ATI Technologies Tops $100 Million Mark for Third Consecutive Quarter.TORONTO--(BUSINESS WIRE)--July 11, 1996--ATI TECHNOLOGY INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (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 ) 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. today reported its seventh consecutive quarter of year-over-year increased sales and positive profits. Sales for the nine months ended May 31, 1996 increased 34 percent to $350.4 million, up from $261.5 million for the same period last year. Earnings for the nine months were $20.6 million or 43 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared with $12.8 million or 27 cents per share for the same period last year. For the third quarter sales were up 20 percent to $115.1 million, and earnings were 15 cents per share, compared with $95.6 million and 6 cents per share for the corresponding quarter of 1995. These results reaffirm re·af·firm tr.v. re·af·firmed, re·af·firm·ing, re·af·firms To affirm or assert again. re 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. as a leading supplier of 2D and 3D graphics products both to major computer manufacturers and retailers. "We continue to increase market share," 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. . "With the increasing sophistication so·phis·ti·cate v. so·phis·ti·cat·ed, so·phis·ti·cat·ing, so·phis·ti·cates v.tr. 1. To cause to become less natural, especially to make less naive and more worldly. 2. of graphical interfaces See GUI. , proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous pro·lif·er·a·tion n. of exceptional computer games and popularity of the World Wide Web, ATI is poised to be a leading provider of visual solutions." Financial Highlights ATI's continuing efforts to improve gross margins are illustrated in this quarter's improved financial statements. Gross margin reached 27.7 percent of sales in the third quarter, compared with the 20.9 percent level realized in the prior year. Selling expenses rose to $12.2 million, principally due to new product introductions. Concurrently, cash balances increased to $55.2 million, markedly up from $30.2 million last year and versus $17.6 million in the second quarter of the current fiscal year. Inventory levels fell to $28.6 million - reflecting both reduced component costs and established management controls. These improvements in ATI's balance sheet reflect the company's on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" efforts to manage costs and working capital in a dynamic environment typified by pricing pressures and rapid technological change. Operational Highlights During the quarter ATI announced it was teaming with 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) , NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , and Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) to meet the burgeoning demand for more sophisticated 3D effects for business presentations and for video games See video game console. on the PC. IBM has introduced integrated 2D, 3D and full-motion video Video transmission that changes the image 30 frames per second (30 fps). Motion pictures are run at 24 fps, which is the minimum frequency required to eliminate the perception of moving frames and make the images appear visually fluid to the eye. to its Aptiva line of PCs featuring ATI's lightening-fast 3D RAGE 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. chip. NEC, a leader in the PC market, will incorporate ATI's 3D RAGE 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. chip in its newest line of PowerPlayer PCs, targeted at the gaming enthusiast A person who enjoys using computers and electronic equipment. Enthusiasts like technology and are willing to learn more of the ins and outs of a product than the average consumer, who just wants to use it. An enthusiast is more like a "prosumer." See consumer and prosumer. . At PC EXPO A trade show for resellers, corporate managers and technical professionals from CMP Media LLC, a subsidiary of United Business Media. First held in New York in 1983 with 120 exhibitors and 9,600 attendees, the show grew from the personal computer's early years to 550 vendors and more than , Sony introduced its inaugural line of personal computers and with it the use of ATI's 3D RAGE chip as the ideal graphic accelerator for its systems. Called the VAIO (Video Audio Integrated Operation) Sony's trade name for its desktop and laptop PCs. In mid-1998, Sony introduced its 505G series of subnotebooks that were the first in ultra-thin Pentium portables. , the Sony Pc, ideal for both business and game use, is the consumer electronic giant's powerful entry into the multimedia PC market. Also during the quarter, the company announced support for Microsoft's Direct3D API (Application Programming Interface) A language and message format used by an application program to communicate with the operating system or some other control program such as a database management system (DBMS) or communications protocol. . Direct3D will provide standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. 3D platform under Window 95 that will unleash a wide variety of exciting and compelling 3D software, previously not available on the PC. In turn this accelerates the market for ATI's 3D hardware, which will provide rich virtual reality graphics and action gameplay
