Graphics Business has been good; Market has been nervous! S3 will do just fine! Look for yourself to see how ATI did for this quarter (copied from Ski's post on ATI)!
"To: Ski (39 )
From: Ski Apr 10 1997 12:34PM EST
Reply #40 of 45
Folks, ATI posted it's quarterly earnings today. Here's the text I pulled off the ATI web site. See the web posting for the complete consolidated statements (http://www.atitech.ca/ir/q297pres.html). Good Luck, Ski
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For further information contact
ATI Technologies Inc.
Jo-Anne Chang, Director Investor Relations
905) 882-2600(ext. 8306)
e-mail: Jchang@atitech.ca
ATI Technologies Reports Second Quarter Results
Gross Margin improves to 30.5%
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Toronto, Canada - April 10, 1997 - ATI Technologies Inc. (TSE:ATY) a world leader in 3D graphics/video acceleration and multimedia solutions, today announced solid results for the company's half year and second quarter. Sales for the six months ended February 28, 1997 increased 34% to $315.5 million, up from $235.2 million for the same period last year. Earnings for the six months rose 89% to $25.5 million or 53 cents per share compared with $13.5 million or 28 cents per share for the same period last year.
For the second quarter sales increased 31% to $151.5 million and earnings were 26 cents per share, compared with $115.9 million and 14 cents per share for the corresponding quarter of 1996.
"The second quarter contained many successes for ATI", said K.Y. Ho, ATI's president and CEO. "We are pleased with the pace of growth and particularly the improvements being made in gross margins. With each successive new generation of our 3D products, we are rising to meet the needs of the rapidly expanding base of consumers who are demanding leading edge graphics on their computers."
Financial Highlights
The company has made consistent progress with gross margins over seven consecutive quarters. This quarter ATI realized an overall gross margin of 30.5% up from 25.5% in the same quarter last year. Gross margins reflect the strengths of our newer 3D component and board-level products and improvements in our product mix in the OEM sales channel.
Selling and marketing expenses rose to 9% of sales in the second quarter, a period when the company also garnered increased sales in the retail channel. The expanding retail success saw ATI increase its investment in marketing and promotional activities. Continuing global initiatives during the quarter also increased sales and marketing expenses related to the localization of product into many foreign languages. Research and development expenses increased as the company's several technology sites across North America increased activity and staffing levels to support ATI's technology initiatives.
Inventory balances increased to $62.1 million and reflect levels more appropriate to meet future production needs. Net cash balances also reflect this investment in inventory as well as the second payment for the company's investment in the UMC foundry in Taiwan."
S3 will hopefully report great earnings as well! ATI lost 1/2 point on earning report on the Canadian Market due to the fact that S3 & TRID were trading much lower in US since the US markets have been bloody. In contrary to ATI, S3 with good earning should moves up since it's stock value decreased in US while ATI's did not change much in the Canadian Market!
There is a very good chance with S3 and TRID good earning reports, S3 would draw heavy investor's attention to this growing business. And, in contrary to ATI's performance after earning report, S3 with good earning should move up! Of Course, Market should also not be in the blood bath attack mode.
S3 needs to earn higher stock value and establish itself as a real valuable stock. We all know that Intel, CSCO, MSFT have also gone through this path.
Good Luck To All of US! |
