The Gazette from Montreal, Quebec, Canada • 10

D4 THE GAZETTE, MONTREAL, SATURDAY, FEBRUARY 20, 1999 BUSINESS CADI cr I UK Matrox will unveil its sales data Move on reforms, Martin tells G7 OTTAWA Finance Minister Paul Martin is warning his colleagues from the major industrial countries against any further delays in implementing financial reforms to head off another global currency crisis. The time for talk is long over, the time to act is now, he said in an Inter view as he headed for a weekend meet ing in Bonn with fellow finance ministers and central-bank governors from the U.S., Japan, Germany, Britain, France, and Italy "We put a plan out, then the British put a plan out after us, and since, there have been a flood of plans," he said. "Now everybody wants to be heard." "But there's a great risk that we're going to have paralysis by analysis," he warned. said Trottier, who plans to hire 100 new employees in Montreal this year, and another 40 in Toronto. Most new employee are "junior people, university grads who aren't very experienced in this very specialized field." If it wasn't for Montreal's unique climates, Matrox would keep all its engineers in one place Dorval so fresh recruits could work with experienced ones, getting up to speed quicker.

The engineering shortfall means Matrox can't churn out as many new products, Trottier said. Though ATI and Matrox have both double-teamed engineers to keep new products flowing, Matrox is hampered by the fact that, with 350 engineers, it has half the engineering staff of ATI. (Ho, in contrast, said recruiting talent isn't a problem.) fice divider separating him from hundreds of employees working at high-powered workstations. A small sign is affixed to his desk with his name on it When a reporter making small talk before an interview casually asks how things are going, Trottier doesn't put a public-relations veneer on Matrox. LATE TO MARKET "We had a very difficult period last year because we were late getting to market with our next-generation chip," is Trottier's immediate response.

"This industry is extremely competitive and unforgiving of companies that don't deliver the right product at the right Trottier co-founded Matrox with Branko Matic in 1976, after the two left Matrox put last year's chip on the market in August just after PC-makers decided which chips they'd use in their fall lines. Marconi Ltd. (Mat-ic now runs Matrox's other divisions, which focus on imaging, networking and video-editing technology). Matrox, which employs 1,300 people, 1,000 of them in Dor- away business from Matrox. (Trottier, and some analysts, beg to differ.

They say Matrox, in fact, has been burrowing away, taking market share away from ATI at Compaq.) Trottier, for his part, has high hopes for his new chip. "We hope it will be better than the Rage 128," he said, adding it will have unique new bells and whistles. Trottier is coy about when the new chip will be launched. But if it's going to be a hit PC-makers will have to see it before June or July 'NASTY RUMOURS' Matrox is also getting set for a sea change in how it deals with confidential sales data that it used to jealously guard, apart from sporadic press statements. Because of its tight-lipped policy, Trottier said, analysts underestimate Matrox's market share, leading to bad buzz about its stability.

The nasty rumours "may have been encouraged by some of our competitors," he said. Some Matrox-watchers privately counter that the company has, in fact, used its private status to avoid revealing lousy results. The more open attitude might lead to speculation that after years of toying with the idea, Matrox is preparing for an initial public offering. Trottier wouldn't comment Ownership is currently split 50-50 between Trottier and Matic. Matrox's 1998 financial results will be made public after its year end, in March.

"We're going to be reasonably profitable for the year and certainly the last two or three quarters have been profitable," Trottier said. All you have to do is turn on a computer to see why computer graphics products are increasingly important. Fifteen years ago, screens were black with green letters. Today, they explode with crisp colours and graphics. Today, children who play games and engineers who use computer-aided design software are the among the few who tap the potential of the most powerful graphics chips.

Tomorrow, new applications are expected that will allow mainstream users to take advantage of all that power. In the future, electronic commerce will probably drive demand for better graphics. "Right now, when you look at a Web page, when you go shopping on the Internet, everything is flat it's a Static image," Lee said. "In the future, you'll be able to spin objects around" to get a better idea of what you're buying. CHIPS Continued from Page Dl The article from Business Week's recent look at 1998's Top 25 executives features a picture of a smiling Ho holding up a graphics board.

