ATS// geplanter Photowatt spin-off - PPVX-Kandidat - 500 Beiträge pro Seite

[meinolf67]

Habe mir heute mal die seit Sommer auf Eis gelegte Photowatt-Geschichte angesehen.

Offenbar gab es im September einen Aktionärsaufstand, bei dem das bisherige Management komplett rausgeflogen und durch neue "shareholder-oriented" Leute ersetzt worden ist.

Photowatt ist ein langjährig tätiger und auch immer noch der größeren Hersteller mit Schwerpunkt in Europa/Frankreich.

Ins Hintertreffen geraten sind sie u.a. weil die Mutter Riesesummen für die Entwicklung irgendeiner neuen Technologie (Spheral) ausgegeben hat, die es dann doch nicht brachte (da sind sie ja weder die ersten noch die einzigen )

Es gab noch kurz davor eine Kapitalerhöhung (konnte ich allerdings nicht 100% nachvollziehen), so dass die aktuelle Bewertung so bei Buchwert +15% liegt.

Allerdings schreibt man Verluste.


Der Charme liegt darin, dass bereits vom alten Management eine Abspaltung von Photowatt betrieben wurde, die vom neuen noch dringlicher verfolgt werden soll.

Werde die Sache mal im Auge behalten und später einige News posten.

Wer was beitragen kann... bitte rege mitposten

[meinolf67]

Das Dissidenten-Circular, das zum Managementwechsel führte, findet IHr hier:

http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issu…

Eintrag vom 5.September mit den 279k; da muss man ein eingeblendetes Passwort eintippen...

[meinolf67]

EDF Energies Nouvelles places 3-year order to buy solar modules from Photowatt


TSX: ATA

CAMBRIDGE, ON, Oct. 15 /CNW/ - Photowatt International, the solar
products manufacturing business of ATS Automation Tooling Systems Inc., today
announced it has signed a three-year agreement to supply EDF Energies
Nouvelles - a world-class player in the green electricity generation market
and an affiliate of Electricité de France - with refined metallurgical silicon
solar modules.
The agreement stipulates that Photowatt will provide EDF Energies
Nouvelles with 10 megawatts (MWs) of refined metallurgical silicon modules per
annum from 2008 through to December 31, 2010, for a total of 30 MWs. In
addition, EDF Energies Nouvelles has the option of ordering another 7.5 MW of
refined metallurgical silicon products in 2008 and another 15 MWs per year in
2009 and 2010.
"This is the first multi-year order that Photowatt has secured for its
refined metallurgical silicon products," said John K. Bell, ATS Chief
Executive Officer. "In this regard, it is a breakthrough and provides
Photowatt with a high quality customer for a substantial portion of its annual
output of metallurgical silicon modules. There is a high degree of trust
between the parties and a commitment to work together to enjoy the benefits of
power efficiency gains we can achieve."

About EDF Energies Nouvelles

EDF Energies Nouvelles, a 50%-owned subsidiary of the EDF group
(Electricité de France), is a world-class player in the green energy
generation market and renewable energies with gross installed capacity of
1,188 MW worldwide at June 30, 2007 (including net capacity of 868 MW). With a
presence in 9 European countries and in the United States, EDF Energies
Nouvelles operates in four renewable energy segments (solar, wind, biomass and
hydro). Since November 2006, EDF Energies Nouvelles has been listed in
Compartment A of the Eurolist by Euronext Paris (code: EEN, ISIN code:
FR0010400143). www.edf-energies-nouvelles.com.

About Photowatt

Photowatt is a 60 MW integrated designer, manufacturer and marketer of
solar modules and installation kits used by customers throughout Europe and
the United States. A pioneer in the photovoltaic industry, Photowatt has been
developing and selling its well-recognized products since 1979. Its integrated
ingot, wafer, cell and module production capabilities, silicon processing
technologies, advanced wafer sawing techniques, established market positions,
relationships with key distributors and installers and value-added design
services, provide it with distinct competitive advantages in the growing
global solar industry. Based near Lyon France, Photowatt employs approximately
700 people and its PW 1650 solar modules were recently ranked first place by
Photon International in annual energy generated per watt peak installed.
(www.photowatt.com).

About ATS

ATS Automation Tooling Systems Inc. provides innovative, custom designed,
built and installed manufacturing solutions to many of the world's most
successful companies. Founded in 1978, ATS uses its industry-leading knowledge
and global capabilities to serve the sophisticated automation systems' needs
of multinational customers in industries such as healthcare,
computer/electronics, automotive and consumer products. It also leverages its
many years of repetitive manufacturing experience and skills to fulfill the
specialized repetitive equipment manufacturing requirements of customers.
Through its Photowatt solar business, ATS participates in the growing solar
energy industry and through its precision components business it produces, in
high volume, precision components and subassemblies. ATS employs approximately
3,500 people at 24 manufacturing facilities in Canada, the United States,
Europe, southeast Asia and China. The Company's shares are traded on the
Toronto Stock Exchange under the symbol ATA. Visit the Company's website at
www.atsautomation.com.

[meinolf67]

Es steht übrigens immer wieder was von "metallurgical silicon modules" in den Mitteilungen.

Offenbar hat man aus der SI-Not mit m-SI experimentiert.

Habe aber bisher nichts wirklich Substantielles dazu gefunden...

Vielleicht einer von Euch?

[meinolf67]

SI hat man auch gekauft; allerdings erst ab 2010!!!:

ATS Solar Group secures multi-year polysilicon supply contract with industry-leading WACKER Chemie AG


TSX: ATA

CAMBRIDGE, ON, Sept. 4 /CNW/ - ATS Automation Tooling Systems Inc. today
announced that its Photowatt France subsidiary has entered into a multi-year
agreement to purchase high-purity polysilicon from WACKER Chemie AG.
Under the agreement, WACKER will deliver polysilicon to support
approximately 14 megawatts of Photowatt solar production per annum. Deliveries
are expected to begin in January 2010 and continue for a nine year period. The
agreement requires advance payments that will be covered by a portion of the
proceeds raised from ATS's recent rights offering. For competitive reasons,
the terms of the contract were not released but management believes they are
similar to other long-term contracts recently secured in the solar industry.
"This polysilicon contract is an important next step in our plan to
continue to strengthen Photowatt in advance of its spin out," said Ron Jutras,
ATS President and CEO. "The agreement significantly improves our access to
scarce polysilicon by providing us with a contracted supply from a highly
respected global supplier at attractive long-term supply prices. It also
clearly establishes an important strategic supply relationship between
Photowatt and WACKER which we intend to build upon."
Photowatt has implemented an active silicon supply strategy to ensure it
has sufficient supply on hand, at reasonable prices, to meet its long-term
needs and support its future expansion. In support of this strategy, the
contract announced today is the fourth major long-term silicon agreement
Photowatt has signed in recent months. It previously announced two long-term
supply agreements with Deutsche Solar AG for the supply of polysilicon wafers
and a long-term supply agreement for refined metallurgical silicon with Dow
Corning. Photowatt's vertically-integrated technology and manufacturing
capability allow it to manufacture solar cells and modules using a broad range
of silicon feedstock, which it purchases based upon availability and cost.

About WACKER

WACKER (www.wacker.com) is a globally active chemical company
headquartered in Munich. With a wide range of state-of-the-art specialty
products, WACKER is a leader in numerous industrial sectors. Its products are
required in many high-growth end-user sectors such as photovoltaics,
electronics, pharmaceuticals and household/personal care products. The Group's
WACKER POLYSILICON business division is the world's second-largest producer of
hyperpure polycrystalline silicon for the semiconductor and photovoltaic
industries. In 2006, WACKER Group posted sales of some (euro)3.34 billion,
with approx. 80 percent being earned outside Germany. WACKER has about 14,700
employees at 22 production sites in Europe, the Americas and Asia and at some
100 sales offices worldwide. WACKER CHEMIE AG's shares (ISIN: DE000WCH8881)
are listed on the Frankfurt Stock Exchange.

About ATS

ATS Automation Tooling Systems Inc. provides innovative, custom designed,
built and installed manufacturing solutions to many of the world's most
successful companies. Founded in 1978, ATS uses its industry-leading knowledge
and global capabilities to serve the sophisticated automation systems' needs
of multinational customers in industries such as healthcare,
computer/electronics, automotive and consumer products. It also leverages its
many years of repetitive manufacturing experience and skills to fulfill the
specialized repetitive equipment manufacturing requirements of customers.
Through its Photowatt solar business, ATS participates in the growing solar
energy industry and through its precision components business it produces, in
high volume, precision components and subassemblies. ATS employs approximately
3,500 people at 24 manufacturing facilities in Canada, the United States,
Europe, southeast Asia and China. The Company's shares are traded on the
Toronto Stock Exchange under the symbol ATA. Visit the Company's website at
www.atsautomation.com.

[meinolf67]

auch bei Deutsche Solar:

ATS signs second long-term polysilicon wafer supply agreement with Deutsche Solar AG


TSX: ATA

CAMBRIDGE, ON, June 5 /CNW/ - ATS Automation Tooling Systems Inc. today announced that its Photowatt France subsidiary has entered into a second contract with Deutsche Solar AG for the long-term supply of polysilicon wafers. Deutsche Solar is one of Europe's largest wafer manufacturers and a subsidiary of SolarWorld AG. Under the agreement that begins January 2010 and extends through December 2017, Deutsche Solar is obliged to deliver, and Photowatt is obliged to accept, approximately 32 million polysilicon wafers over the term of the agreement. Approximately three to four million polysilicon wafers are expected to be delivered annually beginning in calendar 2010 and continuing through to 2017. Photowatt plans to process these wafers into solar cells and modules, representing approximately 118 megawatts of solar power capacity over the term of the agreement. "We are pleased that we have now secured this significant additional long-term supply of high quality wafers from Deutsche Solar," said Ron Jutras, ATS President and CEO. "This newest agreement with Deutsche Solar further demonstrates our progress in advancing our long-term silicon supply strategy and reduces our exposure to the risks of industry-wide silicon shortages." This contract is the second polysilicon wafer supply agreement between Photowatt and Deutsche Solar. The first - a 10-year contract that begins in January 2009 - was announced October 16, 2006 and provides for the supply of approximately 40 million polysilicon wafers over the 10 year period. Additionally, on April 20, 2007 Photowatt announced it had entered into a multi-year contract to purchase a total of 1,700 tonnes of refined metallurgical-grade silicon (MgSi) from Dow Corning in order to allow Photowatt to produce MgSi-based solar cells as part of its product mix. Shipments under this contract have now commenced and will continue until December 31, 2011. Advance payments under the Deutsche Solar contracts will be applied against the price of wafers received during the life of the commitments. The price per wafer will be adjusted at the beginning of each calendar year based upon an agreed formula. Management believes that these terms are reflective of current commercial terms in the solar industry for supply contracts of similar durations. About ATS ATS Automation Tooling Systems Inc. provides innovative, custom designed, built and installed manufacturing solutions to many of the world's most successful companies. Founded in 1978, ATS uses its industry-leading knowledge and global capabilities to serve the sophisticated automation systems' needs of multinational customers in healthcare, computer/electronics, automotive and consumer products. Through its solar business, ATS participates in the rapidly-growing solar energy industry. It also leverages its many years of repetitive manufacturing experience and skills to produce, in high volume, precision components and subassemblies and to answer the specialized repetitive equipment manufacturing requirements of customers. ATS employs approximately 3,500 people at 25 manufacturing facilities in Canada, the United States, Europe, southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.

[meinolf67]

Und bei Dow Corning (ist NICHT Hemlock); das könnte das m-SI sein:

ATS Solar Group secures multi-year silicon supply agreement with Dow Corning


TSX: ATA

CAMBRIDGE, ON, April 20 /CNW/ - ATS Automation Tooling Systems Inc. today
announced that its Photowatt France subsidiary has entered into a multi-year
agreement to purchase refined metallurgical-grade silicon (MgSi) from Dow
Corning.
Under the agreement, Dow Corning is obligated to deliver, and Photowatt
is required to purchase a total of 1,700 tonnes of MgSi between now and
December 31, 2011. Deliveries under the contract begin immediately.
Management believes the terms of the contract, including the requirement
for Photowatt to make advance payments against MgSi to be supplied, are
similar to silicon supply agreements entered into by other companies.
"This multi-year agreement provides Photowatt France with an important
source of silicon supply from a respected industry participant that will
enable it to further implement its refined metallurgical-grade silicon
production plans," said Ron Jutras, ATS President and CEO. "We believe this
agreement is a key accomplishment that will further strengthen Photowatt
especially during this period of silicon shortage."
This is the second major silicon agreement Photowatt has signed in the
last six months. The first, a 10-year supply agreement with Deutsche Solar AG
announced October 16, 2006, will see Photowatt purchase approximately four
million polysilicon wafers per annum beginning in the first half of calendar
2009.

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Thread: Photowatt will wachsen und soll von ATS abgespalten werden

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http://aktien.wallstreet-online.de/informer/community/thread…

[meinolf67]

CAMBRIDGE, ON, Nov. 13 /CNW/ - ATS Automation Tooling Systems Inc. today
reported its financial results for the three and six months ended
September 30, 2007 as well as several important new developments at its
Photowatt Technologies ("Photowatt") solar business and positive indicators of
future performance within its core business, Automation Systems Group ("ASG").
"Since assuming stewardship of the Company following the shareholders'
meeting September 13th, the new Board has acted upon its main priorities,"
said John K. Bell, the Company's interim Chief Executive Officer. "We have
acted quickly in positioning Photowatt with the right senior management,
developed and accelerated a new Photowatt growth plan, and taken advantage of
significant opportunities to leverage French government and solar industry
partners' support. We expect to report further progress in this regard in the
near term. There is substantial opportunity for growth in the solar industry
and we intend to position Photowatt to be a significant beneficiary of that
anticipated growth."
"At ASG, we are implementing improvement plans, with an increased focus
on deepening and broadening customer relationships. Another priority is the
recruitment of a permanent CEO for ATS, someone who can make the most of ASG's
leading industry position and the significant opportunity for growth in
worldwide automation systems integration. We expect to report progress on this
priority in the near term as we are actively reviewing strong candidates for
the position. With regards to the Precision Components Group ("PCG"), we
continue to move forward with the sale of the business and are soliciting
expressions of interest from potential buyers. In summary, ASG's high quality
workforce, strong technological know-how, outstanding customer relationships
and well-regarded brand name are strengths that we intend to build upon."

ASG Performance Indicators

- Period end ASG Order Backlog increased 36% to $220 million from
$162 million a year ago.
- New ASG Order Bookings for the second quarter increased 32% to
$133 million compared to $101 million a year ago.
- New ASG Order Bookings during the first six weeks of the third
quarter were $52 million.

"The key indicators of future performance within ASG are strong and Order
Backlog is now at its highest level in six quarters," said Mr. Bell. "Based on
the substantial year-over-year and sequential increase in Order Backlog, ASG
has a healthy base of committed customer orders now moving into production.
This should enhance global factory utilization for the remainder of the year.
However, given the strength of the Canadian dollar, we must continue to
improve our internal productivity and efficiency in our Canadian operations."

Photowatt Developments

- Eric Laborde, an experienced solar industry executive who led
Photowatt from 2001 through 2006, has been named Photowatt's
President and CEO with a clear mandate to increase enterprise value.
- Initiated consideration of alternative solar technologies, such as
"thin film", and alternative means to secure additional sources of
high-quality polysilicon such as vertical integration of polysilicon
production.
- Photowatt has formalized the initial phase of a "lab-fab"
collaborative relationship (the "PV Alliance") with Electricité de
France ("EDF") (a major European electrical utility) and the French
Atomic Energy Commission ("CEA") (the world renowned French research
institute). The partners intend to develop ways to improve the power
efficiencies of both polysilicon and MgSi solar cells and, in later
phases, manufacture the resulting products.
- Signed an agreement to supply EDF Energies Nouvelles, a partially
owned subsidiary of Electricité de France and a leader in green
power, with a minimum of 10 megawatts (MWs) of refined metallurgical
silicon modules per annum from 2008 through to December 31, 2010 -
for a total of at least 30 MWs - demonstrating early market
acceptance of this new product line.
- Commenced efforts to expand ingot manufacturing capacity to
50 megawatts ("MWs") assuming the use of refined metallurgical
silicon.

"Strengthening our relationship with EDF through the new PV Alliance and
its partially-owned subsidiary EDF Energies Nouvelle through the three year
MgSi supply agreement announced in October, significantly improves Photowatt's
prospects for the future," said Mr. Bell. "As an architect of these alliances,
Eric Laborde has already proven his worth as Photowatt's leader. By appointing
him as Photowatt CEO, we've added a missing ingredient necessary to accelerate
our solar group's development, broaden its technological footprint and
increase enterprise value in advance of the planned separation of Photowatt
from ATS to maximize value to ATS shareholders."

Financial Summary

In millions of 3 months 3 months 6 months 6 months
dollars, except ended ended ended ended
per share data Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2007 2006 2007 2006
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Revenues ASG $ 109.1 $ 117.3 $ 216.9 $ 239.1
from ------------------------------------------------------------
continuing Photowatt 37.9 28.5 85.6 72.9
operations ------------------------------------------------------------
PCG 16.7 19.3 36.1 44.6
------------------------------------------------------------
Inter-segment
elimination (0.4) (0.5) (0.5) (0.8)
------------------------------------------------------------
Consolidated $ 163.3 $ 164.6 $ 338.1 $ 355.8
-------------------------------------------------------------------------

-------------------------------------------------------------------------
EBITDA ASG $ 4.4 $ 8.7 $ 7.1 $ 14.3
------------------------------------------------------------
Photowatt
Technologies:
- Photowatt
France $ (2.9) $ 3.7 $ (0.2) $ 16.3
- Photowatt
USA (0.9) (0.4) (1.2) (0.6)
- Spheral
Solar,
corporate
and inter-
solar
eliminations (1.8) (3.8) (3.3) (9.1)
Total (5.6) (0.5) (4.7) 6.6
------------------------------------------------------------
PCG$ (0.9) $ - $ (0.3) $ 2.7
------------------------------------------------------------
Corporate and
Inter-segment
elimination $ (10.4) $ (3.5) $ (15.3) $ (5.9)
------------------------------------------------------------
Consolidated $ (12.5) $ 4.7 $ (13.2) $ 17.7
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Net Income Consolidated $ (18.8) $ (2.1) $ (27.7) $ (1.8)
(Loss)
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Net loss From continuing
per share operations $ (0.28) $ (0.04) $ (0.44) $ (0.01)
------------------------------------------------------------
After
discontinued
operations $ (0.28) $ (0.04) $ (0.44) $ (0.03)
-------------------------------------------------------------------------

ASG

Despite a significant increase in year-over-year Order Backlog entering
the quarter, ASG revenue was lower in the second quarter compared to the prior
year as many of these new projects did not yet move from design into
manufacturing when materials are procured, equipment is built and
proportionately higher levels of revenues are recognized. Growth in ASG
revenue was, however, achieved in Repetitive Equipment Manufacturing (24%
higher than a year ago) and in certain "Other" markets including nuclear
power, with revenue up 60%.
ASG EBIDTA of $4.4 million in the second quarter reflected lower total
revenue as well as negative contributions on certain first-time assignments in
Asia, partially offset by an improvement in performance at European
operations. ATS's facilities in Cambridge and Ohio continued to stabilize in
the second quarter and delivered profitability.
Year-over-year, Order Backlog increased 17% in healthcare, 107% in
computer-electronics, 24% in automotive and 19% in Other, reflecting strong
Order Bookings in the first and second quarters of fiscal 2008 in all
industrial markets and across all of the Company's geographic regions.
Management expects the increases in Order Bookings over the past three
quarters and the resulting improvement in Order Backlog to start the third
quarter of fiscal 2008 will allow revenue to trend upward as fiscal 2008
progresses.

Photowatt

Higher year-over-year Photowatt revenue reflected an increase in total
megawatts ("MWs") sold to 8.2 MWs from 5.9 MWs during the second quarter of
fiscal 2007 (estimated benefit $11.0 million). MgSi modules and systems made
from refined metallurgical silicon represented $14.2 million of second quarter
revenue compared to $0.5 million a year ago and these MgSi cells produced
average efficiency of 13%.
Photowatt's negative EBITDA in the quarter reflected a number of factors,
including: a decline in industry prices per watt, increases in polysilicon
costs due to industry shortages, Photowatt's increased MgSi production to
offset a lack of committed polysilicon supply and a $1.4 million write off of
a deposit paid to a supplier of refined metallurgical silicon. Management
believes market conditions and therefore average selling prices are
stabilizing in Europe.
To address these challenges, management is currently reviewing
Photowatt's operating strategy, including: evaluation of research and
development alternatives to improve cell efficiencies and manufacturing
yields; alternative means of securing additional sources of high quality
polysilicon such as vertical integration of polysilicon production;
exploration of investments in alternative solar technologies; and, further
capacity expansion.

Quarterly Conference Call

ATS's quarterly conference call begins at 4:45 pm eastern today and can
be accessed over the Internet at www.atsautomation.com or on the phone at 416
644 3424.

Notice to Reader

The terms Order Backlog, Order Bookings, EBITDA and adjusted EBITDA used
in this press release are non-GAAP measures. See Management's Discussion and
Analysis attached.

About ATS

ATS Automation Tooling Systems Inc. provides innovative, custom designed,
built and installed manufacturing solutions to many of the world's most
successful companies. Founded in 1978, ATS uses its industry-leading knowledge
and global capabilities to serve the sophisticated automation systems' needs
of multinational customers in industries such as healthcare,
computer/electronics, automotive and consumer products. It also leverages its
many years of repetitive manufacturing experience and skills to fulfill the
specialized repetitive equipment manufacturing requirements of customers.
Through its solar business, ATS participates in the growing solar energy
industry and through its precision components business it produces, in high
volume, precision components and subassemblies. ATS employs approximately
3,600 people at 24 manufacturing facilities in Canada, the United States,
Europe, southeast Asia and China. The Company's shares are traded on the
Toronto Stock Exchange under the symbol ATA. Visit the Company's website at
www.atsautomation.com.


Management's Discussion and Analysis

This Management's Discussion and Analysis ("MD&A") for the three and six
months ended September 30, 2007 (second quarter of fiscal 2008) provides
detailed information on the Company's operating activities for the second
quarter of fiscal 2008 and should be read in conjunction with the unaudited
interim consolidated financial statements of the Company for the three and six
months ended September 30, 2007. The Company assumes that the reader of this
MD&A has access to, and has read the audited consolidated financial statements
and MD&A of the Company for fiscal 2007 and the unaudited interim consolidated
financial statements and MD&A for the three months ended June 30, 2007 and,
accordingly, the purpose of this document is to provide a second quarter
update to the information contained in the fiscal 2007 MD&A and the first
quarter of 2008 MD&A. These documents and other information relating to the
Company, including the Company's fiscal 2007 audited consolidated financial
statements, MD&A and Annual Information Form may be found on SEDAR at
www.sedar.com.

Notice to Reader

The Company has three reportable segments: Automation Systems Group
("ASG"), Photowatt Technologies ("Photowatt"), and Precision Components Group
("PCG"). Photowatt Technologies is comprised of Photowatt France, Photowatt
USA and Spheral Solar. Photowatt France consists of an integrated solar ingot,
wafer, cell and module production facility in France. Photowatt USA is a small
module assembly and sales operation in the United States, which was closed
during the second quarter. Spheral Solar is a now halted development project
based on spheral technology. Any reference to solar production capacity
assumes the use of polysilicon at currently experienced levels of efficiency,
unless otherwise stated. Actual solar capacity may vary materially for a
number of reasons including the use of refined metallurgical silicon ("MgSi"),
changes in cell efficiencies and/or changes in production processes.
References to Photowatt's cell "efficiency" means the percentage of incident
energy that is converted into electrical energy in a solar cell. Solar cells
and modules are sold based on wattage output. "Silicon" refers to a variety of
silicon feedstock, including polysilicon, MgSi and polysilicon powders and
fines.

Non-GAAP Measures

Throughout this document the term "operating earnings" is used to denote
earnings (loss) from operations. EBITDA is also used and is defined as
earnings (loss) from operations excluding depreciation, amortization (which
includes amortization of intangible assets, and impairment of goodwill) and
segment and business unit allocation of corporate costs. The term "adjusted
EBITDA" that is used by the Company from time to time is defined as EBITDA
excluding certain adjustments as described in the MD&A. The term "margin"
refers to an amount as a percentage of revenue. The terms "earnings from
operations", "operating earnings", "margin", "operating loss", "operating
results", "operating margin", "EBITDA", "adjusted EBITDA", "adjusted EBITDA
margin", "Order Bookings" and "Order Backlog" do not have any standardized
meaning prescribed within Canadian generally accepted accounting principles
("GAAP") and therefore may not be comparable to similar measures presented by
other companies. A reconciliation to total Company revenue and earnings from
operations for the first and second quarters of fiscal 2008 and 2007 is
contained in the unaudited interim Consolidated Financial Statements for the
three and six months ended September 30, 2007. Operating earnings, EBITDA and
adjusted EBITDA are some of the measures the Company uses to evaluate the
performance of its segments. ATS presents EBITDA and adjusted EBITDA to show
its baseline performance before certain non-cash and restructuring-related
expenses and other items that are considered by management to be outside of
ATS's expected normal ongoing operational results. Management believes that
ATS shareholders and potential investors in ATS use non-GAAP financial
measures such as operating earnings, EBITDA and adjusted EBITDA in making
investment decisions about the Company and measuring its operational results.
EBITDA and adjusted EBITDA should not be construed as substitutes for net
income determined in accordance with GAAP.

