1 of 29
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2004
----------------
ATI TECHNOLOGIES INC.
-------------------------------------
(Translation of Registrant's Name into English)
1 Commerce Valley Drive East, Markham, Ontario, Canada L3T 7X6
-------------------------------------
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F Form 40-F X
---------------- -----------------
(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No X
-------------- ---------------
Page 1 of 29 Pages
Index is located on Page 2
2 of 29
INDEX
Document Page Number
- -------- -----------
Press Release dated March 31, 2004 3
Press Release dated March 31, 2004 27
Signature Page 29
3 of 29
[ATI Technologies Inc. LOGO]
For more information, please contact:
Chris Evenden, Director, Public Relations
905-882-2600 xtn 8107 or cevenden@ati.com
----------------
ATI reports revenues of $463 million for the second quarter
Revenues up 48% relative to second quarter fiscal 2003
MARKHAM, ON - March 31, 2004 - ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT)
today announced its financial results for the second quarter of fiscal 2004,
ended February 29, 2004. ATI reported revenues(1) of $463.3 million, a 47.8%
increase relative to the second quarter of fiscal 2003. Gross margin rose to
34.8% - almost six percentage points higher than the same quarter a year ago.
Net income(2) per share was $0.19 for the quarter compared to a loss of $0.04
per share last year. ATI's cash position increased $88.5 million during the
quarter to $468.5 million as of February 29, 2004.
Technology leadership across all product categories enabled ATI to deliver a
strong second quarter performance. We continued to make broad-based unit gains
in the desktop mainstream markets and saw growth in our DTV business relative to
the first quarter.
"We continue to deliver strong financial performance driven by the strength and
breadth of our product lines," said K.Y. Ho, Chairman and Chief Executive
Officer, ATI Technologies Inc. "Product and technology leadership continues to
be the foundation of our success and we see tremendous opportunities in the
future to expand our market share and accelerate our momentum in the consumer
electronics market."
- ---------------------------
1 All dollar amounts are in U.S. dollars unless otherwise noted. All per
share amounts are stated on a diluted basis unless otherwise noted. ATI
Technologies Inc. reports under Canadian generally accepted accounting
principles (GAAP).
2 Net income is reported according to Canadian GAAP. ATI is not reporting
adjusted or proforma net income.
4 of 29
Recently, we announced a strategic collaboration with Qualcomm Inc., a major
supplier of cell phone technology. This, together with the partnership with SK
Telecom announced in March of this year and current design wins with Motorola,
cement ATI's leadership position in cell phone graphics.
Outlook
We believe we are well-positioned for the back half of fiscal 2004 based on the
strength of our product roadmap, including new products that are to be announced
shortly; the expected transition of the PC industry to the PCI Express
interconnect in the second calendar quarter, where we have significant
opportunity to gain market share in the desktop discrete market; continued
relative strength of the PC market; as well as continued momentum in the
Consumer business.
As a result of these factors, ATI expects strong revenues for the third quarter,
despite it being traditionally the industry's weakest, and to be in the range of
$440 - $480 million. Gross margin, as a percentage of revenues, is expected to
be in the upper half of its target range of 32 - 35%, and about the same level
as the second quarter. Operating expenses, excluding amortization of intangible
assets and other charges, are expected to increase 5 - 10% relative to the
second quarter due to increased prototyping expense as well as staffing to
support new customer programs - particularly in the Consumer business.
Management's Discussion and Analysis of Interim Financial Results
In this Management's Discussion and Analysis (MD&A), ATI, we, us and our, mean
ATI Technologies Inc. and its subsidiaries.
About forward-looking statements:
Forward-looking statements look into the future and provide an opinion as to the
effect of certain events and trends on the business. Forward-looking statements
may include words such as "plans," "intends," "anticipates," "should,"
"estimates," "expects," "believes," "indicates," "targeting," "suggests" and
similar expressions.
This MD&A and elsewhere in this news release contain forward-looking statements
about ATI's objectives, strategies, financial condition and results. These
"forward-looking" statements are based on current expectations and entail
various risks and uncertainties. Our actual results may materially differ from
our expectations if known and unknown risks or uncertainties affect our
business, or if our estimates or assumptions prove inaccurate. Therefore we
cannot provide any assurance that forward-looking statements will materialize.
We assume no obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or any other reason.
5 of 29
Any reference to "quarter-over-quarter" in this MD&A refers to a discussion of
this year's second quarter results versus the prior year unless otherwise noted.
Financial Results Analysis
Revenues
- --------
In the second quarter of fiscal 2004, our revenues grew by 47.8% compared with
the same period a year ago.
Revenues were $463.3 million in the second quarter compared to $313.5 million
for the same quarter last year. For the first six months, revenues were up 43.8%
to $933.0 million compared to $648.9 million for the same period last year.
Our PC revenues increased by about 35% for the second quarter of fiscal 2004
relative to the same period a year ago. All product categories, including
desktop and notebook discrete, as well as integrated graphics processors (IGPs)
contributed to this increase. Our consumer product revenues increased eight-fold
with our Imageon(TM) products being the key driver of growth in this period.
PC revenues increased over 35% and consumer product revenues increased ten-fold
in the first six months of fiscal 2004 compared with the same period a year ago.
Increasing shipments to add-in-board (AIB) manufacturers were a major driver of
PC revenue growth. AIB channel revenue approximately doubled for the second
quarter and year-to-date relative to the same periods a year ago.
Gross Margin
- ------------
Gross margin in the second quarter was 34.8%.
Our gross margin improved by almost six percentage points compared to the second
quarter of fiscal 2003. Year-to-date our gross margin was 35.4% compared with
28.0% for the same period a year ago - a gain of 7.4 percentage points.
Desktop discrete product margins were the main contributor to the increase of
gross margin on a quarter-over-quarter and year-to-date basis. The increase in
our gross margin in desktop discrete was a result of strength across all our
desktop products, and particularly in the mainstream to enthusiast segments.
