ATI reports record revenues of US $491.5 million in Q3
Enviado: 24/6/2004 12:50ATI reports record revenues of US $491.5 million in Q3
MARKHAM, ONTARIO--(CCNMatthews - Jun 24, 2004) -
Net income triples from year earlier
ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT) today announced record quarterly revenues as a result of major sales increases in key market segments.
ATI reported revenues(1) of $491.5 million for the third quarter of fiscal 2004 (ended May 31, 2004), a 38.2% increase over the third quarter a year earlier. Gross margin was up 2.7 percentage points to 35.3% over the same period. Net income(2) per share was $0.19 for the quarter compared to $0.06 per share last year. ATI's cash position increased $39.6 million during the quarter to $508.0 million as of May 31, 2004.
"These results confirm that ATI clearly has the graphic technologies of choice," said K.Y. Ho, Chairman of ATI. "Over the past year, ATI made significant sales gains in the add-in-board channel, as well as notebook, handheld chip and digital television (DTV) sectors, led by a very competitive portfolio of products."
"Delivering on PCI Express, a key industry inflection point, provided us with nearly a clean sweep of tier-one OEM design wins," said David Orton, Chief Executive Officer of ATI. "Our corporate strategy put us in the right place at the right time, just as it did with graphics on cell phones, the transition to digital television and the move to high-end graphics on notebooks. We've anticipated the visual age of computing, and now we're delivering on that."
Outlook
We believe we are well-positioned for the fourth quarter of fiscal 2004 and the first half of fiscal 2005 based on the expected market share momentum in the desktop discrete business, the continued strength of the PC market and growth of our consumer business.
As a result of these factors, ATI currently expects revenues for the fourth quarter to be in the range of $510 - $550 million. Based on the ramp of new products in the fourth quarter, gross margin, as a percentage of revenues, is expected to return to the upper half of our target range of 32 - 35%. Operating expenses, excluding amortization of intangible assets and other charges, are expected to increase approximately 5% relative to the third quarter.
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 other sections of 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. Additional information concerning risks and uncertainties affecting our business and other factors that could cause our financial results to fluctuate is continued in our filings with Canadian and U.S. securities regulatory authorities, including our 2003 Annual Information Form and Annual Report.
Any reference to "quarter-over-quarter" in this MD&A refers to a comparison of this year's third quarter results versus the third quarter of the prior year unless otherwise noted. References to "year-to-date" refer to the nine months ended May 31, 2004 and "year-to-date basis" and similar terms refer to a comparison of the nine month period ended May 31, 2004 to the nine month period ended May 31, 2003.
Financial Results Analysis
Revenues
Third quarter revenues of $491.5 million grew by 38.2% from $355.7 million in the same period a year ago. Revenues for the first nine months of fiscal 2004 were $1.42 billion, 41.8% more than the $1.00 billion achieved in the first three quarters of fiscal 2003. Revenues from our consumer products - handheld and DTV - approached 10% of total revenues in the quarter, with PC product revenues comprising most of the balance.
The gains for both the third quarter and year-to-date were largely driven by sales increases in desktop chips in the add-in-board (AIB) channel, as well as in mobile, handheld chip, and digital television (DTV) sectors.
AIB growth was a result of our very competitive portfolio of products and greater market penetration through our growing number of relationships with AIB partners. Third quarter discrete mobile revenues were up more than 50% quarter-over-quarter and up almost 50% year-to-date. Integrated mobile revenues grew more than 20% on a year-to-date basis, based on both notebook market growth and increasing penetration of integrated graphics processors (IGPs) in the notebook market. Revenues from handheld chips were up substantially quarter-over-quarter and year-to-date driven by growth in our cell phone business. This growth was the result of design wins in high volume color and camera phones. Our DTV chip revenues, driven by a significant number of design wins with leading television and set-top box manufacturers, were up approximately four times both quarter-over-quarter and on a year-to-date basis.