Overview

At the Company's annual shareholders' meeting held September 13, 2007,
ATS shareholders elected a new Board of Directors. This new Board of Directors
is focused on providing strong leadership to the Company in order to improve
operating performance. Following the shareholders' meeting, the new Board
named John K. Bell, FCA, as interim Chief Executive Officer of ATS. Mr. Bell
has a successful 30-year career specializing in corporate start-ups, growth
and turnarounds with extensive experience in technology, innovation, and
automation. The new board also named Neil D. Arnold as non-executive Chairman.
Mr. Arnold brings extensive governance experience and financial expertise to
this role. Other members of the new board are Neale Trangucci (Chair of the
Audit Committee), J. Cameron MacDonald (Chair of the Human Resources
Committee), Peter Puccetti, Michael Martino and Gordon Presher. Biographies of
the new board can be found at www.atsautomation.com.
Since taking office, the new Board and executive leadership have
implemented a number of changes that are intended to improve the performance
and potential of the business and, in particular, increase the enterprise
value of its Photowatt solar operations in advance of the planned separation
of Photowatt from ATS to maximize value to ATS shareholders.

These actions to date include:

- examining the Photowatt strategy, including the timing of the planned
separation of this business from ATS, evaluation of research and
development alternatives to improve cell efficiencies and
manufacturing yields, alternative means of securing additional
sources of high quality polysilicon (such as vertical integration of
polysilicon production), exploration of investments in alternative
solar technologies (such as "thin film") and further capacity
expansion;
- appointing Eric Laborde, an experienced solar industry executive who
led Photowatt from 2001 through 2006, as President and Chief
Executive Officer of Photowatt reporting directly to the Board of
Directors;
- formalizing the initial phase of a "lab-fab" collaborative
relationship (hereafter referred to as "PV Alliance") between
Photowatt France and the Electricité de France ("EDF") (a major
European electrical utility) and the French Atomic Energy Commission
("CEA") (the world renowned French research institute) which
contemplates research to improve the power efficiencies of both
polysilicon and MgSi solar cells and, in later phases, the
manufacturing of the resulting products;
- approving a euro 20 million expansion at Photowatt France, including
the increase of ingot manufacturing capacity to 50 megawatts ("MWs")
measured using refined metallurgical silicon;
- signing a three-year agreement to supply EDF Energies Nouvelles, an
affiliate of EDF, with a substantial portion of Photowatt's refined
metallurgical silicon solar modules beginning in calendar 2008;
- evaluating the ASG operating strategy, including increasing focus on
deepening and broadening customer relationships and global capacity
management;
- meeting with key ASG operating managers to assess workforce needs,
technology, and customer relationships;
- interviewing several permanent CEO candidates with the goal of making
an announcement by calendar year end;
- distributing a confidential information memorandum to solicit
expressions of interest from potential buyers of the Precision
Components Group; and
- appointing Garry West, FCA, the Chief Financial Officer on an interim
basis. Mr. West recently retired as Partner at Ernst & Young LLP
following a distinguished 35 year career.

By maintaining its active approach to corporate governance, the Board
intends to support the ATS management team in their efforts to increase value
for shareholders, customers and employees over the long term.
Following recent discussions with the Board of Directors, the Chief
Operating Officer of ATS, who started on September 11, 2007, will leave the
Company on November 30, 2007 after a mutually agreed upon transition.

Automation Systems Group Segment

ASG Revenue
(in millions of dollars)

Three Months Ended Six Months Ended
9/30/2007 9/30/2006 9/30/2007 9/30/2006
-------------------------------------------------------------------------
Healthcare $ 29.5 $ 39.3 $ 58.6 $ 86.8
Computer-Electronics 33.4 37.8 63.8 71.7
Automotive 26.4 27.8 53.7 58.2
Other 19.8 12.4 40.8 22.4
-------------------------------------------------------------------------
Total $ 109.1 $ 117.3 $ 216.9 $ 239.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The significant increases in Order Bookings and Order Backlog experienced
in the first and second quarters of fiscal 2008 did not translate into higher
overall ASG revenue compared to the second quarter of fiscal 2007. Many of
these new projects had not yet progressed from design into manufacturing when
materials are procured, equipment is built and proportionately higher levels
of revenues are recognized. As a result, ASG second quarter revenue was 7%
lower than a year ago, even though Order Backlog entering the second quarter
was 23% higher than it was entering the second quarter of fiscal 2007.
By industrial market, revenue from "Other" increased 60% driven by
significant increases in revenue from the nuclear industry - a rapidly-growing
market for ATS. This growth was offset by a 12% decrease in
computer-electronics revenue largely within ASG's North America and
Asia-Pacific operations. Despite this decline, revenues from automation
equipment sales into the solar industry, which are classified within
computer-electronics revenue, increased to $6.6 million in the current quarter
compared to $0.1 million in the second quarter of the prior year. Healthcare
revenue decreased 25% as many of the Order Bookings from the first quarter in
these industries were still in the design stage of production during the
second quarter. Generally, management believes the sales cycle in healthcare
is longer and less predictable than in other markets and this has created
variability in healthcare Order Bookings and revenue on a quarterly basis.
Automotive revenue decreased by 5%. Management remains focused on growing
selectively in these core markets because the Company has strong and growing
multinational customer relationships in each and market diversification
assists with risk management.
For the six months ended September 30, 2007, revenue decreased 9%,
reflecting declines in revenue from the healthcare, computer-electronics and
automotive industries, which more than offset increases in "Other" revenues.
Repetitive Equipment Manufacturing ("REM") revenue increased 24% to
$11.9 million in the second quarter of fiscal 2008, compared to $9.6 million
in the second quarter last year, reflecting increased order flow from existing
customers. REM earns revenue primarily from customers in the healthcare
industry.
Quarter over quarter foreign exchange rate changes negatively impacted
ASG second quarter fiscal 2008 revenues by an estimated $4.8 million compared
to the second quarter of fiscal 2007, primarily reflecting a stronger Canadian
dollar relative to the US dollar.

ASG Operating Results

ASG operating income during the second quarter of fiscal 2008 was
$2.4 million compared to $5.7 million a year ago. The year-over-year change
reflects the 7% decrease in ASG revenue, lower operating margins at ASG's
operations in Asia resulting from margins on several first-time customers for
the region and the $1.8 million estimated negative year-over-year impact of
foreign exchange. Performance at ASG Cambridge and Ohio, two of the largest
facilities within ASG North America, delivered profitable results in the
second quarter as they continued to stabilize following significant
restructuring in the final months of fiscal 2007. ASG's European operations
generated improved year-over-year results, while REM continued to achieve
stable profitability.
Operating income for the six months ended September 30, 2007 included
severance costs of $2.1 million, compared to $0.4 million of severance costs
in the six months ended September 30, 2006.

ASG Non-GAAP Reconciliation

(in millions of dollars)

Three Months Ended Six Months Ended
9/30/2007 9/30/2006 9/30/2007 9/30/2006
-------------------------------------------------------------------------
Operating Earnings $ 2.4 $ 5.7 $ 3.0 $ 8.5
Depreciation and
Amortization 2.0 3.0 4.1 5.8
-------------------------------------------------------------------------
EBITDA $ 4.4 $ 8.7 $ 7.1 $ 14.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------

ASG Order Bookings and Order Backlog

ASG Order Bookings in the second quarter of fiscal 2008 were
$133 million, 32% higher than in the second quarter of fiscal 2007. Order
Bookings in the first six weeks of the third quarter of fiscal 2008 were
$52 million.

Automation Systems Order Backlog by Industry
(in millions of dollars, except percentage change)

Percentage
9/30/2007 9/30/2006 Change
-------------------------------------------------------------------------
Healthcare $ 77 $ 66 16.7%
Computer-Electronics 64 31 106.5%
Automotive 47 38 23.7%
Other 32 27 18.5%
-------------------------------------------------------------------------
Total $ 220 $ 162 35.8%
-------------------------------------------------------------------------
-------------------------------------------------------------------------

At September 30, 2007, ASG Order Backlog was $220 million, 36% higher
than at September 30, 2006 and 19% higher than at March 31, 2007.
Year-over-year, Order Backlog increased 17% in healthcare, 107% in
computer-electronics, 24% in automotive and 19% in "Other", reflecting strong
Order Bookings in the first and second quarters of fiscal 2008 in all
industrial markets and across the North America and Asia-Pacific geographic
regions. The increase in healthcare Order Backlog reflects the Company's
continuing strategy to penetrate this market. Healthcare Order Backlog was
reduced by US $12.3 million in respect of a project that a customer put on
temporary hold in the second quarter of fiscal 2007. While management
continues to believe that work with this customer will ultimately proceed, the
scope, timing and contract terms are now expected to change. Excluding this
order from prior year Order Backlog, healthcare Order Backlog increased
approximately 43%. Computer-electronics Order Backlog increased 107% on strong
Order Bookings in this industry in ASG business units in Asia, the west coast
of North America, and Cambridge, Ontario. The increase in Automotive Order
Backlog was primarily due to strong order bookings in Europe, reflecting
further market penetration in this geographic region. "Other" Order Backlog
increased primarily due to new orders secured in nuclear energy.

Automation Systems Group Outlook

The market outlook for fiscal 2008 expressed in the annual MD&A for
fiscal 2007 is unchanged. While management continues to believe that the
underlying global trends that create demand for ASG's automated manufacturing
solutions are attractive, the strength of the Canadian dollar and ongoing
restructuring within the North American automotive market are expected to
continue to present challenges. However, management expects the increases in
Order Bookings levels over the past four quarters and the resulting
improvement in Order Backlog to start the third quarter of fiscal 2008 will
allow revenue to trend upward as fiscal 2008 progresses. As well, management
expects the combination of higher build activity and ongoing operational
improvements, resulting in part from the recent reduction of excess capacity
in North America, should also contribute to higher factory utilization - a key
driver of earnings.
During the second quarter of fiscal 2008, the Company continued to make
structural and operational improvements within its ASG operations and believes
these changes will help to deliver better results as revenue and factory
utilization increase on the strength of higher Order Backlog.
To further strengthen performance in ASG, management intends to
aggressively push forward with its four focused initiatives: improve core
operations through better resource utilization and further cost improvements;
deepen and broaden customer relationships as well as industry and regional
automation markets; further advance ATS' global capabilities and recognized
name; and enhance employee talent development.

Photowatt Technologies Segment

Photowatt Revenue
(in millions of dollars)

Three Months Ended Six Months Ended
-------------------------------------------
9/30/2007 9/30/2006 9/30/2007 9/30/2006
-------------------------------------------------------------------------
Revenue by Region
Germany $ 15.6 $ 6.5 $ 38.1 $ 22.3
Spain 11.0 12.8 20.7 27.5
Rest of Europe 9.9 6.7 20.9 18.2
North America 0.4 0.5 3.2 1.9
Asia/Other 1.0 2.0 2.7 3.0
-------------------------------------------------------------------------
Total Revenue $ 37.9 $ 28.5 $ 85.6 $ 72.9
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Revenue by Operating
Facility
Photowatt France $ 37.5 $ 29.0 $ 83.7 $ 72.8
Photowatt USA 0.4 0.8 3.0 2.5
Inter-solar Eliminations 0.0 (1.3) (1.1) (2.4)
-------------------------------------------------------------------------
Total Revenue $ 37.9 $ 28.5 $ 85.6 $ 72.9
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Photowatt's total revenue (inclusive of Photowatt France and Photowatt
USA) was $37.9 million, 33% higher than in the second quarter of fiscal 2007.
Higher year-over-year revenues reflected an increase in total MWs sold at
Photowatt France to 8.2 MWs from 5.9 MWs during the second quarter of fiscal
2007 (estimated revenue benefit $11.0 million). Growth in MWs sold resulted
from increased ingot, wafer and cell production capacity at Photowatt France
which came on line in March 2007. Revenue in both quarters was impacted by
Photowatt's annual three week summer factory shutdown, although in the second
quarter a year ago, the shutdown was extended by one week (estimated revenue
impact $1.7 million) to accommodate equipment realignment necessary to prepare
for the aforementioned capacity expansion.
The year-over-year increase in revenue was achieved despite an 8%
decrease in average selling prices per watt for polysilicon modules - which
impacted revenue by approximately $1.5 million - and a change in revenue mix
to products made from MgSi. Management believes the lower average selling
price for polysilicon modules was primarily due to reduced government
incentives in Germany. Management believes that market conditions in Europe
are stabilizing and this was reflected in the fact that solar module prices in
the second quarter were consistent with the first quarter of fiscal 2008.
In addition, modules and systems made from MgSi represented $14.2 million
of second quarter revenue compared to $0.5 million a year ago. MgSi modules
were sold at average selling prices approximating 90% of the price per watt
for polysilicon modules. This is because the average wattage output of modules
at a given size manufactured using MgSi is lower than cells manufactured from
polysilicon. In the second quarter, average efficiency for MgSi cells was
approximately 13% - the same as the first quarter of fiscal 2008 - compared to
approximately 15% for cells produced using polysilicon.
Compared to the first quarter of fiscal 2008, revenue from MgSi modules
and systems was $2.5 million lower. This was primarily due to the three week
plant shutdown.
For the six months ended September 30, 2007, revenues increased 17%
compared to the six months ended September 30, 2006. Higher revenues reflected
an increase in total MWs sold at Photowatt France to 18.9 MWs from 14.6 MWs
during the first six months of fiscal 2007 (estimated increase in revenue of
$20.4 million). These increases were partially offset by reduced average
selling prices. Average selling prices per watt for polysilicon modules
decreased approximately 8% for the six months ended September 30, 2007
compared to a year ago. In addition, MgSi modules were sold at average selling
prices approximating 90% of the price per watt for polysilicon modules. During
the six months ended September 30, 2007 Photowatt sold 8.1 MWs of MgSi
products compared to 0.1 MWs in the comparable prior year period.
Foreign exchange did not have a significant impact on Photowatt revenue
during the three months ended September 30, 2007 compared to the prior year
periods.

Photowatt Technologies Operating Results
(in millions of dollars)

Three Months Ended Six Months Ended
9/30/2007 9/30/2006 9/30/2007 9/30/2006
-------------------------------------------------------------------------
Operating Earnings (Loss):
Photowatt France $ (6.1) $ 1.5 $ (6.5) $ 11.8
Photowatt USA (0.9) (0.6) (1.2) (0.8)
Spheral Solar (1.1) (3.4) (2.4) (7.9)
Solar Corporate Costs (1.0) (0.5) (1.6) (1.0)
Inter-solar Eliminations 0.2 (0.1) 0.4 (0.6)
-------------------------------------------------------------------------
Photowatt Technologies
Operating Earnings (Loss) $ (8.9) $ (3.1) $ (11.3) $ 1.5
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Although the year-over-year increase in MWs sold positively impacted
Photowatt France operating earnings by $6.1 million in the second quarter
compared to a year ago and $10.2 million for the six months ended
September 30, 2007, this contribution was more than offset by a number of
factors, including a decline in industry prices per watt, increases in
polysilicon costs due to industry shortages, and reduced polysilicon module
production. As a result, Photowatt France incurred an operating loss of
$6.1 million in the second quarter of fiscal 2008 and an operating loss of
$6.5 million for the six months ended September 30, 2007 compared to operating
profits of $1.5 million and $11.8 million respectively a year ago.

Other factors that impacted operating earnings during the three and six
months ended September 30, 2007 compared to the prior year are as follows:

- lower average selling prices negatively impacted operating income by
approximately $3.2 million for the quarter and $10.0 million for the
six months ended September 30, 2007;
- increased costs of polysilicon feedstock and lower average cell
efficiencies, including slightly lower efficiencies achieved on
polysilicon-based cells compared to a year ago due to the use of
lower-grade "reclaimed silicon" during production in the first
quarter of fiscal 2008, negatively impacted operating income by
$6.5 million during the second quarter and $10.6 million for the six
months ended September 30, 2007. This cost increase was partially
offset by lower MgSi costs of approximately $2.6 million in the
quarter and year to date compared to the use of polysilicon in the
prior year;
- greater use of MgSi resulted in increased direct labor, other
materials costs, and higher scrap rates per watt, negatively
impacting operating income by $2.2 million during the second quarter,
and $5.6 million for the six months ended September 30, 2007;
- increased overhead, depreciation and amortization as a result of the
capacity expansion completed in fiscal 2007 negatively impacted
operating income by $3.3 million during the second quarter, and
$5.7 million for the six months ended September 30, 2007.

Also in the second quarter, Photowatt incurred a $1.4 million write off
on a deposit paid to a supplier in China of refined metallurgical silicon as
management believes recovery is not reasonably assured.
Photowatt USA's operating loss in the second quarter was $0.9 million
compared to an operating loss of $0.6 million a year ago. During the quarter,
the Company closed its non-strategic module production facility in New Mexico.
Photowatt will continue to service its US customers through a new distribution
network.
Spheral Solar's operating loss in the second quarter was $1.1 million
compared to an operating loss of $3.4 million a year ago. The change primarily
reflected the reduction in Spheral Solar staff and expenses associated with
the Company's decision, taken in the latter half of the first quarter of
fiscal 2008, to halt further internal Spheral Solar development.
Solar corporate costs were $1.0 million in the second quarter of fiscal
2008 compared to $0.5 million a year ago. The current quarter operating loss
includes severance costs of $0.7 million, as the Company continues to reduce
personnel. Inter-solar eliminations were $0.2 million, which represented the
realization of deferred profits on shipments of silicon from Spheral Solar to
Photowatt France. No such shipments have been made in fiscal 2008 and none is
expected going forward.
Reflecting the reasons noted above, the operating loss for Photowatt was
$8.9 million in the second quarter of fiscal 2008 compared to an operating
loss of $3.1 million a year earlier.

Photowatt France Non-GAAP Reconciliation
(in millions of dollars)

Three Months Ended Six Months Ended
9/30/2007 9/30/2006 9/30/2007 9/30/2006
-------------------------------------------------------------------------
Operating Earnings (Loss) $ (6.1) $ 1.5 $ (6.5) $ 11.8
Depreciation and Amortization 3.2 2.2 6.3 4.5
-------------------------------------------------------------------------
EBITDA $ (2.9) $ 3.7 $ (0.2) $ 16.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Amortization expense at Photowatt France was $3.2 million compared to
$2.2 million during the second quarter of fiscal 2007, reflecting additional
capital assets purchased during fiscal 2007 in support of the previously
discussed capacity expansion program that was completed in March 2007.
Photowatt France's EBITDA for the second quarter was negative $2.9 million
(negative 8% EBITDA margin) compared to $3.7 million (13% EBITDA margin) a
year ago due to the same factors noted above.

Photowatt France Outlook

The long-term market outlook for Photowatt France is positive. Management
continues to believe demand for solar products will be positively impacted by
a number of trends, which are discussed in the annual MD&A.
In the short term, Photowatt is expected to continue to face the
industry-wide challenges associated with shortages of polysilicon, increasing
polysilicon prices and lower average selling prices per watt than in fiscal
2007. MgSi products were developed by Photowatt as an alternative to
polysilicon with the objective of creating a competitive advantage due to the
industry-wide shortages of polysilicon. Although now manufactured in
substantial quantities, these products are at an early stage of development
and, as expected, power conversion efficiencies are lower than those generated
using higher-priced polysilicon feedstock. Given the shortage of polysilicon
at reasonable prices, management expects to use a significant part of its
manufacturing capacity in fiscal 2008 to produce MgSi products. Until the cell
efficiency of these products is enhanced, production of these products is
expected to have a negative impact on profitability compared to historical
margins using polysilicon (secured at lower historical cost than available in
the market today).

To address these challenges, the Company has:

- strengthened its management team through the appointment of an
experienced CEO, Eric Laborde, and is actively recruiting a CFO for
Photowatt. Mr. Laborde is an experienced solar industry executive who
led Photowatt from 2001 through 2006. During this period, Mr. Laborde
was instrumental in the turnaround of this business and increased
revenues from approximately euro 30 million to approximately euro
90 million. Mr. Laborde has also been on the Board of Directors of
the EPIA (European Photovoltaic Industry Association) since 2002, is
the CEO of PV Alliance (see below), and is involved as special
advisor, member of the board, or Chairman, with several companies;
- formalized the initial phase of the PV Alliance with EDF and the CEA
which contemplates research to improve the power efficiencies of both
polysilicon and MgSi solar cells and, in later phases, the
manufacturing of the resulting products. Following the official
public launch of the Alliance on November 9, 2007 attended by the
Prime Minister of France, François Fillon, the partners will now
begin their development activities. It is expected that the PV
Alliance will apply for subsidies from the French government;
- signed an agreement to supply EDF, a partially owned subsidiary of
Electricité de France and a leader in green power, with a minimum of
10 MWs of refined metallurgical silicon modules per annum from 2008
through to December 31, 2010 - for a total of at least 30 MWs -
demonstrating early market acceptance of this new product line;
- engaged in measures (including capital investments) to improve MgSi
solar cell and module manufacturing processes. These process
improvement efforts are focused on: increasing cell power
efficiencies; enhancing manufacturing yields and reducing scrap
rates; and, increasing throughput at all stages of production.
- announced plans to increase its ingot manufacturing capacity to
50 MWs (measured using refined metallurgical silicon) by the fourth
quarter of fiscal 2009 at an approximate cost of euro 20 million and
invest in other capital equipment designed to improve the
productivity and efficiency of the Photowatt manufacturing facility;
- entered into a multi-year agreement to purchase high-purity
polysilicon to support approximately 14 megawatts of solar production
per annum starting in January 2010 and continuing for a nine year
period.

In addition to these significant steps forward, management is currently
examining Photowatt's operating strategy, including evaluation of research and
development alternatives to improve cell efficiencies and manufacturing
yields, alternative means of securing additional sources of high quality
polysilicon such as vertical integration of polysilicon production,
exploration of investments in alternative solar technologies (such as "thin
film") and further capacity expansion. The outcome of this evaluation may
impact the timing, magnitude and type of capital expenditures and investments,
including the use of proceeds of the recent ATS rights offering. These
strategic options are being evaluated because management believes there is
significant opportunity to enhance the long-term performance of the solar
business while also reducing the risk associated with polysilicon supply.
Management believes these options, combined with recent long-term silicon
supply contracts (see "Contractual Obligations") which significantly increase
Photowatt France's access to silicon material, will strengthen Photowatt
prospects for the future. Management intends to continue to fortify this
business throughout fiscal 2008 to prepare it for the planned separation of
Photowatt from ATS to maximize value for ATS shareholders.

Precision Components Group Segment

Second quarter PCG revenue of $16.7 million was $2.6 million lower than
in the same period of fiscal 2007. PCG revenue for the six months ended
September 30, 2007 of $36.1 million was $8.5 million lower than the comparable
prior year period. The decline in PCG revenue compared to the prior year
periods is primarily due to lower volumes on existing customer programs caused
by significant production cuts by the Big Three North American automakers and
the impact of the consolidation of the MPP business unit, an injection molding
operation formerly located in Bowmansville, Ontario, into existing PCG
operations.
Foreign exchange negatively impacted second quarter fiscal 2008 PCG
revenues by an estimated $0.7 million, and $1.1 million for the six months
ended September 30, 2007 compared to the prior year.

PCG Non-GAAP Reconciliation

(in millions of dollars)

Three Months Ended Six Months Ended
9/30/2007 9/30/2006 9/30/2007 9/30/2006
-------------------------------------------------------------------------
Operating Loss $ (2.6) $ (1.7) $ (3.7) $ (0.8)
Depreciation and Amortization 1.7 1.7 3.4 3.5
-------------------------------------------------------------------------
EBITDA $ (0.9) $ 0.0 $ (0.3) $ 2.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------

PCG operating loss of $2.6 million reflected the impact of lower
revenues, higher material costs and scrap rates related to PCG's Plastics
business unit.
PCG EBITDA was negative $0.9 million compared to EBITDA of $0.0 million a
year ago, primarily reflecting the impact of lower revenues as a significant
portion of the costs of the business are fixed in nature.
Foreign exchange negatively impacted second quarter fiscal 2008 PCG
operating earnings by an estimated $0.3 million compared to the second quarter
of fiscal 2007.

PCG Outlook

During the first quarter of fiscal 2008, ATS retained financial advisors
to identify and evaluate strategic alternatives to exit the remaining PCG
operations. Since then, ATS and its financial advisors have initiated a formal
sale process by contacting potential purchasers and circulating a confidential
information memorandum to certain qualified potential purchasers.
The outlook for PCG is unchanged from year end. Management believes
continued strengthening of the Canadian dollar and the difficult conditions in
the North American automotive parts market will negatively impact PCG revenue
and earnings during the balance of fiscal 2008.

Consolidated Results from Operations

Revenue. At $163.3 million, consolidated revenue from continuing
operations for the three months ended September 30, 2007 was slightly less
than 1% lower than a year ago. A 33% increase in Photowatt revenue was offset
by the 7% and 14% declines in ASG and PCG revenues respectively. The estimated
effect on revenue of changes in effective foreign exchange rates was a
decrease in revenue of $5.4 million for the three months ended September 30,
2007, and $5.2 million for the six months ended September 30, 2007 compared to
the same periods of the prior year.

Consolidated earnings (loss) from operations. For the three and six month
periods ended September 30, 2007, consolidated loss from operations was
$19.4 million and $27.4 million respectively, compared to loss from operations
of $2.5 million and earnings from operations of $3.2 million a year ago.
Fiscal 2008 second quarter performance reflected: operating earnings of
$2.4 million at ASG (operating earnings $5.7 million a year ago); Photowatt
operating loss of $8.9 million (operating loss $3.1 million a year ago); PCG
operating loss of $2.6 million ($1.7 million operating loss a year ago); and
inter-segment eliminations and corporate expenses of $10.3 million ($3.4
million of expenses a year ago) reflecting incremental severance costs,
professional fees, and stock-based compensation. Changes in effective foreign
exchange rates decreased operating earnings by an estimated $2.0 million for
the three months ended September 30, 2007, and by $2.6 million for the six
months ended September 30, 2007 compared to the same periods of the prior
year.