Cost reduction programs and inventory management improvements are also
contributing to the strength in our gross margin.
6 of 29
Our reported gross margin is comprised of product gross margin as well as
royalty income associated with our Nintendo business and "non-recurring
engineering" (NRE) payments associated with our development contracts. Both our
royalty income from Nintendo as well as NRE are reported in our segmented
reporting under "Other". While royalty income from Nintendo is recorded as 100%
gross margin, NRE payments for console products are matched against the related
cost of development. Please see Note 10 to the consolidated financial statements
for further information on our segmented reporting.
Operating Expenses
- ------------------
Our operating expenses, excluding the amortization of intangibles and other
charges, were $103.2 million, an increase of 28.6% over the second quarter in
fiscal 2003. Year-to-date operating expenses, excluding the amortization of
intangibles and other charges, were $209.8 million, up 31.0%, from $160.1
million for the same period a year ago.
About 40% of the increase in operating expenses quarter-over-quarter and half of
the increase on a year-to-date basis was a result of incentive-based
compensation and the foreign exchange impact of a higher Canadian dollar
relative to the U.S. dollar.
Increased advertising as well as increased staffing to support higher sales
levels were the key factors in the higher sales and marketing expense on both a
quarter-over-quarter and a year-to-date basis. Higher operating expenses were
also due to an increase in administration costs resulting from the higher
Canadian dollar and incentive-based compensation and a changed methodology for
board compensation. Please see Note 11 to the consolidated financial statements
for further information on the board compensation change.
7 of 29
Research and development costs were also higher at 25.5% quarter-over-quarter
and 28.5% on a year-to-date basis. In addition to the higher Canadian dollar and
incentive-based compensation costs, R&D expenses have risen in both comparable
periods due to increased staffing and technology costs required to promote
advances in our growing product line. These increases were largely attributable
to increased staffing in software and our handheld business, as well as
prototyping costs and CAD-related licensing fees.
Other Charges
- -------------
We recorded a recovery of other charges totaling $0.2 million in the second
quarter. This compares to other charges of $16.0 million for the second quarter
last year. Other charges in fiscal 2003 were related to the settlement of a U.S.
class action law suit, costs incurred in connection with a regulatory matter,
restructuring charges related to the closure of the European manufacturing
operations and a lease termination charge related to surplus space in leased
buildings, which were not a factor this year. Please see Note 7 to the
consolidated financial statements for further information.
Total Operating Expenses
- ------------------------
Our total operating expenses reflect the operating expenses detailed earlier, as
well as amortization of intangible assets and other charges. For further
information on the treatment of the amortization of intangible assets, please
see Note 3 to the consolidated financial statements.
Interest and Other Income
- -------------------------
Our interest and other income was $1.9 million in the second quarter of 2004
compared with $0.6 million in the second quarter last year. The increase in
interest and other income for the second quarter compared to the same period a
year ago is primarily due to an insurance recovery related to the earthquake in
Taiwan in September 1999, as well as an increase in interest income due to a
substantially higher cash position.
For the first six months of 2004, interest and other income was $0.1 million
compared with $1.1 million in the same period in 2003. The lower income for the
first six months of 2004 was mainly due to the write off of capital assets in
the first quarter of this year. This was partially offset by the insurance
recovery and increased interest income noted above.
8 of 29
Net Income (Loss)
- -----------------
Net income increased to $47.6 million in the second quarter of 2004 from a loss
of $9.4 million in same quarter last year. We generated net income of $95.0
million for the first six months of the current fiscal year compared with a loss
of $2.1 million in 2003.
The increase in net income in both comparable periods was largely the result of
increasing revenues, higher margins and improving operating expense leverage, as
well as the decrease in other charges described above.
Liquidity and Financial Resources
Inventory levels increased to $228.7 million at the end of the second quarter up
from $176.5 million at August 31, 2003, but were about flat relative to the
first quarter of this year. In general terms, this inventory level reflects the
higher volume of sales generated in the quarter, and in line with our goal of
keeping inventory in the 60-day range.
Accounts receivable were down by $13.0 million from the year ended August 31,
2003 to $221.6 million at the end of the second quarter. Days sales of accounts
receivable were down to 48 days in the second quarter compared to 50 days in the
first quarter of 2004 due to the timing of product sales during the quarter.
As of February 29, 2004 we had working capital of $549.0 million compared to
$430.3 million at August 31, 2003. Cash flow from operations was $75.2 million
in the second quarter. We had cash and short-term investments of $468.5 million
at the end of the second quarter, up from $350.7 million of cash recorded at end
of fiscal 2003. Our cash position increased mainly as a result of increasing
earnings in the first two quarters of the fiscal year.
Intangible assets other than goodwill declined slightly to $8.6 million at the
end of the second quarter, from $8.8 million at year-end.
9 of 29
Conference Call Information
ATI Technologies Inc. will host a conference call to discuss its financial
results for the second quarter results today, Wednesday, March 31, 2004 at 8:30
AM (EST) (5:30 AM Pacific, 6:30 AM Mountain, 7:30 AM Central). To participate in
the conference call, please dial 416-405-9328 ten minutes before the scheduled
start of the call. No password is required. A live web cast of the conference
call will be available at
http://www.ati.com/companyinfo/ir/quarterlyresults.html under the Financial
Information section, 2004 Conference Calls - Q2 2004. Replays of the conference
call will be available through April 7, 2004. Replay information is as follows:
Replay: 416-695-5800 Passcode: 3012073. A web cast replay will be available at
the web site noted above.
About ATI Technologies
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 is the world's foremost visual processor unit (VPU) provider and
is dedicated to deliver leading-edge performance solutions for the full range of
PC and Mac desktop and notebook platforms, workstation, set-top and digital
television, game console and handheld markets. With 2003 revenues in excess of
$1.3 billion, ATI has more than 2,500 employees in the Americas, Europe and
Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange
(ATY).
