mix. Operating costs operating costs npl → gastos mpl operacionales (excluding acquisition amortization costs of US$17.3 million) in the second quarter increased 84 percent year-over-year to US$57.1 million up from US$31.0 million for the second quarter of fiscal 1998. This was largely due to the expected increase in R&D expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the acquisition of the Chromatic development team. Earnings after taxes, excluding amortization related costs, rose to US$39.0 million or 13.1 percent of sales versus US$27.0 million or 14.8 percent of sales for the corresponding quarter of 1998. During the quarter, working capital increased from US$171.1 million at the end of the first quarter to US$208.5 million at the end of the second quarter of fiscal 1999. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and inventory balances increased slightly during the quarter to US$185.1 million and US$118.4 million, respectively. Cash position (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 less bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. ) after payments for capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) , decreased during the quarter by US$15.1 million to US$73.6 million. Operational Highlights During the quarter, a new report by Mercury Research Inc., of Scottsdale Scottsdale, city (1990 pop. 130,069), Maricopa co., central Ariz.; settled in 1895 by Winfield Scott, inc. 1951. It is a resort and retirement center in the Phoenix metropolitan area. , AZ acclaimed ac·claim v. ac·claimed, ac·claim·ing, ac·claims v.tr. 1. To praise enthusiastically and often publicly; applaud. See Synonyms at praise. 2. ATI's RAGE Fury 32 MB accelerator board An add-in board that replaces the existing CPU with a higher performance CPU. See graphics accelerator. as the fastest graphics card on the market. 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. the report released in February, the highly respected industry research firm scored the Company's RAGE 128 chip on a RAGE Fury board at 743 Winmarks on the Ziff-Davis 3DWinBench 99 benchmark test. With these results, the RAGE Fury was the first graphics accelerator A display adapter that performs a specialized set of graphics functions to render an image on screen. Today, all display adapters provide basic rendering functions in hardware, but many have graphics processing units (GPUs) that are sophisticated computers. to break the 700 Winmark A unit of measurement of the WinBench benchmark. See PC Magazine benchmarks. barrier. Also this quarter and close on the heels of shipping its newest chip, the RAGE 128, ATI announced several additional products to round out its 128 family of components and boards. 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. 128 continues the success of the Company's All-in-Wonder boards and incorporates its RAGE 128 component to include the best multimedia features on a single add-in card. ATI's Xpert 99 board completes the Company's board lineup with a value-packed version of the RAGE 128 card. XPERT 99 is the most affordable 128-bit 2D, 3D and DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. accelerator accelerator: see particle accelerator. (1) A key combination such as Alt-G or Ctrl-Shift H that is used to activate a task. (2) An incubator that expects to develop the company considerably faster than normal. See incubator. on the market, but offers the full-feature functionality of higher-end cards. On the component side, ATI this quarter announced its RAGE XL and XC and its RAGE 128 4X AGP (Accelerated Graphics Port) A high-speed 32-bit port from Intel for attaching a display adapter to a PC. It provides a direct connection between the card and memory, and only one AGP slot is on the motherboard. components. The RAGE XL and XC bring industry-leading 3D, 2D and DVD acceleration to the value PC platform with high quality, full AGP acceleration for corporate computing computing - computer systems. Stepping up once again to maintain its AGP lead, ATI announced its RAGE 128 GL 4X and RAGE 128 VR 4X graphics chips this quarter to provide unmatched performance for AGP 4X enabled PCs. During the quarter ATI again increased its presence in the notebook segment. The Company's RAGE LT PRO was selected by 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 for its Armada An earlier brand name for laptop computers from Compaq. The line was noted for its quality and innovative features. 1750, Prosignia 142, 144 and 162, and Presario 1675, 1670 and 1270 value-line of internet notebook PCs. With these announcements ATI now powers all ranges of Compaq notebooks and illustrates the demand for 3D in all types of notebooks. ATI now sells to eight out of the top ten notebook PC OEMs. This press release contains 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. that involve risks and uncertainties. Actual results may be materially different from those contained in such forward-looking statements. 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 rapidly changing technology, evolving industry standards, frequent new product introductions, emerging competitors and significant price competition. In the event that the Company is unsuccessful in identifying, developing, manufacturing or marketing new products or enhancing its existing products or maintaining its historic prices or margins, its operating results will be adversely affected. Additional information concerning factors that could cause actual results to materially differ from those in such forward-looking statements is contained in the Company's filings with 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 . About ATI ATI Technologies Inc., the world's largest supplier of 3D graphics and multimedia technology, designs, manufactures and markets innovative and award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" multimedia solutions and graphics components for the personal computer, 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. and consumer electronics appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. markets. An ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9002 company, ATI is the world's leading supplier of video and 2D/3D graphics accelerators to 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 and retail customers. Founded in l985, ATI employs more than 1,600 people at headquarters in Thornhill, Ontario Thornhill (2006 population 106,394) is an upscale community in Ontario, Canada, directly north of Toronto. It is considered the most affluent of Toronto suburbs. It straddles two municipalities, the city of Vaughan having the portion west of Yonge Street and the town of Markham , and in offices in 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. , Germany, France, the United Kingdom, Ireland, Barbados, Malaysia, Japan and 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. . ATI is a public company whose shares trade on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and NASDAQ. For other ATI news releases visit our web site at http://www.atitech.com. Copyright (C) ATI Technologies Inc., 1999. All company and/or product names are trademarks and/or registered trademarks of their respective manufacturers. Features, pricing, availability and specifications are subject to change without notice.
