Press Release
- 2002
ATI To Acquire NxtWave Communications
Key set-top chipset technology to provide complete solutions for customers
Wednesday, June 12, 2002
MARKHAM, Ontario - ATI Technologies Inc. (TSE:ATY, NASDAQ:ATYT)
announced today that it has entered into an agreement to purchase
NxtWave Communications Inc. for (US) $20 million cash. The
purchase agreement is subject to customary closing conditions
and the satisfaction of certain legal conditions. The transaction
is expected to close on June 28, 2002.
A privately held company, NxtWave Communications is an acknowledged
technology leader in delivering broadband communications silicon
using proprietary digital signal processing technologies adapted
for applications in digital terrestrial and cable receivers.
The acquisition of NxtWave Communications will broaden ATI's
set-top box product portfolio to include demodulation technology
in the front end communications, in addition to its back end
solutions with ATI's Xilleon™ products. The addition
of NxtWave's technology will enable ATI to offer highly integrated
chipsets to set-top customers providing lower cost and greater
functionality.
"The acquisition of NxtWave Communications is an essential
part of ATI's growth strategy for our set-top business,"
said Dave Orton, President & Chief Operating Officer,
ATI Technologies Inc. "ATI has already secured significant
partnerships and design wins with major set-top manufacturers
including Pace Micro Technology and Scientific-Atlanta. The
addition of NxtWave's technology will enable ATI to provide
continued innovation to our customers and accelerate our growth
in this space."
"ATI has a great long-standing working relationship
with NxtWave Communications and our two products are a natural
fit for the set-top market," said Adrian Hartog, Senior
Vice President & General Manager, Consumer Products Group,
ATI Technologies Inc. "Customers will have immediate
access to the combined offering of ATI's widely recognized
Xilleon set-top chipset and NxtWave's industry leading products
- providing customers with a 'one-stop shop' for the entire
set-top solution. This strategic acquisition gives ATI the
unique capability to offer customers competitive solutions
that shorten customers' time to market and reduce system cost."
NxtWave delivers advanced broadband receiver technologies,
based on a world-class development team, including support
for digital terrestrial COFDM and VSB broadcast formats, and
the cable QAM format. For example, NxtWave's NXT2005 DTV Cable
Transceiver and Terrestrial Receiver is designed for a variety
of applications including cable digital television receivers
and set-top boxes where cost and industry leading performance
are critical factors. ATI's Xilleon groundbreaking design
integrates a high speed MIPS® CPU, graphics, video, audio,
conditional access, USB, EIDE, PCI, memory controller, and
a host of other I/O capabilities that will combine with NxtWave
technology to deliver a strategically advantageous solution
for set-top customers.
"NxtWave's commitment to develop quality broadband communications
integrated circuits will go hand-in-hand with ATI's dedication
to deliver industry leading set-top chipset technologies,"
said Geoff Phillips, Chief Operating Officer, NxtWave Communications.
"ATI will offer customers the benefits of set-top technologies
from two separate companies now delivered from one company
as a unified solution."
- Financial details of this acquisition will include:
- ATI gaining approximately 55 new employees of which
50 are engineers;
- Additional expenses of approximately (US) $2 million
per quarter;
- Mildly dilutive to earnings in fiscal fourth quarter
of 2002; and
- Accretive to earnings by mid 2003.
ATI will host a conference call today to discuss the acquisition
of NxtWave Communications at 8:45 AM EDT. To participate in
the conference call, please dial 416-695-5806 ten minutes
before the scheduled start of the call. A replay of the call
will be available through June 19, 2002 by dialing 416-695-5800
with the pass code 1183181.
This
press release contains forward-looking statements 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 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. ATI disclaims any obligation or intention
to update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
Copyright 2002 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.
Company Background
NxtWave Communications Inc. (www.nxtwavecomm.com), offers
the highest performing integrated circuit solutions satisfying
the requirements of manufacturers of digital set-top boxes,
digital TVs, PC TVs and other broadband appliances through
the company's efficient and robust modulation and demodulation
techniques. NxtWave's products provide error-free digital
transmissions, even with severe signal impairments commonly
present in cable and terrestrial broadcast systems. The company's
exclusive technology gives manufacturing customers and consumers
significant cost and performance advantages.
ATI Technologies Inc. is a world leader in the design and
manufacture of innovative 3D graphics and digital media silicon
solutions. An industry pioneer since 1985, ATI delivers leading-edge
performance solutions for the full range of PC and Mac desktop
and notebook platforms, workstation, set-top box, game console
and handheld markets. With 2001 revenues in excess of US $1
billion, ATI has more than 1,900 employees in the Americas,
Europe and Asia. ATI common shares trade on NASDAQ (ATYT)
and the Toronto Stock Exchange (ATY).
Contact Information
For media or industry analyst support, visit our Web site
at http://www.ati.com or
contact:
Pedro Cabezuelo, Senior Counsellor, BenchMark Porter Novelli,
at (416) 422-7164 or pcabezuelo@bmporternovelli.com
For Information:
John Swinimer, Public Relations Manager, Consumer Products
at (905) 882-2600, Ext. 8456 or swinimer@ati.com
For investor relations support, please contact:
Janet Craig, Director, Investor Relations, ATI Technologies
Inc., at (905) 882-2600, Ext. 2631 or jcraig@ati.com
