ATS Automation Tooling Systems - PV-Zulieferer und PHOTOWATT-Eigner (Seite 4)

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ATS announces plans to serve the domestic solar energy market

TSX: ATA

CAMBRIDGE, ON, Oct. 21, 2009 /CNW/ - ATS Automation Tooling Systems Inc. ("ATS" or "the Company") and Photowatt, its wholly-owned subsidiary, today announced they will lever their global solar expertise and Ontario presence to advance the Ontario solar market.

As part of its comprehensive approach, ATS plans to:
- Develop solar projects;
- Offer complete solutions to installers and developers including
modules, balance of system, technical support, project management,
financing and site maintenance, with the ability to meet and exceed
content requirements under the Green Energy Act;
- Build Photowatt modules directly at its existing Cambridge
facilities, as well as through a contract manufacturing arrangement
with an Ontario-based partner;
- Designate a "green wing" on its existing Cambridge campus and invite
others wishing to participate in the Ontario market and/or produce
products in Ontario to consider cooperation and co-location.

The Green Energy Act regulations announced in Ontario on September 24, 2009, introduced Feed-in Tariffs and domestic content rules for alternative energy producers. ATS believes the improved regulatory environment, combined with increasing focus on alternative energy will support growth in the Ontario solar energy market. ATS is uniquely positioned, with Ontario-based manufacturing and extensive solar capabilities and experience to participate in the market.

"With our very broad capabilities in solar and as a leading equipment, engineering and manufacturing company with over 900 employees and approximately 1 million square feet of facilities in Ontario, we have the capability to meet demand and lead the domestic market," said Anthony Caputo, ATS Chief Executive Officer. "I would invite other companies interested in this innovative market to consider collaborating with us at our new green wing."

Said George Smitherman, Deputy Premier and Minister of Energy and Infrastructure: "This investment announced by ATS represents further progress in Ontario's pursuit of green energy and green jobs."

ATS and Photowatt intend to make additional announcements with respect to their Ontario plans in the coming weeks.

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, energy, automotive and consumer products. It also leverages its many years of experience and skills to fulfill the specialized automation product manufacturing requirements of customers. Through Photowatt, ATS participates in the growing solar energy industry. ATS employs approximately 2,400 people at 14 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.

About Photowatt

Photowatt is a turnkey solar project developer and integrated manufacturer. Photowatt designs, manufactures and sells solar modules, and installation kits, and provides solar power systems design and other value-added services, principally in Western Europe. Photowatt has a well-established and ongoing research and development program, alliances with energy industry leaders through the PV Alliance joint venture, and 30 years of experience in processing silicon and making ingots, wafers, cells and modules.

About PV Alliance

The PV Alliance ("PVA") is a joint venture involving Photowatt, EDF ENR, a partially-owned subsidiary of Electricité de France, and CEA Investissement, a French national public provider of fundamental and technical research. The PVA undertakes (i) research to improve the efficiency of both polysilicon and UMG-Si solar cells; and (ii) refinement of next-generation solar energy processes at manufacturing volumes. The PVA is constructing a 25 MW cell development line for the application of technology within Photowatt's facility.

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The Sweet Smell of Solar Values 3 comments
by: Shawn Kravetz October 09, 2009 | about: AKNS / ATSAF.PK / CSIQ / ESLR / FSLR / RSOL / TIMNF.PK / TSL / YGE
Shawn Kravetz picture Shawn Kravetz


For decades, enterprising marketers have unabashedly pitched knockoffs of designer colognes and perfumes at cut rate prices. They were originally marketed with catchy slogans like: “If you like GIORGIO, you’ll love PRIMO.” Today, it might read “If you like OBSESSION, you’ll love RECESSION.”
I thought of this vis a vis solar stocks because we are seeing something reminiscent of this today…with a twist. Today we are seeing the real stuff on sale. It’s Brioni suits at Filene’s Basement or TJ Maxx. Truly the same, but much cheaper and in your size. We humbly offer you four examples of designer quality solar companies without the designer prices.
If you like Yingli (YGE), you’ll love Trina (TSL). This duo is a fairly traditional relative value play with an edge. The investor community has crowned Yingli as the global low cost leader, a title rightfully deserved in the recent past. However, on the way to Yingli’s coronation, Trina usurped the throne as the low cost king. After crunching the Q2 2009 data, we estimate that Trina sustains a ~10% fully loaded cost advantage over Yingli. Trina can manufacture a module for $2.05 per watt whereas Yingli is producing at $2.30 per watt including COGS, operating expenses and interest expense. In fairness to Yingli, we hold them in high regard as one of the leading global solar companies (and a cost leader) and have owned their stock and related securities in the past. However, with Trina, we own a slightly lower cost producer with 75% of the capacity at ~50% of the enterprise value. Trina has a comparable if not more favorably diversified geographic footprint, higher gross and operating margins, a bankable brand, a better balance sheet (70% less net debt than YGE), and a simpler corporate structure. And most importantly, Trina trades at a discounted valuation to Yingli. Based on consensus (and not our significantly higher proprietary earnings estimates for Trina), Yingli trades at ~16.5X 2010E EPS whereas Trina ~13.5X.
If you like Evergreen Solar (ESLR), you’ll love ATS Automation (ATSAF.PK). We have always liked Evergreen’s string ribbon technology, especially in an era of $400/kg polysilicon. Unfortunately, commercializing that technology ballooned ESLR’s balance sheet. Today, ESLR has a $600 million enterprise value and is likely to remain unprofitable for the near future. ATS Automation manufactures the “Quad” furnaces that are the heart of Evergreen’s wafer technology. While Evergreen has not managed to make money, they are intent on driving their business. Each new factory or JV is a win for ATS without the capex needed by Evergreen or its partners. A source at Evergreen confirmed that they were paying $185,000 per furnace in the boom times of 2008. It truly is getting the milk without buying the cow. Moreover, in ATS we own its other solid automation businesses serving energy, healthcare and other end markets. Finally, ATS owns Photowatt, a solid PV manufacturer and installer with some challenges but well positioned in two of the most rapidly emerging and highly subsidized solar markets: France and Ontario. This makes me think of another example: If you like(d) Spain’s solar market in 2008, you’ll love Ontario. But that’s another story for another time. With a superb management team and a cash rich balance sheet, ATS is an Esplanade favorite.
If you like First Solar (FSLR), you’ll love integrated Chinese module makers and upgraded metallurgical silicon (CSIQ/TSL/TIM in Canada). Everyone is focused on the “second” First Solar. We admire First Solar (though we don’t own the stock). Frankly, they have no real competition for what they do. The most likely competition on the cost side, however, is not a venture-backed “highly promising” company (possible but unlikely anytime soon), but rather a few companies with one weapon. Start with the global leading processing and administrative cost structure of Canadian Solar (CSIQ) or Trina. Then add upgraded metallurgical silicon [UMg] (instead of traditional polysilicon), such as that made by Timminco (TIMNF.PK). Most people have assumed that polysilicon will continue its price decline into perpetuity. We disagree. If polysilicon pricing holds or even rises, then UMg becomes a very compelling low cost substitute. In 2010, we can easily envision UMg module costs of: $0.85 processing for the ingot through module. $0.21 for UMg ($30/kg at 7 g/watt), and $0.20 for operating expenses. All in cost of $1.26 versus FSLR fully-loaded at ~$1.23 in Q2 2009 (admittedly, this will decline in 2010). Should FSLR be scared? No, but they should keep an eye on their rear view mirror for this compelling combination.
If you like Phoenix Solar, Real Goods (RSOL), Akeena (AKNS) or any other downstream solar company, you’ll love Systaic. It’s difficult to fault even the most seasoned solar investors for overlooking this tiny EUR EUR 76 million market capitalization solar project developer, yet it trades at ~25% of Phoenix Solar’s enterprise value to ebitda. Systaic boasts a robust 205 megawatt solar power plant pipeline (largely in Italy) that should be realized through the end of 2010. With EUR 700 million in potential revenue from their large solar power plant segment alone, systaic will not remain unnoticed for long. We estimate that the power plant segment can generate over EUR 40 million in EBIT in 2009 alone, which suggests that the entire enterprise is trading at ~2X the power plant segment 2009E EBIT.
In addition to its core and very profitable power plant business, Systaic is nurturing two potentially explosive growth businesses, solar energy roof systems and automotive solar roofs. Management believes that the solar energy roof systems business can generate EUR 100 million in revenue in 2010 (versus ~EUR 30 million in 2009) and that the automotive roof segment can deliver EUR 100 million in revenue within three years. In the meantime, these two businesses barely consume cash, and management is confident that the solar roof systems business will turn a profit in Q4 2009. We have confidence in Systaic’s veteran management team to deliver on these two promising businesses, and we believe that trading at 4.7X our estimate for 2009 EPS and 8X 2009 consensus (two analysts), we get the potential of the energy roof and automotive segments for free.
Ah, the sweet smell of solar values.

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TSX: ATA

CAMBRIDGE, ON, Aug. 12 /CNW/ - ATS Automation Tooling Systems Inc. ("ATS") today reported its financial results for the three months ended June 28, 2009.

First Quarter Summary

- Consolidated revenue was $152.7 million compared to $212.1 million a
year ago;
- Consolidated earnings from operations decreased to $0.5 million from
$16.3 million a year ago;
- Earnings were $0.00 per share (basic and diluted) compared to $0.17
per share (basic and diluted) a year ago;
- A strong balance sheet was maintained with cash net of debt of
$86.6 million at June 28, 2009 compared to $106.5 million at
March 31, 2009 and $27.1 million at June 30, 2008.

The Automation Systems Group's ("ASG") customers and the markets into which ASG sells continue to be negatively impacted by the current global economic recession. ASG customers have reduced their capital spending and/or are delaying programs to varying degrees depending on the market segment and some may experience financial difficulties. At Photowatt, tighter global credit markets have reduced available funding for solar installation projects. The resulting reduction in demand for solar modules, in addition to increased global module capacity in the solar industry, have caused average selling prices to decrease and could result in sustained over-supply in fiscal 2010.

"The global economic environment has continued to present our businesses with significant challenges," said Anthony Caputo, Chief Executive Officer. "At Photowatt, low demand has extended into the first quarter, while ASG is increasingly seeing the impact of the economic slow-down in its Order Bookings. To deal with this, we are continuing with our restructuring and consolidation initiatives, while seeking to offset negative market conditions through our downstream initiatives in Photowatt and our efforts to improve ASG's approach to market."