Though ATI seems like an overnight sensation, Ho, an affable Chinese emigre who started ATI in 1985 with two partners, has been gearing up for success for years. "Eight or nine years ago, we were outperforming the competitors, but we couldn't get the Ho said, noting his inability to supply enough chips back then was the reason ATI lost of a deal to supply Dell Computer Corp. S3 stepped in and took the contract To ensure that wouldn't happen again, ATI invested in a chip-making plant in Taiwan to gain manufacturing flexibility It took a few years to gear up production. "About a year and a half ago, we were finally warmed up and we started eating market share and finally passed S3," Ho said. A big factor in Ho's rise was a flub by S3.

It was late in launching a chip, and ATI slipped in with the right product. If you walked into a computer store in North America 18 months ago, you would likely have found PCs featuring S3 chips. Today, you'd likely find ATI chips. S3 is still struggling to recover. But it wasn't simply a case of ATI being at the right place at the right time.

"Historically, ATI has been on the cusp technologically," said Seogju Lee, an analyst with market researcher International Data Corp. "It has always been a company on the rise." ATI, for example, was one of the first to merge 2D and 3D chips and did the best job of taking advantage of a switch to accelerated-graphics-port technology, which speeds up graphics, Lee said. ATI has been fast out of the gates with new accessories that appeal to computer-game players who want realistic 3D action when they're blowing up enemies, zooming down race tracks or dribbling down basketball courts. The stock market has been impressed with the accomplishments of All, which posted profits of $168 million last year and has consistently outperformed the industry For 1999, Ho is forecasting an ambitious 50-per-cent jump in sales. Trottier, a friendly, unassuming engineer, has a corner office without the walls.

It's more of a cubicle, with an of First Union cuts Jobs CHARLOTTE, N.C. First Union the sixth-largest U.S. bank, said it expects to reduce expenses by $400 million this year, partly by cutting as many as 7,200, or 10 per cent, of its jobs. The Charlotte-based bank will determine the number of the job cuts, which -will include staff positions across the company, in the next few weeks, spokesman Jeep Bryant said. The cuts and a reduction in the use of outside consultants are aimed at lowering annual expenses to about $8.3 billion.

"They're looking to eliminate some staff, some non-revenue producing areas, and some consultants," said Frank Barkocy, a bank analyst at Josephthal who has a "buy" rating on shares of the company Dundee bids for Fortune Financial TORONTO Dundee Bancorp headed by financier Ned Goodman, has made a bid for Fortune Financial Management Inc. and affiliated mutual-fund company Infinity Investment Counsel Ltd. Fortune and Infinity whose main shareholder is controversial businessman David Singh have been shopped around to many potential buyers lately. Sources said Fortune and Infinity could be a logical fit for Toronto-based Dundee, which owns investment deal- er Dundee Securities Inc. and Dundee Mutual Funds, which sells funds under the Dynamic and Power brand names.

Mines might close TORONTO A planned 30-per-cent cut in coal orders from the Japanese steel industry this year could force some Canadian mines to close. Coal producers had to absorb price cuts of about 18 per cent from the Japanese for contracts beginning in April, but volumes were largely unchanged. SOUTHAM NEWS, BLOOMBERG NEWS, CP MORE BUSINESS NEWS NEC to chop 15,000 jobs. Page D18 RAISE CAPITAL INCREASE YOUR VALUE through a reverse merger US PUBLIC SHELL AVAILABLE ready for NASDAQ Pierre G. Boisse Managing Director Castle (USA) LLC 4643 South Ulster Street Suite 800 Denver CO 80237 Office: 303-226-4213 Facsimile: 303-226-4163 E-Mail: pboissecastlellc.com Home Page: www.castlellc.coin vaL hit the $l-billion revenue mark in 1997.

