ATI cashes in Broadcom shares for $65 million
OTTAWA, Jan 25 (Reuters) - ATI Technologies Inc. (Toronto:ATY.TO - news) (NasdaqNM:ATYT - news), the world's No. 1 graphic chip maker, said on Thursday it has cashed in its shares of Broadcom Corp. (NasdaqNM:BRCM - news) for a net gain of about $54 million.
ATI, which sold the shares for $65 million, got the stock in December when SiByte Inc., in which it had a stake, was purchased by Broadcom, which develops integrated chips.
Under the terms of that deal, ATI may receive further shares that are tied to SiByte, a computer processor developer, achieving future performance targets.
ATI said it will use the funds for future operating activities.
Shares in ATI added 1 percent to C$10.00 on the Toronto Stock Exchange and half a percent to $6-5/8 on the Nasdaq in afternoon trade.
Markham, Ont.-based ATI warned earlier this month that it expects sales and profits to decline in 2001 due to softer personal computer demand.
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