Financial Results
3 months 3 months
ended ended
In millions of dollars, June 28, June 30,
except per share data 2009 2008
-------------------------------------------------------------------------
Revenues from Automation Systems Group $ 115.2 $ 142.7
continuing ----------------------------------------------------
operations Photowatt Technologies 40.1 69.3
----------------------------------------------------
Inter-segment (2.6) 0.1
----------------------------------------------------
Consolidated $ 152.7 $ 212.1
-------------------------------------------------------------------------
EBITDA Automation Systems Group $ 16.7 $ 12.3
----------------------------------------------------
Photowatt Technologies
- Photowatt France (3.4) 9.3
- Other Solar - (0.3)
- Gain on sale of building - 3.2
- Gain on silicon sale - 2.0
----------------------------------------------------
Corporate and Inter-segment
elimination (6.6) (4.4)
----------------------------------------------------
Consolidated $ 6.7 $ 22.1
-------------------------------------------------------------------------
Net income from
continuing
operations Consolidated $ 0.3 $ 15.0
-------------------------------------------------------------------------
Earnings per share From continuing operations
(basic & diluted) $ 0.00 $ 0.19
After discontinued
operations
(basic & diluted) $ 0.00 $ 0.17
-------------------------------------------------------------------------

Automation Systems Group Results

- Revenue decreased 19% to $115.2 million from $142.7 million a year
ago;
- EBITDA increased 36% to $16.7 million compared to $12.3 million a
year ago;
- Earnings from operations were $14.8 million, up 44% from
$10.3 million a year ago;
- Period end Order Backlog decreased 11% to $230 million from
$258 million a year ago;
- Order Bookings declined 43% to $96 million compared to $169 million a
year ago, and included two significant healthcare orders totalling
approximately $34 million;
- Order Bookings were $28 million during the first six weeks of the
second quarter.

Despite the decline in revenues, operating margin (excluding severance and restructuring charges of $2.1 million incurred in the quarter) was maintained at 15% compared to 7% and 15% in the first and fourth quarters of fiscal 2009, respectively. Revenue increased year over year by 29% in energy, offset by declines of 13% in healthcare, 58% in computer-electronics, 41% in automotive, and 15% in "other" markets (primarily consumer products).

Photowatt Technologies Results

- Revenue decreased by 42% to $40.1 million from 69.3 million a year
ago;
- Photowatt France's ("PWF") EBITDA was negative $3.4 million compared
to EBITDA of $9.3 million a year ago;
- Photowatt Technologies incurred an operating loss of $7.5 million
compared to operating earnings of $10.5 million a year ago, which
included gains on the sale of the Spheral Solar building and silicon
of $3.2 million and $2.0 million respectively;
- Total megawatts (MWs) sold at Photowatt France decreased 40% to
8.3 MWs from 13.8 MWs in the first quarter of fiscal 2009 - with UMG-
Si products accounting for 27% of revenue compared to 54% in the
first quarter a year ago.

The year-over-year decline in operating results reflected lower MWs sold due to the impact on demand of tighter credit markets, which restricted funding available for solar projects and lower average selling prices. PWF increased revenue from the sale of Systems to approximately $24.8 million from $13.3 million in the first quarter of fiscal 2009, which partially offset lower module demand and average selling prices. PWF's operating loss included a $4.7 million warranty charge related to a specific customer contract which contained an incremental performance clause beyond PWF's standard warranty terms.

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 3416.

Annual and Special Meeting of Shareholders

ATS will hold its Annual and Special Meeting of Shareholders on August 13, 2009 at 10:00 a.m. (eastern) at the Holiday Inn Hotel and Conference Centre, 30 Fairway Road South, Kitchener, Ontario, Canada.

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, energy, automotive and consumer products. It also leverages its many years of experience and skills to fulfill the specialized automation product manufacturing requirements of customers. Through Photowatt Technologies, ATS participates in the growing solar energy industry as an integrated manufacturer of ingots, wafers, cells and modules. Photowatt-branded products and systems serve businesses, institutions and homeowners in established and emerging markets. ATS employs approximately 2,400 people at 14 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 months ended June 28, 2009 (first quarter of fiscal 2010) is as of August 11, 2009 and provides information on the operating activities, performance and financial position of ATS Automation Tooling Systems Inc. ("ATS" or the "Company") and should be read in conjunction with the unaudited interim consolidated financial statements of the Company for the first quarter of fiscal 2010. 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 the year ended March 31, 2009 (fiscal 2009) and, accordingly, the purpose of this document is to provide a first quarter update to the information contained in the fiscal 2009 MD&A. These documents and other information relating to the Company, including the Company's fiscal 2009 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 two reportable segments: Automation Systems Group ("ASG") and Photowatt Technologies which includes Photowatt France ("PWF") (the ongoing Photowatt Technologies operations), and Other Solar which is comprised of now closed solar divisions, principally Photowatt U.S.A., a small module assembly facility and sales operation closed during fiscal 2008 and Spheral Solar, a halted development project that has been wound down. 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, upgraded metallurgical silicon ("UMG-Si") and polysilicon powders and fines. As described in note 5 to the interim consolidated financial statements, during fiscal 2009, the Company completed the sale of its Precision Components Group ("PCG"). The sale included the segment's key operating assets and liabilities including its China-based subsidiary. The results of PCG are reported in discontinued operations.

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 and amortization (which includes amortization of intangible assets). The term "margin" refers to an amount as a percentage of revenue. The terms "earnings (loss) 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. 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 operating earnings and EBITDA to total Company net income for the first quarters of fiscal 2010 and 2009 is contained in this MD&A (See "Reconciliation of EBITDA to GAAP Measures"). EBITDA should not be construed as a substitute for net income determined in accordance with GAAP. Order Bookings represent new orders for the supply of automation systems and products that management believes are firm. Order Backlog is the estimated unearned portion of ASG revenue on customer contracts that are in process and have not been completed at the specified date. A reconciliation of Order Bookings and Order Backlog to total Company revenue for the first quarters of fiscal 2010 and 2009 is contained in the MD&A (See "ASG Order Backlog Continuity").

AUTOMATION SYSTEMS GROUP SEGMENT

ASG Revenue (in millions of dollars)

Three Three
Months Months
Ended Ended
June 28, June 30,
2009 2008
-------------------------------------------------------------------------
Revenue by industry
Healthcare $ 36.0 $ 41.4
Computer-electronics 14.3 34.2
Energy 41.3 32.0
Automotive 14.1 23.9
Other 9.5 11.2
-------------------------------------------------------------------------
Total ASG revenue $ 115.2 $ 142.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------

ASG first quarter revenue was 19% lower than a year ago as a result of lower year-over-year Order Bookings generated in both the first quarter of fiscal 2010 and the fourth quarter of fiscal 2009.

By industrial market, healthcare revenue decreased 13% year over year, despite higher Order Bookings and Order Backlog in the past two quarters as certain programs in Order Backlog will be converted to revenue over a longer period of time. This is the result of the Company's approach to market which involves selling more comprehensive automation solutions than in the past, which has extended the period over which Order Backlog will be converted into revenue. Healthcare continues to be a strong market for ASG, particularly within North America where significant Order Bookings were won in the first quarter of fiscal 2010. The 58% decrease in computer-electronics revenues reflected the lower Order Backlog entering the first quarter compared to a year ago. Revenue generated in the energy market increased by 29% based on growth in solar industry Order Bookings during fiscal 2009 compared to fiscal 2008 and increased revenue from the nuclear industry. The 41% decline in automotive revenue compared to a year ago reflected the ongoing challenges in the global automotive industry. "Other" revenues decreased 15% year over year primarily due to lower revenues in the consumer products industry.

Automation Products Group ("APG"), a division of ASG, contributed revenue of $31.6 million in the first quarter of fiscal 2010, compared to $25.9 million in the first quarter last year, a 22% increase.

ASG Operating Results (in millions of dollars)

Three Three
Months Months
Ended Ended
June 28, June 30,
2009 2008
-------------------------------------------------------------------------
Earnings from operations $ 14.8 $ 10.3
Depreciation and amortization 1.9 2.0
-------------------------------------------------------------------------
EBITDA $ 16.7 $ 12.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Fiscal 2010 first quarter earnings from operations were $14.8 million (operating margin of 13%) compared to earnings from operations of $10.3 million (operating margin of 7%) in the first quarter of fiscal 2009. Included in first quarter fiscal 2010 earnings from operations was $2.1 million of severance and restructuring charges related to division closures initiated in the first quarter of fiscal 2010 in China and Europe and other workforce reductions made primarily in ASG's North American operations. In the first quarter a year ago, the Company incurred $0.1 million of charges related to closing divisions in Michigan and Thailand.

Excluding severance and restructuring charges, fiscal 2010 first quarter operating earnings were $16.9 million (operating margin of 15%) compared to $10.4 million in fiscal 2009 (operating margin of 7%). The improvement was driven by cost reductions implemented during fiscal 2009, supply chain cost reductions and improved program management. On a regional basis, improvements in Canadian and European operating results, excluding severance and restructuring charges were partially offset by reduced earnings in the Company's U.S. operations compared to the same period a year ago.

ASG depreciation and amortization expense was $1.9 million in the first quarter of fiscal 2009 compared to $2.0 million in the same period a year ago.

ASG Order Bookings

ASG Order Bookings were $96 million, 43% lower than in the first quarter of fiscal 2009, reflecting fewer opportunities as customers reduced capital spending and/or delayed programs due to the global economic recession. Fiscal 2010 first quarter Order Bookings include two significant healthcare orders worth approximately $24 million and $10 million. Order Bookings in the first six weeks of the second quarter of fiscal 2010 were $28 million.

ASG Order Backlog Continuity (in millions of dollars)

Three Three
Months Months
Ended Ended
June 28, June 30,
2009 2008
-------------------------------------------------------------------------
Opening Order Backlog $ 255 $ 232
Revenue (115) (143)
Order Bookings 96 169
Order Backlog adjustments(1) (6) -
-------------------------------------------------------------------------
Total $ 230 $ 258
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Order Backlog adjustments include foreign exchange and cancellations.


Order Backlog by Industry (in millions of dollars)

June 28, June 30,
2009 2008
-------------------------------------------------------------------------
Healthcare $ 120 $ 49
Computer-electronics 15 38
Energy 62 106
Automotive 18 39
Other 15 26
-------------------------------------------------------------------------
Total $ 230 $ 258
-------------------------------------------------------------------------
-------------------------------------------------------------------------

At June 28, 2009, ASG Order Backlog was $230 million, 11% lower than at June 30, 2008 primarily reflecting lower Order Bookings throughout the first quarter compared to the prior year.

Increased healthcare Order Backlog reflected higher Order Backlog in North America compared to the prior year. Declines in energy and computer-electronics Backlog resulted primarily from lower Order Backlog in North America. Lower automotive Order Backlog reflected lower Order Backlog in all regions compared to the prior year. A decrease in "other" Order Backlog reflected lower Order Backlog primarily in the consumer products industry across all regions.

