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Technology Stocks : ATI Technologies in 1997 (T.ATY)
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To: David Culver who wrote (3365)5/7/1999 8:57:00 AM
From: Method  Read Replies (1) of 5927
 
ATI Technologies Gets Two More Contracts For Rage 128 Graphics Chip

05/05/1999
Dow Jones Business News
(Copyright (c) 1999, Dow Jones & Company, Inc.)

TORONTO -(Dow Jones)- Graphics chip maker ATI Technologies Inc. has won a contract from Hewlett-Packard Co., which will use ATI's Rage 128 chip in personal computers, according to Research Capital Corp. analyst Brian Antonen.

On Wednesday, ATI (ATYT) announced that Gateway Inc. (GTW) will use the chip in some consumer desktop PCs. Antonen said ATI's chip also has been included in Hewlett-Packard's (HWP) Pavilion PCs.

The Rage 128 is ATI's latest line of graphics chips. ATI supplies its older Rage Pro chips to Hewlett-Packard's Pavilion line.

Antonen said the Gateway win comes at the expense of Nvidia Corp. (NVDA), an ATI competitor. Antonen said he learned about the Hewlett-Packard win by searching Hewlett-Packard's documents on its World Wide Web site.

"The Rage 128 is now ATI's flagship graphics chip and, despite a high profile design win with Apple Computer Inc. (AAPL), it has seen limited exposure," Antonen wrote in a Wednesday research note. "ATI has received a lot of negative U.S. investor publicity lately. The crux of this was that ATI would lose significant market share to both Nvidia and S3 Inc. (SIII). The Gateway design win is particularly sweet given that it comes at the expense of Nvidia."

-By Scott Adams; 416-943-7804; scott.adams@dowjones.ca
Copyright (c) 1999 Dow Jones & Company, Inc.

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