ATI TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Thousands of US dollars, except per share amounts)
Three months ended
February 28
---------------------------------------------------------------
1999 1998
---------------------------------------------------------------
(unaudited)
Sales $297,180 100.0 $181,958 100.0
percent percent
Cost of goods sold 187,996 63.3 112,941 62.1
percent percent
---------------------------------------------------------------
109,184 36.7 69,017 37.9
percent percent
Expenses
Research and
development 25,863 8.7 10,222 5.6
percent percent
Selling and
marketing 23,385 7.9 16,456 9.0
percent percent
Administrative 7,870 2.6 4,287 2.4
percent percent
Amortization of
intangible assets 17,320 5.8 - -
percent
---------------------------------------------------------------
74,438 25.0 30,965 17.0
percent percent
---------------------------------------------------------------
Income from operations 34,746 11.7 38,052 20.9
percent percent
Interest and other
income 867 0.2 1,051 0.6
percent percent
Interest expense (206) - (16) -
---------------------------------------------------------------
Income before income
taxes 35,407 11.9 39,087 21.5
percent percent
Income taxes 13,709 4.6 12,117 6.7
percent percent
---------------------------------------------------------------
Net income $21,698 7.3 $26,970 14.8
percent percent
Retained earnings-
beginning of period $218,753 $85,849
---------------------------------------------------------------
Retained earnings-
end of period $240,451 $112,819
---------------------------------------------------------------
---------------------------------------------------------------
Net income per share
Basic $0.11 $0.14
Fully diluted $0.10 $0.13
---------------------------------------------------------------
---------------------------------------------------------------
Weighted average
number of shares
(000's)
Basic 200,967 195,533
Fully diluted 220,682 215,257
Issued number of
shares at the end of
the quarter (000's) 201,711 195,993
---------------------------------------------------------------
---------------------------------------------------------------
See accompanying notes to consolidated financial statements
ADJUSTED NET INCOME
(Thousands of US dollars, except per share amounts)
Adjusted net income
(1) $39,018 $26,970
Adjusted net income
per share
Basic $0.19 $0.14
Fully diluted $0.18 $0.13
---------------------------------------------------------------
---------------------------------------------------------------
(1) Adjusted net income per share excludes the after-tax
effect of amortization of purchased in-process R&D and other
acquired intangibles related to the acquisition of Chromatic
Research, Inc.