ASG Outlook

The global economic recession is having a negative impact on ASG's customers and the markets into which ASG sells. As a result, management expects continued reductions and/or delays in capital spending to varying degrees, depending on the market segment. Certain industries, such as automotive have been more severely impacted by the economic environment, increasing the risk of bankruptcies. Other industries such as solar are being impacted by the tighter credit conditions and market challenges, all of which may have a negative impact on ASG's future profitability.

To deal with the immediate market uncertainty, management has increased its focus on all customer opportunities and proposals. Management is also carefully evaluating the cash and credit terms of customer proposals and where appropriate, is not pursuing unacceptable or high risk credit terms. ASG has experienced some success with its new approach to market, however, these opportunities are sporadic in nature and are not expected to repeat every quarter.

Operationally, ASG plans to continue the consolidation and restructuring of underperforming, non-strategic manufacturing operations. These closures will occur over the next several quarters as current customer commitments are completed or moved to other divisions. Completion of these initiatives is expected to cost between $2 million to $4 million, however, management is actively monitoring the changing market conditions and will continue to modify plans accordingly.

Management expects that the implementation of its strategic initiatives to improve leadership, business processes and supply chain management across ASG will have a positive impact on ASG operations. In the short-term however, management is uncertain as to what extent the improvement initiatives will offset current market conditions.

Management believes that the Company's strengthened balance sheet, improved approach to market and operational improvements will allow ASG to emerge from the current global economic recession in a strong competitive position.

PHOTOWATT TECHNOLOGIES SEGMENT


Photowatt Technologies Revenue (in millions of dollars)

Three Three
Months Months
Ended Ended
June 28, June 30,
2009 2008
-------------------------------------------------------------------------
Total Photowatt France revenue $ 40.1 $ 69.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Revenue by product
Polysilicon products $ 29.2 $ 31.6
UMG-Si products 10.9 37.7
-------------------------------------------------------------------------
Total Revenue $ 40.1 $ 69.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Photowatt Technologies fiscal 2010 first quarter revenue of $40.1 million was 42% lower than in the first quarter of fiscal 2009. Lower year-over-year revenues primarily reflected a 40% decrease in total megawatts ("MWs") sold at PWF to 8.3 MWs from 13.8 MWs in the same period a year ago. Lower MWs sold resulted from lower demand due to tighter credit markets, which restricted funding available for solar projects and a general reluctance on the part of customers to commit to new orders until the solar market and average selling prices stabilize. Decreases in average selling prices per watt also had a negative impact on total revenues, partially offset by an increase in system sales. PWF increased revenue from the sale of systems to approximately $24.8 million from $13.3 million in the first quarter of fiscal 2009.

Total UMG-Si products represented $10.9 million of fiscal 2010 first quarter revenue compared to $37.7 million a year ago. Average cell efficiency in the first quarter of fiscal 2010 was approximately 14.2% for UMG-Si cells, compared to approximately 13.8% during the first quarter of fiscal 2009 as a result of process improvements made during fiscal 2009. Revenue from polysilicon products was $29.2 million in the first quarter, compared to $31.6 million in the first quarter of fiscal 2009. Average polysilicon cell efficiency in the first quarter of fiscal 2010 was approximately 15.0%, compared to approximately 15.6% during the first quarter of fiscal 2009 due to the use of lower quality materials during the ramp-up of polysilicon-based production at PWF.

Photowatt Technologies Operating Results (in millions of dollars)

Three Three
Months Months
Ended Ended
June 28, June 30,
2009 2008
-------------------------------------------------------------------------

Earnings (loss) from operations:
Photowatt France $ (7.5) $ 5.6
Other Solar - 4.9
-------------------------------------------------------------------------
Photowatt Technologies earnings (loss) from
operations: $ (7.5) $ 10.5
-------------------------------------------------------------------------

Photowatt France EBITDA
Photowatt France earnings (loss) from operations $ (7.5) $ 5.6
Depreciation and amortization 4.1 3.7
-------------------------------------------------------------------------
Photowatt France EBITDA $ (3.4) $ 9.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Photowatt Technologies fiscal 2010 first quarter loss from operations was $7.5 million compared to earnings from operations of $10.5 million a year ago.

Fiscal 2010 first quarter loss from operations for PWF was $7.5 million (operating margin of negative 19%), compared to earnings from operations of $5.6 million (operating margin of 8%) in the first quarter of fiscal 2009. The year-over-year decline in operating results reflected lower MWs sold and lower average selling prices, partially offset by improved UMG-Si cell efficiency and manufacturing yields. Included in the first quarter operating loss is a $4.7 million warranty charge related to a specific customer contract which contained an incremental performance clause beyond PWF's standard warranty terms. To address lower sales volumes, management halted production for a three-week period in the first quarter of fiscal 2010.

PWF's operating loss included approximately $0.1 million of costs related to its investment in PV Alliance ("PVA"), a joint venture involving PWF, EDF ENR ("EDF"), a partially owned subsidiary of Electricité de France, and CEA Valorisation ("CEA"). PVA includes Lab-Fab, a research initiative to improve cell efficiency.

PWF amortization expense was $4.1 million compared to $3.7 million in the first quarter of fiscal 2009 reflecting additional depreciation and amortization from PWF's expansion and improvement initiatives.

Fiscal 2009 first quarter "Other Solar" earnings from operations included a gain of $2.0 million on the sale of silicon (not usable by PWF or Spheral Solar) that had a nominal carrying value, and a gain of $3.2 million on the sale of the redundant Spheral Solar building in Cambridge, Ontario. The remaining $0.3 million of expenses primarily related to the wind-down and closure of the Spheral Solar facility and other clean-up and equipment decommissioning costs.

PWF Outlook

The long-term outlook for the solar energy industry is positive. However, in the short and medium-term, solar power is, and for the foreseeable future will be affected by and largely dependent on, the existence of government incentives. Certain jurisdictions into which PWF sells, such as Spain and Germany, have subsidy programs that are designed to decline over time. Reductions in feed-in tariffs and caps in certain jurisdictions were implemented in the fourth quarter of fiscal 2009 and have had a negative impact on market demand and average selling prices per watt. Management believes PWF's average selling prices per watt may continue to be negatively impacted by these trends in fiscal 2010.

Tightening in the global credit markets has reduced available funding for solar installation projects. The resulting reduction in demand for solar modules, in addition to increased global module capacity in the solar industry, could result in sustained over-supply in fiscal 2010. This is expected to continue to negatively impact PWF. To offset this, management is investigating downstream alternatives to create an additional market for PWF's products and lock in average selling prices for a larger portion of fiscal 2010 sales. To this end, PWF is seeking strategic supply agreements with customers for sales contracts that would consume a significant portion of PWF's current capacity for the next several years. In addition, management is engaging with financial institutions, investors and governments to enable and develop solar projects in which PWF would participate.

To keep PWF cost competitive, management is considering a plan to reduce the cost structure which may cost up to $10 million. Management is actively monitoring the changing market conditions and will continue to modify plans accordingly.

Management expects improvements in cell efficiency, manufacturing yields and throughput will reduce PWF's direct manufacturing cost per watt. Management does not know to what extent planned reductions in cost per watt will offset the impact of declines in average selling prices on operating earnings. Second quarter fiscal 2010 operating performance is expected to be negatively impacted by the usual three week PWF factory shutdown.

PWF will continue to combine process, automation and production knowledge with the goal of achieving desirable results that can be replicated and/or sold in France.

Consolidated Results from Operations (in millions of dollars)

Three Three
Months Months
Ended Ended
June 28, June 30,
2009 2008
-------------------------------------------------------------------------
Revenue $ 152.7 $ 212.1
Cost of revenue 132.6 178.9
Selling, general and administrative 18.8 21.4
Stock-based compensation 0.8 0.7
Gains on sale of assets - (5.2)
-------------------------------------------------------------------------
Earnings from operations $ 0.5 $ 16.3
-------------------------------------------------------------------------
Interest expense (income) $ 0.5 $ (0.5)
Provision for (recovery of) income taxes (0.3) 1.8
Loss from discontinued operations - 2.1
-------------------------------------------------------------------------
Net income $ 0.3 $ 12.9
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Revenue. At $152.7 million, consolidated revenue from continuing operations was 28% lower than a year ago. The decrease in revenues resulted from a 19% decrease in ASG revenues and a 42% decrease in Photowatt Technologies revenues.

Cost of revenue. Cost of revenue decreased on a consolidated basis by $46.3 million or 26% to $132.6 million. Gross margin decreased from 16% in the first quarter of fiscal 2009 to 13% in fiscal 2010. The decrease in gross margins reflected lower gross margins at PWF due to lower MWs sold and lower average selling prices in the first quarter of fiscal 2010 compared to a year ago. Lower gross margins in PWF were partially offset by improved first quarter gross margins in ASG as a result of cost reductions implemented during fiscal 2009, supply chain cost reductions and improved program management.

Selling, general and administrative ("SG&A") expenses. For the first quarter of fiscal 2010, SG&A expenses decreased 12% or $2.6 million to $18.8 million compared to the respective prior-year period. SG&A expenses for the first quarter of fiscal 2010 included $2.3 million of Company-wide severance and restructuring costs compared to $0.1 million in the first quarter of fiscal 2009. Lower SG&A costs reflected cost reductions implemented during fiscal 2009, in addition to lower professional fees and lower profit sharing and selling expenses.

Gains on sale of assets. During the first quarter of fiscal 2009, the Company completed delivery to a third party of silicon that was not usable by PWF or Spheral Solar. The silicon had a nominal carrying value and the Company recognized a gain of $2.0 million on the sale.

During the first quarter of fiscal 2009, the Company completed the sale of the redundant Spheral Solar building in Cambridge, Ontario for net proceeds of $16.0 million. A net gain of $3.2 million was recognized on the sale.

There were no such gains recorded in the first quarter of fiscal 2010.

Stock-based compensation cost. For the first quarter, stock-based compensation expense increased to $0.8 million from $0.7 million a year earlier primarily reflecting the issuance of employee stock options offset by cancellations.

The expense associated with the Company's performance-based stock options is recognized in income over the estimated assumed vesting period at the time the stock options are granted. Upon the Company's stock price trading at or above a stock price performance threshold for a specified minimum number of trading days, the options vest. When the performance-based options vest, the Company is required to recognize all previously unrecognized expenses associated with the vested stock options in the period in which they vest.