Copyright 2004 ATI Technologies Inc. All rights reserved. ATI and ATI product
and product feature names are trademarks and/or registered trademarks of ATI
Technologies Inc. All other company and product names are trademarks and/or
registered trademarks of their respective owners. Features, pricing,
availability and specifications are subject to change without notice.
For media relations, please contact:
Chris Evenden, Director, Public Relations, ATI Technologies Inc.,
at (905) 882-2600, Ext. 8107 or cevenden@ati.com
----------------
Anne Ferguson, Manager, Porter Novelli Canada, at (416) 422-7154 or
anne.ferguson@porternovelli.com
For investor relations' support, please contact:
Janet Craig, Director, Investor Relations, ATI Technologies Inc.,
at (905) 882-2600, Ext. 2631 or janet@ati.com
-------------
- 30 -
10 of 29
ATI TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(Unaudited)
(Thousands of US dollars, except per share amounts)
- ------------------------------------------------------------------------------------------------------------------------------
Three months ended Six months ended
February 29 February 28 February 29 February 28
2004 2003 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------
(Restated) (Restated)
Revenues $ 463,337 100.0% $ 313,492 100.0% $933,042 100.0% $ 648,928 100.0%
Cost of goods sold 301,946 65.2% 222,969 71.1% 603,029 64.6% 467,220 72.0%
- ------------------------------------------------------------------------------------------------------------------------------
Gross margin 161,391 34.8% 90,523 28.9% 330,013 35.4% 181,708 28.0%
Expenses
Selling and marketing 28,304 6.1% 21,354 6.8% 59,550 6.4% 43,601 6.7%
Research and development 62,148 13.4% 49,528 15.8% 125,941 13.5% 97,978 15.1%
Administrative 12,714 2.7% 9,318 3.0% 24,321 2.6% 18,530 2.8%
Amortization of intangible assets 1,541 0.3% 3,162 1.0% 3,083 0.3% 6,327 1.0%
Other charges (Note 7) (178) - 15,996 5.1% (5) - 15,996 2.5%
- ------------------------------------------------------------------------------------------------------------------------------
104,529 22.5% 99,358 31.7% 212,890 22.8% 182,432 28.1%
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations 56,862 12.3% (8,835) (2.8%) 117,123 12.6% (724) (0.1%)
Interest and other income 1,856 0.4% 602 0.2% 102 - 1,142 0.2%
Gain on investments - - - - - - 32 -
Interest expense (531) (0.1%) (469) (0.2%) (1,046) (0.1%) (895) (0.2%)
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes 58,187 12.6% (8,702) (2.8%) 116,179 12.5% (445) (0.1%)
Income taxes 10,602 2.3% 715 0.2% 21,155 2.3% 1,628 0.2%
- ------------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ 47,585 10.3% $ (9,417) (3.0%) $ 95,024 10.2% $ (2,073) (0.3%)
Retained earnings, beginning of period 151,465 76,141 104,026 68,797
- ------------------------------------------------------------------------------------------------------------------------------
Retained earnings, end of period $ 199,050 $ 66,724 $ 199,050 $ 66,724
- ------------------------------------------------------------------------------------------------------------------------------
Net income (loss) per share (Note 8)
Basic $ 0.19 $ (0.04) $ 0.39 $ (0.01)
Diluted $ 0.19 $ (0.04) $ 0.37 $ (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
Weighted average number of shares
(000's)
Basic 244,373 237,227 243,685 237,087
Diluted 254,484 237,227 254,138 237,087
Outstanding number of shares at the end
of the quarter (000's) 245,136 237,297 245,136 237,297
- ------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements. These financial
statements should be read in conjunction with the Company's most recent annual
consolidated financial statements, as at and for year ended August 31, 2003.
11 of 29
ATI TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of US dollars)
--------------------------------------------------------- ----------------- ---------------
February 29 August 31
2004 2003
--------------------------------------------------------- ----------------- ---------------
(audited)
Assets
Current assets:
Cash and cash equivalents $ 428,566 $ 300,905
Short-term investments 39,907 49,784
Accounts receivable 221,563 234,548
Inventories 228,729 176,494
Prepayments and sundry receivables 30,019 31,753
Future income tax assets 2,664 3,772
--------------------------------------------------------- ----------------- ---------------
Total current assets 951,448 797,256
Capital assets 82,557 86,890
Intangible assets (Note 3) 8,590 8,811
Goodwill (Note 3) 190,095 190,095
Long-term investments 3,960 3,960
Tax credits recoverable 17,907 21,181
Future income tax assets 9,076 7,865
--------------------------------------------------------- ----------------- ---------------
Total Assets $ 1,263,633 $ 1,116,058
--------------------------------------------------------- ----------------- ---------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 203,268 $ 191,196
Accrued liabilities 160,432 136,709
Deferred revenue 37,207 37,669
Current portion of long-term debt (Note 5) 1,493 1,394
--------------------------------------------------------- ----------------- ---------------
Total current liabilities 402,400 366,968
Long-term debt (Note 5) 28,333 28,073
Future income tax liabilities 23,312 21,408
--------------------------------------------------------- ----------------- ---------------
Total liabilities 454,045 416,449
Shareholders' equity:
Share capital 617,094 582,454
Treasury stock (Note 11) (22,100) -
Contributed surplus 7,270 4,855
Retained earnings 199,050 104,026
Currency translation adjustment 8,274 8,274
--------------------------------------------------------- ----------------- ---------------
Total shareholders' equity 809,588 699,609
--------------------------------------------------------- ----------------- ---------------
Total Liabilities and Shareholders' Equity $ 1,263,633 $ 1,116,058
--------------------------------------------------------- ----------------- ---------------
See accompanying notes to consolidated financial statements. These financial
statements should be read in conjunction with the Company's most recent annual
consolidated financial statements, as at and for year ended August 31, 2003.