Selling, general and administrative ("SG&A") expenses. For the second
quarter of fiscal 2008, SG&A expenses increased 20% or $4.4 million to
$26.5 million compared to the respective prior year period. Included in SG&A
for the second quarter of fiscal 2008 was: $4.1 million of consolidated
severance costs pertaining primarily to the resignation of certain senior
officers of the Company and the elimination of jobs at Spheral Solar and
Photowatt USA; $1.9 million of other direct costs related to the change in the
Board of Directors; and, $0.5 million of recruiting costs for certain senior
level positions in the Company. Fiscal 2007 second quarter SG&A expenses also
included a $0.4 million PCG provision for receivables pertaining to an
automotive customer that filed for Chapter 11 bankruptcy protection. For the
six months ended September 30, 2007, SG&A expenses increased 15%, or
$6.4 million to $50.1 million compared to the respective prior year period.
SG&A costs for the six months ended September 30, 2007 included severance
costs of $7.0 million.

Stock-based compensation cost. For the three and six month periods ended
September 30, 2007, stock-based compensation expense increased to $1.5 million
and $2.0 million respectively compared to $0.6 million and $0.7 million a year
earlier. The increase primarily reflected accelerated vesting of options of
certain officers of the Company who resigned during the quarter. The impact of
this accelerated vesting was $1.2 million.

Interest expense. For the three and six month periods ended September 30,
2007, interest expense increased to $1.4 million and $2.7 million respectively
compared to $0.9 million and $1.5 million a year earlier. The increase
primarily reflects higher usage of the Company's credit facilities and
increased interest rates in fiscal 2008.

Loss from discontinued operations, net of tax. The loss from discontinued
operations during the first six months of fiscal 2007 included a non-cash
charge of $2.0 million ($2.2 million before taxes) to write down the assets of
the Company's Berlin, Germany coil winding operation to their net realizable
value. This operation was sold during the three months ended June 30, 2006,
and accordingly, its results and financial position have been segregated and
presented separately as discontinued operations. See Note 4 to the
Consolidated Interim Financial Statements for further details on the net loss
from discontinued operations.

Provision for income taxes. The Company's effective income tax rate
differs from the combined Canadian basic federal and provincial income tax
rate of 36.1% (2007 - 36.1%) primarily as a result of losses incurred in
Canada, the benefits of which have not been recognized for financial statement
reporting purposes.

Net earnings (loss) from continuing operations. For the second quarter of
fiscal 2008, net loss from continuing operations was $18.8 million (28 cents
per share basic and diluted) compared to net loss from continuing operations
of $2.1 million (4 cents per share basic and diluted) a year ago. The year to
date net loss from continuing operations was $27.7 million (44 cents per share
basic and diluted) compared to net earnings from continuing operations of
$0.4 million (1 cent per share basic and diluted).

Net loss. For the second quarter of fiscal 2008, net loss was
$18.8 million (28 cents per share basic and diluted) compared to net loss of
$2.1 million (4 cent per share basic and diluted) for the same period last
year. The year-to-date net loss was $27.7 million (44 cents per share basic
and diluted) compared to net loss of $1.8 million (3 cents per share basic and
diluted).

Foreign Exchange

Year over year foreign exchange rate decreases during second quarter
fiscal 2008, negatively impacting consolidated revenue by an estimated $5.4
million compared to the second quarter of fiscal 2007. This decrease was
primarily related to the effect of a stronger Canadian dollar relative to the
US dollar. Changes in foreign exchange rates also reduced second quarter
fiscal 2008 consolidated operating earnings by an estimated $2.0 million
compared to the second quarter of fiscal 2007.

Period Average Market Exchange Rates in CDN$

Three months ended Six months ended
% %
9/30/2007 9/30/2006 change 9/30/2007 9/30/2006 change
-------------------------------------------------------------------------
US $1.0453 1.1210 (6.8) 1.0704 1.1205 (4.5)
Euro 1.4366 1.4276 0.6 1.4566 1.4193 2.6
Singapore $0.6889 0.7093 (2.9) 0.7034 0.7073 (0.6)
-------------------------------------------------------------------------

Liquidity, Cash Flow and Financial Resources

On September 27, 2007, the agreement governing the Company's primary
operating credit facility and its revolving bank credit facility (the "Credit
Agreement") was amended resulting in the unsecured operating credit facility
of $70 million and the revolving bank credit facility of $60 million being
consolidated into one operating credit facility of $130 million. The amended
operating credit facility, which is secured by a general security agreement,
is repayable on December 31, 2007. The amended operating credit facility is
subject to an adjusted current assets to current debt covenant of 1.25:1 and a
debt to shareholders' equity covenant of 1.5:1. Under the terms of the Credit
Agreement, the Company is restricted from encumbering any assets with certain
permitted exceptions. The Credit Agreement also restricts the disposition of
certain assets with an agreement to reduce available credit by an amount equal
to a portion of the net proceeds received by the Company from certain material
asset sales, if any. The Company is in compliance with these covenants and
restrictions.
The Company is currently negotiating with a number of financial
institutions to establish a long-term credit facility to replace the Credit
Agreement. The Company believes that a long-term credit agreement or credit
extension will be reached prior to December 31, 2007 at terms that are
satisfactory to ATS. In the event that such an agreement or extension is not
yet in place at December 31, 2007, management believes that the Company has
sufficient cash on hand and availability of alternative sources of funding,
including financing of land and buildings, to repay amounts due under the
Credit Agreement and to manage ongoing working capital requirements and meet
existing cash commitments.
During the second quarter of fiscal 2008, the Company completed a rights
offering, raising gross proceeds of $110.2 million (net proceeds of
$102.5 million). The rights offering provided existing common shareholders
with rights to subscribe for additional common shares in ATS. Each shareholder
of record of the Company on July 19, 2007 received one right for each common
share held. For every 3.35 rights held, the holder was entitled to purchase
one common share at the subscription price of $6.23 until 5:00 pm (Toronto
time) on August 14, 2007. The subscription price of $6.23 per share
represented a discount of 32% to the closing price of $9.13 per share on
July 5, 2007. ATS received subscriptions of 16,011,247 common shares. Under
the Additional Subscription Privilege, 1,678,903 shares were purchased. The
net proceeds of the rights offering are being used to further expand the
manufacturing capacity of Photowatt France, procure silicon supplies, advance
research and development, repay its credit facility and for general corporate
purposes at Photowatt France. However, as part of the evaluation of the
Photowatt strategy, management is assessing the allocation of these funds in
support of Photowatt's long-term growth objectives. These proceeds may also be
used in the short term to repay the Company's existing operating credit
facility if no alternative credit arrangement or an extension of the existing
operating credit facility has been reached by December 31, 2007.
Cash balances, net of bank indebtedness and long-term debt, at
September 30, 2007 increased $34.0 million compared to March 31, 2007,
primarily due to the rights offering. The Company held cash of $3.1 million in
an irrevocable trust on behalf of individuals holding officer and director
positions at the Company immediately prior to the September 13, 2007 annual
meeting of the shareholders. Subsequent to September 30, 2007, these funds
were released to the Company.
The Company invested $3.6 million and $11.4 million respectively in
property, plant and equipment during the three and six month periods ended
September 30, 2007, including $2.2 million and $8.8 million in Photowatt.
No stock options were exercised during the first six months of fiscal
2008. At November 9th, 2007 the total number of shares outstanding was
76,952,155. The outstanding number of options increased 1.3 million due to the
rights offering and stock option grants in the second quarter.
The Company's debt to equity ratio at September 30, 2007 was 0.3:1. At
September 30, 2007 the Company had approximately $54 million of unutilized
credit available under existing operating facilities.
During the six months ended September 30, 2007, the Company repatriated
US$25.5 million from its US subsidiaries and used this to repay a portion of
its US-denominated LIBOR debt in Canada. The Company also borrowed $60 million
of Bankers Acceptances under its credit facilities.

Related Party Transactions

Certain of the directors of the Company are related to Goodwood Inc. and
Mason Capital Management, LLC. The Company has agreed to reimburse
$0.5 million of proxy-circular related costs incurred in connection with the
election of the new Board of Directors.
Mr. Laborde, the new CEO of Photowatt, is also the President of PV
Alliance, in which Photowatt has a 40% investment interest. During the
quarter, Photowatt invested (euro)0.4 million in the PV Alliance.

Consolidated Quarterly Results

($ in
thousands,
except
per share Q2 Q1 Q4 Q3 Q2 Q1
amounts) 2008 2008 2007 2007 2007 2007
-------------------------------------------------------------------------

Revenue $163,339 $174,801 $172,486 $171,795 $164,598 $191,196

Net earnings
(loss) from
continuing
operations $(18,763) $ (8,937) $(80,854) $ (2,389) $ (2,110) $ 2,496

Net earnings
(loss) $(18,763) $ (8,937) $(80,854) $ (2,389) $ (2,110) $ 338

Basic
earnings
(loss) per
share from
continuing
operations $ (0.28) $ (0.15) $ (1.36) $ (0.04) $ (0.04) $ 0.04

Basic
earnings
(loss) per
share $ (0.28) $ (0.15) $ (1.36) $ (0.04) $ (0.04) $ 0.01

Diluted
earnings
(loss) per
share from
continuing
operations $ (0.28) $ (0.15) $ (1.36) $ (0.04) $ (0.04) $ 0.04

Diluted
earnings
(loss) per
share $ (0.28) $ (0.15) $ (1.36) $ (0.04) $ (0.04) $ 0.01



($ in
thousands,
except
per share Q4 Q3
amounts) 2006 2006
---------------------------------

Revenue $208,775 $176,254

Net earnings
(loss) from
continuing
operations $(65,073) $ (5,309)

Net earnings
(loss) $(65,589) $ (5,801)

Basic
earnings
(loss) per
share from
continuing
operations $ (1.09) $ (0.09)

Basic
earnings
(loss) per
share $ (1.11) $ (0.10)

Diluted
earnings
(loss) per
share from
continuing
operations $ (1.09) $ (0.09)

Diluted
earnings
(loss) per
share $ (1.11) $ (0.10)

ATS' revenue and operating results are generally lower in the second
quarter of each fiscal year (three months ended September 30th) due to summer
plant shutdowns.

Contractual Obligations

Information on the Company's lease and contractual obligations is
detailed in the consolidated annual financial statements and MD&A for the year
ended March 31, 2007 found at www.sedar.com. The Company's off balance sheet
arrangements consist of operating lease financing related primarily to
facilities and equipment.
In April 2007, the Company entered into a commitment to purchase
1,700 tonnes of MgSi commencing in 2007 and ending December 31, 2011. Advance
payments are required, which will be applied against the price of the product
received. Commencing in calendar 2008, the price per kilogram of
metallurgical-grade silicon may be adjusted at the beginning of the year based
upon an agreed upon formula.
In June 2007, the Company entered into an eight-year commitment,
commencing January 1, 2010, to purchase approximately 32 million polysilicon
wafers over the term of the agreement. Advance payments are required, which
will be applied against the price of the wafers received during the life of
the commitment. The price per wafer will be adjusted at the beginning of each
calendar year based upon an agreed upon formula.
In September 2007, the Company entered into a nine-year commitment,
commencing January 2010, to purchase high-purity polysilicon to support
approximately 14 MWs of Photowatt solar production per annum. Advance payments
are required, which will be applied against the price of the product received.
The Company has exercised its right to purchase the remaining outstanding
minority interest in a subsidiary. The purchase price is yet to be established
but likely to be determined by March 31, 2008.

Changes in Accounting Policies

Effective April 1, 2007, the Company adopted new Canadian Institute of
Chartered Accountants Handbook Sections which established the accounting and
reporting standards for financial instruments and hedging activities. These
sections require the initial recognition of financial instruments at fair
value on the balance sheet. As required by these standards, the comparative
interim consolidated financial statements have not been restated except for
the reclassification of the cumulative translation adjustment to accumulated
other comprehensive income. See Note 2 to the interim consolidated financial
statements for further details including the impact of adopting these
standards.
The Canadian Institute of Chartered Accountants has also issued new
Handbook Sections that will become effective for the Company on April 1, 2008
- see Note 3 to the interim consolidated financial statements. The Company is
currently evaluating the impact of adopting these future accounting standards.

Controls and Procedures

In its annual MD&A dated June 18, 2007 and for the fiscal year ended
March 31, 2007, the Company reported that it had identified certain weaknesses
in the design of internal controls over financial reporting. The Company, with
the assistance of external specialists, has developed remediation plans for
the identified controls deficiencies, and continues to make progress on
implementing the remediation plans. In preparing the interim consolidated
financial statements for the three and six month periods ended September 30,
2007, the Company again performed a number of additional financial review
procedures in an effort to mitigate the risk of undetected material errors in
the Company's Consolidated Financial Statements and disclosures. During the
three and six months ended September 30, 2007, there have been no changes in
the Company's internal controls over financial reporting that have materially
affected, or are reasonably likely to materially affect, the Company's
internal controls over financial reporting.

Forward Looking Statement

This news release relates to ATS' second quarter financial results for
the three months ended September 30, 2007 and contains certain statements that
constitute forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of ATS, or
developments in ATS' business or in its industry, to differ materially from
the anticipated results, performance, achievements or developments expressed
or implied by such forward-looking statements. Forward-looking statements
include all disclosure regarding possible events, conditions or results of
operations that is based on assumptions about future economic conditions and
courses of action. Forward-looking statements may also include, without
limitation, any statement relating to future events, conditions or
circumstances. ATS cautions you not to place undue reliance upon any such
forward-looking statements, which speak only as of the date they are made.
Forward-looking statements relate to, among other things, positive indicators
of future performance within Automation Systems; Photowatt growth plan and
expected progress; opportunity for growth within the solar industry and
intention to position Photowatt to be a beneficiary of such growth;
improvement plans being initiated within ASG; opportunity for growth in
worldwide automation systems integration; recruitment of ATS CEO; sale of the
PCG business; future performance indicators within ASG; enhancement of global
factory utilization within ASG; need to continue to improve productivity and
efficiency in ASG Canadian operations; mandate of Photowatt President and CEO
to increase enterprise value; consideration of alternative solar technologies,
such as thin film, alternative sources of polysilicon, R&D alternatives
targeting improved cell efficiencies, and further capacity expansion;
contemplation of research by PV Alliance into improved solar power
efficiencies and manufacturing of resulting solar products; quantities and
timing of supply under sale contract with EDF Energies Nouvelles; benefit or
relationship with EDF; expansion of ingot manufacturing capacity at Photowatt
France and timing and cost thereof; potential for development of solar group,
broadening of its technological footprint, and increase in its enterprise
value; planned separation of Photowatt from ATS; management's expectations
with respect to ASG revenue trends during fiscal 2008; management's beliefs
with respect to market conditions and average selling prices in the European
market; the Board's focus on providing leadership in order to improve
operating performance; changes implemented with the intention of increasing
enterprise value of Photowatt in advance of planned separation of Photowatt
from ATS; timing of ATS CEO announcement; efforts to increase value for
shareholders, customers and employees; management's focus on growing
selectively within the ASG markets; global trends for demand of automated
manufacturing; challenges facing the ASG business; management expectations
with respect to revenue trends in fiscal 2008; expectation of higher ASG
factory utilization and potential for better results; four focused initiatives
within ASG; continued servicing of Photowatt's US customers; no expected
shipments of silicon from Spheral Solar to Photowatt France; the long term
outlook for Photowatt; management's belief with respect to demand for solar
products; short term challenges facing Photowatt and impact of MgSi products
on profitability; expectation that PV Alliance will apply for subsidies;
measures to improve MgSi solar cell and module manufacturing processes;
investment in capital equipment designed to improve the productivity and
efficiency of the Photowatt manufacturing facility; terms of multi-year
agreement to purchase high-purity polysilicon; potential for impact of
management examination of Photowatt's operating strategy on capital
expenditures, including use of proceeds from recent ATS rights offering;
management's belief that there is significant opportunity to enhance the long
term performance of the solar business and reduce risk associated with
polysilicon supply; management's belief that a long-term credit agreement or
extension will be reached prior to December 31, 2007; management's belief that
the Company has ability to repay amounts due under the current credit
agreement and manage working capital requirements and cash commitments; and
terms of various contractual obligations. The risks and uncertainties that may
affect forward-looking statements include, among others, general market
performance and restructuring within the North American automotive market;
foreign currency and exchange risk; strength of the Canadian dollar;
performance of the market sectors that ATS serves; that some or all of the
trends towards automation that ATS believes are attractive dissipate or do not
result in increased demand for automation; risks associated with operating and
servicing customers in a foreign country; that multinational companies
withdraw from global manufacturing for business, political, economic or other
reasons; unforeseen problems with the implementation of the ASG structural and
operational initiatives or failure of those measures to bring about improved
performance at ASG; that the solar partnerships developed to date are
withdrawn or are otherwise unable to meet their objectives; problems
associated with the expansion of production capability and adoption of new
production processes at Photowatt; managing the impact of supply shortages and
higher prices for polysilicon; Photowatt's ability to improve efficiencies of
its solar modules produced using lower grade polysilicon or refined
metallurgical silicon either alone or through partnerships; Photowatt's
ability to secure additional long-term polysilicon supply contracts; the
reduction in government incentives and its effect on Photowatt; inability to
enter into and advance collaborative development arrangements focused on
increasing power efficiencies of solar cells; political, labour or supplier
disruptions in manufacturing and supply of silicon; uncertainties related to
adopting new technologies, including procuring the appropriate human capital;
the receipt of all necessary approvals and any advance tax ruling required in
relation to the planned separation of Photowatt from ATS; the state of the
capital markets; the ability of ATS to exit the remaining PCG operations;
delays in negotiating and concluding an extension or long term credit
agreement; and other risks detailed from time to time in ATS' filings with
Canadian provincial securities regulators, including ATS' Annual Report and
Annual Information Form for the fiscal year ended March 31, 2007.
Forward-looking statements are based on management's current plans, estimates,
projections, beliefs and opinions, and ATS does not undertake any obligation
to update forward-looking statements should assumptions related to these
plans, estimates, projections, beliefs and opinions change.

November 13, 2007


ATS AUTOMATION TOOLING SYSTEMS INC.
Consolidated Balance Sheets
(in thousands of dollars - unaudited)

September 30 March 31
2007 2007
-------------------------------------------------------------------------
ASSETS
Current assets
Cash and short-term investments $ 102,277 $ 25,568
Accounts receivable 117,052 131,410
Investment tax credits 13,712 13,712
Costs and earnings in excess of billings on
contracts in progress 77,074 73,755
Inventories 92,216 74,804
Future income taxes 3,260 -
Deposits and prepaid assets (notes 2 and 5) 20,874 10,861
-------------------------------------------------------------------------
426,465 330,110
Property, plant and equipment 206,693 221,718
Goodwill 32,225 35,657
Intangible assets 235 352
Future income taxes 176 179
Deferred development costs 2,160 2,414
Portfolio investments (note 2) 23,396 4,728
Restricted cash (note 10) 3,050 -
Other assets (note 6) 23,389 5,907
-------------------------------------------------------------------------
$ 717,789 $ 601,065
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness (note 11) $ 119,355 $ 37,204
Accounts payable and accrued liabilities 109,574 122,587
Billings in excess of costs and earnings on
contracts in progress 34,160 23,186
Future income taxes 17,585 14,395
Current portion of other long-term liabilities 33 447
-------------------------------------------------------------------------
280,707 197,819
Long-term debt (note 11) - 39,025
Future income taxes 13 75
Other long-term liabilities 844 877
Non-controlling interest 1,714 1,890

Shareholders' equity
Share capital (note 12) 430,082 327,560
Contributed surplus 4,982 3,193
Accumulated other comprehensive income (note 14) (12,946) (9,422)
Retained earnings 12,393 40,048
-------------------------------------------------------------------------
434,511 361,379
-------------------------------------------------------------------------
$ 717,789 $ 601,065
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to interim consolidated financial statements



ATS AUTOMATION TOOLING SYSTEMS INC.
Consolidated Statements of Operations
(in thousands, except per share amounts - unaudited)

Three months ended Six months ended
-------------------------------------------------------------------------
September September September September
30 30 30 30
2007 2006 2007 2006
-------------------------------------------------------------------------

Revenue $ 163,339 $ 164,598 $ 338,140 $ 355,794
-------------------------------------------------------------------------
Operating costs
and expenses
Cost of revenue 147,845 137,131 299,281 293,691
Amortization 6,933 7,242 14,115 14,485
Selling, general and
administrative 26,517 22,135 50,060 43,688
Stock-based compensation
(note 7) 1,452 638 2,040 739
-------------------------------------------------------------------------
182,747 167,146 365,496 352,603
-------------------------------------------------------------------------
Earnings (loss) from
operations (19,408) (2,548) (27,356) 3,191
-------------------------------------------------------------------------
Other expenses (income)
Interest on long-term debt 751 794 1,551 1,522
Other interest 676 89 1,100 (57)
-------------------------------------------------------------------------
1,427 883 2,651 1,465
-------------------------------------------------------------------------

Earnings (loss) from
continuing operations
before income taxes and
non-controlling interest (20,835) (3,431) (30,007) 1,726
Provision for (recovery of)
income taxes (2,086) (1,305) (2,336) 1,233
Non-controlling interest in
earnings of subsidiaries 14 (16) 29 107
-------------------------------------------------------------------------
Net earnings (loss) from
continuing operations (18,763) (2,110) (27,700) 386
Loss from discontinued
operations, net of
tax (note 4) - - - (2,158)
-------------------------------------------------------------------------
Net loss $ (18,763) $ (2,110) $ (27,700) $ (1,772)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss) per
share (note 8)
Basic and diluted - from
continuing operations $ (0.28) $ (0.04) $ (0.44) $ 0.01
Basic and diluted - from
discontinued operations 0.00 0.00 0.00 (0.04)
-------------------------------------------------------------------------
$ (0.28) $ (0.04) $ (0.44) $ (0.03)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to interim consolidated financial statements



ATS AUTOMATION TOOLING SYSTEMS INC.
Consolidated Statements of Shareholders' Equity
(in thousands of dollars - unaudited)

Six months ended September 30, 2007
-------------------------------------------------------------------------
Accumulated
Other
Compre-
Contrib- hensive
Share uted Income
Capital Surplus (Loss)
-------------------------------------------------------------------------

Balance, beginning of period,
as previously reported $ 327,560 $ 3,193 $ (9,422)
Transitional adjustment on adoption
of new accounting standards (note 2) - - 20,534
-------------------------------------------------------------------------
Balance beginning of period,
as restated 327,560 3,193 11,112
Comprehensive loss
Net loss - - -
Currency translation adjustment
(note 15) - - (25,328)
Net unrealized loss on available
for-sale financial assets (net of
income taxes of $nil) - - (5,008)
Net unrealized gain on derivative
financial instruments designated
as cash flow hedges (net of
income taxes of $nil) - - 7,054
Amount transferred to net earnings
(loss) for derivatives designated
as cash flow hedges (net of
income taxes of $nil) - - (776)
Total comprehensive loss (note 14)
Stock-based compensation - 1,789 -
Shares issued during the period for
cash on rights offering, net (note 12) 102,522 - -
-------------------------------------------------------------------------

Balance, end of the period $ 430,082 $ 4,982 $ (12,946)
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Six months ended September 30, 2007
-------------------------------------------------------------------------
Total
Share-
Retained holders'
Earnings Equity
-------------------------------------------------------------------------

Balance, beginning of period,
as previously reported $ 40,048 $ 361,379
Transitional adjustment on adoption
of new accounting standards (note 2) 45 20,579
-------------------------------------------------------------------------
Balance beginning of period,
as restated 40,093 381,958
Comprehensive loss
Net loss (27,700) (27,700)
Currency translation adjustment
(note 15) - (25,328)
Net unrealized loss on available
for-sale financial assets (net of
income taxes of $nil) - (5,008)
Net unrealized gain on derivative
financial instruments designated
as cash flow hedges (net of
income taxes of $nil) - 7,054
Amount transferred to net earnings
(loss) for derivatives designated
as cash flow hedges (net of
income taxes of $nil) - (776)
----------
Total comprehensive loss (note 14) (51,758)
Stock-based compensation - 1,789
Shares issued during the period for
cash on rights offering, net (note 12) - 102,522
-------------------------------------------------------------------------

Balance, end of the period $ 12,393 $ 434,511
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Six months ended September 30, 2006
-------------------------------------------------------------------------
Accumulated
Other
Compre-
Contrib- hensive
Share uted Income
Capital Surplus (Loss)
-------------------------------------------------------------------------

Balance, beginning of period $ 326,840 $ 2,035 $ (23,017)
Net earnings - - -
Currency translation adjustment - - (4,084)
Issuance of common shares 511 - -
Stocked-based compensation - 696 -
-------------------------------------------------------------------------

Balance, end of period $ 327,351 $ 2,731 $ (27,101)
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Six months ended September 30, 2006
-------------------------------------------------------------------------
Total
Share-
Retained holders'
Earnings Equity
-------------------------------------------------------------------------

Balance, beginning of period $ 125,063 $ 430,921
Net earnings (1,772) (1,772)
Currency translation adjustment - (4,084)
Issuance of common shares - 511
Stocked-based compensation - 696
-------------------------------------------------------------------------

Balance, end of period $ 123,291 $ 426,272
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to interim consolidated financial statements




ATS AUTOMATION TOOLING SYSTEMS INC.
Consolidated Statements of Cash Flows
(in thousands of dollars - unaudited)

Three months ended Six months ended
-------------------------------------------------------------------------
September September September September
30 30 30 30
2007 2006 2007 2006
-------------------------------------------------------------------------

Operating activities:

Net loss $ (18,763) $ (2,110) $ (27,700) $ (1,772)
Items not involving cash
Amortization 6,933 7,242 14,115 14,485
Future taxes (2,490) (427) (2,695) 66
Other items not involving
cash 3,032 (826) 3,301 (7,085)
Write down of assets to
net realizable value
(note 4) - - - 1,978
-------------------------------------------------------------------------
Cash flow from operations (11,288) 3,879 (12,979) 7,672
Change in non-cash
operating working capital (2,968) (20,126) (18,942) (32,287)
-------------------------------------------------------------------------
Cash flows used in
operating activities (14,256) (16,247) (31,921) (24,615)
-------------------------------------------------------------------------

Investing activities:
Acquisition of property,
plant and equipment (3,600) (10,222) (11,378) (16,368)
Restricted cash (note 10) (3,050) - (3,050) -
Investments and other (12,547) (4,022) (20,237) (6,363)
Proceeds from disposal
of assets 28 - 44 426
-------------------------------------------------------------------------
Cash flows used in investing
activities (19,169) (14,244) (34,621) (22,305)
-------------------------------------------------------------------------

Financing activities:
Bank indebtedness (26,594) 11,666 13,894 17,884
Share issue costs (note 12) (7,688) - (7,688) -
Proceeds from long-term debt
(note 11) 40,000 - 60,000 20,000
Repayment of long-term debt
(note 11) (426) - (28,361) -
Issuance of common shares
(note 12) 110,210 8 110,210 511
-------------------------------------------------------------------------
Cash flows provided by
financing activities 115,502 11,674 148,055 38,395
-------------------------------------------------------------------------
Effect of exchange rate
changes on cash and
short-term investments (924) (179) (4,804) (997)
-------------------------------------------------------------------------
Increase (decrease) in cash
and short-term investments 81,153 (18,996) 76,709 (9,522)

Cash and short-term
investments, beginning
of period 21,124 37,395 25,568 27,921
-------------------------------------------------------------------------
Cash and short-term
investments, end of period $ 102,277 $ 18,399 $ 102,277 $ 18,399
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplementary information
Cash income taxes paid $ 147 $ 7,651 $ 1,391 $ 7,784
Cash interest paid $ 1,880 $ 1,253 $ 3,715 $ 2,372
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to interim consolidated financial statements



ATS AUTOMATION TOOLING SYSTEMS INC.
Notes to Interim Consolidated Financial Statements
(tabular amounts in thousands, except per share amounts - unaudited)

The interim consolidated financial statements for the three and the six
months ended September 30, 2006 have not been reviewed or audited by the
Company's auditor.