As at June 28, 2009, the following performance-based stock options were un-vested:

Weighted
average Current Remaining
Stock price Number of Grant date remaining year expense to
performance options value per vesting expense recognize
threshold outstanding option period ('000s) (in 000's)
-------------------------------------------------------------------------
$5.49 41,666 $ 1.66 3.4 years $ 5 $ 63
$7.49 41,667 1.66 4.7 years 3 64
$8.41 266,667 2.11 1.8 years 45 302
$8.50 889,333 1.41 3.4 years 63 836
$9.08 218,666 2.77 1.3 years 59 272
$9.49 41,667 1.66 5.4 years 3 65
$10.41 266,667 2.11 3.2 years 31 381
$10.50 889,333 1.41 4.3 years 54 898
$11.08 218,667 2.77 2.5 years 36 380
$12.41 266,666 2.11 4.2 years 26 413
$13.08 281,667 2.77 3.5 years 32 422
$15.09 5,290 3.68 0.0 years 1 -
$16.60 5,290 3.68 0.8 years 1 4
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Earnings from operations. First quarter fiscal 2010 consolidated earnings from operations were $0.5 million, compared to earnings from operations of $16.3 million a year ago. Fiscal 2010 first quarter performance reflected: operating earnings of $14.8 million at ASG (operating earnings of $10.3 million a year ago); Photowatt Technologies operating loss of $7.5 million (operating earnings of $10.5 million a year ago); and inter-segment eliminations and corporate expenses of $6.8 million ($4.5 million of costs a year ago).

Interest expense and interest income. Net interest expense increased to $0.5 million in the first quarter of fiscal 2010 compared to interest income of $0.5 million a year ago. The increase in net interest expense is primarily due to new credit facilities in PWF partially offset by higher cash balances maintained through the first quarter of fiscal 2010 compared to the same period a year ago.

Provision for income taxes. The Company's effective income tax rate differs from the combined Canadian basic federal and provincial income tax rate of 33.0% (in the first quarter of fiscal 2009 the combined rate was 33.5%) primarily as a result of the utilization of unrecognized loss carryforwards in Canada and losses incurred in parts of Europe, the benefit of which was not recognized for financial statement reporting purposes.

Net income from continuing operations. For the first quarter of fiscal 2010, net income from continuing operations was $0.3 million (0 cents earnings per share basic and diluted) compared to net earnings from continuing operations of $15.0 million (19 cents earnings per share basic and diluted) a year ago.

Loss from discontinued operations, net of tax. During fiscal 2009, the Company sold the key operating assets and liabilities including equipment, current assets, trade accounts payable and certain other assets and liabilities of its Precision Components Group ("PCG") for cash proceeds of $4.3 million and promissory notes with a face value of $2.7 million. This transaction was completed in the fourth quarter of fiscal 2009. Accordingly, the results of PCG operations have been segregated and presented separately as discontinued operations.

The loss from discontinued operations in the first quarter of fiscal 2009 was $2.1 million. There were no discontinued operations in the first quarter of fiscal 2010. See note 5 to the interim consolidated financial statements for further details on discontinued operations.

Net income. For first quarter of fiscal 2010, net income was $0.3 million (0 cents earnings per share basic and diluted) compared to net income of $12.9 million (17 cents earnings per share basic and diluted) for the same period last year.

Reconciliation of EBITDA to GAAP measures (in millions of dollars)

Three Three
Months Months
Ended Ended
June 28, June 30,
2009 2008
-------------------------------------------------------------------------
EBITDA
Automation Systems $ 16.7 $ 12.3
Photowatt Technologies (3.4) 14.2
Corporate and inter-segment (6.6) (4.4)
-------------------------------------------------------------------------
Total EBITDA $ 6.7 $ 22.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Less: Depreciation and amortization expense
Automation Systems $ 1.9 $ 2.0
Photowatt Technologies 4.1 3.7
Corporate and inter-segment 0.2 0.1
-------------------------------------------------------------------------
Total depreciation and amortization expense $ 6.2 $ 5.8
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss) from operations
Automation Systems $ 14.8 $ 10.3
Photowatt Technologies (7.5) 10.5
Corporate and inter-segment (6.8) (4.5)
-------------------------------------------------------------------------
Total earnings from operations $ 0.5 $ 16.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Less: Interest expense (income) $ 0.5 $ (0.5)
Provision for (recovery of) income taxes (0.3) 1.8
Loss from discontinued operations - 2.1
-------------------------------------------------------------------------
Net income $ 0.3 $ 12.9
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Foreign Exchange

A decrease in the value of the Canadian dollar relative to the U.S. dollar and the Euro had a positive impact on the Company's revenue, earnings from operations and net income in the first quarter of fiscal 2010 compared to the first quarter of fiscal 2009. ATS follows a transaction hedging program to help mitigate the impact of short-term foreign currency movements, primarily in its Canadian operations which often transact business in U.S. dollars. This hedging activity consists primarily of forward foreign exchange contracts for the sale of U.S. dollars. Purchasing third-party goods and services in U.S. dollars by Canadian operations also acts as a partial offset to U.S. dollar exposure. Management estimates that its forward foreign exchange contract hedging program is primarily effective for movements in currency rates within a four-to-six-month period. See note 13 to the interim consolidated financial statements for details on the derivative financial instruments outstanding at June 28, 2009.

Period Average Market Exchange Rates in CDN$

Three months ended
06/28/2009 06/30/2008 % change
-------------------------------------------------------------------------
US $ 1.1660 1.0096 15.5%
Euro 1.5881 1.5770 0.1%
Singapore $ 0.7919 0.7388 7.2%
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Liquidity, Cash Flow and Financial Resources

At June 28, 2009, the Company had cash and short-term investments of $145.1 million compared to $142.4 million at March 31, 2009. In the first quarter of fiscal 2010, cash flows used in operating activities were $13.8 million, compared to cash flows used in operating activities of $4.7 million in the first quarter of fiscal 2009. The Company's total debt to total equity ratio at June 28, 2009 was 0.1:1. At June 28, 2009, the Company had $68.8 million of unutilized credit available under existing operating and long-term credit facilities and a further $22.9 million available under letter of credit facilities.

In the first quarter of fiscal 2010, the Company's investment in non-cash working capital increased by $20.3 million or 12%. Consolidated accounts receivable decreased 7% or $8.3 million, due primarily to lower revenues in the first quarter of fiscal 2010. Net contracts in progress increased by 6% or $2.7 million compared to March 31, 2009. The Company actively manages its accounts receivable and net construction-in-process balances through billing terms on long-term contracts and by focusing on improving collection efforts. Inventories decreased by 1% or $1.1 million. The Company is targeting to increase the turnover of its inventory. In the short-term, these efforts will be impacted by the Company's ability to increase sales volumes, particularly in PWF. Deposits, prepaid assets and other decreased by 15% or $4.0 million due to a reduction in the fair market value of forward foreign exchange contracts and a reduction in restricted cash being used to secure letters of credit. Accounts payable decreased 14% on lower purchases, consistent with lower revenue levels in the first quarter of fiscal 2010.

Property, plant and equipment purchases totalled $6.0 million in the first quarter of fiscal 2010. Expenditures at PWF totalling $5.5 million were primarily used for production equipment. Included in PWF capital expenditures was $2.7 million related to PVA for production equipment and building improvements. Total ASG and Corporate capital expenditures were $0.5 million.

The Company's subsidiary, PWF has credit facilities of (euro)37.6 million, through short and long-term debt agreements and capital lease agreements. The interest rates applicable to the credit facilities range from Euribor plus 0.5% to Euribor plus 1.8% and 4.9% per annum. Certain of the credit facilities are secured by certain assets of PWF and are subject to debt leverage tests. PWF is in compliance with these covenants.

In July 2009, PWF established a 6,480 Euro capital lease obligation, repayable over five years. The finance lease bears interest of Euribor plus 1.9% and is secured by certain assets of PWF and a commitment to restrict payments to the Company.

The Company has an additional unsecured credit facility available of 2.0 million Swiss francs. The credit facility bears interest at 6.0% per annum. A portion of the available credit facility is secured by a letter of credit.

The Company's primary credit facility (the "Credit Agreement") provides total credit facilities of up to $85 million, comprised of an operating credit facility of $65 million and a letter of credit facility of up to $20 million for certain purposes. The operating credit facility is subject to restrictions regarding the extent to which the outstanding funds advanced under the facility can be used to fund certain subsidiaries of the Company. The Credit Agreement, which is secured by the assets, including real estate, of the Company's North American legal entities and a pledge of shares and guarantees from certain of the Company's legal entities, is repayable in full on October 31, 2009.

The operating credit facility is available in Canadian dollars by way of prime rate advances, letter of credit for certain purposes and/or bankers' acceptances and in U.S. dollars by way of base rate advances and/or LIBOR advances. The interest rates applicable to the operating credit facility are determined based on certain financial ratios. For prime rate advances and base rate advances, the interest rate is equal to the bank's prime rate or the bank's U.S. dollar base rate in Canada, respectively, plus 1.25% to 2.25%. For bankers' acceptances and LIBOR advances, the interest rate is equal to the bankers' acceptance fee or the LIBOR, respectively, plus 2.25% to 3.25%.

Under the Credit Agreement, the Company pays a standby fee on the unadvanced portions of the amounts available for advance or draw-down under the credit facilities at a rate of 0.5% per annum.

The Credit Agreement is subject to a debt leverage test, a current ratio test, and a cumulative EBITDA test. 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 Company from repurchasing its common shares, paying dividends and from acquiring and disposing of certain assets. The Company is in compliance with these covenants and restrictions.

The Company expects that continued cash flows from operations, together with cash and short-term investments on hand and credit available under operating and long-term credit facilities, will be more than sufficient to fund its requirements for investments in working capital, capital assets and strategic investment plans including potential acquisitions. Management is currently seeking to secure additional credit facilities to replace the Credit Agreement expiring in October 2009.

No stock options were exercised during the first quarter of fiscal 2010. At August 7, 2009 the total number of shares outstanding was 87,277,155.

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, 2009 found at www.sedar.com. The Company's off balance sheet arrangements consist of operating lease financing related primarily to facilities and equipment.

