Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Marc who wrote (3069)	4/9/1999 6:55:00 AM
From: Stocker	Respond to of 5927

I cut some of the earnings stuff out of this one ATI profit leaps, but investors not impressed Friday, April 9, 1999 MARK EVANS Technology Reporter ATI Technologies Inc. continued to demonstrate its dominance of the computer graphics market by reporting a 45-per-cent jump in second-quarter profit yesterday. But that wasn't enough, it seems, to impress investors, who pushed ATI's shares down despite the company having exceeded expectations. Although ATI managed to beat the estimates of analysts who expected it to make 16 cents a share, it didn't impress Internet-crazed investors. ATI shares fell $1.45 to $23.50 on the Toronto Stock Exchange. "We are very comfortable with 55- to 60-per-cent revenue growth this year and gross margins in the mid-30s," said K.Y. Ho, ATI's president and chief executive officer. ATI's bullish approach also extends to market share as it expects to boost its leadership in the graphic chips market to the mid- to high-30-per-cent range from 27 per cent in 1998. "If things go well, it could be even higher," said Henry Quan, ATI's vice-president of corporate marketing. A crucial part of ATI's growth strategy in fiscal 1999 is its new Rage 128 chip, which is being built into a variety of products. Mr. Ho said sales of higher-margin Rage 128 products will likely be about 30 per cent of ATI revenue, even though sales to large computer makers could be delayed until later this year. While ATI presses ahead, rival S3 Inc. is trying to play catch-up as it gets rid of unprofitable products and fires employees. S3, based in Santa Clara, Calif., recently said it plans to become profitable again in the second half of the year and intends to recapture its market share lead by next year. But Brian Antonen, an analyst with Research Capital Corp., said S3 will be fortunate to keep its 18-per-cent market share based on research he did on sales of S3's new Savage4 graphics chip.