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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: chaz who wrote (18250)2/19/2000 2:39:00 AM
From: chaz  Read Replies (3) | Respond to of 54805
 
RE: Project HUNT

We're open again for nominations everyone.

RBAK is the first I have received, and I seem to recall a few weeks ago, one of us volunteered to do a HUNT report on it, but I haven't found the post in which he did so.

Maybe this post will smoke him out again. If anyone does recall the post or the person, please let me know via PM.

Chaz



To: chaz who wrote (18250)2/19/2000 3:45:00 AM
From: Smacs  Read Replies (1) | Respond to of 54805
 
RE: ATYT/ATY Financials and More...

Yes. The symbol did change when ATI listed on the Nasdaq.
I suppose it was because "ATY" was already being used
by "Grupo Casa Autry S.A." is the U.S. Also, the Nasdaq
uses the 4 letter stock codes, whereas the TSE uses 3
letters (rule or tradition? not sure).

Researching ATI's financials is a bit of a chore. When they
began listing on the Nas, they also began reporting in US$.
Before that, they always reported in CAN$ so you'll find
different sources using different currencies. Despite that,
I'll try to give a more complete financial picture:

On Page 4 of the ATI 1999 Annual Report, under "financial
highlights" we find:
-53% annual compound revenue growth over the last 5 years
-99% annual compound growth in adjusted net income over the
last 5 years

On the same page, under "Financial accomplishments during
fiscal 1999", we find:
-67% increase in sales over fiscal 1998, sales have more
than tripled in the last two years
-Adjusted net income rose 48% to $159M. Adjusted net income
per share also rose 46% to $0.73 per share.

Here's the link to all the financials:
ati.com

But here's a 5 year rundown (also with employment figures):

(Thousands of US$, except per share amounts and other stats)
1995 1996 1997 1998 1999
Sales $1,231,261 $737,268 $384,170 $297,348 $229,245
GrossMargins 450,689 272,744 123,430 78,320 53,678
Adj. Net Income 159,264 107,331 30,391 17,427 10,112
Cashflow fr Opr 74,782 28,062 19,305 39,192 12,275

Adjusted Net Income Per Share:
-basic 0.79 0.55 0.16 0.09 0.05
-diluted 0.73 0.50 0.15 0.09 0.05

Employees 1,857 1,477 1,074 757 669
Employees (R&D) 913 634 473 303 251

Shares Outstanding
-End Of Year 205M 199M 194M 190M 189M
-Weighted 202M 196M 192M 190M 189M

I'll discuss the second part of your post in another
message just to keep the issues in manageable chunks.

-sm-



To: chaz who wrote (18250)2/19/2000 4:45:00 AM
From: Smacs  Respond to of 54805
 
RE: ATY/ATYT E-Appliances: Elaboration...

Okay, now onto the next part...

The ATI annual report rattles off the standard, "...as the family gathers in the kitchen and you plan the evening meal, another device informs you that you are low on Salsa, noodles and tomato paste to prepare the recipe. <snip> By touching the device's grocery list, with one command, the missing items will be delivered to your home by 6:00pm Either that or it's take-out -- again!"

Personally, I think ten years from now we'll still be looking at the last scenario... "it's take-out -- again!" I really don't believe that EVERY appliance will be automated to the degree where they are waiting on us hand and foot. I don't know NOW what I'll want to eat for dinner tonight; my f*&%ing fridge sure isn't going to know, no matter HOW much silicon you pump into it.

What I do think will happen (and what I feel is happening already) is that certain devices will be hooked into the internet (if it makes sense to do so) and many more devices will be hooked into a home network (not to figure out how much salsa you have left, but rather to monitor power consumption, maintenance needs, etc.) The devices that get feeds from the internet might be TV/VCR, computer desktop/laptop, reading tablets, car, radio, small flat-panel displays in various rooms, game-consoles, phones, handhelds, etc. Some of this is already here; some of it is on its way; some of it may never be.

Companies with vested interests. Perhaps that's too strong a statement. What might be more realistic is saying that many companies already have a lot of R&D money and even product offerings in this area. Microsoft, Sun, Sunbeam, IBM, Erikson, (just to name a few) have all been working in one way or another to make this type of scenario work. They all realize how potentially lucrative it is. From the development of platform independent languages such as Java, Jini, etc. to wireless technologies such as Bluetooth and O/S offerings such as Windows CE, Linux, Lonworks, etc. everybody seems to be pushing for standards in this area. Sunbeam just unveiled HLT (Home Linking Technology) and is starting to create home-linked products. So in answer to your question, it appears to be both the "tech-industry" AND "appliance manufacturers with shelf and store space" who are trying to usher this in.

Now as mentioned, things like toasters and coffee makers will not be running elaborate 3d graphics on 15-inch displays any time soon. But they will need some sort of intelligence in the form of CPU, logic and possibly i/o support for peripherals if they are to be somewhat intelligent. I get the feeling though, that those (small) appliances aren't what ATI is going for. They mention repeatedly the sub-$500 computer and appliance markets. This seems to be more in the realm of handhelds, mobile phones, electronic paper, wireless tablets, wall-mounted displays, information pads, car terminals, and naturally, TVs, home theatres, computers, etc. All of these will need to have fairly extensive graphics capabilities, they will need to be small, priced at a consumer price-point, and be compatible with each other. The best way to keep the price and size down while adding all these enhanced features, would be to put the whole system on one chip.

Again, I need to emphasize that ATI isn't the only one who is trying to nail the SOC market. Intel is the biggest threat and they are definitely a huge one. However, they don't have the toe-hold on this area that they do in PC-land. What they have is their name which could be an asset AND a liability.

Hopefully, this clarifies my report a little bit. I was trying to cram so much information into it that maybe I skimmed over some areas that I should have elaborated on. Please keep the questions coming. It will make me think things through better resulting in a more accurate view of ATI (for better or for worse).

-sm-