ATI Technologies Inc.

ATI Technologies IPO

ATI Technologies’ initial public offering (IPO) took place in 1993. The company was listed on the NASDAQ stock exchange and on the Toronto Stock Exchange under the ticker symbol “ATY.”

At the time of the IPO, ATI Technologies priced its shares at $11.00 per share. The IPO came eight years after the company was founded by Lee Ka Lau, Francis Lau, Benny Lau, and Kwok Yuen Ho in 1985.

Initially focused on developing integrated graphics cards for PC manufacturers such as IBM and Commodore, ATI Technologies had grown into an independent graphics-card retailer by 1987, introducing the EGA Wonder and VGA Wonder card product lines.

Following its IPO, ATI Technologies introduced a series of innovative products, including the Mach64 accelerator in 1994, which offered hardware support for YUV-to-RGB colour space conversion in addition to hardware zoom.

The company’s first combination of 2D and 3D accelerator, named 3D Rage, was introduced in the mid-1990s. The Rage line powered almost the entire range of ATI graphics products and was among the first viable 2D-plus-3D alternatives to 3dfx’s 3D-only Voodoo chipset.

In 1996, ATI Technologies entered the mobile computing sector by introducing 3D-graphics acceleration to laptops. The company continued to innovate and expand its product lineup to include a wide range of graphics processing units and chipsets.

The Radeon line of graphics products, unveiled in 2000, offered an all-new design with DirectX 7.0 3D acceleration, video acceleration, and 2D acceleration.

ATI Technologies’ growth since its IPO had been significant, with the company becoming a key player in the graphics processors industry.

The company was acquired by AMD in 2006, and its technologies have continued to play a crucial role in AMD’s product lineup. Investors who bought ATI Technologies at its IPO price and held on to their shares would have seen substantial returns, especially considering the acquisition by AMD.

ATI IPO Prospectus

A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find ATI’s Prospectus here.

Company Overview & History

ATI Technologies Inc., founded in 1985, was a renowned pioneer and industry leader in the design and manufacturing of GPUs. With its headquarters in Markham, Ontario, Canada, ATI Technologies played a crucial role in shaping the landscape of computer graphics. The company’s GPUs were widely recognized for their performance, visual quality, and advanced features.

Throughout its history, ATI Technologies developed a strong reputation for delivering cutting-edge graphics technologies for both consumer and professional markets.

The company’s graphics cards powered numerous gaming systems, workstations, and multimedia devices. ATI Technologies constantly pushed the boundaries of graphics performance, introducing innovations such as pixel shaders, multi-GPU configurations, and high-definition graphics.

Financial Performance

Year	Revenue($B)	Net Income($B)	EBITDA($b)	Operational Cash Flow($M)
2022	3.84	0.147	0.430	0.225
2021	2.80	-0.016	0.262	0.016
2020	2.98	-1.56	-1.16	0.017
2019	4.12	0.270	0.517	0.023
2018	4.05	0.237	0.519	0.04

Business Model

ATI Technologies operated on a business model centered around designing and manufacturing graphics processing units for a wide range of applications.

The company developed GPUs for various markets, including gaming, professional visualization, and mobile devices. ATI Technologies’ graphics cards were renowned for their exceptional performance, image quality, and compatibility with industry standards.

ATI partnered with computer manufacturers and original equipment manufacturers (OEMs) to incorporate its GPUs into their products. ATI Technologies also provided software development kits (SDKs) and driver support to ensure optimal performance and compatibility with popular operating systems and applications.

Market Cap Over the Years

Year	Market Cap($B)
2023	4.45
2022	2.89
2021	2.33
2020	1.24
2019	2.55
2018	3.30
2017	1.88
2016	1.17
2015	1.59
2014	3.59
2013	2.91
2012	2.83
2011	4.94
2010	4.16
1998	3.99

Risk Factors

During its existence as an independent company, ATI Technologies faced several risk factors common to technology hardware manufacturers. These risks included intense competition from other GPU vendors, rapid technological advancements, changing consumer preferences, and potential supply chain disruptions.

Additionally, ATI Technologies was exposed to market fluctuations in the gaming and computing industries, as well as potential patent infringement lawsuits. The company actively managed these risks through ongoing research and development, strategic partnerships, and customer engagement.

Market Opportunity

ATI Technologies operated in a highly competitive market with significant opportunities driven by advancements in computer graphics, gaming, and multimedia. The increasing demand for realistic and immersive visual experiences presented a substantial market opportunity for ATI Technologies’ graphics solutions.

The company aimed to capitalize on this opportunity by continually improving its GPU technologies, expanding its product lineup, and building strong relationships with computer manufacturers, game developers, and content creators.

Competitors

• NVIDIA Corporation
• Intel Corporation
• Matrox Electronic Systems Ltd.
• 3Dfx Interactive Inc.
• S3 Graphics Inc.
• VIA Technologies, Inc.

Key/Fun Company Facts

• ATI Technologies was originally named Array Technology Inc. before adopting the acronym “ATI” in 1987.
• The company’s graphics technologies were widely used in gaming consoles, including the Xbox and PlayStation series.
• ATI Technologies received numerous industry awards for its graphics hardware and software innovations.
• The acquisition of ATI Technologies by AMD in 2006 marked a significant milestone in the GPU industry, creating a strong competitor to NVIDIA.