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URL:  https://boards.fool.com/canuck-rm-ati-technologies-atyatyt-10830112.aspx

Subject:  Canuck RM? ATI Technologies (ATY/ATYT) Date:  5/4/1999  12:40 AM
Author:  UCalgaryGeer Number:  2531 of 8329
Analysis of: ATI Technologies (TSE:ATY; NASDAQ:ATYT)

Financial AnalysiCompany Being Evaluated                      Competitor #1  Competitor #2 Competitor #3

                 ATI Technologies                                 3dfx          Diamond        Nvidia
                     Annual        Annual    Year-over-Year      Annual          Annual        Annual
                   31-Oct-98     31-Oct-97      Growth          31-Dec-98      31-Dec-98     31-Jan-99
Income Statement . . .
  Sales                  1,157           603     91.9%                   203           609           158
  Cost of Goods S          729           409     78.1%                   120           542           109
  Net Income               168            48    253.0%                    22           (40)            4
  Shares Outstand          199           194     2.7%

Balance Sheet . . .
  Cash & Equivale           69            72     -3.9%                    96            36            50
  Current Assets           497           233    113.1%                   168           251           101
  Short-term Debt            0             0    No Debt                    0            46             1
  Current Liabili          199            88    127.4%                    58           159            47
  Long-term Debt             0             0    No Debt                    0             2             2
                                                                            1             1             1Competitor
Margins & Ratios . . .
  Gross Margins           37.0%         32.1%     4.9                   41.0%         11.0%         31.0%     27.6%
  Net Margins             14.6%          7.9%     6.6                   10.7%         -6.5%          2.5%      2.3%
  Cash-to-Debt         No Debt!      No Debt!  No Debt!                337.68          0.76         16.67      3.60
  Net Cash                 45.9          47.8    -3.9%                   95.6         -11.2          47.0      43.8
  Fool Flow Ratio          2.15          1.84    16.6%                   1.26          1.90          1.11      1.42


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Ranking Rule Makers

1) Brand          Points (0-1)                              3) Financial Dire Points (0-3)
Familiarity                   1                             Sales Growth                  3
Openness                      1                             Gross Margins                 3
Optimism                      1                             Net Margins                   3
Legitimacy                    1                             Shares Outstandin             2
Inevitability                 1                             Cash-to-Debt                  3
Solitariness                  0                             Fool Flow Ratio               0
Humor                         1                             Expansion Potenti             2
  Subtotal                    6                               Subtotal                   16

2) Financial Loca Points (0-2)                              4) Monopoly Statu Points (0-4)
Mass Market Habit             1                             Gross Margins                 4
Gross Margins                 0                             Net Margins                   4
Net Margins                   2                             Net Cash                      0
Cash-to-Debt                  2                             Fool Flow Ratio               0
Fool Flow Ratio               0                             Convenience                   2
Your Interest                 2                               Subtotal                   10
  Subtotal                    7
                                                            5) Your  Enjoymen             1

                   Total Score             40 Second Tier



Comments on subjective points:
ATI's Rage is about as familiar as 3dfx's products. ATI also makes open and optimistic products, as far as I can tell.
Legitimate and inevitable? Computers have to have graphics cards. I looked at 3 makers (okay, they were the big 3), and Compaq and Dell use ATI and Diamond, whereas Gateway uses 3DFX and nVidia in their performance computers, but is starting to use ATI components as well.
ATI isn't really solitary, with 3dfx being the strongest competitor.
Humor? Check out the Rage Conspiracy game/movie/Shockwave thingy on their homepage. Funny, cool, kick-ass.
As far as mass-market goes, I'd put computer peripherals on the 1 out of 2 scale. Expansion is possible on all levels of their product, and in the global marketplace.

In the end, ATI compates with Nvidia and 3dfx on chips and Diamond and others on boards. No one has a monopoly, and I don't think any one will get a monopoly anytime soon. 3DFX has perhaps greater support for the hard-core gamer, but ATI has perhaps a broader consumer base to work from, and also produces a wider range of products (such as the All-In-Wonder, which adds video/tv I/O functionality.)

Kevin :)
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