12 of 29
ATI TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Thousands of US dollars)
- ----------------------------------------------------- ------------------------------ --------------------------------
Three months ended Six months ended
February 29 February 28 February 29 February 28
2004 2003 2004 2003
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
Cash provided by (used in): (Restated) (Restated)
Operating activities:
Net income (loss) $ 47,585 $ (9,417) $ 95,024 $ (2,073)
Add items not affecting working capital:
Tax credits recoverable 1,057 (8,175) 3,274 (12,711)
Future income taxes 2,379 (949) 1,801 (1,584)
Stock based compensation 1,744 - 2,415 -
Depreciation and amortization 6,643 9,206 13,245 18,449
Other charges - 1,400 - 1,400
Gain on investments - - - (32)
Gain on sale of long-lived assets (Note 7) - - (538) -
Foreign exchange loss (gain) (825) 1,289 506 1,471
Net changes in non-cash working capital balances
relating to operations:
Accounts receivable 47,427 18,760 12,985 (44,996)
Inventories (4,122) 37,530 (52,235) 50,709
Prepayments and sundry receivables (4,653) (2,711) 1,734 (3,215)
Accounts payable (26,617) (11,811) 12,072 (14,895)
Accrued liabilities 8,156 10,410 22,683 22,017
Deferred revenue (3,566) 359 (462) 235
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
75,208 45,891 112,504 14,775
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
Financing activities:
Decrease in bank indebtedness - - - (12,015)
Addition to long-term debt - - - 10,709
Principal payment on long-term debt (364) (287) (708) (424)
Settlement of swap contract - - - (1,365)
Issuance of common shares 18,636 498 34,640 791
Repurchase of common shares (Note 11) - - (22,100) -
Repayment of share purchase loans - 225 - 225
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
18,272 436 11,832 (2,079)
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
Investing activities:
Purchase of short-term investments (39,907) - (39,907) -
Maturity of short-term investments - - 49,784 49,649
Additions to capital assets (4,948) (5,759) (7,531) (8,886)
Proceeds from sale of investments - - - 280
Proceeds from sale of long-lived assets (Note 7) - - 2,489 -
Acquisitions, net of cash acquired (Note 2) (2) - (2,071) -
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
(44,857) (5,759) 2,764 41,043
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
Foreign exchange gain (loss) on cash held in foreign
currency (34) 167 561 (7)
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
Increase in cash and cash equivalents 48,589 40,735 127,661 53,732
Cash and cash equivalents - beginning of period 379,977 200,123 300,905 187,126
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
Cash and cash equivalents - end of period 428,566 240,858 428,566 240,858
Short-term investment 39,907 - 39,907 -
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
Cash position - end of period $ 468,473 $ 240,858 $ 468,473 $ 240,858
- ----------------------------------------------------- -------------- --------------- ---------------- ---------------
13 of 29
ATI TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Cash position is defined as cash and cash equivalents and short-term
investments. See accompanying notes to consolidated financial statements. These
financial statements should be read in conjunction with the Company's most
recent annual consolidated financial statements, as at and for year ended August
31, 2003.
14 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
The principal business activities of ATI Technologies Inc. (the "Company") are
the design, manufacture and sale of innovative 3D graphics and digital media
silicon solutions. The Company markets its products to original equipment
manufacturers, system builders, distributors and retailers primarily in North
America, Europe and the Asia-Pacific region.
1. SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited financial statements are prepared in accordance with
Canadian generally accepted accounting principles for interim financial
statements. Certain information and note disclosures normally included in the
annual financial statements prepared in accordance with generally accepted
accounting principles have been condensed to include only the notes related to
elements which have significantly changed in the interim period. As a result,
these interim consolidated financial statements do not contain all disclosures
required to be included in the annual financial statements and should be read in
conjunction with the most recent audited annual consolidated financial
statements and notes thereto for the year ended August 31, 2003
The financial information included herein reflects all adjustments (consisting
only of normal recurring adjustments), which, in the opinion of management, are
necessary for a fair presentation of the results for the interim periods
presented. The results of operations for the three months and six months ended
February 29, 2004 are not necessarily indicative of the results to be expected
for the full year.
The Company experiences seasonal variation in revenues with revenues being the
highest in the first quarter.
During fiscal 2003, the Company reviewed its revenue recognition accounting
policy as it is applied to the shipment of products to its customers. Following
this review, the Company corrected its revenue recognition accounting policy by
revising the timing of when revenue is recognized to more clearly identify the
point in the shipping process when the risks and rewards of ownership have been
transferred to the customer. This change, and the related income tax effect,
have been applied retroactively. The financial statements presented for
comparative purposes have been restated to give effect to this change.
The impact of this change on the first and second quarter of Fiscal 2003 is as
follows:
(Thousands of US dollars, except per share amounts)
--------------------------------------------- ----------------------- -----------------------
Three months ended Three months ended
November 30, 2002 February 28, 2003
--------------------------------------------- ----------------------- -----------------------
Revenues
As previously reported $ 322,020 $ 318,482
As restated 335,436 313,492
Net income (loss)
As previously reported $ 4,988 $ (8,337)
As restated 7,344 (9,417)
Net income (loss) per share
Basic and diluted:
As previously reported $ 0.02 $ (0.04)
As restated 0.03 (0.04)
--------------------------------------------- ----------------------- -----------------------
15 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
2. ACQUISITIONS
In September 2003, the Company acquired certain assets located in Taiwan and
China from AMI Technologies Inc. The purchase price for this acquisition was
financed with cash and allocated to the net assets acquired, including
intangible assets of $2.9 million, based on their relative fair values at the
date of acquisition. The useful life of the intangible assets acquired is
approximately one year.