The graphics part of the business has mushroomed from $30 million five years ago to $850 million in 1997 -thanks to deals to supply chips to PC-makers like Compaq Computer Corp. and Hewlett-Packard Co. But last year, when Matrox was four months late in releasing its new chip, some customers went elsewhere. It hit the market in August, missing the small window of opportunity when computer-makers decide which chips they'll use in their fall lines of PCs. Matrox stumbled because it couldn't recruit enough experienced engineers to keep pace with rivals, Trottier said.

Part of the problem lies at local universities, which can't keep up with demand for engineers because of funding cutbacks. But Matrox also finds it difficult to lure engineers to Montreal, he added. QUEBEC'S THREE CLIMATES Why? "It's because of what I like to call our three climates the winter climate, the tax climate and the political he said. Realizing recruitment was going to be a problem in Montreal, Matrox has opened two satellite research-and-development centres: one in Boca Raton, the other in Markham, Ont, a stone's throw from one of ATI's facilities. "But you don't get to be world-class Ontario 9.00 Ontario 7.50 Ontario 613 Ontario 6.25 Ontario 650 Ontario Hyd 963 Ontario Hyd 1000 Ontario Hyd 5.38 Ontario Hyd 775 Ontario Hyd 5.60 Ontario Hyd 745 Ontario Hyd 850 Ontario Hyd 825 PEI 600 PEI 850 Quebec 10.25 15-Sep-04 117.381 19-Jan-06 112.067 12- Sep-07 104902 25- AUO-28 106402 8- Mar-29 110.280 3-Aug-99 102130 19-Mar-OI 109241 2- Jun-03 100.377 3- Nov-OS 113.204 2- Jun-08 101 501 31-Mar-13 113 500 26- May-25 136.595 22-Jun-26 133616 3- Oct-07 101 972 27- 0CM5 128343 15-Oct-OI 112150 1-Apt-02 99800 l-Oct-07 106400 1- Oct-29 100.875 19- DOC-05 112063 2- Jun-08 100780 30-May-25 139.975 1-pec-05 112.668 CORPORATE 2-Jun-03 99625 22-JuM308 99100 24-Sep-27 110683 28- Aug-07 103.574 20- FeE-03 100602 22-0ec-26 112022 2- Jun-OS 92.575 Wun-05 115338 13- Aug-07 70.750 19-May-28 99102 3- 0ec-02 99914 3-Oec-07 102.005 3-Dec-27 105 174 1- Dec-03 96692 2- D0C-02 98 000 13-Dec-27 103 045 2-Jun-08 101233 2-Jun-28 103.313 1-Apr-02 100911 l-Dec-06 106277 l-Jun-27 120 991 9- N0V-05 115.720 11-Sep-07 96457 26-Ju(h07 97695 15-JUI-07 102 250 3- Sep-O702 99 847 4- Jun-1207 106.893 15- Jul-07 95174 1-Mai-01 103871 5-NOV-07 100424 7-Auc-07 99781 9-JuH7 104 822 16- Ap(-08 99.195 15-DOC-27 105.983 5.340 5.382 -0 004 5.401 -0034 5.795 -0 072 5.775 0 002 4 680 0 000 5.215 0.009 5273 0000 5.372 -0004 5391 0.009 6.015 5.774 5.786 0001 5.706 -0 033 5.820 -0001 5251 0.000 5319 0.000 5553 5.937 0100 5.362 -0 004 5.391 0.009 5.774 5.482 5848 0.000 5.774C -0027 6.197 0002 5 665 -0 033 5828 0 000 6.417 0.001 7 420 -0 022 5.501 -0 005 10 987 0000 6166 0 002 5423 0014 5.655 -0 033 6067 0001 6672 0 001 7.464 0 000 6416 0.001 5824 0 328 6446 0 001 5424 0011 5591 -0026 5869 0 001 5 877 -0 005 7.161 -0 028 7.221 -0029 8.369 0000 S448C 0013 5.692C -0034 7380 0 568 5 736 -0 005 6 483 -0 031 6.133 -0 031 5.764 -0 034 5 814 -0 026 6296 0001 Quebec 525 Quebec 650 600 Quebec Saskatchewan 7.50 Saskatchewan 5.50 Saskatchewan 8.75 Toronto-met 7.75 AvcoFin 575 Bank 01 NS 5.65 Bell Canada 700 Bell Cda Err) 6.20 Bombard Cap 600 Bombardier 7.35 CdnOccPat 630 CdnUtil 843 Clearnet 000 Cons Gas 610 Gtaa 540 Gtaa 5.95 Gtaa 645 hsidson Bay 6 35 Int.awest 665 Investors Gr 6 65 MolsonBrew 600 Molson Brew 6.70 Nav Canada 5.75 Nav Canada 660 Nav Canada 7.40 Pancdn Pele 8 75 Poco Petrol 660 Precision Or 6.85 Rogers Comm 875 Royal Bk 540 Royal Bk 6 76 SaskWheat 660 Sears Canada 7 80 Sears Canada 6.55 Suncorlnc 610 Thomson Corp 6.50 WstcoastEne 570 WstcoastEnt 6.75 BONDS ATI has been doing well in both the consumer and corporate markets.