ATI TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Thousands of US dollars, except per share amounts)
Six months ended
February 28
---------------------------------------------------------------
1999 1998
---------------------------------------------------------------
(unaudited)
Sales $624,568 100.0 $349,784 100.0
percent percent
Cost of goods sold 395,429 63.3 219,628 62.8
percent percent
---------------------------------------------------------------
229,139 36.7 130,156 37.2
percent percent
Expenses
Research and development 43,605 7.0 19,112 5.6
percent percent
Selling and marketing 49,480 7.9 29,560 8.4
percent percent
Administrative 15,042 2.4 8,464 2.4
percent percent
Amortization of
intangible assets 19,245 3.1 - -
percent
---------------------------------------------------------------
127,372 20.4 57,136 16.3
percent percent
---------------------------------------------------------------
Income from operations 101,767 16.3 73,020 20.9
percent percent
Interest and other income 2,288 0.3 1,619 0.5
percent percent
Interest expense (288) - (26) -
---------------------------------------------------------------
Income before income
taxes 103,767 16.6 74,613 21.3
percent percent
Income taxes 31,983 5.1 23,130 6.6
percent percent
---------------------------------------------------------------
Net income $71,784 11.5 $51,483 14.7
percent percent
Retained earnings-
beginning of period $168,667 $61,336
---------------------------------------------------------------
Retained earnings-
end of period $240,451 $112,819
---------------------------------------------------------------
---------------------------------------------------------------
Net income per share
Basic $0.36 $0.26
Fully diluted $0.33 $0.24
---------------------------------------------------------------
---------------------------------------------------------------
Weighted average number
of shares (000's)
Basic 200,184 195,155
Fully diluted 219,089 214,499
Issued number of
shares at the end of
the quarter (000's) 201,711 195,993
---------------------------------------------------------------
---------------------------------------------------------------
See accompanying notes to consolidated financial statements
ADJUSTED NET INCOME
(Thousands of US dollars, except per share amounts)
Adjusted net income
(1) $91,029 $51,483
Adjusted net income per
share
Basic $0.45 $0.26
Fully diluted $0.42 $0.24
---------------------------------------------------------------
---------------------------------------------------------------
(1) Adjusted net income per share excludes the after-tax
effect of amortization of purchased in-process R&D and other
acquired intangibles related to the acquisition of Chromatic
Research, Inc.
ATI TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(Thousands of US dollars)
At February 28 At August 31
---------------------------------------------------------------
1999 1998 1998
(unaudited) (audited)
Assets
Current Assets
Cash and cash equivalents $73,890 $66,290 $4,716
Short-term investments - - 39,192
Accounts receivable 185,137 108,305 150,256
Inventories 118,352 82,124 110,340
Prepayments and sundry
receivables 16,760 6,222 12,267
---------------------------------------------------------------
Total current assets 394,139 262,941 316,771
Capital assets 47,774 26,610 35,282
Intangible assets 51,624 - -
Long-term investments 31,764 22,506 28,528
---------------------------------------------------------------
Total assets $525,301 $312,057 $380,581
---------------------------------------------------------------
---------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness $316 $9,091 -
Accounts payable 104,993 82,835 73,139
Accrued liabilities 53,082 12,269 24,328
Income taxes payable 27,224 19,137 29,604
---------------------------------------------------------------
Total current liabilities 185,615 123,332 127,071
Deferred income taxes 5,700 2,230 5,417
Shareholders' equity
Share capital 85,261 73,676 79,426
Retained earnings 240,451 112,819 168,667
Currency translation
adjustment 8,274 - -
---------------------------------------------------------------
Total shareholders' equity 333,986 186,495 248,093
---------------------------------------------------------------
Total liabilities and
shareholders' equity $525,301 $312,057 $380,581
---------------------------------------------------------------
---------------------------------------------------------------
See accompanying notes to consolidated financial statements
ATI TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(Thousands of US dollars)
Three months Six months
ended ended
February 28 February 28
---------------------------------------------------------------
1999 1998 1999 1998
---------------------------------------------------------------
(unaudited) (unaudited)
Cash provided by (used in):
Operating activities:
Net income $21,698 $26,970 $71,784 $51,483
Add items not affecting
working capital:
Deferred income taxes - (606) 283 (956)
Depreciation 3,138 1,538 5,592 2,784
Amortization of
intangible assets 17,320 - 19,245 -
Net changes in non-cash
working capital
balances relating to
operations:
Accounts
receivable (20,388) 7,371 (33,678) (35,820)
Inventories (3,294) (38,488) (4,684) (55,619)
Prepayments and sundry
receivables (3,027) (2,219) (4,056) (2,352)
Accounts payable (32,328) 31,382 2,068 47,443
Accrued liabilities 6,833 (800) 10,580 998
Income taxes payable (313) 9,122 (2,380) 14,350
