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THORNHILL, ONTARIO--(BUSINESS WIRE)--JULY 5, 1995--ATI TECHNOLOGIES INC. (TSE:ATY) ATI Technologies Inc. announced today sales of $95.6 million for the third quarter ended May 31, 1995, compared with sales of $51.6 million for the third quarter of fiscal 1994. The Company reported net income of $2.8 million ($0.06 per common share), compared with a net loss of $7.4 million ($0.16 per common share), after a one-time inventory write down of $11.5 million for the same period last year.

Sales for the nine months ended May 31, 1995 were $261.5 million, compared with sales of $171.5 million for the same period last year. Net income for the first nine months of 1995 was $12.8 million ($0.27 per common share), compared with net income of $215,000 ($0.01 per common share) for the first nine months of 1994. The average number of shares outstanding increased from 44.8 million at May 31, 1994 to 47.3 million at May 31, 1995.

Gross margins as a percentage of sales in the third quarter and year-to-date in fiscal 1995 improved relative to fiscal 1994, but remained below historical levels due to: i) higher sales, as a percentage of total sales, to the increasingly competitive OEM market; and ii) the adverse impact of the increased cost of memory components on ATI's board level business, caused by the world-wide under-supply situation. These conditions are expected to continue in the fourth quarter. The sell through of mach32 products was substantially completed by the end of the third quarter.

Selling, general and administrative costs were approximately 12 percent of sales for the first three quarters of 1995, compared to 16 percent of sales in 1994.

In August 1995, ATI expects to begin volume shipping of the ATI- 264CT - the first commercialization of the Company's integrated chip technology. The new integrated CT component will replace part of ATI's existing mach64 product line and will establish ATI as a supplier to the value-priced, high volume component market.

In line with ATI's strategic plan to increase market penetration and expand its customer base, the Company announced the XCLAIM GA graphics accelerator in June 1995. The XCLAIM GA is the Company's first product for Apple's new PowerPC platforms and uses the Company's acclaimed mach64 controller on a PCI local bus board. ATI also announced an OEM contract to supply graphics accelerators -- similar to the XCLAIM GA -- for Apple's new Power Macintosh 9500/120 systems. ATI is the first company to supply a PCI-based graphics card to Apple Computer, Inc.

ATI is a leading manufacturer of graphics and multimedia video enhancement products and components for personal computers. The Company employs over 600 people in its Thornhill, Ontario head office and offices worldwide. ATI's product line is sold through an international network of computer manufacturers and leading computer distributors.


 (Thousands of dollars, except per share amounts)
 Three Months Ended May 31
 1995 1994
Sales $95,594 100.0 percent $51,588 100.0 percent
Cost of
 goods sold 75,564 79.0 percent $50,293 97.5 percent
 ------- -------
Gross margin 20,030 21.0 percent 1,295 2.5 percent

 Selling 5,953 6.2 percent 3,974 7.7 percent
 Research and
 development 5,601 5.9 percent 4,482 8.7 percent
 Administrative 4,454 4.7 percent 4,310 8.3 percent
 Interest 121 0.1 percent 186 0.4 percent
 ----- ---
 16,129 16.9 percent 12,952 25.1 percent

Other income 264 0.3 percent 542 1.1 percent
 --- ---
Income (loss) before
 income taxes 4,165 4.4 percent (11,115)(21.5)percent
Income taxes
 (recovery) 1,400 1.5 percent (3,742) (7.2)percent
 ----- -------
Net income (loss) $2,765 2.9 percent ($7,373)(14.3)percent
 ----- -------
Earnings per share $0.06 ($0.16)

 (Thousands of dollars, except per share amounts)
 Nine Months Ended May 31
 1995 1994
Sales $261,521 100.0 percent $171,549 100.0 percent
Cost of
 goods sold 198,128 75.8 percent $132,353 77.2 percent
 ------- -------
Gross margin 63,393 24.2 percent 39,196 22.8 percent

 Selling 16,896 6.5 percent 13,293 7.7 percent
 Research and
 development 15,026 5.7 percent 11,931 7.0 percent
 Administrative 12,797 4.9 percent 14,581 8.5 percent
 Interest 607 0.2 percent 632 0.4 percent
 ----- ---
 45,326 17.3 percent 40,437 23.6 percent

Other income 1,409 0.5 percent 1,559 0.9 percent
 ----- -----
Income (loss) before
 income taxes 19,476 7.4 percent 318 0.2 percent
Income taxes
 (recovery) 6,670 2.5 percent 103 0.1 percent
Net income (loss) $12,806 4.9 percent $215 0.1 percent
 ----- -------
Earnings per share $0.27 $0.01

CONTACT: ATI Technologies Inc.

Lance McIntosh, 905/882-2600, ext. 8306
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No portion of this article can be reproduced without the express written permission from the copyright holder.
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Publication:Business Wire
Date:Jul 5, 1995
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