1. Significant accounting policies:

(i) The accompanying interim consolidated financial statements are
prepared in accordance with accounting principles generally accepted in
Canada ("GAAP") and the accounting policies and method of their
application are consistent with those described in the annual
consolidated financial statements for the year ended March 31, 2007
except for the adoption of the new accounting standards included in note
2 herein. The interim consolidated financial statements presented in this
interim report do not conform in all respects to the requirements of
generally accepted accounting principles for annual financial statements
and should be read in conjunction with the Company's annual consolidated
financial statements for the year ended March 31, 2007.

(ii) The preparation of these interim consolidated financial statements
in conformity with GAAP requires management to make estimates and
assumptions that may affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the interim consolidated financial statements and the reported
amount of revenue and expenses during the reporting period. Actual
results could differ from these estimates. Significant estimates and
assumptions are used when accounting for items such as impairment of
assets, recoverability of deferred development costs, fair value of
reporting units, fair value of assets held for sale, warranties, income
taxes, future tax assets, investment tax credits, determination of
estimated useful lives of intangible assets and property, plant and
equipment, impairment of long-term investments, contracts in progress,
inventory provisions, revenue recognition, contingent liabilities, and
allowances for accounts receivable.

2. Change in accounting policies:

Effective April 1, 2007, the Company adopted the new Canadian Institute
of Chartered Accountants ("CICA") Handbook Sections 1530 "Comprehensive
Income", 3251 "Equity", 3855 "Financial Instruments - Recognition and
Measurement", 3861 "Financial Instruments - Disclosure and Presentation"
and 3865 "Hedges". These CICA Handbook Sections establish the accounting
and reporting standards for financial instruments and hedging activities,
and require the initial recognition of financial instruments at fair
value on the interim consolidated balance sheet. As required by the
standards, the comparative interim consolidated financial statements have
not been restated, except for the reclassification of the cumulative
translation adjustment to accumulated other comprehensive income.

Comprehensive income and equity

CICA Handbook Section 1530 requires the presentation of comprehensive
income and its components in a financial statement. Comprehensive income
is composed of the Company's net income and other comprehensive income
which includes unrealized gains and losses on translating financial
statements of self-sustaining foreign operations, changes in the fair
value of the effective portion of cash flow hedging instruments and
changes in unrealized gains (losses) on available-for-sale financial
assets measured at fair value. The Company discloses comprehensive income
within its interim consolidated statements of shareholders' equity.

CICA Handbook Section 3251 provides standards for the presentation of
equity and changes in equity during the reporting period.

Financial instruments

CICA Handbook Section 3855 establishes standards for recognizing and
measuring financial instruments, including derivatives. Under the new
standard, all financial instruments are initially recorded on the interim
consolidated balance sheet at fair value except for certain related party
transactions. They are subsequently valued either at fair value or
amortized cost depending on the classification selected for the financial
instrument. Financial assets are classified as either "held-for-trading",
"held-to-maturity", "available-for-sale" or "loans and receivables" and
financial liabilities are classified as either "held-for-trading" or
"other liabilities". Financial assets and liabilities classified as held-
for-trading are measured at fair value with changes in fair value
recorded in the interim consolidated statements of operations except for
financial assets and liabilities designated as cash flow hedges which are
measured at fair value with changes in fair value recorded as a component
of other comprehensive income. Financial assets classified as held-to-
maturity or loans and receivables and financial liabilities classified as
other liabilities are subsequently measured at amortized cost using the
effective interest method. Available-for-sale financial assets that have
a quoted price in an active market are measured at fair value with
changes in fair value recorded in other comprehensive income. Such gains
and losses are reclassified to earnings when the related financial asset
is disposed of or when the decline in value is considered to be other-
than-temporary. Equity instruments classified as "available-for-sale"
that do not have a quoted price in an active market are subsequently
measured at cost.

The Company has classified its financial instruments as follows:

- Cash and short-term investments and restricted cash are classified as
held-for-trading.

- Accounts receivable and notes receivable included in other assets are
classified as loans and receivables.

- Long-term investments in equities included in portfolio investments
are classified as available-for-sale.

- Bank indebtedness is classified as held-for-trading.

- Accounts payable and accrued liabilities and long-term debt are
classified as other liabilities.

The Company has elected to expense transaction costs related to financial
instruments classified as other than held-for-trading.

The Company has elected to use trade date accounting for regular-way
purchases and sales of financial assets.

Embedded derivatives

In addition to recognizing all stand-alone derivative financial
instruments at fair value, CICA Handbook Section 3855 requires embedded
derivatives, which are components included in a non-derivative host
contract that have features similar to derivatives, to be accounted for
separately when their economic characteristics and risks are not closely
related to the host instrument and the combined contract is not recorded
at fair value. These embedded derivatives are measured at fair value with
subsequent changes recorded in the interim consolidated statements of
operations. The Company enters into certain non-financial instrument
contracts which contain embedded foreign currency derivatives. Where the
contract is not leveraged, does not contain an option feature and is
denominated in a currency that is commonly used in the economic
environment where the transaction takes place, the embedded derivative is
not accounted for separately from the host contract. As allowed under
CICA Handbook Section 3855, the Company elected April 1, 2003 as the
transition date for embedded derivatives and only reviewed contracts
entered into or modified after that date.

Hedging

CICA Handbook Section 3865 specifies the criteria that must be met in
order for hedge accounting to be applied and the accounting for each of
the permitted hedging strategies. If the derivative is designated as a
fair value hedge, changes in fair value of the derivative and changes in
the fair value of the hedged item attributable to the hedged risk are
recognized in the interim consolidated statements of operations. If the
derivative is designated as a cash flow hedge, the effective portions of
the change in fair value of the derivative are initially recorded in
other comprehensive income and are reclassified to the interim
consolidated statements of operations when the hedged item is recognized.
Hedge accounting is discontinued prospectively when it is determined that
the derivative is not effective as a hedge, or the derivative is
terminated or sold, or upon sale or early termination of the hedged item.
The Company elected to apply hedge accounting for certain forward foreign
exchange contracts used to manage foreign currency exposure on
anticipated revenue and firm commitments and has designated these as cash
flow hedges. The fair value of these derivatives is included in deposits
and prepaid assets when in an asset position and in accounts payable and
accrued liabilities when in a liability position.

Gains or losses arising from hedging activities are reported in the same
caption on the interim consolidated statements of operations as the
hedged item.

The types of hedging relationships that qualify for hedge accounting have
not changed under CICA Handbook Section 3865. The nature of the items or
transactions that the Company hedges and the Company's hedging programs
in relation to these items or transactions are included in Note 4 to the
Company's annual consolidated financial statements for the year ended
March 31, 2007.

Fair value

The fair value of a financial instrument is the amount of consideration
that would be agreed upon in an arms length transaction between
knowledgeable, willing parties who are under no compulsion to act. The
fair value of a financial instrument on initial recognition is the
transaction price, which is the fair value of the consideration given or
received. Subsequent to initial recognition, the fair values of financial
instruments that are quoted in active markets are based on bid prices for
financial assets held and offer prices for financial liabilities. When
independent prices are not available, fair values are determined by using
valuation techniques that refer to observable market data.

Transition adjustment

The impact of adopting the new standards as at April 1, 2007 was as
follows:

- An increase in portfolio investments of $23,677,000, an increase of
$21,109,000 in accumulated other comprehensive income (AOCI) and an
increase of $2,568,000 in future income tax liability related to
recording the fair value of portfolio assets designated as available-
for-sale.

- An increase in deposits and prepaid assets of $251,000, an increase of
$781,000 in accounts payable and accrued liabilities, a decrease of
$575,000 in AOCI and an increase in retained earnings of $45,000
related to recording the fair value of cash flow hedges where hedge
accounting is used.

- $9,422,000 of net foreign currency losses that were previously
presented as a separate item in shareholders' equity have been
reclassified to AOCI.

3. Future accounting changes:

The CICA has issued the following new Handbook Sections that will become
effective on April 1, 2008 for the Company:

- CICA Handbook Section 3862, "Financial Instruments - Disclosures"

- CICA Handbook Section 3863, "Financial Instruments - Presentation"

- CICA Handbook Section 1535, "Capital Disclosures"

- CICA Handbook Section 3031, "Inventories"

CICA Handook Section 3862 modifies the disclosure requirements for CICA
Handbook Section 3861, "Financial Instruments - Disclosure and
Presentation", including required disclosure for the assessment of the
significance of financial instruments for an entity's financial position
and performance and of the extent of risks arising from financial
instruments to which the Company is exposed and how the Company manages
those risks. CICA Handbook Section 3863 carries forward the presentation
requirements of CICA Handbook Section 3861. The Company is currently
evaluating the impact of the adoption of these new sections.

CICA Handbook Section 1535 establishes standards for disclosing
information about an entity's capital and how it is managed. The entity's
disclosure should include information about its objectives, policies and
processes for managing capital and disclose whether or not it has
complied with any capital requirements to which it is subject and the
consequences of non-compliance. The Company is currently evaluating the
impact of adoption of this new section.

CICA Handbook Section 3031 provides more guidance on the measurement and
disclosure requirements for inventories than the previous CICA Handbook
Section 3030. The Company is currently evaluating the impact of adoption
of this new section.

Each of these sections will be effective for the Company for its annual
and interim financial statements beginning on or after April 1, 2008.

4. Discontinued operations and assets held for sale:

During the year ended March 31, 2007, the Company sold the key operating
assets and liabilities, including equipment, current assets, trade
accounts payable and certain other assets and liabilities of its Berlin,
Germany coil winding business for net proceeds of 600,000 Euro.
Accordingly, the results of operations and financial position of the
Berlin coil winding business have been segregated and presented
separately as discontinued operations in the interim consolidated
financial statements. The results of the discontinued operations were as
follows:

Three months ended Six months ended
-------------------------------------------------------------------------
September September September September
30 30 30 30
2007 2006 2007 2006
-------------------------------------------------------------------------

Revenue $ - $ - $ - $ 1,737
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Loss from operating
activities $ - $ - $ - $ (180)
Write-down to reduce
assets sold to net
realizable value, net
of tax of ($195,000) - - - (1,978)
-------------------------------------------------------------------------
Loss from discontinued
operations, net of tax $ - $ - $ - $ (2,158)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

5. Deposits and prepaid assets:

September 30 March 31
2007 2007
-------------------------------------------------------------------------
Prepaid assets $ 4,622 $ 3,752
Silicon and other deposits 7,208 6,468
Forward contracts and other 9,044 641
-------------------------------------------------------------------------
$ 20,874 $ 10,861
-------------------------------------------------------------------------
-------------------------------------------------------------------------

6. Other assets:

September 30 March 31
2007 2007
-------------------------------------------------------------------------
Deferred pre-production costs $ 253 $ 586
Silicon and other deposits 23,136 5,281
Notes receivable - 40
-------------------------------------------------------------------------
$ 23,389 $ 5,907
-------------------------------------------------------------------------
-------------------------------------------------------------------------

7. Stock-based compensation:

In the calculation of the stock-based compensation expense in the interim
consolidated statements of operations, the fair values of the Company's
stock option grants were estimated using the Black-Scholes option pricing
model for time vested stock options and a binomial option pricing model
for performance based stock options.

During the three and six months ended September 30 2006, the Company
issued certain performance based options. The performance based options
vest based on the ATS stock trading at or above a threshold for a minimum
of 20 trading days in a fiscal quarter. These performance options expire
on the seventh anniversary of the date of the award. During the three and
six months ended September 30, 2007 certain performance options vested as
a result of accelerated vesting provisions on the resignation of certain
officers of the Company. In 2006, no performance based options vested.

During the three and six months ended September 30, 2007, the Company
granted 1,059,500 options (371,900 in 2006). The options granted vest
over 5 years from the date of issue. The fair value of options issued in
the three and six month period ended September 30th, 2007 were estimated
at the date of the grant using a Black-Scholes option model with the
following weighted average assumptions:

Three months ended Six months ended
-------------------------------------------------------------------------
-------------------------------------------------------------------------
September September September September
30 30 30 30
2007 2006 2007 2006
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average of
risk-free interest rate 4.00% - 4.00% 4.18%
Dividend yield 0.0% - 0.0% 0.0%
Weighted average of
expected life (years) 5.0 yrs - 5.0 yrs 5.3 yrs
Expected volatility 41% - 41% 31%
Number of stock options
granted (thousands):
Time vested 1,060 - 1,060 372
Performance based - - - 175
Weighted average of exercise
price per option (dollars) $5.95 - $5.95 $11.34
Weighted average value per
option (dollars):
Time vested $2.49 - $2.49 $4.17
Performance based $ - - $ - $3.68
-------------------------------------------------------------------------
-------------------------------------------------------------------------

As a result of the rights offering completed during the three and six
month period ended September 30 2007, the exercise price of the options
outstanding at the date of the closing of the rights offering was reduced
by a factor of 0.9263 and the number of options were increased by 163,196
for time vested options and 41,364 for performance options.

8. Weighted average number of shares:

Weighted average number of shares used in the computation of earnings
(loss) per share is as follows:

Three months ended Six months ended
-------------------------------------------------------------------------
September September September September
30 30 30 30
2007 2006 2007 2006
-------------------------------------------------------------------------
Basic 67,815 59,734 63,562 59,721
Diluted 67,815 59,734 63,562 59,721
-------------------------------------------------------------------------
-------------------------------------------------------------------------

During the three and six months ended September 30, 2007, the Company
executed a rights offering as described in note 12. The exercise price of
the rights offering was less than the fair market value of the common
shares at issuance of the rights. Accordingly, it contained a bonus
element that is similar to a stock dividend. In accordance with the
recommendations of Canadian Institute of Chartered Accountants Handbook
Section 3500, Earnings Per Share, the weighted average common shares for
the three and six months ended September 30, 2006 have been retroactively
increased by 489,000 to reflect the bonus element.

All stock options are excluded from the weighted average common shares in
the calculation of diluted earnings per share for the three and six
months ended September 30, 2007 as they are anti-dilutive.

9. Segmented disclosure:

The Company evaluates performance based on three reportable segments:
Automation Systems, Photowatt Technologies, and Precision Components. The
Automation Systems segment produces custom-engineered turn-key automated
manufacturing and test systems. The Photowatt Technologies segment is a
high volume manufacturer of photovoltaic products and also includes the
Company's investment in Spheral Solar(TM). The Precision Components
segment is a high volume manufacturer of plastic and metal components and
sub-assemblies.

The Company accounts for inter-segment revenue at current market rates,
negotiated between the segments.

Three months ended Six months ended
-------------------------------------------------------------------------
September September September September
30 30 30 30
2007 2006 2007 2006
-------------------------------------------------------------------------

Revenue
Automation Systems $ 109,067 $ 117,302 $ 216,851 $ 239,086
Photowatt Technologies 37,912 28,508 85,601 72,889
Precision Components 16,651 19,327 36,063 44,587
Elimination of
inter-segment revenue (291) (539) (375) (768)
-------------------------------------------------------------------------
Consolidated $ 163,339 $ 164,598 $ 338,140 $ 355,794
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Earnings (loss) from
operations
Automation Systems $ 2,393 $ 5,666 $ 2,968 $ 8,452
Photowatt Technologies (8,886) (3,136) (11,332) 1,451
Precision Components (2,583) (1,716) (3,725) (846)
Inter-segment elimination
and corporate expenses (10,332) (3,362) (15,267) (5,866)
-------------------------------------------------------------------------
Consolidated $ (19,408) $ (2,548) $ (27,356) $ 3,191
-------------------------------------------------------------------------
-------------------------------------------------------------------------

10. Restricted cash:

As at September 30, 2007 the Company held cash of $3,050,000 in an
irrevocable trust on behalf of individuals holding officer and director
positions at the Company immediately prior to the September 13, 2007
annual meeting of the shareholders, to be used to indemnify such
individuals. Subsequent to September 30, 2007, these funds were released
to the Company.

11. Long-term debt and financial resources:

On September 27, 2007, the agreement governing the Company's primary
operating credit facility and its revolving bank credit facility (the
"Credit Agreement") was amended compared to the first quarter resulting
in the unsecured operating credit facility of $70,000,000 and the
revolving bank credit facility of $60,000,000 being consolidated into one
operating credit facility of $130,000,000. The amended operating credit
facility, which is secured by a general security agreement, is repayable
on December 31, 2007. The amended operating credit facility is subject to
adjusted current assets to current debt covenant of 1.25:1, and a debt to
shareholder's equity covenant of 1.5:1. Under the terms of the Credit
Agreement, the Company is restricted from encumbering any assets with
certain permitted exceptions. The Credit Agreement also restricts the
disposition of certain assets with an agreement to reduce available
credit by an amount equal to a portion of the net proceeds received by
the Company from certain material asset sales, if any. The Company is in
compliance with these covenants and restrictions.

The Company is currently negotiating with a number of financial
institutions to establish a long-term credit facility to replace the
Credit Agreement. The Company believes that a long-term credit agreement
or credit extension will be reached prior to December 31, 2007 at terms
that are satisfactory to ATS. In the event that such an agreement or
extension is not yet in place at December 31, 2007, the Company believes
that there is sufficient cash on hand and availability of alternative
sources of funding, including financing of land and buildings, to repay
amounts due under the Credit Agreement and to manage ongoing working
capital requirements and meet existing cash commitments.

The following amounts were outstanding:

September 30 March 31
2007 2007
-------------------------------------------------------------------------
Bank indebtedness:
Primary credit facility $ 90,965 $ 6,758
Other facilities 28,390 30,446
-------------------------------------------------------------------------
119,355 37,204
Long-term debt:
Primary credit facility - 39,025
Unsecured non-interest bearing loan GBP
due July 29, 2007 - 447
-------------------------------------------------------------------------
- 39,472
Less: current portion - (447)
-------------------------------------------------------------------------
$ - $ 39,025
-------------------------------------------------------------------------
-------------------------------------------------------------------------

12. Rights Offering:

During the three months ended September 30, 2007, the Company completed a
rights offering, raising gross proceeds of $110,209,635 (net proceeds of
$102,522,189). The rights offering provided existing common shareholders
with rights to subscribe for additional common shares in ATS. Each
shareholder of record of the Company on July 19, 2007 received one right
for each common share held. For every 3.35 rights held, the holder was
entitled to purchase one common share at the subscription price of $6.23
until August 14, 2007. ATS received subscriptions of 16,011,247 common
shares. Under the Additional Subscription Privilege 1,678,903 shares were
purchased.

13. Financial instruments:

Change in fair value of financial instruments

Derivatives that are not designated in hedging relationships are
classified as held-for-trading and the changes in fair value are
recognized in the interim consolidated statements of operations. During
the six months ended September 30, 2007, the fair value of financial
assets classified as held-for-trading increased by $1,285,000 and the
fair value of financial liabilities classified as held-for-trading
decreased by $415,000.

Cash flow hedges

During the six months ended September 30, 2007, an unrealized loss of
$45,000 was recognized in selling, general and administrative expense for
the ineffective portion of cash flow hedges. After-tax unrealized gains
of $5,703,000 included in AOCI at September 30, 2007 are expected to be
reclassified to earnings over the next 12 months when the revenue is
recorded.

14. Other comprehensive loss:

The components of other comprehensive loss are shown in the following
table:

Three months Six months
ended ended
September September
30 30
2007 2007
-------------------------------------------------------------------------

Net loss $ (18,763) $ (27,700)
Currency translation
adjustment (8,137) (25,328)
Net unrealized loss on available for sale
financial assets (net of income taxes of $nil) (1,153) (5,008)
-------------------------------------------------------------------------
Net unrealized gain on derivative financial
instruments designated as cash flow hedges
(net of income taxes of $nil) 5,219 7,054
-------------------------------------------------------------------------
Amount transferred to net loss for derivatives
designated as cash flow hedges (net of income
taxes of $nil) (1,168) (776)
-------------------------------------------------------------------------
Comprehensive loss $ (24,002) $ (51,758)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The components of accumulated other comprehensive loss are as follows:

September 30 March 31
2007 2007
-------------------------------------------------------------------------
Accumulated currency translation
adjustment $ (34,750) $ (9,422)
Accumulated unrealized gain on
available-for-sale financial assets 16,101 -
Accumulated unrealized net gain on
derivative financial instruments
designated as cash flow hedges 5,703 -
-------------------------------------------------------------------------
Accumulated other comprehensive income $ (12,946) $ (9,422)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

15. Currency translation adjustment:

The currency translation adjustment reflects unrealized translation
adjustments arising on the translation of foreign currency denominated
assets and liabilities of self-sustaining foreign operations. These
translation adjustments are recorded in the interim consolidated
statements of operations when there is a reduction in the Company's net
investment in the respective foreign operations.

16. Income taxes:

The Company's effective income tax rate differs from the combined
Canadian basic federal and provincial income tax rate of 36.1% (2007 -
36.1%) primarily as a result of losses incurred in Canada, the benefit of
which have not been recognized for financial statement reporting
purposes.

17. Commitments and Contingencies:

During the three months ended September 30, 2007, Photowatt Technologies
entered into a nine-year, 44,000,000 Euro ($62,400,000 Canadian)
commitment, commencing January 2010, to purchase high-purity polysilicon
to support approximately 14 megawatts of Photowatt solar production per
annum. Advance payments are required, which will be applied against the
price of the product received. During the three months ended
September 30, 2007, a 8,986,000 Euro ($12,729,000 Canadian) deposit was
made against this commitment.

The Company and obligation related to its right to purchase the remaining
outstanding minority interest in a subsidiary. The purchase price is yet
to be established but likely to be determined by March 31, 2008.

18. Related Party Transactions:

During the quarter, the Company accrued $484,000 to reimburse
Goodwood Inc. and Mason Capital Management, LLC, for proxy solicitation
expenses and legal fees, incurred in connection with the proxy contest to
reconstitute the ATS board of directors.

The CEO of Photowatt International S.A.S., is also the President of
PV Alliance, in which the Company has a 40% investment interest. During
the quarter, Photowatt invested 400,000 Euro ($566,600 Canadian) in the
PV Alliance.

19. Cyclical nature of the business:

Interim financial results are not necessarily indicative of annual or
longer term results because many of the individual markets served by the
Company tend to be cyclical in nature. General economic trends, product
life cycles and product changes may impact Automation Systems order
bookings, Photowatt Technologies and Precision Components volumes, and
the Company's earnings in any of its markets. In Photowatt Technologies
and Precision Components, due to respective tranditional summer factory
shutdowns in Europe and the automotive industry, revenues and operating
earnings are generally expected to be lower during the second quarter
compared to other quarters. In Photowatt Technologies, slower sales may
occur in the winter months, when the weather may impair the ability to
install its products in certain geographical areas.

20. Comparative figures:

Certain comparative figures have been reclassified to conform with the
current period's presentation.

[meinolf67]

Sorry für das unhandliche Posting.

Sie bluten.

Aber Preis ist ein Viertel unter Buchwert und bilanz vglw. Solide.

Photwatt schrumpft allerdings so langsam zur Bedeutungslosigkeit...

[meinolf67]

und ein neuer CEO:

ATS Automation Tooling Systems Inc. announces appointment of Anthony Caputo as Chief Executive Officer
Monday November 19, 8:00 am ET

TSX: ATA
CAMBRIDGE, ON, Nov. 19 /CNW/ - ATS Automation Tooling Systems Inc. announced today that Anthony Caputo has been appointed as Chief Executive Officer.

Mr. Caputo is an experienced senior executive and brings to the Company a solid track record of over 25 years of delivering performance, growth and value creation in technology, manufacturing and service environments. Most recently Mr. Caputo served as Corporate Vice-President and President and COO of L-3 Communications and prior to that as President and CEO of Spar Aerospace. Mr. Caputo holds a Bachelor of Technology in Engineering from Ryerson University and a Master of Science in Organizational Development from Pepperdine University.