3. GOODWILL AND INTANGIBLE ASSETS
The net book values of goodwill and intangible assets acquired at February 29,
2004 and August 31, 2003 are as follows :
(Thousands of US dollars)
------------------------------------- --------------- ----------------- -------------- --------------------
Cost Accumulated Net book Net book value
amortization value
February 29, 2004 August 31, 2003
------------------------------------- ------------------------------------------------ --------------------
Purchased in-process R & D $ 56,250 $ 56,250 $ - $ -
Core technology 23,670 16,511 7,159 8,811
Other 2,862 1,431 1,431 -
------------------------------------- --------------- ----------------- -------------- --------------------
Total intangible assets $ 82,782 $ 74,192 $ 8,590 $ 8,811
------------------------------------- --------------- ----------------- -------------- --------------------
Goodwill $ 376,788 $ 186,693 $ 190,095 $ 190,095
------------------------------------- --------------- ----------------- -------------- --------------------
Amortization expense related to intangible assets amounted to $1.6 million and
$3.1 million for the three months and six months ended February 29, 2004
respectively (2003 - $3.2 million and $6.3 million).
4. CREDIT FACILITY
The Company maintains demand bank credit facilities aggregating $26.0 million
with a single financial institution. There are no borrowings outstanding under
these facilities.
16 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
5. LONG-TERM DEBT
(Thousands of US dollars)
--------------------------------------------------- ------------ ------------------ -------------------
Interest February 29 2004 August 31 2003
rate
--------------------------------------------------- ------------ ------------------ -------------------
Obligation under capital lease (i) 6.31% $ 18,083 $ 17,785
Mortgage payable (ii) 6.96% 11,743 11,682
--------------------------------------------------- ------------ ------------------ -------------------
29,826 29,467
Current portion of long-term debt 1,493 1,394
--------------------------------------------------- ------------ ------------------ -------------------
Long-term portion $ 28,333 $ 28,073
--------------------------------------------------- ------------ ------------------ -------------------
(i) Obligation under capital lease :
The Company's obligation under capital lease represents the lease
on the building facility occupied by the Company in Markham,
Ontario ("Building Facility").
(ii) Mortgage payable :
On September 10, 2002, Commerce Valley Realty Holding Inc.
("CVRH"), a joint venture in which the Company has a 50 per cent
ownership interest, entered into a mortgage agreement with a
lender to finance the Building Facility. The Company's
proportionate share of the mortgage as at February 29, 2004
amounted to $11.7 million (Cdn. $15.7 million), and the mortgage
has a repayment term of 12 years bearing interest at a rate of
6.96 per cent per annum. The underlying mortgage is denominated
in Canadian dollars.
6. GUARANTEE
The Company and other owners of CVRH have jointly and severally provided a
guarantee for the mortgage payment of the Building Facility. In the event that
CVRH is unable to meet the underlying mortgage payment to the lender, the
Company and other owners of CVRH will be jointly and severally responsible under
this guarantee.
In addition, the Company posted a letter of credit in the amount $2.2 million
(Cdn. $3.0 million) in favour of CVRH. CVRH has assigned this letter of credit
to the exclusive benefit of the lender as additional security of the mortgage.
The letter of credit has a term of 5 years and will expire on November 5, 2007.
In the event of a lease default by the Company, the proceeds of the letter of
credit will be paid to the lender.
17 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
7. OTHER CHARGES
Other charges are comprised of the following items:
(Thousands of US dollars)
--------------------------------------------------- -------------------------------- --------------------------------
Three months ended Six months ended
February 29 February 28 February 29 February 28
2004 2003 2004 2003
--------------------------------------------------- ---------------- --------------- ---------------- ---------------
Settlement of class action lawsuits (i) $ - $ 8,000 $ - $ 8,000
Regulatory matters (ii) 433 2,812 1,144 2,812
Restructuring charge - European operations (iii) - 2,765 (538) 2,765
Lease exit charge (iv) (611) 2,419 (611) 2,419
--------------------------------------------------- ---------------- --------------- ---------------- ---------------
Total $ (178) $ 15,996 $ (5) $ 15,996
--------------------------------------------------- ---------------- --------------- ---------------- ---------------
(i) Settlement of class action lawsuits
On February 7, 2003, the Company announced that it had reached an
agreement for the full and complete settlement of all remaining
claims alleged in the shareholder class action lawsuits filed in May
2001 in the United States District Court for the Eastern District of
Pennsylvania for a cash payment of $8.0 million. This litigation
relates to alleged misrepresentations and omissions made by the
Company and certain directors and officers during a period preceding
its May 2000 earnings warning. The terms of the Stipulation and
Agreement of Settlement received final court approval on April 28,
2003 and included no admission of liability or wrongdoing by the
Company or other defendants. No party timely appealed from the
Court's order.
During the fourth quarter of fiscal 2003, the Company received $3.3
million from its insurer as its contribution towards the settlement.
(ii) Regulatory Matters
In January 2003, the Company announced that Staff of the Ontario
Securities Commission ("OSC") had filed a Notice of Hearing and
Statement of Allegations ("Notice") in relation to the Company and
others. The Notice alleged that the Company failed to disclose
information concerning the shortfall in revenues and earnings that
occurred in the third quarter of fiscal 2000, as required by the
listing rules of the Toronto Stock Exchange. The Notice also alleged
that the Company made a misleading statement to Staff of the
Commission in August 2000 regarding the events leading up to the
disclosure on May 24, 2000 of the shortfall. Seven individuals are
also named in the Notice. The Notice alleged that six of these
individuals, including K.Y. Ho, the Chairman and Chief Executive
Officer of the Company, engaged in insider trading contrary to the
Securities Act. The hearing was set for February - March 2004 but the
Respondents and OSC have agreed to adjourn the hearing to a date to
be arranged by the Secretary of the Commission, which is expected to
be in the Fall of 2004.
18 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
7. OTHER CHARGES (CONTINUED)
(ii) Regulatory Matters (continued)
The Company has incurred external charges in connection with this
matter totaling $0.4 million and $1.1 million during the three months
and six months ended February 29, 2004 (2003 - $2.8 million for both
periods).