Consolidated Quarterly Results

($ in thousands, except
per share amounts) Q1 2010 Q4 2009 Q3 2009 Q2 2009
-------------------------------------------------------------------------
Revenue $ 152,701 $ 201,774 $ 221,739 $ 219,071

Earnings (loss) from
operations $ 502 $ 17,743 $ 18,472 $ 13,563

Net income (loss) from
continuing operations $ 325 $ 14,041 $ 15,814 $ 12,688

Net income (loss) $ 325 $ 13,506 $ 12,316 $ 9,272

Basic earnings (loss) per
share from continuing
operations $ 0.00 $ 0.17 $ 0.20 $ 0.16

Diluted earnings (loss)
per share from continuing
operations $ 0.00 $ 0.16 $ 0.20 $ 0.16

Basic earnings (loss) per
share $ 0.00 $ 0.16 $ 0.16 $ 0.12

Diluted earnings (loss)
per share $ 0.00 $ 0.15 $ 0.16 $ 0.12

ASG Order Bookings $ 96,000 $ 126,000 $ 157,000 $ 133,000

ASG Order Backlog $ 230,000 $ 255,000 $ 282,000 $ 247,000



($ in thousands, except
per share amounts) Q1 2009 Q4 2008 Q3 2008 Q2 2008
-------------------------------------------------------------------------
Revenue $ 212,071 $ 186,474 $ 174,457 $ 146,931

Earnings (loss) from
operations $ 16,278 $ 8,183 $ 24,426 $ (16,913)

Net income (loss) from
continuing operations $ 14,991 $ 10,343 $ 24,365 $ (15,492)

Net income (loss) $ 12,930 $ 7,939 $ (3,662) $ (18,763)

Basic earnings (loss) per
share from continuing
operations $ 0.19 $ 0.13 $ 0.32 $ (0.23)

Diluted earnings (loss)
per share from continuing
operations $ 0.19 $ 0.13 $ 0.32 $ (0.23)

Basic earnings (loss) per
share $ 0.17 $ 0.10 $ (0.05) $ (0.28)

Diluted earnings (loss)
per share $ 0.17 $ 0.10 $ (0.05) $ (0.28)

ASG Order Bookings $ 169,000 $ 137,000 $ 115,000 $ 133,000

ASG Order Backlog $ 258,000 $ 232,000 $ 211,000 $ 220,000

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 ASG Order Bookings, PWF sales volumes, and the Company's earnings in any of its markets. ATS typically experiences some seasonality with its revenue and earnings due to summer plant shutdowns by its customers and summer shutdown at PWF. Accordingly, revenue during the second quarter is usually lower than in the first, third and fourth quarters. In PWF, slower sales may occur in the winter months, when the weather may impair the ability to install its products in certain geographical areas.

Changes in Accounting Policies

Effective April 1, 2009, the Company retroactively adopted the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 3064, "Goodwill and intangible assets." The adopted standard establishes guidance for the recognition, measurement, presentation and disclosure of goodwill and intangible assets, including internally generated intangible assets. As required by the standard, computer software assets have been retroactively reclassified on the consolidated balance sheets from property, plant and equipment to intangible assets. The net book value of computer software reclassified as of March 31, 2009 was $3.0 million. As of June 28, 2009, computer software of $2.7 million is included within intangible assets. There is no impact on previously reported net income.

Future Accounting Changes

CICA Handbook Section 1582 "Business Combinations" which replaces Handbook Section 1581 "Business Combinations" and is converged with IFRS 3 "Business Combinations" establishes standards for the measurement of a business combination and the recognition and measurement of assets acquired and liabilities assumed. This standard is effective for fiscal years beginning on or after January 1, 2011. The Company may elect to early adopt this standard and if so, will be required to early adopt Section 1601 "Consolidated Financial Statements" and Section 1602 "Non-Controlling Interests". The Company is evaluating the impact of adoption of this new section in connection with its conversion to IFRS.

CICA Handbook Section 1601 "Consolidated Financial Statements" and Handbook Section 1602 "Non-Controlling Interests" replace Handbook Section 1600 "Consolidated Financial Statements". Handbook Section 1601 carries forward the existing Canadian guidance on aspects of the preparation of consolidated financial statements subsequent to acquisition other than non-controlling interests. Handbook Section 1602 establishes standards for the accounting of non-controlling interests of a subsidiary in the preparation of consolidated financial statements subsequent to a business combination. The standards are effective for fiscal years beginning on or after January 1, 2011. The Company may elect to early adopt the standards and if so, will be required to early adopt Handbook Section 1582 "Business Combinations". The Company is evaluating the impact of adoption of this new section in connection with its conversion to IFRS.

International Financial Reporting Standards

The CICA's Accounting Standards Board has announced that Canadian publicly-accountable enterprises will adopt International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board effective January 1, 2011. Although IFRS uses a conceptual framework similar to Canadian GAAP, differences in accounting policies and additional required disclosures will need to be addressed.

The Company commenced its IFRS conversion project in fiscal 2009. The project consists of four phases: diagnostic; design and planning; solution development; and implementation. The diagnostic phase was completed in fiscal 2009 with the assistance of external advisors. This work involved a high-level review of the major differences between current Canadian GAAP and IFRS and a preliminary assessment of the impact of those differences on the Company's accounting and financial reporting, systems and other business processes. The areas of highest potential impact include: property, plant and equipment; provisions and contingencies; and IFRS 1: first time adoption, as well as more extensive presentation and disclosure requirements under IFRS. Until accounting policy choices are made during the solution development phase, the Company will be unable to quantify the impact of IFRS on its Consolidated Financial Statements.

The Company has completed the design and planning phase of its IFRS conversion plan. The Company has established a core implementation team and steering committee comprised of members of senior management. In addition, the IFRS conversion project strategy, governance structure and schedule has been implemented. In early fiscal 2010, the Company commenced the solution development phase, which will include detailed review of all relevant IFRS standards, selection of new accounting policies where applicable, including IFRS 1 transition date first time adoption exemptions, development of model IFRS financial statements, identification of information gaps and necessary changes in reporting, processes and systems, development of a process to prepare IFRS comparative information and further training for employees.

Controls and Procedures

The Chief Executive Officer ("CEO") and the Chief Financial Officer ("CFO") are responsible for establishing and maintaining disclosure controls and procedures and internal controls over financial reporting for the Company. The control framework used in the design of disclosure controls and procedures and internal control over financial reporting is the internal control integrated framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Management, including the CEO and CFO, does not expect that the Company's disclosure controls or internal controls over financial reporting will prevent or detect all errors and all fraud or will be effective under all potential future conditions. A control system is subject to inherent limitations and, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control systems objectives will be met.

During the three months ended June 28, 2009, 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.

Note to Readers: Forward-Looking Statements

This news release and management's discussion and analysis of financial conditions, and results of operations of ATS 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's 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: the ASG healthcare market; the global economic recession and management's expectation of continued reductions and/or delays in capital spending, risk of customer financial difficulties, and the resulting negative impact on ASG's future profitability; evaluation of cash and credit terms in customer proposals; sporadic nature of opportunities resulting from ASG's new approach to market; ASG plans to continue consolidation and restructuring efforts and the associated timeline and expected costs; management's plan to continue to monitor market conditions and modify plans accordingly; management's expectation that strategic initiatives will have a positive impact on ASG operations and uncertainty as to what extent the improvement initiatives will offset current market conditions; management's belief that the balance sheet, approach to market and operational improvements will allow ASG to emerge from the current global economic recession in a strong competitive position; short, medium, and long term outlook for the solar energy industry; management's belief that PWF's average selling prices per watt may continue to be negatively impacted in fiscal 2010 by trends towards reductions in feed-in tariffs and caps; potential for sustained oversupply of solar modules in the market during fiscal 2010, the expected negative impact on PWF and management's efforts towards offsetting this; management's consideration of a plan to reduce PWF cost structure and the associated cost; management's expectation of reduction in PWF's direct manufacturing cost per watt and uncertainty as to what extent planned reductions in cost per watt will offset the impact of declines in average selling prices on operating earnings; impact of usual three week PWF factory shutdown; intention of PWF to continue to combine process, automation and production knowledge with goal of achieving desirable results; ATS's target to increase turnover of its inventory; ATS's expectations with respect to cash flows; additional credit facilities; seasonality of revenues; and the introduction, evaluation and adoption of new accounting policies and standards. The risks and uncertainties that may affect forward-looking statements include, among others: general market performance including capital market conditions and availability and cost of credit; economic market conditions; impact of factors such as health of automotive customers, financial failure and/or bankruptcy of customers, increased pricing pressure and possible margin compression; the success or failure of management strategies to address the weak global economy and weakened financial condition of actual and potential customers; foreign currency and exchange risk; the relative strength of the Canadian dollar; performance of the market sectors that ATS serves; that one or more customers experience bankruptcy despite focus on credit terms; that consolidation and restructuring efforts take longer than expected and/or incur greater costs than expected; that strategic initiatives will not have the intended impact on ASG operations; ability of Photowatt to identify downstream alternatives and lock in favourable average selling prices with their customers; success or failure of management's efforts to reduce cost per watt at PWF; potential inability to achieve favourable results at PWF through combing process, automation and production knowledge; risk that credit agreement to replace exiting credit facility is not concluded and/or that future credit arrangements are less favourable than those currently in place; extent of market demand for solar products; the availability and possible reduction or elimination of government subsidies and incentives for solar products in various jurisdictions; political, labour or supplier disruptions in manufacturing and supply of silicon; the usefulness or value of existing silicon supplies dissipates due to market conditions or for other reasons; PWF is unable to secure further acceptable silicon feedstock at favourable prices; reversal of current silicon supply arrangements and negotiation of new supply arrangements; potential inability of PVA to achieve improvements in cell efficiency, including problems with the technology or commercialization thereof; slow-down or reversal of progress being made with the efficiency and cost per watt of solar modules either through PVA research and development efforts or PWF's independent efforts; ability to effectively implement PVA projects and ability to properly manage the PVA relationship; the development of superior or alternative technologies to those developed by ATS; the success of competitors with greater capital and resources in exploiting their technology; market risk for developing technologies; risks relating to legal proceedings to which ATS is or may becomes a party; exposure to product liability claims of Photowatt Technologies; risks associated with greater than anticipated tax liabilities or expenses; and other risks detailed from time to time in ATS's filings with Canadian provincial securities regulators. 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.