ADVERTISEMENT
Neil Arnold, Chairman of the Board of Directors, stated, "Retaining a permanent CEO has been a top priority of the new board of directors and we are delighted to have found somebody of Anthony's talent and experience to join us. Anthony has a proven record of delivering performance and enhancing shareholder value and we are confident that he will bring to ATS the leadership and focus that it needs to move forward in delivering value to its stakeholders."

"ATS is a recognized market leader with unrealized potential. It has great customers, technology and people. It also has some problems that will be addressed," commented Mr. Caputo. "I am grateful for the opportunity to lead ATS and excited by its prospects."

Mr. Caputo assumes leadership of ATS effective immediately, replacing John K. Bell who has acted as interim Chief Executive Officer since the new board of directors was elected on September 13, 2007. "On behalf of the board, I would like to thank John for his leadership during this critical transition period," said Mr. Arnold.

[meinolf67]

November 29, 2007
MATT WALCOFF
RECORD STAFF

CAMBRIDGE

John Bell received 100,000 stock options for his nine and a half weeks as interim chief executive officer of Cambridge's ATS Automation Tooling Systems Inc.

Bell received the options on Nov. 20, the second day after his stint as ATS chief ended, and disclosed them to securities regulators on Monday.

The company's board also awarded 25,000 stock options to Garry West, who has served as interim chief financial officer since early October.

Bell, the former owner of Polymer Technologies Inc. of Cambridge, took over at ATS on Sept. 13, when the company's former board and chief executive resigned in the face of a shareholders' revolt.

They were replaced by a slate of directors nominated by two disgruntled institutional shareholders, Goodwood Inc. and Mason Capital Management LLC. Bell is one of the new board members.

The former chief executive, Ron Jutras, received 60,000 stock options in each of his two full years at the helm of ATS. His predecessor, company founder Klaus Woerner, received 61,100 options in each of the five years before his death in 2005.

The new board decided to award Bell the 100,000 options, which vest immediately, before they knew how long he would remain interim chief executive, ATS chair Neil Arnold said.

"At the time the transaction took place, we had no idea how long the interim role would last, and neither did John," Arnold said. "John made some personal sacrifices to take on this role, and we just felt it was appropriate to have a stock compensation element to it."

Bell also received a cash salary that ATS will disclose when it releases its proxy statement next year, Arnold said.

Bell himself was not available for comment on the issue.

Executive stock options are usually considered long-term compensation meant to reward recipients for boosting shareholder value.

But in the case of ATS, the sagging share price was an immediate concern, Arnold said. When the dissident shareholders' directors slate took over control of the company, ATS shares were down 41.3 per cent on the year.

"We all have the same objective here, which is to do something about recovering the share price, and we just felt a non-cash, stock-based incentive was more appropriate than a cash-based incentive in the circumstances," Arnold said.

The options were issued on Nov. 20 because ATS was in blackout periods between the change of control on Sept. 13 and the announcement of the hiring of permanent chief executive Anthony Caputo.

Under the company's stock-option plan, it cannot grant options in the period before releasing quarterly earnings or when it holds an important disclosure it has yet to release to the public, according to Stewart McCuaig, ATS's general counsel.

ATS released its second-quarter results on Nov. 13 and announced Caputo's hiring on Nov. 19.

As it happened, the delay may be beneficial to Bell. On the day he took over at ATS, the company's share price closed at $7.55. By the time he received the options, the shares were trading at $4.40, which became the options' exercise price. The lower the exercise price of a stock option, the more it will be worth at any future stock price.

Bell's compensation package was worked out by the new ATS board's compensation committee, which formed immediately after the change of control, Arnold said.

The committee consists of Goodwood chief executive Cam MacDonald; Mason Capital Management principal Mike Martino; Solar Sentry Corp. chief executive Gordon Presher; and Arnold, the former executive chair of diversified manufacturer WHX Corp.

Bell played an integral role in the search for a permanent chief executive and has remained at ATS to help Caputo's transition.

ATS makes factory automation systems and auto parts and owns a solar power products company in France.

[meinolf67]

völlige Stille seit 2 Monaten; der Markt entwickelt sich weiter stürmisch...

[meinolf67]

TORONTO (Reuters) - ATS Automation Tooling Systems Inc (ATA.TO: Quote, Profile, Research) posted a wider third-quarter loss on Wednesday and outlined its strategy to restore profitability through fiscal 2009.

ATS, which makes manufacturing and other industrial equipment, reported a net loss of $3.7 million, or 5 cents a share, in the three months ended December 31, compared with a loss of $2.4 million, or 4 cents a share, in the same period the year before.

Cambridge, Ontario-based ATS said it "substantially" wrote down its Precision Components Group by taking $24 million in non-cash charges for the quarter, including $19.1 million in property, plant and equipment impairment charges, and $4.9 million in provisions against working capital assets.

ATS said it is continuing the sale process of the unit and has initiated discussions with possible purchasers with the hope of obtaining bids during the fourth quarter.

The company had revenue of $191.3 million, up 11.4 percent from the year before.

ATS said its aim is to reduce costs and improve operational effectiveness through a number of initiatives, but said it expects that to cost about $30 million over the next several quarters.

"Our objective is to improve profitability through fiscal 2009 and then focus on growth," said Chief Executive Officer Anthony Caputo in a statement.

"Specific actions to improve operational effectiveness will likely impact results negatively in the next several quarters. We expect significant recurring benefits as a result of these initiatives."

ATS said its plans include strengthening leadership, fixing underperforming divisions and programs, and revising business processes.

[meinolf67]

Wednesday February 13, 7:00 am ET

TSX: ATA
CAMBRIDGE, ON, Feb. 13 /CNW/ - ATS Automation Tooling Systems Inc. today reported its financial results for the three and nine months ended December 31, 2007 - as well as a number of initiatives to restore profitability, reduce costs and improve operational effectiveness in fiscal 2009.

These initiatives are as follows:

- Strengthen leadership;
- Fix underperforming divisions and programs;
- Redefine approach to market;
- Revise business processes;
- Realize non-strategic assets.


"Our objective is to improve profitability through fiscal 2009 and then focus on growth," said Anthony Caputo, ATS Chief Executive Officer. "Specific actions to improve operational effectiveness will likely impact results negatively in the next several quarters. We expect significant recurring benefits as a result of these initiatives."

Major activities that have been completed to date include:

- Recruited ATS CFO, Photowatt CFO, VP Organization Effectiveness, ASG
USA VP & GM, and appointed ASG Canada SVP;
- Authorized euro 20 million for Photowatt capacity expansion and cost
improvements;
- Implemented corporate wide bid review process;
- Implemented monthly, executive level, division and program reviews;
- Sold shares of Canadian Solar Inc. for a gain of $32 million;
- Strengthened balance sheet - no net debt at period end.


The Company also substantially wrote-down PCG by taking $24 million of non-cash charges in the quarter, including $19.1 million of property, plant and equipment impairment charges and $4.9 million of provisions against working capital assets.

Financial Results

In millions 3 months 3 months 9 months 9 months
of dollars, ended ended ended ended
except per Dec. 31, Dec. 31, Dec. 31, Dec. 31,
share data 2007 2006 2007 2006
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Revenues Automation Systems
from Group $ 122.8 $ 113.1 $ 339.7 $ 352.1
continuing ------------------------------------------------------------
operations Photowatt
Technologies 51.7 39.2 137.3 112.1
------------------------------------------------------------
PCG 17.2 19.9 53.3 65.0
------------------------------------------------------------
Inter-segment (0.4) (0.4) (0.8) (1.6)
------------------------------------------------------------
Consolidated $ 191.3 $ 171.8 $ 529.5 $ 527.6
-------------------------------------------------------------------------

-------------------------------------------------------------------------
EBITDA Automation Systems
Group $ 4.1 $ 5.1 $ 11.2 $ 19.3
------------------------------------------------------------
Photowatt
Technologies
- Photowatt France (0.1) 6.7 (0.3) 23.0
- Other Solar (1.2) (5.1) (5.7) (14.8)
------------------------------------------------------------
PCG
- PCG before
impairment (6.3) 0.3 (6.7) 3.1
- PCG asset
impairment (19.1) 0.0 (19.1) 0.0
------------------------------------------------------------
Gain on sale of
investments 31.8 0.0 31.8 0.0
------------------------------------------------------------
Corporate and
Inter-segment
elimination (5.0) (2.7) (20.2) (8.6)
------------------------------------------------------------
Consolidated $ 4.2 $ 4.3 $ (9.0) $ 22.0
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Net loss Consolidated $ (3.7) $ (2.4) $ (31.4) $ (4.2)
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Net loss From continuing
per share operations $ (0.05) $ (0.04) $ (0.46) $ (0.03)
------------------------------------------------------------
After discontinued
operations $ (0.05) $ (0.04) $ (0.46) $ (0.07)
-------------------------------------------------------------------------

Automation Systems Group (ASG) Results

- Period end ASG Order Backlog increased 26% to $211 million from
$167 million a year ago;
- New ASG Order Bookings for the third quarter increased 6% to
$115 million compared to $109 million a year ago;
- New ASG Order Bookings during the first six weeks of the fourth
quarter were $48 million.

ASG's revenues increased 9% in the third quarter compared to a year ago on
high opening Order Backlog. Period-end Order Backlog supports continued
revenue growth. Operating results showed improvements in North America;
however, these improvements were offset by weak performance in Europe and in
Asia.

Photowatt Results

- Total megawatts (MWs) sold at Photowatt France increased to 11.6 MWs
from 8.2 MWs in the third quarter of fiscal 2007 - with MgSi products
accounting for 55% of revenue.
- MgSi module prices increased 4% from the second quarter of fiscal
2008 and were sold at a 0% to 10% discount to polysilicon modules.
- Average cell efficiencies improved in the third quarter to just over
13% for MgSi cells and just over 15% for polysilicon cells.


Photowatt France made good progress in the third quarter with its MgSi product strategy. The goal is to return Photowatt to acceptable levels of profitability during fiscal 2009 through focus on increasing cell efficiencies, scrap rate reduction, the simplification and improvement of processes using automation know-how, and the elimination of unnecessary expenses. A measured capital expansion of the existing facility has been approved to further improve productivity and efficiency and to balance capacity. Included in Photowatt France's third quarter results are severance costs of $0.6 million and a $4.2 million provision related to a customer dispute.

The timing of Photowatt France becoming a standalone company will depend upon successful performance improvements and market conditions.

Quarterly Conference Call

ATS's quarterly conference call begins at 10 am eastern today and can be accessed over the Internet at www.atsautomation.com or on the phone at 416 644 3420.

About ATS

ATS Automation Tooling Systems Inc. provides innovative, custom designed, built and installed manufacturing solutions to many of the world's most successful companies. Founded in 1978, ATS uses its industry-leading knowledge and global capabilities to serve the sophisticated automation systems' needs of multinational customers in industries such as healthcare, computer/electronics, automotive and consumer products. It also leverages its many years of repetitive manufacturing experience and skills to fulfill the specialized repetitive equipment manufacturing requirements of customers. Through its solar business, ATS participates in the growing solar energy industry and through its precision components business it produces, in high volume, precision components and subassemblies. ATS employs approximately 3,600 people at 24 manufacturing facilities in Canada, the United States, Europe, Southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.

Management's Discussion and Analysis

This Management's Discussion and Analysis ("MD&A") for the three and nine months ended December 31, 2007 (third quarter of fiscal 2008) provides detailed information on the Company's operating activities for the third quarter of fiscal 2008 and should be read in conjunction with the unaudited interim consolidated financial statements of the Company for the three and nine months ended December 31, 2007. The Company assumes that the reader of this MD&A has access to, and has read the audited consolidated financial statements and MD&A of the Company for fiscal 2007 and the unaudited interim consolidated financial statements and MD&A for the first and second quarters of fiscal 2008. Accordingly, the purpose of this document is to provide a third quarter update to this prior information. These documents and other information relating to the Company, including the Company's fiscal 2007 audited consolidated financial statements, MD&A and Annual Information Form may be found on SEDAR at www.sedar.com.

Notice to Reader

The Company has three reportable segments: Automation Systems Group ("ASG"), Photowatt Technologies ("Photowatt"), and Precision Components Group ("PCG"). Photowatt Technologies is comprised of Photowatt France and Spheral Solar (a now halted development project). Previously, it was also comprised of Photowatt USA (a small module assembly and sales operation closed in the second quarter). Any reference to solar production capacity assumes the use of polysilicon at currently experienced levels of efficiency, unless otherwise stated. Actual solar capacity may vary materially for a number of reasons including the use of refined metallurgical silicon ("MgSi"), changes in cell efficiencies and/or changes in production processes. References to Photowatt's cell "efficiency" means the percentage of incident energy that is converted into electrical energy in a solar cell. Solar cells and modules are sold based on wattage output. "Silicon" refers to a variety of silicon feedstock, including polysilicon, MgSi and polysilicon powders and fines.

Non-GAAP Measures

Throughout this document the term "operating earnings" is used to denote earnings (loss) from operations. EBITDA is also used and is defined as earnings (loss) from operations excluding depreciation, amortization (which includes amortization of intangible assets, and impairment of goodwill) and segment and division allocation of corporate costs. The term "margin" refers to an amount as a percentage of revenue. The terms "earnings from operations", "operating earnings", "margin", "operating loss", "operating results", "operating margin", "EBITDA", "Order Bookings" and "Order Backlog" do not have any standardized meaning prescribed within Canadian generally accepted accounting principles ("GAAP") and therefore may not be comparable to similar measures presented by other companies. Operating earnings and EBITDA are some of the measures the Company uses to evaluate the performance of its segments. ATS presents EBITDA to show its performance before depreciation and amortization. Management believes that ATS shareholders and potential investors in ATS use non-GAAP financial measures such as operating earnings and EBITDA in making investment decisions about the Company and measuring its operational results. A reconciliation of EBITDA to total Company revenue and earnings from operations for the three and nine month periods of fiscal 2008 and 2007 is contained in the MD&A. EBITDA should not be construed as a substitute for net income determined in accordance with GAAP.

Overview

At the Company's annual shareholders' meeting held September 13, 2007, ATS shareholders elected a new Board of Directors (the "Board"). This new Board is focused on providing strong leadership to the Company in order to improve operating performance. Following the shareholders' meeting, the new Board named Neil D. Arnold as non-executive Chairman. Mr. Arnold brings extensive governance experience and financial expertise to this role. Other members of the new Board are Neale Trangucci (Chair of the Audit Committee), J. Cameron MacDonald (Chair of the Human Resources Committee), John Bell, Peter Puccetti, Michael Martino and Gordon Presher. Biographies of the new Board can be found at www.atsautomation.com.

During the third quarter, following a thorough and planned review of the Company's leadership needs, the Board named Anthony Caputo as Chief Executive Officer of ATS. Mr. Caputo is an experienced senior executive with a 25 year track record of delivering performance, growth and value creation in technology, manufacturing and service environments. Most recently Mr. Caputo served as Corporate Vice-President and President and COO of L-3 Communications and prior to that as President and CEO of Spar Aerospace. Mr. Caputo holds a Bachelor of Technology in Engineering from Ryerson University and a Master of Science in Organizational Development from Pepperdine University.

Since joining ATS in mid-November 2007, Mr. Caputo has taken a number of important steps to return the Company to profitability, including:

Strengthening leadership:

- Maria Perrella was named Chief Financial Officer, and will begin
working at ATS in February 2008. Ms. Perrella is an experienced
executive with a track record of identifying and implementing cost
savings in organizations, with expertise in public company reporting
and compliance, cash and foreign exchange management, tax planning,
information technology strategy and implementation, equity and debt
structuring, and acquisitions and divestitures. Ms. Perrella is a
Chartered Accountant, and previously held executive positions at
Arclin, L-3 Communications Canada and Spar Aerospace;
- Chuck Gyles was named Vice President of Organization Effectiveness,
and began working at ATS in January 2008. Mr. Gyles has significant
experience in company turnarounds and transformations, with expertise
in organizational development, management structure and talent
assessment. Mr. Gyles previously held executive positions at Weston
Foods Canada Ltd., L-3 Communications, Spar Aerospace, Ontario Power
Generation, Bombardier Aerospace Group, Loblaw Companies Ltd. and
Chrysler;
- During January 2008, Eric Kiisel was appointed Senior Vice-President
ASG Canada. Mr. Kiisel is a professional engineer with more than 25
years' experience in the automation, nuclear and manufacturing
industries. He was previously Vice-President Project Management at
ASG's Cambridge, Ontario operation;
- During February 2008, Jim Sheldon was named Vice-President and
General Manager ASG USA. Mr. Sheldon has over 20 years of automation
experience, including expertise in turnarounds and corporate
stabilizations. He is a business accounting major and holds a
certification in manufacturing and mechanical engineering;
- Vincent Bes was named Photowatt Chief Financial Officer and will join
the organization late in the fourth quarter of fiscal 2008. Mr. Bes
was most recently the Chief Financial Officer of Prismaflex
International SA, a publicly-traded company in Europe. Mr. Bes will
immediately focus on enhancing the profitability and improving
internal controls of the existing Photowatt operations in France.

Improving Automation Systems Group:

- Management has centralized review of all significant customer bids to
increase profitability, coordination, and reduce risk;
- Underperforming divisions and programs have been identified and
actions to improve operations and profitability were initiated;
- Costs in excess of pre-determined standards were identified,
particularly in overhead and SG&A. Remedial steps have been initiated
to eliminate these expenses;
- Performance management and incentive systems are being modified to
align with operational improvement objectives;
- Global account management strategies are being developed;
- The sales and marketing group is being realigned and will sell based
on the value of outcomes achieved by ASG systems, products and
services;
- Consolidation of a small operation in Michigan into other existing
facilities was initiated during January 2008, and is expected to be
completed by early fiscal 2009.

Improving Photowatt France:

- Focus on returning Photowatt France to acceptable levels of
profitability through increasing cell efficiency and throughput,
while reducing manufacturing and overhead costs;
- An investment (of up to euro 20 million) was approved to provide
expansion within the existing Photowatt France facility to balance
production, increase output, and reduce manufacturing costs;
- An evaluation of strategic relationships with third parties was
initiated with the goal of improving the market position of Photowatt
France and increasing ATS shareholder value.

Continuing the PCG sale process:

- Detailed discussions were initiated with qualified purchasers with a
view to obtaining bids during the fourth quarter of fiscal 2008;
- Alternative courses of action were developed if PCG can not be sold
on terms acceptable to ATS;
- Measures were initiated to consolidate existing facilities, reduce
excess capacity and overhead costs;
- An internal reorganization and cost reduction program was initiated
to mitigate deteriorating performance;
- A focused effort to pursue profitable customer contracts and mitigate
foreign exchange risk was initiated.

Improving ATS liquidity through the sale of redundant and non-core
assets:
- The Company's investment in shares of Canadian Solar Inc. were sold
in the third quarter for a gain of $31.8 million;
- A sale process was initiated to divest of the redundant Spheral Solar
building in Cambridge, Ontario;
- A redundant building in Ohio was listed for sale.


Management is still in the process of finalizing plans, but anticipates that the initiatives to improve the operations will cost approximately $30 million over the next several quarters. However, management intends to take a number of cash generating actions, including the sale of non-core assets, to finance a portion of these costs. Management believes that the payback period on the costs of these operational improvement initiatives will likely be less than one year.

Automation Systems Group Segment

<<
ASG Revenue
(in millions of dollars)
Three Months Ended Nine Months Ended
12/31/2007 12/31/2006 12/31/2007 12/31/2006
-------------------------------------------------------------------------
Healthcare $ 37.3 $ 30.5 $ 95.9 $ 117.2
Computer-Electronics 33.2 36.7 84.1 108.1
Automotive 26.4 30.4 80.2 88.6
Energy 14.4 8.4 48.0 12.4
Other 11.5 7.1 31.5 25.8
-------------------------------------------------------------------------
Total $ 122.8 $ 113.1 $ 339.7 $ 352.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>

Third quarter ASG revenue increased 9% or $9.7 million compared to the same quarter a year ago. This was expected due to growth in Order Bookings and Order Backlog experienced in the first half of fiscal 2008.

Strong revenue growth in ASG's Canadian operations was partially offset by revenue declines in the USA and Europe. Repetitive Equipment Manufacturing ("REM") revenue increased 64% to $13.9 million in the third quarter of fiscal 2008, compared to $8.5 million a year ago, primarily reflecting increased order flow from existing customers. REM currently earns revenue primarily from customers in the healthcare industry, but is beginning to expand into the solar industry.

By industrial market, healthcare revenue increased 22% on strong Order Backlog entering the quarter. Computer-electronics revenue declined by 10%, primarily on lower sales in ASG Asia and the USA. Automotive revenue declined 13% reflecting challenges in the North American auto parts sector. However, ASG's period-end automotive Order Backlog was healthy on orders secured in ASG Europe. Revenue from the energy market increased by 71%, reflecting increased penetration into the nuclear and solar industries. Revenue from "other" markets increased 62%.

Quarter-over-quarter foreign exchange rate changes negatively impacted ASG revenues by an estimated $12.2 million for the three month period ended December 31, 2007, compared to a year ago, primarily reflecting a stronger Canadian dollar relative to the US dollar. The foreign exchange impact for the nine month period ended December 31, 2007 was $18.1 million compared to the prior year.

For the nine months ended December 31, 2007, revenue decreased 4%, reflecting lower Order Backlog entering the current fiscal year and the negative impact of foreign exchange rates.

ASG Operating Results

ASG operating income was $2.1 million (2% operating margin) compared to $2.4 million (2% operating margin) a year ago. Current period operating results reflected stronger performance at ASG's North American operations, offset by weaker results in Europe and Asia. European results continued to be negatively impacted by low Order Bookings in France. For Asian operations, lower than expected Order Bookings and lower project margins on several first time assignments negatively impacted the year-over-year performance. Operating earnings in the third quarter of the prior year included wind-up and closure costs of $1.5 million related to the closure of ASG's California facility.

Operating income for the nine months ended December 31, 2007 was $5.1 million (2% operating margin) compared to $10.8 million (3% operating margin) a year ago. Fiscal 2008 operating income includes severance costs of $2.1 million, compared to $5.0 million of severance and restructuring costs in the same period of fiscal 2007.

Foreign exchange rate changes negatively impacted ASG operating earnings for the three and nine month periods ended December 31, 2007, by an estimated $2.6 million and $5.0 million respectively, compared to a year ago. The negative impact primarily reflects a stronger Canadian dollar relative to the US dollar.

ASG Non-GAAP Reconciliation
(in millions of dollars)
Three Months Ended Nine Months Ended
12/31/2007 12/31/2006 12/31/2007 12/31/2006
-------------------------------------------------------------------------
Operating Earnings $ 2.1 $ 2.4 $ 5.1 $ 10.8
Depreciation and Amortization 2.0 2.7 6.1 8.5
-------------------------------------------------------------------------
EBITDA $ 4.1 $ 5.1 $ 11.2 $ 19.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------

ASG Order Bookings and Order Backlog

ASG Order Bookings in the third quarter of fiscal 2008 were $115 million,
6% higher than in the third quarter of fiscal 2007. The year-over-year
increase was primarily due to new REM orders secured in the healthcare
industry. Order Bookings in the first six weeks of the fourth quarter of
fiscal 2008 were $48 million.

Automation Systems Order Backlog by Industry
(in millions of dollars, except percentage change)
Percentage
12/31/2007 12/31/2006 Change
-------------------------------------------------------------------------
Healthcare $ 73 $ 68 7%
Computer-Electronics 42 31 35%
Automotive 49 37 32%
Energy 23 10 130%
Other 24 21 14%
-------------------------------------------------------------------------
Total $ 211 $ 167 26%
-------------------------------------------------------------------------
-------------------------------------------------------------------------


At December 31, 2007, ASG Order Backlog was $211 million, 26% higher than at December 31, 2006 and 14% higher than at March 31, 2007. Healthcare Order Backlog increased 7%, reflecting continued penetration into the North American healthcare market. Computer-electronics Order Backlog reflects strong Order Bookings in North America. Automotive Order Backlog is healthy in both Europe and North America. Energy Order Backlog increased on strong Order Bookings in the nuclear and solar industries. "Other" Order Backlog increased due largely to continued penetration into diversified industries.

Automation Systems Group Outlook

The market outlook for fiscal 2008 expressed in the annual MD&A for fiscal 2007 is unchanged. While management continues to believe that the underlying global trends that create demand for ASG's automated manufacturing solutions are attractive, the strength of the Canadian dollar and ongoing restructuring within the North American automotive market are expected to continue to present challenges. However, management expects period end Order Backlog will allow revenue to trend upward in the fourth quarter of fiscal 2008.

The Automation Systems Group enters the fourth quarter with a focus on significantly improving profitability across all ASG divisions, including:

- Implementing a centralized bid review process including operational,
legal and finance approval of all significant customer bids. This new
process is intended to increase profitability of large customer
contracts, while reducing working capital commitment, credit risk,
technical risk, and contractual risk prospectively and increasing co-
ordination of services to customers globally;
- Improving underperforming divisions that do not meet minimum
profitability, cash flow and organic growth requirements. The cost
structure and market opportunities of such divisions are being
analyzed in detail, with the objective of implementing operational
improvements to meet profitability and cash flow objectives;
- Managing ongoing programs to ensure they meet minimum profitability
and cash flow requirements. Action plans are being developed with the
involvement of senior management to improve the profitability and
cash flow of such programs;
- Identifying costs in excess of pre-determined standards, particularly
in materials, factory overhead and selling, general and
administrative expenses. This initiative includes redefining
relationships with key suppliers to reduce materials costs of ASG
products, evaluating all discretionary spending, and reviewing all
support structure costs;
- Modifying performance management and incentive systems to align with
operational improvement objectives. Leadership talent is also being
assessed in ASG globally, with the objective of further strengthening
senior management over the next several quarters;
- Developing global account management strategies to focus on customer
service, global solutions and developing long-term, strategic
relationships with global accounts;
- Realigning the sales and marketing group to sell based on the value
outcomes achieved by ASG systems, products and services. This
includes developing intellectual property for use in unsolicited
proposals to give our customers significant market advantages and
pricing ATS systems, products or services accordingly.

