Press Release
- 2002
ATI Technologies Inc. fourth quarter earnings and revenue update
Monday, September
9, 2002
MARKHAM, Ontario, - ATI
Technologies Inc. (TSX: ATY, NASDAQ: ATYT), a world leader in
the design and manufacture of innovative 3D graphics and digital
media silicon solutions, today provided an update on its expected
results for the fourth quarter of its 2002 fiscal year, which
ended August 31, 2002.
The Company announced that its revenues for the fourth quarter
are expected to be in the range of US $235 million to US $240
million, and adjusted earnings per share (EPS) are expected
to be between US $0.00 and US $0.02. ATI's financial results
for the fourth quarter and year-end will be announced on October
2, 2002.
The Company's revenue and adjusted EPS for the fourth quarter
are expected to fall short of guidance provided in June 2002,
primarily due to weakness in the personal computer market and
more specifically, the notebook market.
The Company continues to expect growth in the first quarter
because of the broad acceptance of its new Radeon® 9700,
line as well as the shipments of its integrated graphics products
line. This growth is expected to result in a sequential, double-digit
percentage increase in revenue for ATI's fiscal first quarter
of 2003. Operating expense, on a percent to revenue basis, for
the first quarter of 2003 should improve compared to the fourth
quarter of 2002, while gross margin percentage should remain
relatively steady.
"Despite continued weakness in the PC market we are pleased
with the strong demand for our new products," said David Orton,
President and Chief Operating Officer, ATI Technologies. "With
the recent introduction of our Radeon® 9700 for the desktop
platform and the MOBIILITY™ Radeon® 9000 for the
notebook, we have taken the performance crown in visual processing
solutions. We continue to gain momentum with design wins in
all of our business segments and we believe this momentum will
translate into market share gains. ATI has the strongest product
line-up in its history, and is very well positioned to outperform
the PC market in 2003."
Forward-looking Statements and Uncertainties
Certain statements in this press release constitute "forward-looking
statements." When used in this press release, words such as
"plans," "intends," "anticipates," "should," "estimates,"
"expects," "believes," "indicates," "suggests," and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are based on current expectations
and entail various risks and uncertainties that are outlined
in this press release and in the Company's 2001 Annual Report
and Annual Information Form. As a result of these risks and
uncertainties, the Company's operating results and common
share price may be subject to significant volatility, particularly
on a quarterly basis. For example, the markets for the Company's
products are characterized by changing market conditions,
frequent new product introductions, seasonal and variable
demand and rapid technology changes. Other factors that could
cause the Company's results to vary include, but are not limited
to, lack of anticipated growth in the demand for PCs, gaming
consoles and consumer electronic devices in which the Company's
products are incorporated, reductions in the Company's average
selling prices for its products due to competitive pressures
and other factors, the introduction of new products by the
Company's competitors which render the Company's products
non-competitive, delays encountered by the Company in developing
new products or enhancements, including integrated graphics
and core logic components, in the time frame required by its
customers, delays in manufacturing or unfavourable manufacturing
yields experienced by the Company's independent foundries,
unexpected variances in material costs, including silicon
wafer, memory and printed circuit boards, and constraints
on the supply of components utilized in the Company's products
and in the PC industry generally. These risks and uncertainties
could cause or contribute to actual results that are materially
different from those anticipated or experienced in the past.
Additional information concerning factors that could cause
the Company's financial results to fluctuate is contained
in the Company's filings with Canadian and U.S. 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.
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 (GPU) 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 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 .
Other ATI Contacts:
Anne Ferguson, Acting Public Relations Manager, BenchMark
Porter Novelli, at (416) 422-7154 or aferguson@bmporternovelli.com
Allison Mudge, Public Relations Manager, BenchMark Porter
Novelli, at (416) 422-7153 or amudge@bmporternovelli.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