Gameplay includes all player experiences during the interaction with game systems, especially formal games. Proper use is coupled with reference to "what the player does". previously available only on game consoles See video game console. . Following on a long line of successful product innovations, the company introduces its 3D XPRESSION board during the third quarter. One of many exciting new board products set to be launched over the next three months, 3D XPRESSION is the world's first affordable 3D graphics accelerator board designed specifically for the high volume, mass market. About ATI ATI Technologies designs, manufactures and markets innovative and award-winning multimedia acceleration solutions and graphics components for personal computer. The company is on of the world's leading suppliers of video and 2D/3D graphics accelerator products 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 1985, ATI employs more than 700 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 , with 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. , France, Germany and the United Kingdom. ATI Technologies Inc.'s common 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. , under the symbol "ATY". Copyright (c) ATI Technologies Inc., 3D RAGE and mach64 are trademarks and/or registered trademarks of ATI Technologies Inc. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers. -0-
ATI TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND
RETAINED EARNINGS
(Thousands of dollars, except per share amounts)
Three months ended
May 31
-------------------------------------------
1996 1995
-------------------------------------------
(unaudited)
Sales $115,138 100 percent $95,594 100 percent
Cost of goods sold 83,283 72.3 percent 75,564 79.1 percent
-------- ------------ -------- ------------
31,855 27.7 percent 20,030 20.9 percent
Expenses
Selling 12,197 10.6 percent 6,750 7.1 percent
Research and
development 7,424 6.5 percent 5,601 5.9 percent
Administrative 3,915 3.4 percent 3,657 3.8 percent
Interest 40 0.0 percent 121 0.0 percent
-------- ------------ -------- ------------
23,576 20.5 percent 16,129 16.8 percent
-------- ------------ -------- ------------
Other income 1,606 1.4 percent 264 0.2 percent
-------- ------------ -------- ------------
Income before
income taxes 9,885 8.6 percent 4,165 4.4 percent
Income taxes 2,767 2.4 percent 1,400 1.5 percent
-------- ------------ -------- ------------
Net income $7,118 6.2 percent $2,765 2.9 percent
-------------------------------------------
Earnings per share $0.15 $0.06
-------------------------------------------
Retained earnings
Retained earnings -
beginning
of period $34,700 $15,386
Net income
for the period 7,118 2,765
------- -------
Retained earnings -
end of period $41,818 $18,151
-------------------------------------------
Nine months ended
May 31
-------------------------------------------
1996 1995
-------------------------------------------
(unaudited)
Sales $350,354 100 percent $261,521 100 percent
Cost of goods sold 258,265 73.7 percent 198,128 75.8 percent
-------- ------------ -------- ------------
92,089 26.3 percent 63,393 24.2 percent
Expenses
Selling 30,142 8.6 percent 19,347 7.4 percent
Research
and development 21,546 6.2 percent 15,026 5.8 percent
Administrative 13,064 3.7 percent 10,346 3.9 percent
Interest 130 0.0 percent 607 0.2 percent
-------- ------------ -------- ------------
64,882 18.5 percent 45,326 17.3 percent
-------- ------------ -------- ------------
Other income 2,808 0.8 percent 1,409 0.5 percent
-------- ------------ -------- ------------
Income before
income taxes 30,015 8.5 percent 19,476 7.4 percent
Income taxes 9,410 2.7 percent 6,670 2.5 percent
-------- ------------ -------- ------------
Net income $20,605 5.8 percent $12,806 4.9 percent
-------------------------------------------
Earnings per share $0.43 $0.27
-------------------------------------------
Retained earnings
Retained earnings -
beginning
of period $21,213 $5,345
Net income
for the period 20,605 12,806
------- -------
Retained earnings -
end of period $41,818 $18,151
-------------------------------------------
ATI TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEET
(Thousands of dollars)
At May 31 At Aug. 31
----------------- ----------
1996 1995 1995
----------------------------------
(unaudited) (audited)
Assets
Current Assets
Cash and short-term
investments $ 55,166 $ 30,239 $ 30,845
Accounts receivable 65,185 53,904 58,175
Inventories 28,556 49,259 54,967
Prepayments and sundry
receivables 5,919 5,933 4,772
-------- -------- --------
Total current assets 154,826 139,335 148,759
Long-term portion of
investment tax credits 5,610 5,528 7,833
Capital assets 24,672 20,287 22,013
Other assets 9,388 - -
-------- -------- --------
Total assets $194,496 $165,150 $178,605
Liabilities
Current liabilities
Bank indebtedness $ 8,109 $ 12,310 $ 12,425
Accounts payable and
accrued liabilities 40,495 34,956 43,479
Taxes payable 928 347 200
-------- -------- --------
Total current liabilities 49,532 47,613 56,104
Deferred income taxes 3,650 1,298 3,200
Shareholders' equity
Share capital 99,496 98,088 98,088
Retained earnings 41,818 18,151 21,213
-------- -------- --------
Total Shareholders'
equity 141,314 116,239 119,301
-------- -------- --------
Total liabilities and
shareholders' equity $194,496 $165,150 $178,605
ATI TECHNOLOGIES INC.
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
(Thousands of dollars)
Three months ended Nine months ended
May 31 May 31
1996 1995 1996 1995
(unaudited) (unaudited)
Cash provided by (used for):
Operations:
Net income $ 7,118 $ 2,765 $20,605 $12,806
Add items not affecting
working capital
Deferred income taxes 150 500 450 3,000
Depreciation and
amortization 1,425 986 3,769 2,892
Net changes in non-cash
working capital
balances relating to
operations 26,627 8,193 15,998 (3,375)
------- ------- ------- --------
35,320 12,444 40,822 15,323
Financing: Issuance of common shares 464 130 1,408 130
Investment:
Additions to capital
assets (1,798) (1,396) (6,428) (3,699)
Investment in joint
venture - - (9,388) -
Long-term portion of
investment tax credits - 1 2,223 634
------- ------- ------- --------
Increase (decrease) in
cash 33,986 11,179 28,637 12,388
Cash position,
beginning of period 13,071 6,750 18,420 5,541
------- ------- ------- --------
Cash position, end of
period $47,057 $17,929 $47,057 $17,929
Cash is defined as cash and short-term investments, less bank indebtedness. CONTACT: ATI Technologies Inc. Lance McIntosh, 905/882-2600 Extension 8306 |
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