(iii) Restructuring charge - European operations
The following table details the activity through the restructuring
liabilities accrual :
(Thousands of US dollars)
--------------------- -------------------------------- -------------------------------
Three months ended Six months ended
February 29 February 28 February 29 February 28
2004 2003 2004 2003
--------------------- --------------- ---------------- --------------- ---------------
Balance, opening $ 1,009 $ - $ 4,246 $ -
Provision - 1,365 - 1,365
Cash payments (137) - (3,374) -
--------------------- --------------- ---------------- --------------- ---------------
Balance, ending $ 872 $ 1,365 $ 872 $ 1,365
--------------------- --------------- ---------------- --------------- ---------------
(a) During the second quarter of fiscal 2003, the Company
announced the closure of ATI Technologies (Europe) Limited
("ATEL"), its subsidiary in Dublin, Ireland and recorded a
pre-tax charge of $2.8 million. The charge included a $1.4
million write-down of the building facility in Dublin, Ireland
to fair value less cost to sell. The Company completed the
major components of the exit plan for ATEL in July 2003.
During the first quarter of fiscal 2004, the Company was able
to sell the building facility at a higher price resulting in a
recovery of $0.5 million from the restructuring charge. The
Company also paid out the remaining cash portion of the
restructuring charge of $0.5 million during the last quarter.
(b) During the fourth quarter of fiscal 2003, the Company decided
to discontinue the operations of ATI Research GmbH, its FireGL
product division located in Starnberg, Germany, in order to
consolidate its research and development activities. As a
result, the Company recorded a pre-tax charge of $3.8 million
for the quarter pertaining to the closure of ATI Research
GmbH.
During the three months and six months ended February 29,
2004, the Company made cash payments of $0.1 million and $2.8
million respectively relating to the pre-tax charge set up in
the fourth quarter of fiscal 2003. The Company completed the
major components of its exit plan for ATI Research GmbH in
December 2003.
19 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
7. OTHER CHARGES (CONTINUED)
(iv) Lease exit charge
During the second quarter of fiscal 2003, the Company determined that
it would exit certain leased properties located in Markham, Ontario.
As a result, the Company recognized the fair value of the future net
costs related to the leases in the amount of $2.4 million as a charge
for the second quarter.
During the fourth quarter of fiscal 2003, the Company recorded an
additional charge of $0.3 million related to the exit costs of the
above-mentioned lease properties due to a change in estimate of the
fair value of the future net costs.
During the second quarter of fiscal 2004, the Company determined that
it would re-occupy a leased property, which the Company had exited in
the second quarter of fiscal 2003, due to an expansion of business.
It resulted in a recovery of exit charge in the amount of $0.6
million for the quarter.
8. NET INCOME (LOSS) PER SHARE
The following table presents a reconciliation of the numerators and denominators
used in the calculations of the basic and diluted net income (loss) per share:
(Thousands of US dollars, except per share amounts)
------------------------------------------- ------------------------------- --------------------------------
Three months ended Six months ended
February 29 February 28 February 29 February 28
2004 2003 2004 2003
------------------------------------------- --------------- --------------- ---------------- ---------------
(Restated) (Restated)
Net income (loss) $ 47,585 $ (9,417) $ 95,024 $ (2,073)
------------------------------------------- --------------- --------------- ---------------- ---------------
Weighted average number of common shares
outstanding (000's):
Basic 244,373 237,227 243,685 237,087
Effect of dilutive securities 10,111 - 10,453 -
------------------------------------------- --------------- --------------- ---------------- ---------------
Diluted 254,484 237,227 254,138 237,087
------------------------------------------- --------------- --------------- ---------------- ---------------
Net income (loss) per share
Basic $ 0.19 $ (0.04) $ 0.39 $ (0.01)
Diluted $ 0.19 $ (0.04) $ 0.37 $ (0.01)
------------------------------------------- --------------- --------------- ---------------- ---------------
Certain options that are anti-dilutive were excluded from the calculation.
20 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
9. SUPPLEMENTAL CASH FLOW INFORMATION
(Thousands of US dollars)
--------------------------- ------------------------------- -------------------------------
Three months ended Six months ended
February 29 February 28 February 29 February 28
2004 2003 2004 2003
--------------------------- ------------------------------- -------------------------------
Cash paid for:
Interest $ 498 $ 440 $ 982 $ 798
Income taxes 700 732 943 943
Interest received $ 857 $ 580 $ 1,869 $ 1,664
--------------------------- --------------- --------------- --------------- ---------------
21 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
10. SEGMENTED INFORMATION
The Company operates in one primary operating segment, that being the design,
manufacture and sale of innovative 3D graphics and digital media silicon
solutions.
The following tables provide revenues by geographic area and by product, as well
as capital assets, intangible assets and goodwill by geographic area. The
breakdown in revenues by geographic area in the following table is based on
customer and royalty payer location, whereas the breakdown in capital assets,
intangible assets and goodwill is based on physical location.