The royalty revenue we received from Nintendo for our graphics technology used in their GAMECUBE products also increased in the third quarter of 2004 compared with the same period a year ago.
MARKHAM, ONTARIO--(CCNMatthews - Jun 24, 2004) -
Net income triples from year earlier
ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT) today announced record quarterly revenues as a result of major sales increases in key market segments.
ATI reported revenues(1) of $491.5 million for the third quarter of fiscal 2004 (ended May 31, 2004), a 38.2% increase over the third quarter a year earlier. Gross margin was up 2.7 percentage points to 35.3% over the same period. Net income(2) per share was $0.19 for the quarter compared to $0.06 per share last year. ATI's cash position increased $39.6 million during the quarter to $508.0 million as of May 31, 2004.
"These results confirm that ATI clearly has the graphic technologies of choice," said K.Y. Ho, Chairman of ATI. "Over the past year, ATI made significant sales gains in the add-in-board channel, as well as notebook, handheld chip and digital television (DTV) sectors, led by a very competitive portfolio of products."
"Delivering on PCI Express, a key industry inflection point, provided us with nearly a clean sweep of tier-one OEM design wins," said David Orton, Chief Executive Officer of ATI. "Our corporate strategy put us in the right place at the right time, just as it did with graphics on cell phones, the transition to digital television and the move to high-end graphics on notebooks. We've anticipated the visual age of computing, and now we're delivering on that."
Outlook
We believe we are well-positioned for the fourth quarter of fiscal 2004 and the first half of fiscal 2005 based on the expected market share momentum in the desktop discrete business, the continued strength of the PC market and growth of our consumer business.
As a result of these factors, ATI currently expects revenues for the fourth quarter to be in the range of $510 - $550 million. Based on the ramp of new products in the fourth quarter, gross margin, as a percentage of revenues, is expected to return to the upper half of our target range of 32 - 35%. Operating expenses, excluding amortization of intangible assets and other charges, are expected to increase approximately 5% relative to the third quarter.
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 other sections of 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. Additional information concerning risks and uncertainties affecting our business and other factors that could cause our financial results to fluctuate is continued in our filings with Canadian and U.S. securities regulatory authorities, including our 2003 Annual Information Form and Annual Report.
Any reference to "quarter-over-quarter" in this MD&A refers to a comparison of this year's third quarter results versus the third quarter of the prior year unless otherwise noted. References to "year-to-date" refer to the nine months ended May 31, 2004 and "year-to-date basis" and similar terms refer to a comparison of the nine month period ended May 31, 2004 to the nine month period ended May 31, 2003.
Financial Results Analysis
Revenues
Third quarter revenues of $491.5 million grew by 38.2% from $355.7 million in the same period a year ago. Revenues for the first nine months of fiscal 2004 were $1.42 billion, 41.8% more than the $1.00 billion achieved in the first three quarters of fiscal 2003. Revenues from our consumer products - handheld and DTV - approached 10% of total revenues in the quarter, with PC product revenues comprising most of the balance.
The gains for both the third quarter and year-to-date were largely driven by sales increases in desktop chips in the add-in-board (AIB) channel, as well as in mobile, handheld chip, and digital television (DTV) sectors.
AIB growth was a result of our very competitive portfolio of products and greater market penetration through our growing number of relationships with AIB partners. Third quarter discrete mobile revenues were up more than 50% quarter-over-quarter and up almost 50% year-to-date. Integrated mobile revenues grew more than 20% on a year-to-date basis, based on both notebook market growth and increasing penetration of integrated graphics processors (IGPs) in the notebook market. Revenues from handheld chips were up substantially quarter-over-quarter and year-to-date driven by growth in our cell phone business. This growth was the result of design wins in high volume color and camera phones. Our DTV chip revenues, driven by a significant number of design wins with leading television and set-top box manufacturers, were up approximately four times both quarter-over-quarter and on a year-to-date basis.
The royalty revenue we received from Nintendo for our graphics technology used in their GAMECUBE products also increased in the third quarter of 2004 compared with the same period a year ago.