Form 10-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                           |X| Annual report pursuant to section 13 or 15(d) of
                               the Securities Exchange Act of 1934 (fee
                               required) For the Year Ended December 31, 2002
                                    OR
                           |_| Transition report pursuant to section 13 or 15(d)
                               of the Securities Exchange Act of 1934 (no fee
                               required) For the transition period from ____ to
                               ____

                        Commission File number 333-47196

                       ATEL Capital Equipment Fund IX, LLC

California                                                           94-3375584
----------                                                           ----------
(State or other jurisdiction of                              (I. R. S. Employer
 incorporation or organization)                             Identification No.)

        600 California Street, 6th Floor, San Francisco, California 94108
                    (Address of principal executive offices)

        Registrant's telephone number, including area code (415) 989-8800
        Securities registered pursuant to section 12(b) of the Act: None
        Securities registered pursuant to section 12(g) of the Act: None

     Indicate by a check mark whether the  registrant  (1) has filed all reports
required to be filed by section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes |X| No |_|

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation  S-K  (ss.229.405)  is not contained  herein,  and will not be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information  statements  incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. |X|

     Indicate by check mark whether the registrant is an  accelerated  filer (as
defined in Rule 12b-2 of the Act). Yes |_| No |X|


     State the aggregate market value of voting stock held by  non-affiliates of
the registrant. Inapplicable


                       DOCUMENTS INCORPORATED BY REFERENCE

     Prospectus   dated  January  16,  2001,   filed  pursuant  to  Rule  424(b)
(Commission File No. 333-47196) is hereby incorporated by reference into Part IV
hereof.



                                       1
<PAGE>

                                     PART I

Item 1:  BUSINESS

General Development of Business

     ATEL Capital Equipment Fund IX, LLC (the Company) was formed under the laws
of the state of  California  in September  2000.  The Company was formed for the
purpose  of  acquiring  equipment  to  engage  in  equipment  leasing  and sales
activities.  The Managing  Member of the Company is ATEL Financial  Services LLC
(ATEL), a California  limited  liability  corporation.  Prior to converting to a
limited liability company  structure,  the Managing Member was formerly known as
ATEL Financial Corporation.

     The Company is conducting a public offering of 15,000,000 Limited Liability
Company  Units  (Units),  at a price of $10 per  Unit.  On  February  21,  2001,
subscriptions for the minimum number of Units (120,000, representing $1,200,000)
had been received and ATEL requested that the  subscriptions  be released to the
Company. On that date, the Company commenced  operations in its primary business
(leasing   activities).   As  of  April  3,  2001,   the  Company  had  received
subscriptions  for  753,050  Units  ($7,530,500)  and  ATEL  requested  that the
remaining  funds in escrow  (from  Pennsylvania  investors)  be  released to the
Company.  As of December 31, 2002,  the Company had received  subscriptions  for
11,037,141  Units  ($110,371,410),  including the Initial Members' Units. All of
the Units were issued and outstanding as of December 31, 2002.

     As  of  January  15,  2003,   the   Company's   offering  was   terminated.
Subscriptions for a total of 12,110,460  ($121,104,600)  Units had been received
and accepted.

     The Company's principal objectives are to invest in a diversified portfolio
of equipment that will (i) preserve,  protect and return the Company's  invested
capital;  (ii)  generate  regular  distributions  to the  partners  of cash from
operations and cash from sales or refinancing,  with any balance remaining after
certain minimum distributions to be used to purchase additional equipment during
the reinvestment period, ending 72 months after the end of the year in which the
Final  Closing  occurs  (which  will be  December  31,  2009) and (iii)  provide
additional  distributions  following  the  reinvestment  period  and  until  all
equipment  has been sold.  The  Company is  governed  by its  Limited  Liability
Company Operating Agreement (Operating Agreement).

Narrative Description of Business

The Company has acquired and intends to acquire various types of equipment and
to lease such equipment pursuant to "Operating" leases and "High Payout" leases,
     whereby "Operating" leases are defined as being leases in which the minimum
lease payments during the initial lease term do not recover the full cost of the
equipment and "High Payout" leases recover at least 90% of such cost. It is the
intention of ATEL that a majority of the aggregate purchase price of equipment
will represent equipment leased under "High Payout" leases upon final investment
of the Net Proceeds of the Offering and that no more than 20% of the aggregate
purchase price of equipment will be invested in equipment acquired from a single
manufacturer.

     The Company will only  purchase  equipment  for which a lease exists or for
which a lease will be entered into at the time of the purchase.