(Thousands of US dollars)
--------------------------------------------------- -------------------------------- --------------------------------
Three months ended Six months ended
February 29 February 28 February 29 February 28
2004 2003 2004 2003
--------------------------------------------------- ---------------- --------------- ---------------- ---------------
(Restated) (Restated)
Revenues:
Canada $ 5,061 $ 4,257 $ 11,354 $ 10,974
United States 60,211 70,301 109,689 138,214
Europe 27,642 35,653 67,925 66,614
Asia-Pacific 370,423 203,281 744,074 433,126
--------------------------------------------------- ---------------- --------------- ---------------- ---------------
Consolidated revenues $ 463,337 $ 313,492 $ 933,042 $ 648,928
--------------------------------------------------- ---------------- --------------- ---------------- ---------------
Product revenues:
Components $ 368,437 $ 206,462 $ 742,426 $ 420,588
Boards 82,477 102,554 164,727 209,674
Others 12,423 4,476 25,889 18,666
--------------------------------------------------- ---------------- --------------- ---------------- ---------------
Consolidated revenues $ 463,337 $ 313,492 $ 933,042 $ 648,928
--------------------------------------------------- ---------------- --------------- ---------------- ---------------
Capital assets, intangible assets and goodwill:
Canada $ 72,755 $ 77,528
United States 205,985 213,535
Europe 202 2,912
Asia-Pacific 2,300 573
--------------------------------------------------- ---------------- --------------- ---------------- ---------------
Consolidated capital assets, intangible assets
and goodwill $ 281,242 $ 294,548
--------------------------------------------------- ---------------- --------------- ---------------- ---------------
22 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
11. STOCK-BASED COMPENSATION
(i) Stock options
For stock options granted to employees after September 1, 2002, had the
Company determined compensation costs based on the "fair value" of the
stock options at grant dates consistent with the method prescribed
under CICA Handbook Section 3870, the Company's net income (loss) per
share would have been reported as the pro forma amounts indicated
below:
(Thousands of US dollars, except per share amount)
----------------------------------------------- -------------------------------- ---------------------------------
Three months ended Six months ended
February 29 February 28 February 29 February 28
2004 2003 2003 2003
----------------------------------------------- ---------------- --------------- ---------------- ----------------
(Restated) (Restated)
Net income (loss) for the period, as reported $ 47,585 $ (9,417) $ 95,024 $ (2,073)
Pro forma adjustment for stock-based
compensation (1,365) (105) (2,867) (123)
----------------------------------------------- ---------------- --------------- ---------------- ----------------
Pro forma net income (loss) $ 46,220 $ (9,522) $ 92,157 $ (2,196)
----------------------------------------------- ---------------- --------------- ---------------- ----------------
Pro forma net income (loss) per share:
Basic $ 0.19 $ (0.04) $ 0.38 $ (0.01)
Diluted $ 0.18 $ (0.04) $ 0.36 $ (0.01)
----------------------------------------------- ---------------- --------------- ---------------- ----------------
The weighted average estimated fair values at the date of grant for the
stock options granted for the three months and six months ended
February 29, 2004 were $8.59 and $8.41 per share respectively (2003 -
$2.41 and $2.65). The "fair value" of each option granted was estimated
on the date of the grant using the Black-Scholes option pricing model
with the following assumptions:
----------------------------------------------- -------------------------------- --------------------------------
Three months ended Six months ended
February 29 February 28 February 29 February 28
2004 2003 2003 2003
----------------------------------------------- ---------------- --------------- ---------------- ---------------
Risk-free interest rate 2.9% 2.9% 3.3% 3.1%
Dividend yield 0.0% 0.0% 0.0% 0.0%
Volatility factor of the expected market
price of the Company's common shares 70.8% 71.5% 72.0% 71.1%
Weighted average expected life of the options 4.2 years 4.2 years 4.2 years 4.2 years
----------------------------------------------- ---------------- --------------- ---------------- ---------------
23 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
11. STOCK-BASED COMPENSATION (CONTINUED)
(i) Stock options (continued)
For purposes of pro forma disclosures, the estimated fair value of the
options is amortized to expense over the options' vesting period.
(ii) Restricted share units
During the first quarter of fiscal 2004, the Company announced that it
adopted a plan to grant restricted share units ("RSUs") as part of its
overall stock-based compensation plan. Under this plan, certain
employees will receive an award in the form of an RSU. Each RSU
entitles the holder to receive one common share on the vesting date of
the RSUs. The RSUs vest on each anniversary of the grant in equal
one-third instalments over a vesting period of three years. Stock-based
compensation representing the underlying value of $14.17 per common
share of the Company at the date of grant of the RSUs is being
recognized evenly over the three-year vesting period. On the vesting
dates, the RSUs are settled by the delivery of common shares of the
Company to the participants except for the participants residing
outside of North America who will receive cash equivalent market value
of the shares. Grants of RSUs to participants residing outside of North
America are accounted for using variable plan accounting whereby the
value of the RSUs and its related amortization are adjusted based on
the underlying value of the Company's common shares at the end of each
fiscal quarter. As at February 29, 2004, there were 1,556,239 RSUs
awarded and outstanding of which none were vested.
The issuance of RSUs replaced the annual grant of options for the 2003
calendar year. In addition, a one-time cash payment of $7.8 million was
also awarded to the non-executive employees who were eligible for the
RSU plan during the first quarter of fiscal 2004. The full amount of
the cash payment was expensed in the first quarter. The total expenses
by functional areas incurred for the three months and six months ended
February 29, 2004 pertaining to the cash payment and amortization of
RSUs are as follows:
(Thousands of US dollars)
----------------------------------------- ----------------------- -----------------------
Three months ended Six months ended
February 29, 2004 February 29, 2004
----------------------------------------- ----------------------- -----------------------
Selling and marketing $ 309 $ 1,485
Research and development 1,339 7,869
Administrative 315 1,156
----------------------------------------- ----------------------- -----------------------
$ 1,963 $ 10,510
----------------------------------------- ----------------------- -----------------------
During the first quarter of fiscal 2004, the Company advanced $22.1
million to the trustee of the RSU plan to enable the trustee to
purchase the Company's common shares in the open market. These shares
are being held by the trustee in order to deliver such shares to the
participants on the vesting dates of the RSUs.
24 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
11. STOCK-BASED COMPENSATION (CONTINUED)
(iii) Deferred share units
During the second quarter of fiscal 2004, the Company established a
plan to grant deferred share units ("DSUs") to its non-management
directors. Under this plan, the directors will receive DSUs, in
addition to cash payments, as part of their annual compensation
package. A DSU is a unit equivalent in value to one common share of
the Company based on the five-day average trading price of the
Company's common shares on the Nasdaq Stock Market (the "Weighted
Average Price") immediately prior to the date on which the value of
the DSU is determined. Upon termination of Board service, the director
will be able to redeem DSUs six months after his departure from the
Board based on the Weighted Average Price at the time of redemption.
