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Technology Stocks : ATI Technologies in 1997 (T.ATY) -- Ignore unavailable to you. Want to Upgrade?

To: stock talk who wrote (3669)	7/6/1999 4:07:00 PM
From: Method	Read Replies (1) \| Respond to of 5927

Analysts Expect Strong 3Q From ATI Technologies >ATYT By Scott Adams 07/06/1999 Dow Jones News Service (Copyright (c) 1999, Dow Jones & Company, Inc.) TORONTO (Dow Jones)--ATI Technologies Inc. (ATYT) has made a habit out of exceeding analysts' expectations and the company's third quarter ended May 31 looks like it will be no different, analysts said. The company will release third-quarter results Thursday. The First Call mean earnings estimate from five analysts for the third quarter is 15 cents a diluted share before goodwill charges. ATI beat expectations in its second quarter by 2 cents a diluted share before goodwill. In a research note last week, RBC Dominion Securities Inc. analyst Dennis dos Santos said there is a "reasonable chance" that ATI could exceed expectations in the quarter by "up to" 3 cents a diluted share before goodwill because of strong personal computer sales in the second quarter of the calendar year. RBC Dominion is looking for net income of 14 cents a a diluted share, below the First Call figure. Ray Sharma, analyst with CS First Boston in Toronto, is looking for net of 16 cents a diluted share. Asked if he thinks ATI will exceed expectations again, Sharma said: "It's possible. We think it will be a strong quarter. History certainly suggests they will beat (expectations) again," Sharma said, noting that ATI has beaten expectations in eight of the past 10 quarters, while meeting expectations the other two times. John Wilson, analyst with Bunting Warburg Dillon Read Inc. in Toronto, is looking for net of 15 cents a diluted share, but he said it is possible that ATI will beat his estimate by a penny or two. "I think there is a very good chance that they can do better than where we're at," he said. "The market looked good," he said of ATI's past quarter, meaning that ATI didn't appear to lose any market share and that PC shipments were strong. One analyst, who asked to not be identified, expects ATI to boost revenue guidance to analysts when it reports its quarter. At the beginning of the fiscal year, the company was guiding analysts to expect revenue growth of 40% or more in fiscal 1999 over fiscal 1998. However, that growth forecast was increased to 50%-55% after the fiscal first quarter and to 55-60% after the fiscal second quarter, the analyst said. The analyst expects guidance to increase to 60% plus. Sharma noted that Intel Corp. (INTC) has been having trouble with its 810 graphics chips and that shipments could be delayed several weeks. He was expecting Intel to ship 12 million graphics chips in calendar 1999. Intel shipped about 1 million in the first quarter and should ship less than 1 million in the second quarter, Sharma said. Given that Intel won't likely be able to ship 10 million in the second half of the year, the shortfall bodes well for other suppliers of graphic chips, like ATI, Sharma said. Analysts will be listening carefully for anything ATI has to say about set-top cable-TV boxes. ATI has said it expects to begin receiving revenue in the fourth quarter from its contract to supply graphics chips to General Instrument Corp. (GIC) for its DCT-5000+ set-top box. ATI has also said it has two design wins with other set-top box makers, though it isn't known who those deals are with. Observers hope ATI will land set-top boxes deals later this year with big international consumer electronics manufacturers.