Management expects that costs associated with implementing these
initiatives will negatively affect ASG profitability during the next several
quarters. However, these measures are expected to improve profitability and
cash flow and enhance organic growth thereafter.



Photowatt Technologies Segment

Photowatt Revenue
(in millions of dollars)
Three Months Ended Nine Months Ended
-------------------------------------------
12/31/2007 12/31/2006 12/31/2007 12/31/2006
-------------------------------------------------------------------------
Revenue by Operating Facility
Photowatt France $ 51.6 $ 39.5 $ 135.2 $ 112.3
Photowatt USA - 1.6 3.1 4.1
Inter-solar Eliminations 0.1 (1.9) (1.0) (4.3)
-------------------------------------------------------------------------
Total Revenue $ 51.7 $ 39.2 $ 137.3 $ 112.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Photowatt France Revenue
by Product
Polysilicon products $ 22.8 $ 38.1 $ 75.1 $ 110.5
MgSi products 28.8 1.4 60.1 1.8
-------------------------------------------------------------------------
Total Revenue $ 51.6 $ 39.5 $ 135.2 $ 112.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Photowatt's total third quarter revenue was $51.7 million, 32% higher than in the third quarter of fiscal 2007. Higher year-over-year revenues primarily reflected a 41% increase in total MWs sold at Photowatt France to 11.6 MWs from 8.2 MWs in the third quarter of fiscal 2007. Growth in MWs sold resulted from increased ingot, wafer and cell production capacity at Photowatt France which came on line in March 2007. In the third quarter, Photowatt France also increased revenue from sales of its module systems ("Systems") to approximately $12.8 million from $4.8 million in the third quarter of fiscal 2007. Systems are modules sales, combined with installation kits, solar power system design and/or other value added services.

Photowatt France's revenue reflects the change in revenue mix from polysilicon products to products made from MgSi. Total MgSi modules and Systems represented $28.8 million of third quarter revenue compared to $1.4 million a year ago. Average MgSi selling prices increased by 4% from the second quarter, with MgSi modules being sold at a 0% to 10% discount compared to polysilicon modules on a per-watt basis. Revenue from polysilicon modules and Systems was $22.8 million in the third quarter, compared to $38.1 million in the third quarter of fiscal 2007. Consistent with the general market trends for solar modules, average selling prices for polysilicon modules and Systems decreased approximately 5% compared to the third quarter of fiscal 2007. Average cell efficiencies were improved in the third quarter to over 13% for MgSi cells.

Foreign exchange rate changes negatively impacted Photowatt France third quarter revenues by an estimated $1.7 million compared to the third quarter of fiscal 2007, primarily reflecting a stronger Canadian dollar relative to the Euro.

For the nine months ended December 31, 2007, revenues increased 22% compared to the nine months ended December 31, 2006. Higher revenues reflected an increase in total MWs sold at Photowatt France to 30.5 MWs from 22.8 MWs during the first nine months of fiscal 2008. These increases were partially offset by reduced average selling prices primarily due to the increased production of MgSi modules which have a lower average selling price than polysilicon modules.

Photowatt Technologies Operating Results
(in millions of dollars)
Three Months Ended Nine Months Ended
12/31/2007 12/31/2006 12/31/2007 12/31/2006
-------------------------------------------------------------------------
Operating Earnings
(Loss):
Photowatt France $ (3.5) $ 4.5 $ (10.1) $ 16.3
Other Solar (1.2) (5.3) (6.0) (15.6)
-------------------------------------------------------------------------
Photowatt Technologies
Operating Earnings (Loss) $ (4.7) $ (0.8) $ (16.1) $ 0.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Photowatt France incurred an operating loss of $3.5 million in the third quarter, compared with operating profit of $4.5 million in the third quarter of fiscal 2007. Included in Photowatt France's third quarter results are severance costs of $0.6 million and a $4.2 million provision related to a customer dispute. Photowatt France's operating loss also includes the investment in the PV Alliance R&D project which generated a loss of $0.4 million. During the third quarter, Photowatt invested $0.6 million in the PV Alliance. Further funding will be assessed based on the preliminary results and findings of the PV Alliance (see note 16 to the Interim Consolidated Financial Statements).

Photowatt France continues to focus on improving its profitability, particularly on MgSi products, through cost reductions, improved efficiencies and increased selling prices. During the third quarter, significant production improvements continued to increase the profitability of MgSi products. The direct cost per watt of manufacturing MgSi modules has decreased approximately 20% since the first quarter of fiscal 2008.

Compared to the prior year quarter, increased revenue during the third quarter of fiscal 2008 of $12.1 million positively impacted Photowatt France operating earnings. This contribution was offset by a number of factors, including:

- Increased costs of polysilicon feedstock due to industry shortages;
greater use of externally-purchased wafers and bricks; and lower
average cell efficiencies including slightly lower efficiencies
achieved on polysilicon-based cells compared to a year ago due to the
use of lower-grade silicon;
- The aforementioned decline in average selling price per watt due to
the increased proportion of MgSi revenues and decrease in industry
price per watt for polysilicon modules;
- A $1.4 million increase in depreciation and amortization compared to
the third quarter of fiscal 2007 primarily as a result of the
capacity expansion completed in fiscal 2007;
- Increased factory overhead costs of approximately $1.6 million in the
third quarter of this year compared to the third quarter last year,
reflecting the higher activity levels and increased capacity.


For the nine months ended December 31, 2007, Photowatt France's operating loss was $10.1 million compared to an operating profit of $16.3 million in the first nine months a year earlier. Lower profitability reflects the factors mentioned above, and a $1.4 million charge taken in the second quarter on a deposit paid to a former silicon supplier.

Other Solar includes Spheral Solar, Photowatt USA, solar corporate costs and inter-solar eliminations. Third quarter operating loss from these divisions was $1.2 million compared to an operating loss of $5.3 million a year ago. The decrease in operating loss reflects the $2.0 million reduction in expenses in the Spheral Solar division as a result of the decision to halt Spheral Solar development and close this facility. The closure of Photowatt USA reduced third quarter operating loss by $0.3 million compared to a year ago. Solar corporate costs and inter-solar eliminations were lower in the third quarter compared to a year ago by $1.0 million and $0.8 million respectively. For the nine months ended December 31, 2007, Other Solar operating loss decreased to $6.0 million from $15.7 million compared to the same period a year ago.

Photowatt France Non-GAAP Reconciliation
(in millions of dollars)
Three Months Ended Nine Months Ended
12/31/2007 12/31/2006 12/31/2007 12/31/2006
-------------------------------------------------------------------------
Operating Earnings (Loss) $ (3.5) $ 4.5 $ (10.1) $ 16.3
Depreciation and Amortization 3.4 2.2 9.8 6.7
-------------------------------------------------------------------------
EBITDA $ (0.1) $ 6.7 $ (0.3) $ 23.0
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Photowatt France Outlook

The long-term market outlook for Photowatt France is positive. Management continues to believe demand for solar products will be positively impacted by a number of trends, which are discussed in the fiscal 2007 annual MD&A.

In the short term, Photowatt France is expected to continue to face the industry-wide challenges associated with shortages of polysilicon, increasing polysilicon prices and lower average selling prices per watt than in fiscal 2007. MgSi products were developed by Photowatt France as an alternative to polysilicon with the objective of creating a competitive advantage due to the industry-wide shortages of polysilicon. With MgSi products now being manufactured in substantial quantities, the operational focus is to increase the power conversion efficiency ("cell efficiency") and reduce the cost per watt of manufacturing MgSi modules. Given the shortage of polysilicon at reasonable prices, management expects to continue to use the majority of its manufacturing capacity in fiscal 2008 and fiscal 2009 to produce MgSi products. Although significant improvements have been made, until the cell efficiency of these products is enhanced, production of these products is expected to have a negative impact on profitability compared to historical margins using polysilicon (secured at lower historical cost than available in the market today).

In light of challenging market conditions, and the resulting decline in performance of Photowatt, management has initiated a strategic and operational review of this business. While this review is undertaken, the Company intends to focus on three strategic initiatives in the short term:

Return the existing Photowatt operations to acceptable levels of
profitability. Preliminary results of reviewing Photowatt France's operations
indicate significant opportunities to reduce costs of the existing operating
facility. Operational improvements will focus on:
- Reducing scrap rates and simplifying processes using automation.
Solar automation experts from the Company's ASG segment are
evaluating the existing manufacturing processes with a mandate to
reduce manufacturing costs in the existing facility. Process
improvement efforts will focus on increasing manufacturing yields;
reducing scrap rates; increasing throughput at all stages of
production and automating manually-intensive processes;
- Increasing both MgSi and polysilicon cell efficiencies. During the
third quarter, Photowatt formalized the initial phase of the PV
Alliance with EDF EN ("EDF"), a partially owned subsidiary of
Electricité de France, and CEA Valorisation which contemplates
research to improve the power efficiencies of both polysilicon and
MgSi solar cells and, in later phases, manufacturing of the resulting
products. Following the official public launch of the PV Alliance on
November 9, 2007 attended by the Prime Minister of France, the
partners began development activities during the third quarter of
fiscal 2008. It is expected that the PV Alliance will apply for
subsidies from the French government;
- Evaluating all discretionary spending and focus on reducing other
expenditures.

Invest up to euro 20 million on expansion of the existing facility and
cost improvement initiatives. Investments will be focused on removing
bottlenecks as a means of balancing plant capacity and improving the
productivity and efficiency of the facility.

Enter into strategic relationships to strengthen Photowatt's market
position and increase ATS shareholder value. During the third and fourth
quarters of fiscal 2008, management initiated discussions with potential
strategic partners in this respect. Significant contracts to date include:
- An agreement to supply EDF with refined metallurgical silicon modules
with delivery of 17.5 MWs in calendar 2008 and a minimum delivery of
10 MWs per annum from January 2009 through to December 31, 2010 - for
a total of at least 37.5 MWs - demonstrating early market acceptance
of this new product line;
- A multi-year agreement to purchase high-purity polysilicon to support
approximately 14 MWs of solar production per annum starting in
January 2010 and continuing for a nine-year period.


Management believes that it is imperative to return Photowatt to profitability, maximize the use of the current facility, and enter into a strategic relationship to secure silicon before further significant investments are made in this business. Management continues to believe that Photowatt should become a standalone company, but must first return to acceptable levels of performance.

Precision Components Group Segment

Third quarter PCG revenue of $17.2 million was $2.7 million lower than in the same period of fiscal 2007. PCG revenue for the nine months ended December 31, 2007 of $53.3 million was $11.7 million lower than the comparable prior year period. Declines in PCG revenue compared to the prior year periods were primarily due to lower volumes on existing customer programs primarily caused by significant production cuts by the Big Three North American automakers and due to some programs coming to the end of their product life.

Foreign exchange negatively impacted third quarter fiscal 2008 PCG revenues by an estimated $1.5 million, and $2.6 million for the nine months ended December 31, 2007 compared to the prior year.

PCG Non-GAAP Reconciliation
(in millions of dollars)
Three Months Ended Nine Months Ended
12/31/2007 12/31/2006 12/31/2007 12/31/2006
-------------------------------------------------------------------------

Operating Loss $ (27.0) $ (1.4) $ (30.8) $ (2.1)
Depreciation and Amortization 1.6 1.7 5.0 5.2
-------------------------------------------------------------------------
EBITDA $ (25.4) $ 0.3 $ (25.8) $ 3.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------


During the third quarter of fiscal 2008, the continued decline in PCG profitability indicated a risk that the long-lived assets of PCG were impaired. As a result, management performed an asset impairment test in accordance with CICA Handbook Section 3063, which indicated that anticipated undiscounted future cash flows did not demonstrate full recovery of the carrying value of PCG deferred pre-production costs and property, plant and equipment. As a result, PCG long-lived assets were written down to their estimated fair market value, resulting in a non-cash impairment charge of $19.1 million. Further information is included in Note 18 of the Interim Consolidated Financial Statements. In conjunction with the impairment test on long-lived assets, management performed an assessment on the recoverability of current working capital asset balances. Management has recorded valuation allowances of $4.2 million and $0.7 million against the carrying values of inventory and accounts receivable respectively, due to continued margin deterioration, loss of customer programs and disputed accounts receivable. The PCG operating loss of $27.0 million in the third quarter of fiscal 2008 reflected these non-cash charges. The operating loss in the third quarter of fiscal 2007 included $0.8 million of costs related to the closure of the MPP facility.

Excluding the aforementioned non-cash asset impairment charges, the operating loss for the three months ended December 31, 2007 was $3.0 million compared to $1.4 million a year ago. This reflected lower volumes on existing programs, excess capacity and overhead in existing facilities, and the continued negative impact of a strong Canadian dollar on long term, fixed USD price contracts. Foreign exchange negatively impacted third quarter fiscal 2008 PCG operating earnings by an estimated $0.7 million compared to the third quarter of fiscal 2007 and by an estimated $1.0 million in the nine month period ended December 31, 2007, compared to a year ago.

Excluding the impact of the aforementioned non-cash asset impairment charge, PCG generated negative EBITDA of $1.4 million for the three months ended December 31, 2007 compared to positive EBITDA of $0.3 million a year ago.

PCG Outlook

During the first quarter of fiscal 2008, ATS retained financial advisors to identify and evaluate strategic alternatives to exit the remaining PCG operations. During the second quarter of fiscal 2008, ATS and its financial advisors initiated a formal sale process by contacting potential purchasers and circulating a confidential information memorandum to certain qualified potential purchasers. During the third quarter of fiscal 2008, several expressions of interest were received from potential purchasers of PCG. Subsequent to the third quarter, PCG engaged qualified potential purchasers in detailed management presentations and expects to obtain bids during the fourth quarter of fiscal 2008. The Company has also developed alternative courses of action should the Company not be able to sell PCG on terms acceptable to ATS, including strengthening of the core business.

In addition to continuing its efforts to sell PCG, management has started to implement several aggressive performance improvement measures designed to strengthen this operating segment, including initiating:

- The consolidation of the Advanced Manufacturing Division in
Cambridge, Ontario, into existing facilities in China and Stratford,
Ontario in order to reduce overhead costs, while creating
manufacturing capacity for REM (see "Automation Systems Group
Segment");
- An internal reorganization and cost reduction program to improve cash
flow and profitability.


PCG is also pursuing profitable customer contracts while working to mitigate foreign exchange risk.

Management believes continued strengthening of the Canadian dollar and the difficult conditions in the North American automotive parts market will negatively impact PCG revenue and earnings during the balance of fiscal 2008. The measures being implemented by management are intended to improve the cash flows and profitability of PCG during the first half of fiscal 2009. The objective of these measures is to reduce PCG losses and strengthen the Company's ability to sell this segment on acceptable terms and within a short timeframe.

Consolidated Results from Operations

Revenue. At $191.3 million, consolidated revenue from continuing operations for the three months ended December 31, 2007 increased 11% compared to a year ago. A 32% increase in Photowatt revenue and 9% increase in ASG revenue more than offset a 14% decline in PCG revenues. For the nine month period ended December 31, 2007, consolidated revenue increased by $1.9 million. A 22% increase in Photowatt revenue more than offset a 4% decline in ASG revenue and an 18% decline in PCG revenue. The estimated effect on revenue of changes in effective foreign exchange rates was a decrease in revenue of $15.4 million for the three months ended December 31, 2007, and $20.6 million for the nine months ended December 31, 2007 compared to the same periods of the prior year.

Consolidated earnings (loss) from operations. For the three and nine month periods ended December 31, 2007, consolidated loss from operations was $2.8 million and $30.1 million respectively, compared to loss from operations of $2.5 million and earnings from operations of $0.7 million a year ago. Fiscal 2008 third quarter performance reflected: operating earnings of $2.1 million at ASG (operating earnings of $2.4 million a year ago); Photowatt operating loss of $4.7 million (operating loss of $0.8 million a year ago); PCG operating loss of $27.0 million ($1.4 million operating loss a year ago); inter-segment eliminations and corporate expenses of $4.9 million ($2.7 million a year ago) and a gain on the sale of a portfolio investment of $31.8 million (nil a year ago). Increased eliminations and corporate expenses reflected incremental professional fees and stock-based compensation. Changes in effective foreign exchange rates decreased operating earnings by an estimated $3.1 million for the three months ended December 31, 2007, and by $5.7 million for the nine months ended December 31, 2007 compared to the same periods in the prior year.

Selling, general and administrative ("SG&A") expenses. For the third quarter of fiscal 2008, SG&A expenses increased 19% or $4.2 million to $26.5 million compared to the respective prior year period. Included in SG&A for the third quarter of fiscal 2008 was: $0.7 million of consolidated severance costs pertaining primarily to the resignation of certain senior officers of the Company and the elimination of jobs at Spheral Solar; and a $4.2 million provision related to a customer dispute in Photowatt. Fiscal 2007 third quarter SG&A expenses included $1.5 million in severance charges and lease costs incurred with the closing of the California plant. For the nine months ended December 31, 2007, SG&A expenses increased 16%, or $10.6 million to $76.5 million compared to the respective prior year period. SG&A costs for the nine months ended December 31, 2007 included severance costs of $7.7 million, $1.9 million related to the change in the Board of Directors; and, $0.5 million of recruiting costs for certain senior level positions in the Company. SG&A expenses for the nine months ended December 31, 2006 included a $0.4 million PCG provision for receivables pertaining to an automotive customer that filed for Chapter 11 bankruptcy protection.

Stock-based compensation cost. For the three and nine month periods ended December 31, 2007, stock-based compensation expense increased to $0.6 million and $2.6 million respectively compared to $0.1 million and $0.8 million a year earlier. The increase during the third quarter reflected new option grants made in the quarter. The third quarter of fiscal 2007 also reflected a reduction of stock-based compensation expense of $0.1 million associated with the revaluation of deferred stock units of certain directors of the Company. Expenses for the nine months ended December 31, 2007 also reflected accelerated vesting of options of certain officers of the Company who resigned during the second quarter. The impact of this accelerated vesting was $1.2 million.

Interest expense. For the three month period ended December 31, 2007, interest expense decreased to $0.7 million compared to $1.1 million a year earlier. The decrease in expense in the third quarter primarily reflected lower usage of the Company's credit facilities compared to the same period a year ago. For the nine month period ended December 31, 2007, interest expense increased to $3.4 million compared to $2.5 million a year earlier. The increase in expense for the nine month period reflects higher usage of the Company's credit facilities during the year and increased interest rates in the first and second quarters of fiscal 2008.

Loss from discontinued operations, net of tax. The loss from discontinued operations during the first nine months of fiscal 2007 included a non-cash charge of $2.0 million ($2.2 million before taxes) to write down the assets of the Company's Berlin, Germany coil winding operation to their net realizable value. This operation was sold during the three months ended June 30, 2006, and accordingly, its results and financial position have been segregated and presented separately as discontinued operations. See Note 5 to the Interim Consolidated Financial Statements for further details on the net loss from discontinued operations.

Provision for (recovery of) income taxes. The Company's effective income tax rate differs from the combined Canadian basic federal and provincial income tax rate of 36.1% (2007 - 36.1%) primarily as a result of losses incurred in Canada, the benefits of which have not been recognized for financial statement reporting purposes.

Net loss from continuing operations. For the three month period ended December 31, 2007, net loss from continuing operations was $3.7 million (5 cents per share) compared to net loss from continuing operations of $2.4 million (4 cents per share) a year ago. For the nine month period ended December 31, 2007, net loss from continuing operations was $31.4 million (46 cents per share) compared to net loss from continuing operations of $2.0 million (3 cent per share) a year ago.

Net loss. For the three month period ended December 31, 2007, net loss was $3.7 million (5 cents per share) compared to net loss of $2.4 million (4 cent per share) for the same period last year. For the nine month period ended December 31, 2007, net loss was $31.4 million (46 cents per share) compared to net loss of $4.2 million (7 cents per share) a year ago.

Foreign Exchange

Year-over-year foreign exchange rate decreases during the three month period ended December 31, 2007, negatively impacted consolidated revenue by an estimated $15.4 million compared to the third quarter of fiscal 2007. This decrease was primarily related to the effect of a stronger Canadian dollar relative to the US dollar and Euro. Changes in foreign exchange rates also reduced third quarter fiscal 2008 consolidated operating earnings by an estimated $3.1 million compared to the third quarter of fiscal 2007.

Period Average Market Exchange Rates in CDN$

Three months ended Nine months ended
12/31/2007 12/31/2006 % change 12/31/2007 12/31/2006 % change
-------------------------------------------------------------------------
US $ 0.9822 1.1399 (13.8) 1.0410 1.1270 (7.6)
Euro 1.4246 1.4736 (3.3) 1.4460 1.4374 0.6
Singapore $ 0.6758 0.7325 (7.7) 0.6942 0.7157 (3.0)
-------------------------------------------------------------------------


Liquidity, Cash Flow and Financial Resources

On December 27, 2007, the agreement governing the Company's primary operating credit facility (the "Credit Agreement") was amended resulting in the authorized operating credit facility being reduced from $130.0 million to $80.0 million. The amended operating credit facility, which is secured by a general security agreement, is repayable on March 31, 2008. The amended operating credit facility is subject to a current assets to current debt covenant of 1.25:1, and a debt to shareholders' equity covenant of 1.5:1. Under the terms of the Credit Agreement, the Company is restricted from encumbering any assets with certain permitted exceptions. The Credit Agreement also restricts the disposition of certain assets with an agreement to reduce available credit by an amount equal to a portion of the net proceeds received by the Company from certain material asset sales, if any. The Company is in compliance with these covenants and restrictions.

The Company is currently negotiating with several financial institutions to establish a long-term credit facility to replace the Credit Agreement. The Company believes that a long-term credit agreement or credit extension will be reached at terms that are satisfactory to ATS. In the event that such an agreement or extension is not yet in place at March 31, 2008, the Company believes that there is sufficient cash on hand and availability of alternative sources of funding, including financing of land and buildings, to repay amounts due under the credit agreements, manage ongoing working capital requirements and meet existing cash commitments.

During the second quarter of fiscal 2008, the Company completed a rights offering, raising gross proceeds of $110.2 million (net proceeds of $102.5 million). In total ATS received subscriptions of 16,011,247 common shares. Under the Additional Subscription Privilege, 1,678,903 shares were purchased. A portion of the net proceeds of the rights offering are being used to further expand the manufacturing capacity and to reduce manufacturing costs of Photowatt France. The remaining proceeds were primarily used during the third quarter to significantly reduce amounts drawn on the Company's existing operating credit facility.

Cash balances, net of bank indebtedness and long-term debt, at December 31, 2007 increased $63.9 million compared to March 31, 2007, primarily due to the rights offering and the sale of the Company's investment in shares of Canadian Solar Inc.

The Company invested $2.4 million and $13.8 million respectively in property, plant and equipment during the three and nine month periods ended December 31, 2007, including $1.4 million and $10.2 million respectively in Photowatt.

No stock options were exercised during the first nine months of fiscal 2008. At February 8th, 2008 the total number of shares outstanding was 76,952,155. The outstanding number of options increased 2.0 million due to stock option grants in the third quarter.

The Company's debt to equity ratio at December 31, 2007 was 0.1:1, compared to 0.2:1 at March 31, 2007 and 0.3:1 at September 30, 2007. At December 31, 2007 the Company had approximately $78 million of unutilized credit available under existing operating facilities.

Related Party Transactions

Certain of the directors of the Company are related to Goodwood Inc. and Mason Capital Management, LLC. The Company has reimbursed $0.5 million of proxy-circular related costs incurred in connection with the election of the new Board of Directors.

Mr. Laborde, the new CEO of Photowatt, is also the President of PV Alliance, in which Photowatt has a 40% investment interest. During the quarter, Photowatt invested euro 0.4 million in the PV Alliance.

Consolidated Quarterly Results

<<
($ in thousands, except Q3 Q2 Q1 Q4
per share amounts) 2008 2008 2008 2007
-------------------------------------------------------------------------
Revenue $ 191,339 $ 163,339 $ 174,801 $ 172,486

Net earnings (loss) from
continuing operations $ (3,662) $ (18,763) $ (8,937) $ (80,854)

Net earnings (loss) $ (3,662) $ (18,763) $ (8,937) $ (80,854)

Basic earnings (loss)
per share from
continuing operations $ (0.05) $ (0.28) $ (0.15) $ (1.36)

Basic earnings (loss)
per share $ (0.05) $ (0.28) $ (0.15) $ (1.36)

Diluted earnings (loss)
per share from
continuing operations $ (0.05) $ (0.28) $ (0.15) $ (1.36)

Diluted earnings (loss)
per share $ (0.05) $ (0.28) $ (0.15) $ (1.36)


($ in thousands, except Q3 Q2 Q1 Q4
per share amounts) 2007 2007 2007 2006
-------------------------------------------------------------------------
Revenue $ 171,792 $ 164,598 $ 191,196 $ 208,775

Net earnings (loss) from
continuing operations $ (2,389) $ (2,110) $ 2,496 $ (65,073)

Net earnings (loss) $ (2,389) $ (2,110) $ 338 $ (65,589)

Basic earnings (loss)
per share from
continuing operations $ (0.04) $ (0.04) $ 0.04 $ (1.09)

Basic earnings (loss)
per share $ (0.04) $ (0.04) $ 0.01 $ (1.11)

Diluted earnings (loss)
per share from
continuing operations $ (0.04) $ (0.04) $ 0.04 $ (1.09)

Diluted earnings (loss)
per share $ (0.04) $ (0.04) $ 0.01 $ (1.11)
>>

ATS' revenue and operating results are generally lower in the second quarter of each fiscal year (three months ended September 30th) due to summer plant shutdowns.