However, the director must redeem his DSUs by the end of December in
the year following the year of departure from the Board.
Alternatively, the director may elect to receive RSUs in lieu of DSUs
provided that the market value of his holdings in the Company's common
stock equity exceeded $350,000.
As of the date of the grant, the fair value of the DSU, being the fair
market value of the Company's common shares at that date, will be
recorded as a liability on the Company's balance sheet and will be
amortized over the vesting period of the DSU, which is expected to be
one year. The value of the DSU liability will be adjusted to reflect
changes in the market value of the Company's common shares. The
expense recorded in the quarter of $0.9 million related to DSUs
granted in December 2003 for services rendered during the period
February 1, 2003 to January 31, 2004.
25 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
12. U.S. GAAP
The following table reconciles the net income (loss) as reported on the
consolidated statements of operations prepared in accordance with Canadian GAAP
to the consolidated net income (loss) that would have been reported had the
financial statements been prepared in accordance with U.S. GAAP:
(Thousands of US dollars, except per share amounts)
---------------------------------------------------- -------------------------------- --------------------------------
Three months ended Six months ended
February 29 February 28 February 29 February 28
2004 2003 2004 2003
---------------------------------------------------- ---------------- --------------- ---------------- ---------------
(Restated) (Restated)
Net income (loss) in accordance with Canadian GAAP $ 47,585 $ (9,417) $ 95,024 $ (2,073)
Tax effect of stock options exercised (1,965) (9) (4,195) (73)
Loss on hedging transactions 28 28 56 37
Amortization of purchased in-process research and
development - 1,325 - 2,650
Stock compensation expenses (i), (ii) (1,205) 4,430 (4,084) 122
Restructuring charges not yet incurred - 315 - 315
---------------------------------------------------- ---------------- --------------- ---------------- ---------------
Net income (loss) in accordance with U.S. GAAP $ 44,443 $ (3,328) $ 86,801 $ 978
---------------------------------------------------- ---------------- --------------- ---------------- ---------------
Net income (loss) per share:
Basic $ 0.18 $ (0.01) $ 0.36 $ -
Diluted $ 0.17 $ (0.01) $ 0.34 $ -
---------------------------------------------------- ---------------- --------------- ---------------- ---------------
Weighted average number of shares (000's):
Basic 244,373 237,227 243,685 237,087
Diluted 254,484 237,227 254,138 242,675
---------------------------------------------------- ---------------- --------------- ---------------- ---------------
26 of 29
ATI TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
February 29, 2004
(Unaudited)
12. U.S. GAAP (CONTINUED)
(i) 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 no equivalent requirement. There were no such
options granted after February 28, 2002.
(ii) Under U.S. GAAP, the intrinsic value of the stock options issued under
an incentive plan entered into in July 2002 is calculated as the
increase in the Company's stock price between the grant date and the
date on which all the conditions of the specified business arrangement
were determined to have been met. The compensation expense is
recognized over the vesting period of the options. Under Canadian GAAP,
there is no equivalent requirement.
27 of 29
NEWS RELEASE TRANSMITTED BY CCNMATTHEWS
FOR: ATI TECHNOLOGIES INC.
TSX SYMBOL: ATY
NASDAQ SYMBOL: ATYT
March 31, 2004
Dave Orton named as ATI's next CEO
MARKHAM, ONTARIO--(CCNMatthews - Mar 31, 2004) -
KY Ho to remain as Chairman, and continue to drive ATI's strategic business
relationships
KY Ho, Chairman and CEO of ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT) has
announced on behalf of the board that Dave Orton, currently ATI's President and
COO, will become CEO on June 1. The announcement is a natural succession in the
transition planned when Mr. Orton joined ATI in 2000, and will not require any
changes to ATI's management structure. Mr. Ho will remain as Chairman, and
continue to focus on ATI's strategic business relationships.
"ATI has never been stronger than it is today," said KY Ho. "It is now time for
me to focus on the Chairman role, particularly with regards to our strategic
customer and supplier relationships. To a large extent, this announcement merely
formalizes the existing situation - Dave has done a great job spearheading the
success ATI enjoys today."
In unrelated news, Terry Nickerson, ATI's CFO, has announced that he is planning
to retire as soon as a replacement has been found. Mr. Nickerson is approaching
his 65th birthday. He will participate in the search process, support the
handover, and then move into a consultancy/advisory role.
About ATI Technologies
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 is the world's foremost visual processor unit (VPU) provider and
is dedicated to deliver leading-edge performance solutions for the full range of
PC and Mac desktop and notebook platforms, workstation, set-top and digital
television, game console and handheld markets. With 2003 revenues in excess of
U.S. $1.3 billion, ATI has more than 2,500 employees in the Americas, Europe and
Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange
(ATY).
Copyright 2004 ATI Technologies Inc. All rights reserved. ATI and ATI product
and product feature names are trademarks and/or registered trademarks of ATI
Technologies Inc. All other company and product names are trademarks and/or
registered trademarks of their respective owners. Features, pricing,
availability and specifications are subject to change without notice.
For media or industry analyst support, visit our Web site at http://www.ati.com
- -30-
28 of 29
FOR FURTHER INFORMATION PLEASE CONTACT:
For media inquiries:
Chris Evenden
Director, Public Relations
(905) 882-2600, ext. 8107
cevenden@ati.com
OR
Oter ATI Contacts:
Anne Ferguson
Porter Novelli Canada
(416) 422-7154
OR
For investor relations support, please contact:
Janet Craig, Director, Investor Relations
ATI Technologies Inc.
(905) 882-2600, Ext. 2631
janet@ati.com
INDUSTRY: DTC
SUBJECT: PER
- -0-
29 of 29
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ATI TECHNOLOGIES INC.
Date: March 31, 2004 By: //Terry Nickerson//
------------------------------------------
Name: Terry Nickerson
Title: Senior Vice President, Finance and
Chief Financial Officer