     As of December 31, 2002,  the Company had purchased  equipment with a total
acquisition  price of $50,430,079.  The Company has also invested  $2,619,544 in
notes receivable.

     The  Company's  objective  is to lease a  minimum  of 75% of the  equipment
acquired  with the net  proceeds  of the  offering  to lessees  that (i) have an
aggregate credit rating by Moody's Investor  service,  Inc. of Baa or better, or
the credit  equivalent as determined by ATEL, with the aggregate rating weighted
to account  for the  original  equipment  cost for each item  leased or (ii) are
established  hospitals with histories of  profitability or  municipalities.  The
balance of the original  equipment  portfolio  may include  equipment  leased to
lessees which,  although deemed  creditworthy by the Managing Member,  would not
satisfy the general credit rating  criteria for the portfolio.  In excess of 75%
of the  equipment  acquired  with the net  proceeds  of the  offering  (based on
original  purchase  cost) has been leased to lessees  with an  aggregate  credit
rating of Baa or better or to such hospitals or municipalities.

During 2002 and 2001, certain lessees generated significant portions of the
Company's total lease revenues as follows:

<TABLE>
<CAPTION>
Lessee                             Type of Equipment                           2002   2001
------                             -----------------                           ----   ----
<S>                                <C>                                          <C>    <C>
Basin Electric                     Walking dragline                             23%    54%
Graham Offshore Inc.               Off shore supply vessels                     17%     *
General Electric Aircraft Engines  Machine tools                                11%     *
Photuris, Inc.                     Various lab, computer and office equipment    *     14%
</TABLE>

*  Less than 10%

These percentages are not expected to be comparable in future periods.



                                       2
<PAGE>

     The   equipment   leasing   industry  is  highly   competitive.   Equipment
manufacturers,  corporations, partnerships and others offer users an alternative
to the purchase of most types of equipment  with payment  terms that vary widely
depending on the lease term and type of equipment. The ability of the Company to
keep the equipment  leased and/or  operating and the terms of the  acquisitions,
leases and  dispositions of equipment  depends on various factors (many of which
are not in the  control  of  ATEL or the  Company),  such  as  general  economic
conditions, including the effects of inflation or recession, and fluctuations in
supply and demand for various  types of equipment  resulting  from,  among other
things, technological and economic obsolescence.

     ATEL will seek to limit the  amount  invested  in  equipment  to any single
lessee to not more than 20% of the aggregate  purchase price of equipment  owned
at any time during the reinvestment period.

     The business of the Company is not seasonal.

     The Company has no full time employees.

Equipment Leasing Activities

     The  Company  has  acquired  a  diversified  portfolio  of  equipment.  The
equipment has been leased to lessees in various industries. The following tables
set forth the types of equipment  acquired by the Company  through  December 31,
2002 and the  industries  to which the assets have been leased.  The Company has
purchased certain assets subject to existing non-recourse debt.

                            Purchase Price Excluding   Percentage of Total
Asset Types                     Acquisition Fees          Acquisitions
-----------                     ----------------          ------------
Mining equipment                    $20,903,212                   41.46%
Manufacturing                        12,084,745                   23.96%
Marine vessels                       11,200,000                   22.21%
Materials handling                    3,132,622                    6.21%
Furniture and fixtures                2,143,896                    4.25%
Natural gas compressors                 696,451                    1.38%
Communications                          269,153                    0.53%
                                ----------------         ----------------
                                    $50,430,079                  100.00%
                                ================         ================

                            Purchase Price Excluding   Percentage of Total
Industry of Lessee              Acquisition Fees          Acquisitions
------------------              ----------------          ------------
Manufacturing                       $16,827,546                   33.37%
Electric utilities                   11,315,397                   22.44%
Marine transportation                11,200,000                   22.21%
Mining                                 9,587,815                  19.01%
Retail                                    802,870                  1.59%
Oil and gas                               696,451                  1.38%
                                ----------------         ----------------
                                    $50,430,079                  100.00%
                                ================         ================

     For further  information  regarding the Company's equipment lease portfolio
as of December 31, 2002, see Note 3 to the financial statements,  Investments in
equipment and leases, as set forth in Part II, Item 8, Financial  Statements and
Supplementary Data.


Item 2.  PROPERTIES

     The  Company  does not own or lease any real  property,  plant or  material
physical properties other than the equipment held for lease as set forth in Item
1.