But Matrox, limited by its smaller engineering staff, has focused its energy on building a solid reputation for chips used in corporate PCs. When businesses spend money on PCs, "they want reliability and stability and Matrox has been selling that for quite some time," Feibus said, noting that businesses don't need the latest graphics chips lusted after by game-players. "I don't know if I'd go so far as to say that Matrox is more reliable (than ATT), but Matrox has built strong relationships" with makers of corporate computers. Because "reliability and stability are such high-heartburn areas, it's hard (for rivals) to break those relationships," he added. A sign on the wall greets visitors to the men's room adjacent to ATI's lobby; "No classified discussions in this area." After manoeuvring his way to the top, Ho doesn't want loose lips to sink his next chip.

These days, Ho is busy promoting the Rage 128 and looking for new markets to conquer. Now the third-largest provider of graphics chips for laptops, Ho is hoping to elbow out his rivals and reach the No. 1 spot soon. He also wants to plop his chips into new devices, including set-top television boxes. "We want to broaden our customer base and increase penetration with each of our customers," Ho said, adding that ATI has gotten Compaq to use its chips in more PCs lately, taking Big Bear Mining firm puts CLAUDIA CATTANEO NationalPost CALGARY Big Bear Exploration Ltd.

has put all its assets on the block to reduce debt after claiming that sloppy accounting inflated the value of its recent acquisition, Blue Range Resources Corp. In a conference call, Jeff Tonken, Big Bear's chief executive, said the company is also in talks for a possible merger. Big Bear will have to take an asset writedown of more than $100 million, is facing about $40 million more in debt than expected and is stating lower reserves and natural-gas production than claimed by Blue Range before the takeover, he said. He estimated Big Bear's net asset value per share at $3.05. Big Bear shares fell 49 cents yesterday to $1.05.

The Calgary-based company took over Blue Range, a mid-sized natural-gas producer several times its size, on Nov. 12 in a hostile bid. After Big Bear's bid, Blue Range looked for a white knight and attracted about 20 potential bidders to its data room. There were no takers, and Big Bear won the company for $194 million Ms exactly what more and more in Gaiette QassM You set; Gazette Classified happens to be HontreaFs largest dassified. So whether you're selling a tart looking for an apartment, or bunting for a job there's no better or bigger place to be than right here.

CLASSIFIED in trouble assets up for sale in stock and the assumption of $105 million in debt Tonken said a review of Blue Range assets and operations after the deal's closing showed credit lines that were fully drawn, deficient bookkeeping, bills that had gone unpaid between 90 days and 240 days, overstated reserves, double-counting of undeveloped land and misbooked account receivables. Blue Range might also have underpaid its crown royalty obligations, he added. Blue Range's reporting of its production in "raw gas" rather than "sales gas" created the impression that Blue Range's value was far greater than it was, he said. "Accounting for revenues, royalties and joint operations were deficient at best," Tonken said. But when asked whether Blue Range's representation was fraudulent, he said: "Our view is that it's sloppy bookkeeping." Gordon Ironside, president and CEO of Blue Range at the time of its acquisition, has denied that his accounting was misleading.