Contractual Obligations

Information on the Company's lease and contractual obligations is detailed in the consolidated annual financial statements and MD&A for the year ended March 31, 2007 found at www.sedar.com. The Company's off balance sheet arrangements consist of operating lease financing related primarily to facilities and equipment.

In April 2007, the Company entered into a commitment to purchase 1,700 tonnes of MgSi commencing in 2007 and ending December 31, 2011. Advance payments are required, which will be applied against the price of the product received. Commencing in calendar 2008, the price per kilogram of metallurgical-grade silicon may be adjusted at the beginning of the year based upon an agreed upon formula.

In June 2007, the Company entered into an eight-year commitment, commencing January 1, 2010, to purchase approximately 32 million polysilicon wafers over the term of the agreement. Advance payments are required, which will be applied against the price of the wafers received during the life of the commitment. The price per wafer will be adjusted at the beginning of each calendar year based upon an agreed upon formula.

In September 2007, the Company entered into a nine-year commitment, commencing January 2010, to purchase high-purity polysilicon to support approximately 14 MWs of Photowatt solar production per annum. Advance payments are required, which will be applied against the price of the product received.

The Company has exercised its right to purchase the remaining outstanding minority interest in a subsidiary. The purchase price is yet to be established.

Changes in Accounting Policies

Effective April 1, 2007, the Company adopted new Canadian Institute of Chartered Accountants Handbook Sections which established the accounting and reporting standards for financial instruments and hedging activities. These sections require the initial recognition of financial instruments at fair value on the balance sheet. As required by these standards, the comparative interim consolidated financial statements have not been restated except for the reclassification of the cumulative translation adjustment to accumulated other comprehensive income. See Note 2 to the interim consolidated financial statements for further details including the impact of adopting these standards.

The Canadian Institute of Chartered Accountants has also issued new Handbook Sections that will become effective for the Company on April 1, 2008 - see Note 3 to the interim consolidated financial statements. The Company is currently evaluating the impact of adopting these future accounting standards.

Controls and Procedures

In its annual MD&A dated June 18, 2007 and for the fiscal year ended March 31, 2007, the Company reported that it had identified certain weaknesses in the design of internal controls over financial reporting. The Company, with the assistance of external specialists, has developed remediation plans for the identified controls deficiencies, and continues to make progress on implementing the remediation plans. In preparing the interim consolidated financial statements for the three and nine month periods ended December 31, 2007, the Company again performed a number of additional financial review procedures in an effort to mitigate the risk of undetected material errors in the Company's Consolidated Financial Statements and disclosures. During the three and nine months ended December 31, 2007, there have been no changes in the Company's internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal controls over financial reporting.

Forward Looking Statement

This news release relates to ATS' third quarter financial results for the three months ended December 31, 2007 and contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of ATS, or developments in ATS' business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. ATS cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, certain initiatives to increase profitability, reduce costs improve operation effectiveness, reduce risk and the related timing, impact on results and benefits thereof; potential for ASG revenue growth based on period end Order Backlog; goal to return Photowatt to acceptable levels of profitability during fiscal 2009; timing of Photowatt France becoming a standalone company; continuing impact of Canadian dollar and restructuring within the North American automotive market on ASG and PCG operations; long term market outlook for Photowatt France; demand for solar products; challenges facing Photowatt; expected use of MgSi; expected revenue per watt for MgSi products shipped under EDF contract; short term strategic initiatives at Photowatt France; expectations in relation to PCG sales process; management's belief that a long-term credit agreement or extension will be reached; management's belief that the Company has ability to repay amounts due under the current credit agreement and manage working capital requirements and cash commitments; and terms of various contractual obligations. The risks and uncertainties that may affect forward-looking statements include, among others, general market performance and restructuring within the North American automotive market; foreign currency and exchange risk; strength of the Canadian dollar; performance of the market sectors that ATS serves; that some or all of the trends towards automation that ATS believes are attractive dissipate or do not result in increased demand for automation; risks associated with operating and servicing customers in a foreign country; that multinational companies withdraw from global manufacturing for business, political, economic or other reasons; unforeseen problems with the implementation of the structural and operational initiatives or failure of those measures to bring about improved performance; that the solar partnerships developed to date are withdrawn or are otherwise unable to meet their objectives; problems associated with the expansion of production capability and adoption of new production processes at Photowatt; managing the impact of supply shortages and higher prices for polysilicon; Photowatt's ability to improve efficiencies of its solar modules produced using lower grade polysilicon or refined metallurgical silicon either alone or through partnerships; Photowatt's ability to secure additional long-term polysilicon supply contracts; the reduction in government incentives and its effect on Photowatt; inability to enter into and advance collaborative development arrangements focused on increasing power efficiencies of solar cells; political, labour or supplier disruptions in manufacturing and supply of silicon; uncertainties related to adopting new technologies, including procuring the appropriate human capital; the state of the capital markets; the ability of ATS to exit the remaining PCG operations on terms satisfactory to ATS; delays in negotiating and concluding an extension or long term credit agreement; and other risks detailed from time to time in ATS' filings with Canadian provincial securities regulators, including ATS' Annual Report and Annual Information Form for the fiscal year ended March 31, 2007. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and ATS does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

ATS AUTOMATION TOOLING SYSTEMS INC.
Consolidated Balance Sheets
(in thousands of dollars - unaudited)

December 31 March 31
2007 2007
-------------------------------------------------------------------------
ASSETS
Current assets
Cash and short-term investments $ 38,622 $ 25,568
Accounts receivable 125,472 131,410
Investment tax credits 13,712 13,712
Costs and earnings in excess of billings on
contracts in progress 77,757 73,755
Inventories 88,427 74,804
Future income taxes 2,005 -
Deposits and prepaid assets (notes 2 and 6) 15,941 10,861
-------------------------------------------------------------------------
361,936 330,110
Property, plant and equipment 170,616 221,718
Goodwill 32,040 35,657
Intangible assets 230 352
Future income taxes 1,226 179
Deferred development costs 2,042 2,414
Assets held for sale (note 5) 14,156 -
Portfolio investments (notes 2 and 4) 5,690 4,728
Other assets (note 7) 32,121 5,907
-------------------------------------------------------------------------
$ 620,057 $ 601,065
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness (note 11) $ 25,864 $ 37,204
Accounts payable and accrued liabilities 123,541 122,587
Billings in excess of costs and earnings on
contracts in progress 34,132 23,186
Future income taxes 18,045 14,395
Current portion of long-term debt (note 11) - 447
-------------------------------------------------------------------------
201,582 197,819
Long-term debt (note 11) - 39,025
Future income taxes - 75
Other long-term liabilities 828 877
Non-controlling interest 1,728 1,890

Shareholders' equity
Share capital (note 12) 430,082 327,560
Contributed surplus 5,572 3,193
Accumulated other comprehensive income (note 14) (28,465) (9,422)
Retained earnings 8,730 40,048
-------------------------------------------------------------------------
415,919 361,379
-------------------------------------------------------------------------
$ 620,057 $ 601,065
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to interim consolidated financial statements



ATS AUTOMATION TOOLING SYSTEMS INC.
Consolidated Statements of Operations
(in thousands, except per share amounts - unaudited)

Three months ended Nine months ended
-------------------------------------------------------------------------
December December December December
31 31 31 31
2007 2006 2007 2006
-------------------------------------------------------------------------

Revenue $ 191,339 $ 171,792 $ 529,479 $ 527,589
-------------------------------------------------------------------------

Operating costs and expenses
Cost of revenue 172,712 145,140 471,993 438,831
Amortization 7,013 6,787 21,128 21,272
Selling, general and
administrative 26,486 22,264 76,547 65,955
Stock-based compensation
(note 8) 588 95 2,628 834
-------------------------------------------------------------------------
206,799 174,286 572,296 526,892
-------------------------------------------------------------------------

Earnings (loss) before
undernoted (15,460) (2,494) (42,817) 697

Impairment of long-lived assets
(note 18) (19,109) - (19,109) -
Gain on sale of portfolio
investments (note 4) 31,779 - 31,779 -
-------------------------------------------------------------------------
Earnings (loss) from operations (2,790) (2,494) (30,147) 697
-------------------------------------------------------------------------

Other expenses
Interest on long-term debt - 807 1,551 2,329
Other interest 747 248 1,847 191
-------------------------------------------------------------------------
747 1,055 3,398 2,520
-------------------------------------------------------------------------

Loss from continuing operations
before income taxes and
non-controlling interest (3,537) (3,549) (33,545) (1,823)

Provision for (recovery of)
income taxes 112 (1,198) (2,224) 35
Non-controlling interest in
earnings of subsidiaries 13 38 42 145
-------------------------------------------------------------------------
Net loss from continuing
operations (3,662) (2,389) (31,363) (2,003)

Loss from discontinued
operations, net of tax
(note 5) - - - (2,158)
-------------------------------------------------------------------------

Net loss $ (3,662) $ (2,389) $ (31,363) $ (4,161)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Loss per share (note 9)
Basic and diluted - from
continuing operations $ (0.05) $ (0.04) $ (0.46) $ (0.03)
Basic and diluted - from
discontinued operations 0.00 0.00 0.00 (0.04)
-------------------------------------------------------------------------
$ (0.05) $ (0.04) $ (0.46) $ (0.07)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to interim consolidated financial statements



ATS AUTOMATION TOOLING SYSTEMS INC.
Consolidated Statements of Shareholders' Equity
(in thousands of dollars - unaudited)

Nine months ended December 31, 2007
-------------------------------------------------------------------------
Accumulated
Other
Compre-
Contri- hensive
Share buted Income
Capital Surplus (Loss)
-------------------------------------------------------------------------

Balance, beginning of period, as
previously reported $ 327,560 $ 3,193 $ (9,422)
Transitional adjustment on adoption of
new accounting standards (note 2) - - 20,534
-------------------------------------------------------------------------
Balance beginning of period, as restated 327,560 3,193 11,112

Comprehensive loss
Net loss - - -
Currency translation adjustment
(note 15) - - (23,699)
Net unrealized loss on available
for-sale financial assets (net of
income taxes of $nil) - - (1,726)
Amount transferred to income on
available for-sale financial assets
(net of income taxes of $2,415) - - (18,420)
Net unrealized gain on derivative
financial instruments designated
as cash flow hedges (net of income
taxes of $nil) - - 7,637
Amount transferred to net earnings
(loss) for derivatives designated
as cash flow hedges (net of income
taxes of $nil) - - (3,369)

Total comprehensive loss (note 14)

Stock-based compensation (note 8) - 2,379 -
Shares issued during the period for
cash on rights offering, net (note 12) 102,522 - -
-------------------------------------------------------------------------

Balance, end of the period $ 430,082 $ 5,572 $ (28,465)
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Nine months ended December 31, 2007
-------------------------------------------------------------------------
Total
Share-
Retained holders'
Earnings Equity
-------------------------------------------------------------------------

Balance, beginning of period, as
previously reported $ 40,048 $ 361,379
Transitional adjustment on adoption of
new accounting standards (note 2) 45 20,579
-------------------------------------------------------------------------
Balance beginning of period, as restated 40,093 381,958

Comprehensive loss
Net loss (31,363) (31,363)
Currency translation adjustment
(note 15) - (23,699)
Net unrealized loss on available
for-sale financial assets (net of
income taxes of $nil) - (1,726)
Amount transferred to income on
available for-sale financial assets
(net of income taxes of $2,415) - (18,420)
Net unrealized gain on derivative
financial instruments designated
as cash flow hedges (net of income
taxes of $nil) - 7,637
Amount transferred to net earnings
(loss) for derivatives designated
as cash flow hedges (net of income
taxes of $nil) - (3,369)
----------

Total comprehensive loss (note 14) (70,940)

Stock-based compensation (note 8) - 2,379
Shares issued during the period for
cash on rights offering, net (note 12) - 102,522
-------------------------------------------------------------------------

Balance, end of the period $ 8,730 $ 415,919
-------------------------------------------------------------------------
-------------------------------------------------------------------------



Nine months ended December 31, 2006
-------------------------------------------------------------------------
Accumulated
Other
Compre-
Contri- hensive
Share buted Income
Capital Surplus (Loss)
-------------------------------------------------------------------------

Balance, beginning of period $ 326,840 $ 2,035 $ (23,017)
Net loss - - -
Currency translation adjustment - - 11,006
Issuance of common shares 645 - -
Stock-based compensation - 914 -
-------------------------------------------------------------------------

Balance, end of period $ 327,485 $ 2,949 $ (12,011)
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Nine months ended December 31, 2006
-------------------------------------------------------------------------
Total
Share-
Retained holders'
Earnings Equity
-------------------------------------------------------------------------

Balance, beginning of period $ 125,063 $ 430,921
Net loss (4,161) (4,161)
Currency translation adjustment - 11,006
Issuance of common shares - 645
Stock-based compensation - 914
-------------------------------------------------------------------------

Balance, end of period $ 120,902 $ 439,325
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to interim consolidated financial statements



ATS AUTOMATION TOOLING SYSTEMS INC.
Consolidated Statements of Cash Flows
(in thousands of dollars - unaudited)

Three months ended Nine months ended
-------------------------------------------------------------------------
December December December December
31 31 31 31
2007 2006 2007 2006
-------------------------------------------------------------------------

Operating activities:
Net loss $ (3,662) $ (2,389) $ (31,363) $ (4,161)
Items not involving cash
Amortization 7,013 6,787 21,128 21,272
Future taxes 3,217 (1,809) 522 (1,875)
Other items not
involving cash 26 1,033 1,288 (6,659)
Stock-based compensation 588 95 2,628 834
Gain on disposal of
portfolio investment
(note 4) (31,779) - (31,779) -
Impairment of long-lived
assets (note 18) 19,109 - 19,109 -
Write down of assets to
net realizable value
(note 5) - - - 1,978
-------------------------------------------------------------------------
Cash flow from operations (5,488) 3,717 (18,467) 11,389
Change in non-cash operating
working capital 10,923 23,474 (8,021) (8,813)
-------------------------------------------------------------------------
Cash flows provided by
(used in) operating
activities 5,435 27,191 (26,488) 2,576
-------------------------------------------------------------------------

Investing activities:
Acquisition of property,
plant and equipment (2,422) (21,803) (13,800) (38,171)
Cash paid for acquisition
of Subsidiary - (1,475) - (1,475)
Restricted cash 3,050 - - -
Proceeds from disposal of
portfolio investment
(note 4) 31,932 - 31,932 -
Investments and other (7,214) (4,430) (27,451) (10,793)
Proceeds from disposal
of assets 78 253 122 679
-------------------------------------------------------------------------
Cash flows provided by
(used in) investing
activities 25,424 (27,455) (9,197) (49,760)
-------------------------------------------------------------------------

Financing activities:
Bank indebtedness (36,444) 1,783 (22,550) 19,667
Share issue costs (note 12) - - (7,688) -
Proceeds from long-term debt
(note 11) - - 60,000 20,000
Repayment of long-term debt
(note 11) (58,456) - (86,817) -
Issuance of common
shares of subsidiary - 804 - 804
Issuance of common shares
(note 12) - 134 110,210 645
-------------------------------------------------------------------------
Cash flows provided by
(used in) financing
activities (94,900) 2,721 53,155 41,116
-------------------------------------------------------------------------

Effect of exchange rate
changes on cash and
short-term investments 386 1,687 (4,416) 690
-------------------------------------------------------------------------

Increase (decrease) in cash
and short-term investments (63,655) 4,144 13,054 (5,378)
Cash and short-term
investments, beginning
of period 102,277 18,399 25,568 27,921
-------------------------------------------------------------------------

Cash and short-term
investments, end of period $ 38,622 $ 22,543 $ 38,622 $ 22,543
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Supplementary information
Cash income taxes paid $ 3,165 $ 1,929 $ 4,556 $ 9,713
Cash interest paid $ 1,666 $ 1,414 $ 5,381 $ 3,786
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to interim consolidated financial statements



ATS AUTOMATION TOOLING SYSTEMS INC.
Notes to Interim Consolidated Financial Statements
(tabular amounts in thousands, except per share amounts - unaudited)

The interim consolidated financial statements for the three and the
nine months ended December 31, 2006 have not been reviewed or audited by
the Company's auditor.

1. Significant accounting policies:

(i) The accompanying interim consolidated financial statements are
prepared in accordance with accounting principles generally accepted in
Canada ("GAAP") and the accounting policies and method of their
application are consistent with those described in the annual
consolidated financial statements for the year ended March 31, 2007
except for the adoption of the new accounting standards included in
note 2 herein. The interim consolidated financial statements presented in
this interim report do not conform in all respects to the requirements of
generally accepted accounting principles for annual financial statements
and should be read in conjunction with the Company's annual consolidated
financial statements for the year ended March 31, 2007.

(ii) The preparation of these interim consolidated financial statements
in conformity with GAAP requires management to make estimates and
assumptions that may affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the interim consolidated financial statements and the reported
amount of revenue and expenses during the reporting period. Actual
results could differ from these estimates. Significant estimates and
assumptions are used when accounting for items such as impairment of
assets, recoverability of deferred development costs, fair value of
reporting units, fair value of assets held for sale, warranties, income
taxes, future tax assets, investment tax credits, determination of
estimated useful lives of intangible assets and property, plant and
equipment, impairment of long-term investments, contracts in progress,
inventory provisions, revenue recognition, contingent liabilities, and
allowances for accounts receivable.

2. Change in accounting policies:

Effective April 1, 2007, the Company adopted the new Canadian Institute
of Chartered Accountants ("CICA") Handbook Sections 1530 "Comprehensive
Income", 3251 "Equity", 3855 "Financial Instruments - Recognition and
Measurement", 3861 "Financial Instruments - Disclosure and Presentation"
and 3865 "Hedges". These CICA Handbook Sections establish the accounting
and reporting standards for financial instruments and hedging activities,
and require the initial recognition of financial instruments at fair
value on the interim consolidated balance sheet. As required by the
standards, the comparative interim consolidated financial statements have
not been restated, except for the reclassification of the cumulative
translation adjustment to accumulated other comprehensive income.

Comprehensive income and equity

CICA Handbook Section 1530 requires the presentation of comprehensive
income and its components in a financial statement. Comprehensive income
is composed of the Company's net income and other comprehensive income
which includes unrealized gains and losses on translating financial
statements of self-sustaining foreign operations, changes in the fair
value of the effective portion of cash flow hedging instruments and
changes in unrealized gains (losses) on available-for-sale financial
assets measured at fair value. The Company discloses comprehensive income
within its interim consolidated statements of shareholders' equity.

CICA Handbook Section 3251 provides standards for the presentation of
equity and changes in equity during the reporting period.

Financial instruments

CICA Handbook Section 3855 establishes standards for recognizing and
measuring financial instruments, including derivatives. Under the new
standard, all financial instruments are initially recorded on the interim
consolidated balance sheet at fair value except for certain related party
transactions. They are subsequently valued either at fair value or
amortized cost depending on the classification selected for the financial
instrument. Financial assets are classified as either "held-for-trading",
"held-to-maturity", "available-for-sale" or "loans and receivables" and
financial liabilities are classified as either "held-for-trading" or
"other liabilities". Financial assets and liabilities classified as held-
for-trading are measured at fair value with changes in fair value
recorded in the interim consolidated statements of operations except for
financial assets and liabilities designated as cash flow hedges which are
measured at fair value with changes in fair value recorded as a component
of other comprehensive income. Financial assets classified as held-to-
maturity or loans and receivables and financial liabilities classified as
other liabilities are subsequently measured at amortized cost using the
effective interest method. Available-for-sale financial assets that have
a quoted price in an active market are measured at fair value with
changes in fair value recorded in other comprehensive income. Such gains
and losses are reclassified to earnings when the related financial asset
is disposed of or when the decline in value is considered to be other-
than-temporary. Equity instruments classified as "available-for-sale"
that do not have a quoted price in an active market are subsequently
measured at cost.

The Company has classified its financial instruments as follows:

- Cash and short-term investments are classified as held-for-trading.

- Accounts receivable and notes receivable included in other assets are
classified as loans and receivables.

- Long-term investments in equities included in portfolio investments
are classified as available for-sale.

- Bank indebtedness is classified as held-for-trading.

- Accounts payable and accrued liabilities, long-term debt and other
long-term liabilities are classified as other liabilities.

The Company has elected to expense transaction costs related to financial
instruments classified as other than held-for-trading.

The Company has elected to use trade date accounting for regular-way
purchases and sales of financial assets.

Embedded derivatives

In addition to recognizing all stand-alone derivative financial
instruments at fair value, CICA Handbook Section 3855 requires embedded
derivatives, which are components included in a non-derivative host
contract that have features meeting the definition of a derivative, to be
accounted for separately when their economic characteristics and risks
are not closely related to the host instrument and the combined contract
is not recorded at fair value. These embedded derivatives are measured at
fair value with subsequent changes recorded in the interim consolidated
statements of operations. The Company enters into certain non-financial
instrument contracts which contain embedded foreign currency derivatives.
Where the contract is not leveraged, does not contain an option feature
and is denominated in a currency that is commonly used in the economic
environment where the transaction takes place, the embedded derivative is
not accounted for separately from the host contract. As allowed under
CICA Handbook Section 3855, the Company elected April 1, 2003 as the
transition date for embedded derivatives and only reviewed contracts
entered into or modified after that date.

Hedging

CICA Handbook Section 3865 specifies the criteria that must be met in
order for hedge accounting to be applied and the accounting for each of
the permitted hedging strategies. If the derivative is designated as a
fair value hedge, changes in fair value of the derivative and changes in
the fair value of the hedged item attributable to the hedged risk are
recognized in the interim consolidated statements of operations. If the
derivative is designated as a cash flow hedge, the effective portions of
the change in fair value of the derivative are initially recorded in
other comprehensive income and are reclassified to the interim
consolidated statements of operations when the hedged item is recognized.
Hedge accounting is discontinued prospectively when it is determined that
the derivative is not effective as a hedge, or the derivative is
terminated or sold, or upon sale or early termination of the hedged item.
The Company has elected to apply hedge accounting for certain forward
foreign exchange contracts used to manage foreign currency exposure on
anticipated revenue and firm commitments and has designated these as cash
flow hedges. The fair value of these derivatives is included in deposits
and prepaid assets when in an asset position and in accounts payable and
accrued liabilities when in a liability position.

Gains or losses arising from hedging activities are reported in the same
caption on the interim consolidated statements of operations as the
hedged item.

The types of hedging relationships that qualify for hedge accounting have
not changed under CICA Handbook Section 3865. The nature of the items or
transactions that the Company hedges and the Company's hedging programs
in relation to these items or transactions are included in Note 4 to the
Company's annual consolidated financial statements for the year ended
March 31, 2007.

Fair value

The fair value of a financial instrument is the amount of consideration
that would be agreed upon in an arms length transaction between
knowledgeable, willing parties who are under no compulsion to act. The
fair value of a financial instrument on initial recognition is the
transaction price, which is the fair value of the consideration given or
received. Subsequent to initial recognition, the fair values of financial
instruments that are quoted in active markets are based on bid prices for
financial assets held and offer prices for financial liabilities. When
independent prices are not available, fair values are determined by using
valuation techniques that refer to observable market data.

Transition adjustment

The impact of adopting the new standards as at April 1, 2007 was as
follows:

- An increase in portfolio investments of $23,677,000, an increase of
$21,109,000 in accumulated other comprehensive income (AOCI) and an
increase of $2,568,000 in future income tax liability related to
recording the fair value of portfolio assets designated as available-
for-sale.

- An increase in deposits and prepaid assets of $251,000, an increase
of $781,000 in accounts payable and accrued liabilities, a decrease
of $575,000 in AOCI and an increase in retained earnings of $45,000
related to recording the fair value of cash flow hedges where hedge
accounting is used.

- $9,422,000 of net foreign currency losses that were previously
presented as a separate item in shareholders' equity have been
reclassified to AOCI.

3. Future accounting changes:

The CICA has issued the following new Handbook Sections that will become
effective on April 1, 2008 for the Company:

- CICA Handbook Section 3862, "Financial Instruments - Disclosures"

- CICA Handbook Section 3863, "Financial Instruments - Presentation"

- CICA Handbook Section 1535, "Capital Disclosures"

- CICA Handbook Section 3031, "Inventories"

CICA Handook Section 3862 modifies the disclosure requirements for CICA
Handbook Section 3861, "Financial Instruments - Disclosure and
Presentation", including required disclosure for the assessment of the
significance of financial instruments for an entity's financial position
and performance and of the extent of risks arising from financial
instruments to which the Company is exposed and how the Company manages
those risks. CICA Handbook Section 3863 carries forward the presentation
requirements of CICA Handbook Section 3861. The Company is currently
evaluating the impact of the adoption of these new sections.

CICA Handbook Section 1535 establishes standards for disclosing
information about an entity's capital and how it is managed. The entity's
disclosure should include information about its objectives, policies and
processes for managing capital and disclose whether or not it has
complied with any capital requirements to which it is subject and the
consequences of non-compliance. The Company is currently evaluating the
impact of adoption of this new section.

CICA Handbook Section 3031 provides more guidance on the measurement and
disclosure requirements for inventories than the previous CICA Handbook
Section 3030. The Company is currently evaluating the impact of adoption
of this new section.

Each of these sections will be effective for the Company for its annual
and interim financial statements beginning on or after April 1, 2008.

4. Portfolio investments:

During the three months ended December 31, 2007, the company sold all of
its 1,864,398 shares in Canadian Solar Inc., a publicly traded company on
Nasdaq, for gross proceeds of $31,774,792 US ($32,031,524 CAN) and net
proceeds of $31,676,589 US ($31,932,272 CAN). A gain of $31,778,937 has
been recorded in the interim consolidated statement of operations related
to this disposition.

5. Discontinued operations and assets held for sale:

During the three months ended December 31, 2007, the Company committed to
a plan to sell land and one of two buildings related to its ASG Ohio
Business Unit. The land and building are ready for sale and management
expects to sell them within one year. Accordingly, these assets have been
classifed as being held for sale.