August 11, 2009



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

June 28 March 31
2009 2009
-------------------------------------------------------------------------
ASSETS
Current assets
Cash and short-term investments $ 145,092 $ 142,361
Accounts receivable 112,191 120,479
Investment tax credits 17,538 14,538
Costs and earnings in excess of billings on
contracts in progress 84,025 86,079
Inventories (note 4) 136,464 137,600
Future income taxes 7,604 3,669
Deposits, prepaid assets and other (note 6) 22,502 26,507
-------------------------------------------------------------------------
525,416 531,233

Property, plant and equipment 197,603 201,192
Goodwill 38,199 39,990
Intangible assets 5,863 6,419
Future income taxes 3,125 2,812
Portfolio investments 3,903 3,245
Other assets (note 7) 49,634 51,172
-------------------------------------------------------------------------
$ 823,743 $ 836,063
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness (note 11) $ 23,198 $ 142
Accounts payable and accrued liabilities 148,125 172,935
Billings in excess of costs and earnings on
contracts in progress 38,860 43,600
Future income taxes 18,619 15,243
Current portion of long-term debt (note 11) 4,308 4,133
Current portion of obligations under capital
leases (note 11) 3,379 3,409
-------------------------------------------------------------------------
236,489 239,462

Long-term debt (note 11) 11,158 10,502
Long-term portion of obligations under capital
leases (note 11) 16,494 17,652

Shareholders' equity
Share capital 479,537 479,537
Contributed surplus 9,296 8,722
Accumulated other comprehensive income (note 14) 5,750 15,494
Retained earnings 65,019 64,694
-------------------------------------------------------------------------
559,602 568,447
-------------------------------------------------------------------------
$ 823,743 $ 836,063
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Contingencies (note 17)
See accompanying notes to interim consolidated financial statements



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

Three months ended
-------------------------------------------------------------------------
June 28 March 31
2009 2009
-------------------------------------------------------------------------
Revenue $ 152,701 $ 212,071
-------------------------------------------------------------------------

Operating costs and expenses
Cost of revenue 132,623 178,850
Selling, general and administrative 18,766 21,393
Stock-based compensation (note 8) 810 744
Gain on sale of silicon - (2,006)
Gain on sale of building (note 5) - (3,188)
-------------------------------------------------------------------------
Earnings from operations 502 16,278
-------------------------------------------------------------------------

Other expenses (income)
Interest on long-term debt 301 12
Other interest 239 (498)
-------------------------------------------------------------------------
540 (486)
-------------------------------------------------------------------------

Income (loss) from continuing operations before
income taxes (38) 16,764
Provision for (recovery of) income taxes (note 16) (363) 1,773
-------------------------------------------------------------------------

Net income from continuing operations 325 14,991
Loss from discontinued operations, net of tax
(note 5) - (2,061)
-------------------------------------------------------------------------
Net income $ 325 $ 12,930
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Earnings (loss) per share (note 9)
Basic and diluted - from continuing operations $ 0.00 $ 0.19
Basic and diluted - from discontinued operations - (0.02)
-------------------------------------------------------------------------
$ 0.00 $ 0.17
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to interim consolidated financial statements



ATS AUTOMATION TOOLING SYSTEMS INC.
Consolidated Statements of Shareholders' Equity and Other
Comprehensive Income (Loss)
(in thousands of dollars - unaudited)

Three months ended June 28, 2009
-------------------------------------------------------------------------
Accumulated
Other
Compre-
hensive Total
Income Share-
Share Contributed (Loss) Retained holders'
Capital Surplus (note 14) Earnings Equity
-------------------------------------------------------------------------

Balance, beginning
of period $ 479,537 $ 8,722 $ 15,494 $ 64,694 $ 568,447

Comprehensive
income (loss)
Net income - - - 325 325
Currency
translation
adjustment - - (12,185) - (12,185)
Net unrealized
gain on
available
for-sale
financial
assets - - 658 - 658
Net unrealized
gain on
derivative
financial
instruments
designated as cash
flow hedges - - 377 - 377
Gain transferred to
net income for
derivatives
designated
as cash flow
hedges - - 1,406 - 1,406
----------
Total comprehensive
loss (9,419)

Stock-based
compensation (note 8) - 574 - - 574
-------------------------------------------------------------------------
Balance, end of the
period $ 479,537 $ 9,296 $ 5,750 $ 65,019 $ 559,602
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Three months ended June 30, 2008
-------------------------------------------------------------------------
Accumulated
Other
Compre-
hensive Total
Income Share-
Share Contributed (Loss) Retained holders'
Capital Surplus (note 14) Earnings Equity
-------------------------------------------------------------------------
Balance, beginning
of period $ 432,825 $ 6,370 $ (6,675) $ 16,670 $ 449,190

Comprehensive
income (loss)
Net income - - - 12,930 12,930
Currency
translation
adjustment - - (2,186) - (2,186)
Net unrealized
loss on
available
for-sale
financial assets - - (1,682) - (1,682)
Net unrealized
gain on
derivative
financial
instruments
designated
as cash flow
hedges - - 329 - 329
Loss transferred
to net income
for derivatives
designated as
cash flow hedges - - (6) - (6)
----------
Total comprehensive
income 9,385

Stock-based
compensation (note 8) - 692 - - 692

Costs related to
shares issued for
rights offering (69) - - - (69)
-------------------------------------------------------------------------

Balance, end of the
period $ 432,756 $ 7,062 $ (10,220) $ 29,600 $ 459,198
-------------------------------------------------------------------------
-------------------------------------------------------------------------

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
-------------------------------------------------------------------------
June 28 June 30
2009 2008
-------------------------------------------------------------------------
Operating activities:
Net income $ 325 $ 12,930
Items not involving cash
Depreciation and amortization 6,203 5,821
Future income taxes (872) 510
Other items not involving cash 11 362
Stock-based compensation (note 8) 810 744
Loss (gain) on disposal of property, plant
and equipment 52 (3,154)
-------------------------------------------------------------------------
Cash flow from operations 6,529 17,213
Change in non-cash operating working capital (20,290) (21,922)
-------------------------------------------------------------------------
Cash flows used in operating activities (13,761) (4,709)
-------------------------------------------------------------------------

Investing activities:
Acquisition of property, plant and equipment (6,023) (6,849)
Acquisition of intangible assets (96) (648)
Investments, silicon deposits and other (1,426) (100)
Proceeds from disposal of assets 165 16,003
Restricted cash (note 6) 2,576 (8,146)
-------------------------------------------------------------------------
Cash flows provided by (used in) investing
activities (4,804) 260
-------------------------------------------------------------------------

Financing activities:
Bank indebtedness (note 11) 22,625 (19,189)
Share issue costs - (69)
Proceeds from long-term debt (note 11) 1,135 10,787
Repayment of long-term debt (note 11) (131) -
Repayment of obligations under capital leases
(note 11) (811) -
-------------------------------------------------------------------------
Cash flows provided by (used in) financing
activities 22,818 (8,471)
-------------------------------------------------------------------------
Effect of foreign exchange rate changes on cash
and short-term investments (1,522) (220)
-------------------------------------------------------------------------
Increase (decrease) in cash and short-term
investments 2,731 (13,140)
Cash and short-term investments, beginning of
period 142,361 55,816
-------------------------------------------------------------------------
Cash and short-term investments, end of period $ 145,092 $ 42,676
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Supplemental information

Cash income taxes paid $ 383 $ 12
Cash interest paid $ 85 $ 206
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to interim consolidated financial statements



ATS AUTOMATION TOOLING SYSTEMS INC.
Notes to Interim Consolidated Financial Statements

1. Significant accounting policies:

(i) The accompanying interim consolidated financial statements of ATS
Automation Tooling Systems Inc. and its subsidiaries (collectively "ATS"
or the "Company") have been prepared in accordance with Canadian
generally accepted accounting principles ("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, 2009 except for the adoption of the new accounting
standards described in note 2 herein. These interim consolidated
financial statements do not include all disclosures required by GAAP for
annual financial statements and should be read in conjunction with the
Company's annual consolidated financial statements for the year ended
March 31, 2009. Certain figures for the previous year have been
reclassified to conform with the current year's interim consolidated
financial statement presentation.

(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
long-lived assets, recoverability of deferred development costs, fair
value of reporting units and goodwill, warranties, income taxes, future
income tax assets, determination of estimated useful lives of intangible
assets and property, plant and equipment, impairment of portfolio
investments, contracts in progress, inventory provisions, revenue
recognition, contingent liabilities, and allowances for uncollectible
accounts receivable.

2. Changes in accounting policies:

Effective April 1, 2009, the Company retroactively adopted the Canadian
Institute of Chartered Accountants ("CICA") Handbook Section 3064
"Goodwill and Intangible Assets" which replaced CICA Handbook Section
3062 "Goodwill and Other Intangible Assets" and CICA Handbook Section
3450 "Research and Development Costs". The adopted standard establishes
guidance for the recognition, measurement, presentation and disclosure of
goodwill and intangible assets including internally generated intangible
assets.

As required by the standard, the Company has retroactively reclassified
computer software assets on the consolidated balance sheets from
property, plant and equipment to intangible assets. The net book value of
computer software reclassified as of March 31, 2009 was $2,968. As of
June 28, 2009 computer software of $2,728 is included within intangible
assets. There is no impact on previously reported net income or loss.

3. Future accounting changes:

The CICA's Accounting Standards Board has announced that Canadian
publicly accountable enterprises will adopt International Financial
Reporting Standards ("IFRS") as issued by the International Accounting
Standards Board effective January 1, 2011. Although IFRS uses a
conceptual framework similar to Canadian GAAP, differences in accounting
policies and additional required disclosures will need to be addressed.
The Company is currently assessing the impact of this announcement on its
consolidated financial statements.

CICA Handbook Section 1582 "Business Combinations" which replaces
Handbook Section 1581 "Business Combinations" and is converged with IFRS
3 "Business Combinations" establishes standards for the measurement of a
business combination and the recognition and measurement of assets
acquired and liabilities assumed. This standard is effective for fiscal
years beginning on or after January 1, 2011. The Company may elect to
early adopt this standard and if so, will be required to early adopt
Section 1601 "Consolidated Financial Statements" and Section 1602 "Non-
Controlling Interests". The Company is evaluating the impact of adoption
of this new section in connection with its conversion to IFRS.

CICA Handbook Section 1601 "Consolidated Financial Statements" and
Handbook Section 1602 "Non-Controlling Interests" replace Handbook
Section 1600 "Consolidated Financial Statements". Handbook Section 1601
carries forward the existing Canadian guidance on aspects of the
preparation of consolidated financial statements subsequent to
acquisition other than non-controlling interests. Handbook Section 1602
establishes standards for the accounting of non-controlling interests of
a subsidiary in the preparation of consolidated financial statements
subsequent to a business combination. The standards are effective for
fiscal years beginning on or after January 1, 2011. The Company may elect
to early adopt the standards and if so, will be required to early adopt
Handbook Section 1582 "Business Combinations". The Company is evaluating
the impact of adoption of this new section in connection with its
conversion to IFRS.

4. Inventories:
June 28 March 31
2009 2009
-------------------------------------------------------------------------
Inventories are summarized as follows:
Raw materials $ 87,669 $ 84,678
Work in process 13,421 11,711
Finished goods 35,374 41,211
-------------------------------------------------------------------------
$ 136,464 $ 137,600
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The amount of inventory recognized as an expense and included in cost of
revenue accounted for other than by the percentage-of-completion method
during the three months ended June 28, 2009 was $48,030 (three months
ended June 30, 2008: $56,111). The amount charged to net income and
included in cost of revenue for the write-down of inventory for valuation
issues during the three months ended June 28, 2009 was $991 (three months
ended June 30, 2008: $581).