"The reserves were evaluated by an independent party," he said. TORONTO (CP) Selected quotations, with changes since the previous day, on actively traded bond issues, provided by RBC Dominion Securities, Yields are calculated to lull maturity, unless marked to indicate callable date. Price is the midpoint between final bid and ask quotations, February 19, 1999. Issuer Coupon Date Price Yield Ch'ge GOVERNMENT OF CMMM Canada 4 00 15-Mar-99 99 970 4 465 0 000 Canada 7.75 1-Sep-99 101.393 4983 -0002 Canada 8 50 1-Mar-00 103.397 5 028 -0009 Canada 5 00 15-Mar-00 99 953 5 043 -0 002 Canada 7 50 1-Sep-00 103 521 5.058 -0 005 Canada 750 1-Mar-01 104555 5.094 -0006 Canada 7 00 1-Sep-01 104 416 5.107 -0 002 Canada 9.50 1-0ct-01 110.437 5.158 -0 008 Canada 9 75 1-Dec-OI 111 723 5.148 -0 008 Canada 550 1-Sep-02 101 193 5124 40006 Canada 5.25 1-Sep-03 100625 5.093 0 000 Canada 7.50 l-Dec-03 109815 5.149 -0 005 Canada 6.50 1-Jun-04 106.197 5140 -0 003 Canada 9 00 1-Dec-04 118 956 5.155 -0 008 Canada 8.75 1-0ec-05 120 270 5160 -0 007 Canada 7.00 l-Dec-06 111627 5.162 -0 029 Canada 7 25 1-Jun-07 113.877 5.165 -0 038 Canada 600 1-Jtm-IM 106170 5153 -0030 Canada 5 50 1-Jun-09 102657 5.162 -0031 Canada 9 50 1-Jun-tO 136079 5222 -0004 Canada 9 00 1-Mar-11 133189 5242 -0 003 Canada 10.25 15-Mar-14 151578 5.250 Canada 9 75 1-Jun-21 156022 5 396 4 002 Canada 800 1-Jun-23 135450 5 369 0 000 Canada 800 1-Jun-27 137.793 5 382 0001 Canada 575 1-Jun-29 106.512 5314 0002 Cmhc 5.10 2-JuiHB 99427 5249 0001 Real Returns 425 1-Dec-21 101975 4115 0000 Real Returns 425 1-0ec-26 102.186 4.117 0.000 PROVINCIAL Alberta 800 1-Mar-00 102906 5023 -0007 Alberta 7.75 5-May-03 109363 5231 -0 005 Alberta 7 50 1-Dec-0S 112.351 5.302 -0 004 BCMunFin 5.50 24-Mar-08 100213 5469 0009 Brit Col 8 00 23-Aug-05 114132 5393 -0 005 Brit Col 600 9-Jun-OS 104 049 5438 0 008 Brit Col 850 23-Aug-13 127885 5 656 0 000 Brit Col 5.70 16-Jun-29 98046 5.838 0 002 Hydro Quebec 1088 2S-Jul-01 112640 5 235 Hydro Quebec 700 1-Jun-04 107.195 5409 0 000 Hydro Quebec 8 50 15-Aug-05 116410 5457 -0 030 HydroQuebec 11.00 15-Aug-20 161600 5 902 0050 Manitoba 7.75 14-Sep-OO 103823 5149 -0 005 Manitoba 575 2-Jun-08 102609 5387 0008 Manitoba 7.75 22-0ec-2S 128216 5 686 0001 NewBrunswic 838 26-Aug-02 109879 5253 0007 NewBrunswic 5 70 2-Jun-08 102223 5 391 0 008 NewBrunswic 6.00 27-0ec-17 104218 5 633 0 001 Newfoundland 615 17-Apr-28 101 870 6 013 0 002 Nova Scotia 6.60 1-Jun-27 109.671 5.892 In! I i i 1 i (tittle Classified..