During the three months ended December 31, 2007, the Company committed to
a plan to sell land and building related to its Spheral Solar development
project which was halted in early fiscal 2008. The land and building are
ready for sale and management expects to sell them within one year.
Accordingly, these assets have been classifed as being held for sale.

During the year ended March 31, 2007, the Company sold the key operating
assets and liabilities, including equipment, current assets, trade
accounts payable and certain other assets and liabilities of its Berlin,
Germany coil winding business for net proceeds of 600,000 Euro.
Accordingly, the results of operations and financial position of the
Berlin coil winding business have been segregated and presented
separately as discontinued operations in the interim consolidated
financial statements. The results of the discontinued operations were as
follows:

Three months ended Nine months ended
-------------------------------------------------------------------------
December December December December
31 31 31 31
2007 2006 2007 2006
-------------------------------------------------------------------------
Revenue $ - $ - $ - $ 1,737
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Loss from operating
activities $ - $ - $ - $ (180)
Write-down to reduce
assets sold to net
realizable value, net
of tax of $195,000 - - - (1,978)
-------------------------------------------------------------------------
Loss from discontinued
operations, net of tax $ - $ - $ - $ (2,158)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

6. Deposits and prepaid assets:

December 31 March 31
2007 2007
-------------------------------------------------------------------------

Prepaid assets $ 2,585 $ 3,752
Silicon and other deposits 7,962 6,468
Forward contracts and other 5,394 641
-------------------------------------------------------------------------
$ 15,941 $ 10,861
-------------------------------------------------------------------------
-------------------------------------------------------------------------

7. Other assets:
December 31 March 31
2007 2007
-------------------------------------------------------------------------

Deferred pre-production costs $ - $ 586
Silicon and other deposits 32,081 5,281
Notes receivable 40 40
-------------------------------------------------------------------------
$ 32,121 $ 5,907
-------------------------------------------------------------------------
-------------------------------------------------------------------------

8. Stock-based compensation:

In the calculation of the stock-based compensation expense in the interim
consolidated statements of operations, the fair values of the Company's
stock option grants were estimated using the Black-Scholes option pricing
model for time vesting stock options and binomial option pricing models
for performance based stock options.

During the three and nine months ended December 31, 2007, the Company
issued 1,918,000 performance based options (405,136 in 2006). The
performance based options vest based on the ATS stock trading at or above
certain thresholds for a minimum of 5 trading days in a fiscal quarter.
These performance options expire on the seventh anniversary after the
date that the options vest. During the nine months ended December 31,
2007 certain performance options vested as a result of accelerated
vesting provisions on the resignation of certain officers of the Company,
and during the nine months ended December 31, 2006, certain performance
based options vested in the normal course of business.

During the three months ended December 31, 2007, the Company granted
125,000 time vesting options (121,390 in 2006). The 125,000 options
granted during the three months ended December 31, 2007 vested upon
issuance. During the nine months ended December 31, 2007, the Company
granted 1,184,950 time vesting options (206,346 in 2006). The options
granted, excluding the 125,000 options granted during the three months
ended December 31, 2007, vest over 5 years from the date of issue. The
fair value of options issued in the three and nine month periods ended
December 31, 2007 and December 31, 2006 were estimated at the date of the
grant using a Black-Scholes option model with the following weighted
average assumptions:

Three months ended Nine months ended
-------------------------------------------------------------------------
December December December December
31 31 31 31
2007 2006 2007 2006
-------------------------------------------------------------------------
Weighted average of
risk-free interest rate 3.97% 3.92% 3.98% 4.04%
Dividend yield 0.0% 0.0% 0.0% 0.0%
Weighted average of
expected life (years) 7.4 yrs 5.0 yrs 6.6 yrs 5.0 yrs
Expected volatility 38% 31% 39% 31%
Number of stock options
granted (thousands):
Time vested 125 121 1,185 206
Performance based 1,918 216 1,918 405
Weighted average of exercise
price per option (dollars) $6.96 $10.94 $6.62 $10.75
Weighted average value per
option (dollars):
Time vested $1.73 $3.06 $2.41 $3.13
Performance based $1.28 $3.06 $1.28 $3.22
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Stock based compensation recognized for the three and nine months ended
December 31, 2007 and credited to contributed surplus was $590,027 and
$2,379,227 respectively (2006 - $217,702 and $913,638).

As a result of the rights offering completed during the nine month period
ended December 31, 2007, the exercise price of the options outstanding at
the date of the closing of the rights offering was reduced by a factor of
0.9263 and the number of options were increased by 163,196 for time
vesting options and 41,364 for performance based options.

9. Weighted average number of shares:

Weighted average number of shares used in the computation of earnings
(loss) per share is as follows:

Three months ended Nine months ended
-------------------------------------------------------------------------
December December December December
31 31 31 31
2007 2006 2007 2006
-------------------------------------------------------------------------

Basic 76,952 59,741 68,288 59,728
Diluted 76,952 59,741 68,288 59,728
-------------------------------------------------------------------------
-------------------------------------------------------------------------

During the nine months ended December 31, 2007, the Company executed a
rights offering as described in note 12. The exercise price of the rights
offering was less than the fair market value of the common shares at
issuance of the rights. Accordingly, it contained a bonus element that is
similar to a stock dividend. In accordance with the recommendations of
Canadian Institute of Chartered Accountants Handbook Section 3500,
Earnings Per Share, the weighted average common shares for the three and
nine months ended December 31, 2006 have been retroactively increased by
489,000 to reflect the bonus element.

All stock options are excluded from the weighted average common shares in
the calculation of diluted earnings per share for the three and
nine months ended December 31, 2007 as they are anti-dilutive.

10. Segmented disclosure:

The Company evaluates performance based on three reportable segments:
Automation Systems, Photowatt Technologies, and Precision Components. The
Automation Systems segment produces custom-engineered turn-key automated
manufacturing and test systems. The Photowatt Technologies segment is a
high volume manufacturer of photovoltaic products and also includes the
Company's investment in Spheral Solar(TM). The Precision Components
segment is a high volume manufacturer of plastic and metal components and
sub-assemblies.

The Company accounts for inter-segment revenue at current market rates,
negotiated between the segments.

Three months ended Nine months ended
-------------------------------------------------------------------------
December December December December
31 31 31 31
2007 2006 2007 2006
-------------------------------------------------------------------------

Revenue
Automation Systems $ 122,838 $ 113,052 $ 339,689 $ 352,138
Photowatt Technologies 51,680 39,201 137,281 112,090
Precision Components 17,190 19,906 53,253 64,968
Elimination of
inter-segment revenue (369) (367) (744) (1,607)
-------------------------------------------------------------------------
Consolidated $ 191,339 $ 171,792 $ 529,479 $ 527,589
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Earnings (loss) from
operations
Automation Systems $ 2,143 $ 2,395 $ 5,111 $ 10,847
Photowatt Technologies (4,736) (806) (16,068) 645
Precision Components
(note 18) (27,029) (1,383) (30,754) (2,145)
Inter-segment elimination
and corporate expenses (4,947) (2,700) (20,215) (8,650)
Gain on sale of portfolio
investment 31,779 - 31,779 -
-------------------------------------------------------------------------
Consolidated $ (2,790) $ (2,494) $ (30,147) $ 697
-------------------------------------------------------------------------
-------------------------------------------------------------------------

11. Long-term debt and financial resources:

On December 27, 2007, the agreement governing the Company's primary
operating credit facility (the "Credit Agreement") was amended resulting
in the authorized operating credit facility being reduced from
$130,000,000 to $80,000,000. The amended operating credit facility, which
is secured by a general security agreement, is repayable on March 31,
2008. The amended operating credit facility is subject to a current
assets to current debt covenant of 1.25:1, and a debt to shareholders'
equity covenant of 1.5:1. Under the terms of the Credit Agreement, the
Company is restricted from encumbering any assets with certain permitted
exceptions. The Credit Agreement also restricts the disposition of
certain assets with an agreement to reduce available credit by an amount
equal to a portion of the net proceeds received by the Company from
certain material asset sales, if any. The Company is in compliance with
these covenants and restrictions.

The Company is currently negotiating with a number of financial
institutions to establish a long-term credit facility to replace the
Credit Agreement. The Company believes that a long-term credit agreement
or credit extension will be reached at terms that are satisfactory to
ATS. In the event that such an agreement or extension is not yet in place
at March 31, 2008, the Company believes that there is sufficient cash on
hand and availability of alternative sources of funding, including
financing of land and buildings, to repay amounts due under the credit
agreements, manage ongoing working capital requirements and meet existing
cash commitments.

Other facility is comprised of outstanding amounts under short term
unsecured credit facilities available in Euro totaling $23,038,000
(16,000,000 Euro). The facilities are provided to a subsidiary by local
banks and are currently scheduled to reduce by 6,000,000 Euro on
February 29, 2008 and a further 6,000,000 Euro on March 31, 2008.

The following amounts were outstanding:

December 31 March 31
2007 2007
-------------------------------------------------------------------------
Bank indebtedness:
Primary credit facility $ 8,138 $ 6,758
Other facility 17,726 30,446
-------------------------------------------------------------------------
$ 25,864 $ 37,204
-------------------------------------------------------------------------
Long-term debt:
Primary credit facility $ - $ 39,025
Unsecured non-interest bearing loan GBP
due July 29, 2007 - 447
-------------------------------------------------------------------------
- 39,472
Less: current portion - 447
-------------------------------------------------------------------------
$ - $ 39,025
-------------------------------------------------------------------------
-------------------------------------------------------------------------

12. Rights Offering:

During the nine months ended December 31, 2007, the Company completed a
rights offering, raising gross proceeds of $110,209,635 (net proceeds of
$102,522,189). The rights offering provided existing common shareholders
with rights to subscribe for additional common shares in ATS. Each
shareholder of record of the Company on July 19, 2007 received one right
for each common share held. For every 3.35 rights held, the holder was
entitled to purchase one common share at the subscription price of $6.23
until August 14, 2007. ATS received subscriptions of 16,011,247 common
shares. Under the Additional Subscription Privilege, 1,678,903 shares
were purchased.

13. Financial instruments:

Change in fair value of financial instruments

Derivatives that are not designated in hedging relationships are
classified as held-for-trading and the changes in fair value are
recognized in the interim consolidated statements of operations. During
the nine months ended December 31, 2007, the fair value of financial
assets classified as held-for-trading increased by $292,200 and the fair
value of financial liabilities classified as held-for-trading decreased
by $42,800.

Cash flow hedges

During the nine months ended December 31, 2007, an unrealized gain of
$20,200 was recognized in selling, general and administrative expense for
the ineffective portion of cash flow hedges. After-tax unrealized gains
of $3,692,500 included in AOCI at December 31, 2007 are expected to be
reclassified to earnings over the next 12 months when the revenue is
recorded.

14. Other comprehensive loss:

The components of other comprehensive loss are shown in the following
table:

Three Nine
months months
ended ended
December December
31 31
2007 2007
-------------------------------------------------------------------------

Net loss $ (3,662) $ (31,363)
Currency translation
adjustment 1,628 (23,699)
Net unrealized loss on available for sale
financial assets (net of income taxes of $nil) 3,282 (1,726)
Amount transferred to income on available
for-sale financial assets (net of income taxes
of $2,415) (18,420) (18,420)
Net unrealized gain on derivative financial
instruments designated as cash flow hedges
(net of income taxes of $nil) 583 7,637
Amount transferred to net loss for derivatives
designated as cash flow hedges (net of income
taxes of $nil) (2,593) (3,369)
-------------------------------------------------------------------------
Comprehensive loss $ (19,182) $ (70,940)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The components of accumulated other comprehensive loss are as follows:

December 31 March 31
2007 2007
-------------------------------------------------------------------------
Accumulated currency translation
adjustment $ (33,121) $ (9,422)
Accumulated unrealized gain on
available-for-sale financial assets
(net of income taxes of $153) 963 -
Accumulated unrealized net gain on
derivative financial instruments
designated as cash flow hedges 3,693 -
-------------------------------------------------------------------------
Accumulated other comprehensive income $ (28,465) $ (9,422)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

15. Currency translation adjustment:

The currency translation adjustment reflects unrealized translation
adjustments arising on the translation of foreign currency denominated
assets and liabilities of self-sustaining foreign operations. These
translation adjustments are recorded in the interim consolidated
statements of operations when there is a reduction in the Company's net
investment in the respective foreign operations.

16. Investment in Joint Venture:

During the three months ended December 31, 2007, Photowatt International
S.A.S., EDEV EnR Reparties and CEA Valorisation entered into an agreement
to establish a joint venture. The joint venture became effective in
October 2007 with contributions of cash by the venturers.

This is a jointly-controlled enterprise and accordingly, the Company
includes its 40% share of assets, liabilities, revenues and expenses in
the interim consolidated financial statements.

The following is a summary of the Company's proportionate share of the
joint venture:

December 31
2007
-------------------------------------------------------------------------
Balance Sheet
Current assets $ 425
Property and equipment 1
Current liabilities (281)
-------------------------------------------------------------------------
Net assets $ 145
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Three months ended
December 31
2007
-------------------------------------------------------------------------
Statement of Operations
Operating expenses and net loss $ (426)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

17. Income taxes:

The Company's effective income tax rate differs from the combined
Canadian basic federal and provincial income tax rate of 36.1% (2007 -
36.1%) primarily as a result of losses incurred in Canada, the benefit of
which have not been recognized for financial statement reporting
purposes.

18. Asset impairment:

The company regularly reviews the net recoverable amount of its long-
lived assets. During the three months ended December 31, 2007, the
continued decline in PCG profitability indicated a risk that the long-
lived assets of PCG were impaired. As a result, management performed an
asset impairment test in accordance with CICA handbook section 3063,
which indicated that anticipated undiscounted future cash flows did not
demonstrate full recovery of the carrying value of the PCG deferred pre-
production costs and property, plant and equipment. As a result, PCG
long-lived assets were written down to their estimated fair market value,
resulting in an impairment charge of $19,109,000, as follows:

December December
31 31
2007 2006
-------------------------------------------------------------------------

Deferred pre-production costs $ 107 $ -
Property, plant and equipment 19,002 -
-------------------------------------------------------------------------
$ 19,109 $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

19. Commitments and Contingencies:

During the nine months ended December 31, 2007, the Company entered into
a commitment to purchase 1,700 tonnes of MgSi commencing in 2007 and
ending December 31, 2011. Advance payments are required, which will be
applied against the price of the product received. Commencing in calendar
2008, the price per kilogram of metallurgical-grade silicon may be
adjusted at the beginning of the year based upon an agreed upon formula.

During the nine months ended December 31, 2007, the Company entered into
an eight-year commitment, commencing January 1, 2010, to purchase
approximately 32,000,000 polysilicon wafers over the term of the
agreement. Advance payments are required, which will be applied against
the price of the wafers received during the life of the commitment. The
price per wafer will be adjusted at the beginning of each calendar year
based upon an agreed upon formula.

During the nine months ended December 31, 2007, the Company entered into
a nine-year, 44,000,000 Euro ($62,400,000 CAN) commitment, commencing
January 2010, to purchase high-purity polysilicon to support
approximately 14 megawatts of Photowatt solar production per annum.
Advance payments are required, which will be applied against the price of
the product received. During the nine months ended December 31, 2007, an
8,986,000 Euro ($12,729,000 CAN) deposit was made against this
commitment.

The Company has exercised its right to purchase the remaining outstanding
minority interest in a subsidiary. The purchase price is yet to be
established.

20. Related Party Transactions:

During the nine months ended December 31, 2007, the Company paid $484,000
to reimburse Goodwood Inc. and Mason Capital Management, LLC, for proxy
solicitation expenses and legal fees, incurred in connection with the
proxy contest to reconstitute the ATS board of directors.

The CEO of Photowatt International S.A.S., is also the President of PV
Alliance, in which the Company has a 40% investment interest. During the
nine months, Photowatt invested 400,000 Euro ($566,760 CAN) in the PV
Alliance.

21. Cyclical nature of the business:

Interim financial results are not necessarily indicative of annual or
longer term results because many of the individual markets served by the
Company tend to be cyclical in nature. General economic trends, product
life cycles and product changes may impact Automation Systems order
bookings, Photowatt Technologies and Precision Components volumes, and
the Company's earnings in any of its markets. In Photowatt Technologies
and Precision Components, due to respective summer factory shutdowns in
Europe and the automotive industry, revenues and operating earnings are
generally expected to be lower during the second quarter compared to
other quarters. In Photowatt Technologies, slower sales may occur in the
winter months, when the weather may impair the ability to install its
products in certain geographical areas.

22. Comparative figures:

Certain comparative figures have been reclassified to conform with the
current period's presentation.


For further information

Anthony Caputo, Chief Executive Officer

[meinolf67]

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Advertisement

ATS Automation Tooling Systems has cut 85 jobs in its Cambridge operations as part of its $30-million restructuring plan.

In a statement issued yesterday, ATS said it cut jobs "across various levels of the organization."

The Cambridge-based company said the move is "one element of a broader worldwide program . . . announced in February (and) designed to restore profitability in our fiscal 2009 year."

In January 2007, ATS cut 180 jobs, including 100 in Cambridge. The latest cuts represent six per cent of the company's local workforce, ATS explained in its statement.

Spokesperson Carl Galloway said yesterday the company would not make any additional comment.

ATS, which employs about 3,600 people worldwide, has been under pressure to make changes since two institutional investors successfully orchestrated a wholesale management shakeup at the company's annual meeting last September.

As part of its move to focus on its automation technology division, ATS plans to sell its struggling automotive parts division and spin off its France-based Photowatt solar division.

ATS recently wound down operations at its once highly touted Spheral Solar Power division after Spheral failed to successfully commercialize its flexible thin-film solar cells.

In its fiscal third quarter ended Dec. 31, ATS lost $3.7 million, or five cents a share, compared to a loss of $2.4 million, or four cents a share, in the same period a year earlier.

The company's chief executive, Anthony Caputo, warned investors in February that the restructuring process will cut into revenues this year.

[meinolf67]

ich glaube, bei denen wird es nix mehr...

[meinolf67]

ATS Automation signs new credit agreement

TSX: ATA

CAMBRIDGE, ON, June 17 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it has signed a new primary credit agreement with The Bank of Nova
Scotia.
The new 17-month agreement provides the Company with credit facilities of
up to $85 million comprised of an operating credit facility of $40 million,
which will increase by $5 million monthly increments up to $65 million,
subject to certain conditions, as well as a letter of credit facility of up to
$20 million.
"Signing this credit agreement is one of several steps we are taking to
improve financial flexibility beyond the strength of our balance sheet," said
Anthony Caputo, CEO. "Other initiatives include plans to increase
profitability, monetize non-core assets and improve working capital. There is
more to do, but we are pleased with progress to date."

[meinolf67]

Wed Jun 18, 8:58 AM

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By The Canadian Press
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CAMBRIDGE, Ont. - ATS Automation Tooling Systems Inc. (TSX:ATA), undergoing a retooling of itself, has reported a quarterly profit of $7.9 million compared with a year-ago net loss of $80.5 million.

ATS said Wednesday that revenue was $186.5 million in its fourth quarter ended March 31, up from $151.4 million a year earlier, and the problematic Photowatt France unit was profitable.

"In fiscal 2009, we plan to stabilize and improve operating performance," stated Anthony Caputo, who joined ATS in November as chief executive officer and on Wednesday joined the board.

At the same time, Peter Puccetti and Cameron MacDonald, respectively chairman and CEO of Toronto investment firm Goodwood Inc., stepped aside from the ATS board "as part of a planned governance transition" while saying Goodwood will remain an active ATS shareholder.

"We have accomplished what we set out to do last year," Puccetti stated.

"We facilitated change at the board and CEO level and participated in the development of a new strategy for ATS. We're confident in the future direction of the business."

CEO Caputo said the strategy has four elements: "improve management; fix Automation Systems Group; position Photowatt France to become a standalone company; and strengthen the balance sheet. To date, we have made good progress on all these fronts."

Fourth-quarter net earnings, including $11.1 million in restructuring and severance costs, came to 10 cents per share compared with a year-earlier loss of $1.35 per share.

The full year showed a per-share net loss of 33 cents, improving from $1.42 in the prior year, as ATS reported earnings from continuing operations of $12.2 million against a prior-year loss of $76.7 million. Revenue for the year increased to $663.3 million from $614.5 million.

The Photowatt Technologies solar-power segment reported fourth-quarter operating profit of $19.2 million, brightening from a year-ago operating loss of $31.1 million, as power sold in France increased 64 per cent to 13.1 megawatts.

At the automation systems group, fourth-quarter revenue improved by 10 per cent to $125.3 million, with strong growth in Canada partly offset by declines in U.S. and Asian operations as the division suffered a $12.8-million top-line hit from the stronger Canadian dollar. The division recorded an operating loss of $4.2 million, compared with $4.5 million a year ago.

[meinolf67]

June 23, 2008 | about stocks: ATSAF.PK

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Earlier this week, troubled ATS Automation Tooling Systems Inc. (ATSAF) reported stronger-than-expected EBITDA for its automation systems group in its fourth quarter results, along with stronger-than-expected sales in its solar operations. While Scotia Capital analyst David Tyerman says in a note to clients that he is restricted on commenting too much on the stock – Scotia has been retained to provide advice with respect to its precision components group, as the firm is in negotiations to sell the key its operating assets and liabilities – what he will say that the turnarounds at the ATS and solar operations are “progressing more rapidly than we expected.”

At the ASG group, Mr. Tyerman says margins were boosted by headcount reductions and other improvements, along with a C$27 million order from a large solar company. Sales in the solar division were boosted by C$9.1 million in system sales, and EBITDA has much improved due to efficiency improvements.

Mr. Tyerman also says in his note that while ATS still intends to establish its solar operations as a standalone comapny, "there are too many unknowns to reliably predict" when this would happen. Much depends on the Solar division achieving higher cell efficiencies and better plant productivity.

The analyst says his “blue sky” analysis of the company suggests upside potential on the stock, to C$15, “if new management can execute a strong turnaround.” However, he notes that "management has cautioned that the ASG turnaround will take time," and will likely involve a multi-year process.

[meinolf67]

ATS liefert übrigens auch die Automation für den String-Ribbon Prozess von Evergreen...

[meinolf67]

AT&S to collaborate with Solland Solar on solar cell applications
03 July 2008 | Solar Cell: News


AT&S and Solland Solar have announced their intention to collaborate on the development of a concept for solar cell applications. AT&S, the printed circuit board producer, and Solland Solar, manufacturer of standard and back-contact solar cells, have entered into the development partnership in an effort to reduce the cost and increase the efficiency of solar cells.

The companies intend to design an innovative solar module concept by using processes and materials common to both the photovoltaics industry and the printed circuit board industry. A fully functional prototype is planned, which will be presented and assessed for suitability to mass production.

[meinolf67]

EDF Energies Nouvelles Receives Permits For 15 MW Solar PV Plants
in News Departments > Projects & Contracts
by SI Staff on Wednesday 23 July 2008
email the content item print the content item

EDF Energies Nouvelles has been awarded building permits for two photovoltaic power plants totaling 15.3 MW in capacity in Sainte-Rose, Reunion. This photovoltaic complex is the most powerful yet to have received authorization in France, the company says.

Construction will start in the next few weeks, with commissioning scheduled to take place in several stages from late 2008 onwards. The facilities will supply the public electricity grid with power from more than 100,000 photovoltaic panels manufactured by French company Photowatt.

SOURCE: EDF Energies Nouvelles

[meinolf67]

Lt. Q1-Bericht ist schon die Hälfte des Photowatt-volumens umg-SI!

[meinolf67]

Posted September 16, 2008
____________________
Management Buyout

ATS Automation signs definitive agreement to sell Precision Components Group

CAMBRIDGE - ATS Automation Tooling Systems Inc. announced it has finalized a definitive agreement to sell the key operating assets and liabilities of Precision Components Group ("PCG") to a group led by current PCG management. The Company expects to complete the sale in the third quarter of this fiscal year, upon finalization of certain regulatory and legal matters.

"PCG is not profitable and not strategic to the Company," said Anthony Caputo, Chief Executive Officer. "Its divestiture to PCG management allows us to focus on other operations. We believe this transaction is in the best interest of all our employees."

The agreement includes equipment, current assets (excluding cash), trade accounts payable and certain other assets and liabilities. The Company does not anticipate further impairment charges on the transaction, pending finalization of closing costs. PCG employs approximately 300 people at three facilities, two of which are located in Canada and one in China.

[meinolf67]

17.12.2008 14:17
BRIEF-ATS Automation to sell $50 mln worth common shares

Dec 17 (Reuters) - ATS Automation Tooling Systems Inc: (News)

* Enters into agreement for a $50 million bought deal of common shares

* Says syndicate has agreed to purchase 10 million common shares at $5.00 per

share

* Says net proceeds of the offering will be used to pursue strategic

opportunities

* All figures in c$

((Bangalore Equities Newsroom; [phone]; within U.S. [phone]))

[meinolf67]

ATS Automation finalizes sale of Precision Components Group

TSX: ATA

CAMBRIDGE, ON, Jan. 7, 2009 /CNW/ - ATS Automation Tooling Systems Inc.
("ATS") has finalized the previously announced sale of the key operating
assets and liabilities of Precision Components Group ("PCG").
The purchaser satisfied a portion of the purchase price by issuing
promissory notes to ATS and the balance was paid in cash. PCG employs
approximately 300 people at three facilities, two of which are located in
Canada and one in China. The transfer of PCG's Chinese operations remains
subject to receipt of approvals from the Chinese government, which are
expected in the first quarter of calendar 2009. Pending receipt, a portion of
the total purchase price allocated to the Chinese operations is being held in
escrow.
"The divestiture of PCG, to a group led by PCG management, is consistent
with our stated strategy and allows ATS to continue to focus on strategic
operations," said Anthony Caputo, Chief Executive Officer. "We believe this
transaction is in the best interests of all ATS employees and shareholders."