5. Discontinued operations:

(i) During the year ended March 31, 2009, the Company sold the key
operating assets and liabilities, including equipment, current assets,
trade accounts payable and certain other assets and liabilities of its
Precision Components Group ("PCG") for cash proceeds of $4,250 and
promissory notes with a face value of $2,750. Accordingly, the results of
operations and financial position of PCG have been segregated and
presented separately as discontinued operations in the interim
consolidated financial statements. The results of the discontinued
operations are as follows:

Three months ended
-------------------------------------------------------------------------
June 28 June 30
2009 2008
-------------------------------------------------------------------------
Revenue $ - $ 12,183

Loss from discontinued operations, net of tax $ - $ (2,061)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(ii) During the year ended March 31, 2009, the Company sold the land and
building related to its Spheral Solar development project which was
halted in early fiscal 2008. The land and building were sold for net
proceeds of $16,000 and a gain of $3,188 before and after tax.

(iii) During the year ended March 31, 2009, the Company reclassified
long-lived assets that were previously held for sale, as held for use
assets, as the Company no longer believes these assets will be sold
within one year.

6. Deposits, prepaid assets and other:
June 28 March 31
2009 2009
-------------------------------------------------------------------------
Prepaid assets $ 3,013 $ 2,755
Restricted cash(i) 9,091 11,892
Silicon and other deposits 8,398 8,731
Forward contracts and other 2,000 3,129
-------------------------------------------------------------------------
$ 22,502 $ 26,507
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(i) Restricted cash consists of cash collateralized to secure letters of
credit.

7. Other assets:
June 28 March 31
2009 2009
-------------------------------------------------------------------------
Silicon deposits $ 49,634 $ 51,021
Other - 151
-------------------------------------------------------------------------
$ 49,634 $ 51,172
-------------------------------------------------------------------------
-------------------------------------------------------------------------

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 months ended June 28, 2009 the Company granted 350,000
time vesting options (375,000 in the three months ended June 30, 2008).
The options granted vest over 4 years from the date of issue. During the
three month periods ended June 28, 2009 and June 30, 2008, no performance
based options were granted. Performance based stock options vest based on
the Company's stock trading at or above certain thresholds for a
specified number of minimum trading days. These performance options
expire on the seventh anniversary after the date that the options vest.
During the three month periods ended June 28, 2009 and June 30, 2008, no
performance based options vested.

The fair value of time vesting options issued during the period were
estimated at the date of grant using the Black-Scholes option pricing
model with the following weighted average assumptions:

Three months ended
-------------------------------------------------------------------------
June 28 June 30
2009 2008
-------------------------------------------------------------------------
Weighted average risk-free interest rate 2.11% 3.24%
Dividend yield 0% 0%
Weighted average expected life 4.55 years 4.0 years
Expected volatility 60% 45%
Number of stock options granted:
Time vested 350,000 375,000
Weighted average exercise price per option $ 5.10 $ 7.80
Weighted average value per option:
Time vested $ 2.56 $ 3.03
-------------------------------------------------------------------------

9. Earnings (loss) per share:

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

Three months ended
-------------------------------------------------------------------------
June 28 June 30
2009 2008
-------------------------------------------------------------------------
Basic 87,277,155 77,277,155
Diluted 87,277,155 77,489,356
-------------------------------------------------------------------------
-------------------------------------------------------------------------

For the three months ended June 28, 2009, all stock options to purchase
common shares are excluded from the weighted average common shares in the
calculation of diluted earnings per share as they are anti-dilutive
(6,002,405 stock options were excluded in the three months ended June 30,
2008).

10. Segmented disclosure:

The Company evaluates performance based on two reportable segments:
Automation Systems and Photowatt Technologies. The Automation Systems
segment produces custom-engineered turn-key automated manufacturing
systems and test systems. The Photowatt Technologies segment is a high
volume manufacturer of photovoltaic products.

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

Three months ended
-------------------------------------------------------------------------
June 28 June 30
2009 2008
-------------------------------------------------------------------------
Revenue
Automation Systems $ 115,201 $ 142,735
Photowatt Technologies 40,082 69,337
Inter-segment revenue (2,582) (1)
-------------------------------------------------------------------------
Consolidated $ 152,701 $ 212,071
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Earnings (loss) from operations
Automation Systems $ 14,752 $ 10,302
Photowatt Technologies (7,533) 10,513
Inter-segment operating earnings (loss) (675) 293
Stock-based compensation (810) (744)
Other expenses (5,232) (4,086)
-------------------------------------------------------------------------
Consolidated $ 502 $ 16,278
-------------------------------------------------------------------------
-------------------------------------------------------------------------

11. Bank indebtedness and long-term debt:

The Company's primary credit facility (the "Credit Agreement") provides
total credit facilities of up to $85,000, comprised of an operating
credit facility of $65,000 and a letter of credit facility of up to
$20,000 for certain purposes. The operating credit facility is subject to
restrictions regarding the extent to which the outstanding funds advanced
under the facility can be used to fund certain subsidiaries of the
Company. The Credit Agreement, which is secured by the assets, including
real estate, of the Company's North American legal entities and a pledge
of shares and guarantees from certain of the Company's legal entities, is
repayable in full on October 31, 2009.

The operating credit facility is available in Canadian dollars by way of
prime rate advances, letter of credit for certain purposes and/or
bankers' acceptances and in U.S. dollars by way of base rate advances
and/or LIBOR advances. The interest rates applicable to the operating
credit facility are determined based on certain financial ratios. For
prime rate advances and base rate advances, the interest rate is equal to
the bank's prime rate or the bank's U.S. dollar base rate in Canada,
respectively, plus 1.25% to 2.25%. For bankers' acceptances and LIBOR
advances, the interest rate is equal to the bankers' acceptance fee or
the LIBOR, respectively, plus 2.25% to 3.25%.

Under the Credit Agreement, the Company pays a standby fee on the
unadvanced portions of the amounts available for advance or draw-down
under the credit facilities at a rate of 0.5% per annum.

The Credit Agreement is subject to a debt leverage test, a current ratio
test, and a cumulative EBITDA test. 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
Company from repurchasing its common shares, paying dividends and from
acquiring and disposing certain assets. The Company is in compliance with
these covenants and restrictions.

The Company's subsidiary, Photowatt International S.A.S. has credit
facilities including capital lease obligations of 37,596 Euro. The
interest rates applicable to the credit facilities range from Euribor
plus 0.5% to Euribor plus 1.8% and 4.9% per annum. Certain of the credit
facilities are secured by certain assets of Photowatt International
S.A.S. and are subject to debt leverage tests. The Company is in
compliance with these covenants.

In July 2009, Photowatt International S.A.S. established a 6,480 Euro
capital lease obligation, repayable over five years. The finance lease
bears interest of Euribor plus 1.9% and is secured by certain assets of
Photowatt International S.A.S. and a commitment to restrict payments to
the Company.

The Company has an additional unsecured credit facility available of
2,000 Swiss francs. The credit facility bears interest of 6.0% per annum.
A portion of the available credit facility is secured by a letter of
credit.

In May 2009, a credit facility in the amount of 500 Euro expired.

The following amounts were outstanding:

June 28 March 31
2009 2009
-------------------------------------------------------------------------
Bank indebtedness:
Primary credit facility $ - $ -
Other facilities 23,198 142
-------------------------------------------------------------------------
$ 23,198 $ 142
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Long-term debt:
Primary credit facility $ - $ -
Other facilities 15,466 14,635
-------------------------------------------------------------------------
$ 15,466 $ 14,635
Less: current portion 4,308 4,133
-------------------------------------------------------------------------
$ 11,158 $ 10,502
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Obligations under capital lease:
Future minimum lease payments $ 22,347 $ 23,802
Less: amount representing interest (at rates
ranging from 3% to 5%) 2,474 2,741
-------------------------------------------------------------------------
$ 19,873 $ 21,061
Less: current portion 3,379 3,409
-------------------------------------------------------------------------
$ 16,494 $ 17,652
-------------------------------------------------------------------------
-------------------------------------------------------------------------

12. Restructuring:

In fiscal 2008, the Company commenced a restructuring program to improve
operating performance. The restructuring program included workforce
reductions, and the closure of underperforming, non-strategic divisions.
In the three months ended June 30, 2008, severance and restructuring
expenses associated with this restructuring program were $160.

In fiscal 2009, the Company accelerated and expanded its previous
restructuring program. In the three months ended June 28, 2009, severance
and restructuring expenses associated with the closure of two divisions
and other workforce reductions were $2,299, primarily in the Automation
Systems group.

The following is a summary of the changes in the provision for
restructuring costs:

June 28 June 30
2009 2008
-------------------------------------------------------------------------
Balance, beginning of the three month period $ 4,535 $ 12,585

Accruals 2,299 160
Cash payments (2,964) (4,476)
Foreign exchange (33) (37)
-------------------------------------------------------------------------
Balance, end of period $ 3,837 $ 8,232
-------------------------------------------------------------------------
-------------------------------------------------------------------------

13. Financial instruments:

Fair value hedges

Derivatives that are not designated in hedging relationships are
classified as held-for-trading and the changes in fair value are
recognized in selling, general and administrative expenses in the interim
consolidated statements of operations. During the three months ended
June 28, 2009, the fair value of derivative financial assets classified
as held-for-trading and included in deposits and prepaid assets decreased
by $232 (increased by $122 during the three months ended June 30, 2008)
and the fair value of derivative financial liabilities classified as
held-for-trading and included in accounts payable and accrued liabilities
increased by $1,391 (decreased by $108 during the three months ended
June 30, 2008).

Cash flow hedges

During the three months ended June 28, 2009, an unrealized gain of
$21 was recognized in selling, general and administrative expense for the
ineffective portion of cash flow hedges (unrealized gain of $23 during
the three months ended June 30, 2008). After-tax unrealized gains of
$427 included in accumulated other comprehensive income at June 28, 2009
are expected to be reclassified to earnings over the next 12 months when
the revenue is recorded (unrealized gains of $227 at June 30, 2008).

14. Accumulated other comprehensive income:

The components of accumulated other comprehensive income are as follows:

June 28 March 31
2009 2009
-------------------------------------------------------------------------
Accumulated currency translation adjustment $ 6,013 $ 18,198

Accumulated unrealized loss on available-for-sale
financial assets (690) (1,348)

Accumulated unrealized net gain (loss) on
derivative financial instruments designated as
cash flow hedges 427 (1,356)
-------------------------------------------------------------------------
Accumulated other comprehensive income $ 5,750 $ 15,494
-------------------------------------------------------------------------
-------------------------------------------------------------------------

15. Investment in Joint Venture:

During the year ended March 31, 2008, Photowatt International S.A.S., EDF
ENR Reparties and CEA Valorisation entered into an agreement to establish
the PV Alliance, 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
proportionately consolidates 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:

June 28 June 30
2009 2008
-------------------------------------------------------------------------
Balance Sheet
Current assets $ 1,933 $ 277
Property and equipment 2,985 1
Intangible assets 1,564 -
Current liabilities (4,326) (172)
Long-term debt (2,244) -
-------------------------------------------------------------------------
Net assets $ (88) $ 106
-------------------------------------------------------------------------
-------------------------------------------------------------------------

June 28 June 30
Three months ended 2009 2008
-------------------------------------------------------------------------
Statement of Operations
Net loss $ (145) $ (151)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

During the year ended March 31, 2009, the PV Alliance established
shareholder loans proportionately worth 2,628 Euro, to be received in
instalments until September 2009. During the three months ended June 28,
2009, the PV Alliance received an additional shareholder loan
proportionately worth 200 Euro. The loans are repayable over five years,
guaranteed by the signing of a Pledge Agreement, and bear interest at the
maximum fiscally deductible rate.

