ATI Reports Record Quarterly Results: Revenues increase 31% to $614 million

@ 2004/12/21
MARKHAM, ON – December 21, 2004 – ATI Technologies Inc. (TSX: ATY, NASDAQ:
ATYT) today announced record financial results for the first quarter of fiscal 2005.
Quarterly revenues1 grew 30.7% to $613.9 million from $469.7 million in the first quarter of fiscal
2004 as a result of sales increases in both the personal computer and digital consumer product
lines. Gross margin percentage was 34.2%. In accordance with Canadian generally accepted
accounting principles, beginning with the first quarter of fiscal 2005, ATI is expensing
compensation costs associated with stock options granted to employees after September 1, 2002.
Net income and net income per share including compensation costs associated with stock options
were $63.7 million and $0.25 respectively, up from $47.4 million and $0.19 for last year’s first
quarter. Compensation costs associated with stock options in the first quarter of fiscal 2005 were
$8.0 million. Net income and net income per share excluding compensation costs associated with
stock options were $71.4 million and $0.28 respectively. ATI's cash position increased $71.7
million during the quarter to $620.6 million at November 30, 2004.
"We continue to demonstrate our technology and industry leadership through innovation,
execution and customer focus," said David Orton, ATI's Chief Executive Officer. “This has
translated into the sustained financial and operational performance we have seen over the past
several quarters. Looking ahead, we believe we will continue to grow our business by helping
consumers to create, connect and communicate in new ways – whether it’s bringing 3D and
camera features to mobile phones or high definition content to home PCs.”

Comment from Sidney @ 2004/12/21
Despite the increase in earning, ATI stock is down over $1.00 or about 4-5% in late morning trading. Go figure.

 

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