---------------------------------------------------------------
(10,361) 34,270 64,754 22,311
---------------------------------------------------------------
Financing activities:
Increase (decrease) in
bank indebtedness (1,966) (9,344) 316 9,091
Issuance of common
shares 5,275 2,043 5,835 3,735
---------------------------------------------------------------
3,309 (7,301) 6,151 12,826
---------------------------------------------------------------
Investing activities:
Maturity of short-term
investments - 4,134 39,192 -
Additions to capital
assets (9,870) (6,886) (15,249) (9,585)
Long-term investments (125) (4,994) (125) (4,994)
Acquisition, net of cash
acquired of $2,039
(Note 1) - - (25,549) -
---------------------------------------------------------------
(9,995) (7,746) (1,731) (14,579)
---------------------------------------------------------------
Increase/(Decrease) in
cash (17,047) 19,223 69,174 20,558
Cash and Cash Equivalents
- beginning of
period 90,937 47,067 4,716 45,732
---------------------------------------------------------------
Cash and Cash
Equivalents -
end of period $73,890 $66,290 $73,890 $66,290
Short-term investments - - - -
Bank Indebtedness (316) (9,091) (316) (9,091)
---------------------------------------------------------------
Cash position -
end of period $73,574 $57,199 $73,574 $57,199
---------------------------------------------------------------
---------------------------------------------------------------
Cash position is defined as cash and cash equivalents and
short-term investments, net of bank indebtedness.
See accompanying notes to consolidated financial statements.
ATI TECHNOLOGIES INC. NOTES TO 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 February 28, 1999 (unaudited) 1. Acquisition On November 20, 1998, the Company acquired all of the issued and outstanding shares of Chromatic Research, Inc. ("Chromatic"). The acquisition has been accounted for by the purchase method, whereby the results of operations of Chromatic are included in the Company's results from November 20, 1998. The total investment of $70.9 million, consisting of $27.6 million for 100 percent of the outstanding shares and net liabilities assumed of $43.3 million, has been allocated to purchased in-process research and development of $49.3 million, identifiable 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. consisting of core technology and workforce of $8.4 million and goodwill of $13.2 million. The total investment for the acquisition is subject to adjustment, expected to be finalized See finalization. by the end of the fiscal year 1999. Any adjustments will be reflected in the allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as described above. Purchased in-process research and development is being charged to operations over a nine month period on a straight line basis, principally to reflect the technological uncertainty of system-on-a-chip technology, the rapid pace of change of similar semiconductor technologies and the need for further significant research and development expenditures to bring Chromatic's products to commercial availability. Identifiable intangible assets are being amortized on a straight line basis over periods ranging from five to seven years. Goodwill is being amortized over a period of seven years on a straight line basis. ATI TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS February 28, 1999 (unaudited) 2. U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). The following table reconciles the net income as reported on the consolidated statements of operations 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 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 to the consolidated net income that would have been reported had the financial statements been prepared in accordance with U.S. GAAP:
(U.S. $000's) Three months ended Six months ended
February 28 February 28
1999 1998 1999 1998
----------------------------------------------------------------
(unaudited)(unaudited)(unaudited)(unaudited)
Net income in
accordance with
Canadian GAAP $ 21,698 $ 26,970 $ 71,784 $ 51,483
Adjustment to deferred
income taxes 30 20 (170) 40
Effect of deferral
accounting related to
foreign exchange
contracts - 146 1,460 (259)
Write-off of purchased
in-process research
and development (note a) - - (49,300) -
Amortization of purchased
in-process research
and development
(note a) 16,433 - 18,259 -
Foreign exchange
translation difference
between Canadian and
U.S. GAAP - 2,548 - 5,610
----------------------------------------------------------------
Net income in accordance
with U.S. GAAP $ 38,161 $ 29,684 $ 42,033 $ 56,874
----------------------------------------------------------------
Net income per share
Basic $0.19 $0.15 $0.21 $0.29
Diluted $0.18 $0.14 $0.20 $0.28
----------------------------------------------------------------
Weighted average number
of shares (000's):
Basic 200,967 195,533 200,184 195,155
Diluted 213,569 207,092 211,105 205,670
----------------------------------------------------------------
(a) Under Canadian GAAP, purchased in-process research and
development is amortized over its estimated useful life and asset
recoverability is reviewed on an ongoing basis. Under U.S. GAAP,
purchased in-process research and development acquired by the Company
is written off at the time of acquisition.
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