An operating lease was established during the year ended March 31, 2009
for a portion of the Photowatt International S.A.S. building used by PV
Alliance and will result in annual lease payments proportionately worth
83 Euro. The contract with the lessee expires in 2018 with an option to
terminate the lease in 2016. The lease contains an option to extend the
lease for an additional nine years.

During the three months ended June 28, 2009, the PV Alliance received
government assistance of 192 Euro.

16. Income taxes:

For the three months ended June 28, 2009, the Company's effective income
tax rate differs from the combined Canadian basic federal and provincial
income tax rate of 33.0% (June 30, 2008 - 33.5%) primarily as a result of
the utilization of unrecognized loss carryforwards in Canada and losses
incurred in Europe, the benefit of which was not recognized for financial
statement reporting purposes. In the three months ended June 30, 2008,
the Company's effective income tax rate differed from the combined
Canadian basic federal and provincial income tax rate primarily as a
result of the utilization of unrecognized loss carryforwards in Canada
and parts of Europe.

17. Contingencies:

In the normal course of operations, the Company is party to a number of
lawsuits, claims and contingencies. Accruals are made in instances where
it is probable that liabilities have been incurred and where such
liabilities can be reasonably estimated. Although it is possible that
liabilities may be incurred in instances for which no accruals have been
made, the Company does not believe that the ultimate outcome of these
matters will have a material impact on its consolidated financial
position.

18. 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 volumes, and the Company's earnings in
any of its markets. ATS typically experiences some seasonality with its
revenue and earnings due to summer plant shutdowns by its customers and
summer shutdown at Photowatt International S.A.S. Accordingly, revenue
during the second quarter is usually lower than in the first, third and
fourth 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.

%SEDAR: 00002017E For further information: Maria Perrella, Chief Financial Officer, Carl Galloway, Vice-President and Treasurer, [phone]

[R-BgO]

Overview of Fiscal 2009
During fiscal 2009, PWF continued to improve operating performance and secure silicon supply agreements and customer sales
agreements. During the year, PWF:
k Increased MWs sold by 24% year-over-year to 54.2 MWs;
k Realized significant cell efficiency improvements with UMG-Si products. Cell efficiency improved from 13.5% in the fourth quarter of fiscal
2008 to 14.3% in the fourth quarter of fiscal 2009;
k Invested approximately c20 million in manufacturing equipment, to balance production, increase capacity and reduce manufacturing
costs in the ingot, wafer and cell stages of production. Management has committed to a further c4 million investment in automation
equipment that will be supplied by ASG;
k Utilized its supply chain to increase overall MWs produced thereby partially offsetting the impact of its traditional summer plant shut-down;
k Maintained flexibility in new silicon supply agreements to take advantage of favourable commercial terms in light of lower current demand
in the market for solar products.

[R-BgO]

Zahlen sind SEHR viel besser als im Vorjahr; sogar Photowatt verdient wieder Geld!

[R-BgO]

ATS reports annual and fourth quarter fiscal 2009 results


TSX: ATA

CAMBRIDGE, ON, June 9, 2009 /CNW/ - ATS Automation Tooling Systems Inc.
today reported its financial results for the three and 12 months ended March
31, 2009. Annual consolidated revenue increased by 29% to $855.1 million;
consolidated earning from operations increased 641% to $66.1 million; and
earnings increased to $0.61 per share (basic) and $0.60 per share diluted
compared to a loss of $0.33 per share (basic and diluted) a year ago.

Fourth Quarter Highlights

- Consolidated revenue increased to $201.8 million from $186.5 million
a year ago;

- Consolidated earnings from operations increased to $17.7 million from
$8.2 million a year ago;

- Earnings increased to $0.16 per share (basic) and $0.15 per share
(diluted) compared to $0.10 per share (basic and diluted) a year ago;

- Cash net of debt improved to $118.4 million at March 31, 2009 from
$45.8 million at December 31, 2008;

- On January 14, 2009, ATS completed an offering of 10 million common
shares for gross proceeds of $50 million (net proceeds of
approximately $47 million);

- The previously-announced sale of the Precision Components Group was
completed; and

- Subsequent to the end of the quarter, the Company halted production
at Photowatt France for a three-week period to manage lower demand.

ASG's customers and the markets into which ASG sells continue to be
negatively impacted by the current global economic recession, the duration of
which is uncertain. ASG customers are reducing their capital spending and / or
delaying programs to varying degrees depending on the market segment and some
may experience financial difficulties. At Photowatt, tightening in the global
credit markets has reduced available funding for solar installation projects.
The resulting reduction in demand for solar modules, in addition to increased
global module capacity in the solar industry, could result in sustained
over-supply in fiscal 2010.
"ATS has made good progress with our value creation plan even with the
global financial crisis which is now presenting our businesses with
significant challenges," said Anthony Caputo, Chief Executive Officer. "To
deal with this, we are accelerating and expanding the consolidation and
restructuring of Automation Systems operations, improvements to supply chain
and approach to market, which will cost us between $4 million and $6 million
in fiscal 2010. To keep Photowatt cost competitive, we are considering a plan
to reduce the cost structure which may cost approximately $10 million in
fiscal 2010."

Financial Results

In millions 3 months 3 months 12 months 12 months
of dollars, ended ended ended ended
except per Mar. 31, Mar. 31, Mar. 31, Mar. 31,
share data 2009 2008 2009 2008
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Revenues Automation
from Systems Group $ 154.3 $ 125.3 $ 588.5 $ 465.0
continuing ------------------------------------------------------------
operations Photowatt
Technologies 48.2 61.3 269.8 198.6
------------------------------------------------------------
Inter-segment (0.7) (0.1) (3.2) (0.3)
------------------------------------------------------------
Consolidated $ 201.8 $ 186.5 $ 855.1 $ 663.3
-------------------------------------------------------------------------

-------------------------------------------------------------------------
EBITDA Automation
Systems Group $ 22.1 $ (2.1) $ 67.2 $ 9.1
------------------------------------------------------------
Photowatt
Technologies
- Photowatt France 5.2 6.8 36.5 6.3
- Other Solar (0.3) (0.9) (1.5) (6.4)
- Gain on sale
of building - - 3.2 -
- Gain on sale
of silicon - 16.8 2.0 16.8
------------------------------------------------------------
Gain on sale of
investments - - - 31.8
------------------------------------------------------------
Corporate and
Inter-segment
elimination (2.7) (6.6) (16.5) (26.7)
------------------------------------------------------------
Consolidated $ 24.3 $ 14.0 $ 90.9 $ 30.9
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Net income
(loss) from
continuing
operations Consolidated $ 14.0 $ 10.3 $ 57.5 $ 12.2
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Earnings From continuing
(loss) per operations
share (basic) $ 0.17 $ 0.13 $ 0.73 $ 0.17
------------------------------------------------------------
From continuing
operations
(diluted) $ 0.16 $ 0.13 $ 0.72 $ 0.17
------------------------------------------------------------
After
discontinued
operations
(basic) $ 0.16 $ 0.10 $ 0.61 $ (0.33)
------------------------------------------------------------
After
discontinued
operations
(diluted) $ 0.15 $ 0.10 $ 0.60 $ (0.33)
-------------------------------------------------------------------------
-------------------------------------------------------------------------


ASG Fourth Quarter Results

- Revenue increased 23% to $154.3 million from $125.3 million a year
ago on strong Order Bookings in the first three quarters of fiscal
2009;

- Fiscal 2009 fourth quarter EBITDA was $24.8 million compared to
EBITDA of $6.9 million a year ago, excluding severance and
restructuring costs of $2.7 million and $9.0 million respectively;

- Earnings from operations were $19.8 million, compared to an operating
loss of $4.2 million in the same quarter a year ago;

- Period end ASG Order Backlog increased 10% year over year to $255
million;

- Order Bookings for the fourth quarter decreased to $126 million
compared to $137 million a year ago;

- Order Bookings were $64 million during the first 10 weeks of the
first quarter.

Earnings from operations, excluding restructuring charges incurred in the
quarter, improved in all geographic areas due to revenue growth, cost
reductions and better program management. Revenue increased year over year by
227% in energy and 17% in healthcare, more than offsetting 38%, 19% and 15%
declines in computer-electronics, automotive and "other" markets (primarily
consumer products) respectively.

Photowatt Technologies Fourth Quarter Results

- Photowatt Technologies revenue decreased 21% to $48.2 million
compared to $61.3 million a year ago.

- Photowatt France ("PWF", the ongoing operations of Photowatt
Technologies) EBITDA was $5.2 million compared to $6.8 million a year
ago;

- PWF operating earnings were $1.0 million (2% operating margin)
compared to $3.3 million a year ago (5% operating margin);

- Total megawatts (MWs) sold at PWF decreased 29% to 9.3 from 13.1 in
the fourth quarter of fiscal 2008 - with UMG-Si products accounting
for 70% of revenue;

- Average cell efficiency for UMG-Si cells improved to approximately
14.3% from 13.5% a year ago, while average cell efficiency for
polysilicon decreased to 15.4% from 15.6% over the same period.

The year-over-year decline in operating results reflected lower MWs sold
due to the impact on demand of tighter credit markets, which restricted
funding available for solar projects. Decreases in average selling prices per
watt also had a negative impact on total revenues. PWF increased revenue from
the sale of module Systems to approximately $12.5 million from $9.1 million in
the fourth quarter of fiscal 2008.

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
3414.

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Photowatt France announces temporary shutdown


TSX: ATA

CAMBRIDGE, ON, April 28, 2009 /CNW/ - ATS Automation Tooling Systems Inc.
today announced that its Photowatt France operation will halt production for
three weeks in response to lower demand for solar modules and systems.
The temporary shutdown, which begins next week, will impact approximately
450 production employees at Photowatt France's production facility in
Bourgoin-Jallieu, France. Photowatt will make use of this period to implement
process improvements.

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Thread: ATS// geplanter Photowatt spin-off - PPVX-Kandidat