Item 3.  LEGAL PROCEEDINGS

Silicon Access Networks, Inc.:

     Silicon Access  Networks,  Inc. (the Debtor) advised the Managing Member on
July 8, 2002, that due to a further decline in expectations of future demand for
the Debtor's products by potential customers in its target markets, the Debtor's
Board of Directors had directed  management to close a branch office  located in
North Carolina,  which occurred in July 2002. As Debtor was current on its Notes
Payable  payment  obligation  to the Company the Managing  Member of the Company
declared a technical  default in early July on the basis of the  termination  of
operations.  As of December 31, 2002, the Debtor's  account was current,  except
for late charges.

     The Company is monitoring  the Debtor's cash position  quarterly as it will
run out of cash  sometime in the summer of 2003,  unless it raises new equity or
debt.  If there is no sign the  Debtor  will be getting a cash  infusion  in the
latter half of the second  quarter of 2003, and the Debtor's cash position falls
below a certain  amount,  the Company will likely move for a Writ of  Attachment
and continue to pursue its claim against the Debtor. The Company's likelihood of
success in recovering the full amount of its claims remains uncertain.



                                       3
<PAGE>

Photuris, Inc.:

     Photuris,  a Debtor of the Company,  was on the verge of ceasing operations
as it was unable to secure new equity  under  favorable  terms when the  Company
commenced  negotiations  with the Debtor.  As of this date,  no legal action has
been initiated against the debtor;  however,  the account has been restructured.
In concert  with  several  other  lessors and  lenders,  the  Company  concluded
negotiations  and executed a  Settlement  Agreement  with the Debtor.  Under the
terms of the Settlement  Agreement,  the Company received an initial $200,000 in
cash in July 2002. The Company is carrying a promissory note from the Debtor for
$300,000  that is payable  interest only at prime plus 1.25% from August 1, 2002
to October 2003, at which time payments will convert to an equal  principal plus
interest basis, spread over 36 months.

     The  Company  has been  granted  $200,000  worth of new  equity  shares  in
Photuris  as the final part of the  settlement.  The Company  still  retains its
perfected  first priority lien on the equipment  financed by the Company.  As of
early October 2002, the Company became aware that Photuris had not yet closed on
receiving some  additional  equity and was in danger of running out of operating
capital in early November 2002. The Company has confirmed with the lead investor
in  Photuris'  latest  equity  round that the  investors  have agreed to provide
additional  equity to allow  Photuris  to continue  to  operate;  however,  this
commitment,  for up to $15 million,  is being  provided in stages on a quarterly
basis if certain  milestones are met. ATEL has confirmed that Photuris  received
the first stage of this new equity in November 2002.  Another round, which would
allow Photuris to continue operations for at least two to four months, closed in
February 2003.  Continued  receipt of such funds would allow Photuris to operate
an additional six to seven months.


Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.


                                     PART II

Item 5.  MARKET FOR REGISTRANT'S LIMITED LIABILITY COMPANY UNITS
              AND RELATED MATTERS

Market Information

     The Units are  transferable  subject to restrictions on transfers that have
been imposed under the securities laws of certain states.  However,  as a result
of such restrictions,  the size of the Company and its investment objectives, to
ATEL's knowledge,  no established  public secondary trading market has developed
and it is unlikely that a public trading market will develop in the future. As a
result, there is no currently ascertainable market value for the Units.

Holders

     As of December 31, 2002, a total of 2,829  investors were record holders of
Units in the Company.

Dividends

     The Company does not make dividend  distributions.  However, the Members of
the  Company  are  entitled  to  certain  distributions  as  provided  under the
Operating Agreement.

     ATEL has sole  discretion  in  determining  the  amount  of  distributions;
provided,  however, that the Managing Member will not reinvest in equipment, but
will  distribute,  subject to payment of any  obligations  of the Company,  such
available  cash from  operations  and cash from sales or  refinancing  as may be
necessary to cause total  distributions  to the Members for each year during the
reinvestment  period to equal an amount  between  $0.90 and $1.10 per Unit which
will be determined by the Managing Member.

     The rate for monthly distributions from 2002 operations was $0.075 per Unit
for January  through  December  2002.  The  distributions  were paid in February
through December 2002 and in January 2003. The rate for quarterly  distributions
paid in  April,  July,  October  2002 and  January  2003 was  $0.225,  per Unit.
Distributions were from 2002 cash flows from operations.

     The rate for monthly  distributions  from 2001 operations was $0.069167 per
Unit for February (partial month) through September 2001. The distributions were
paid in April through October 2001. The rate for the  distributions  for October
through  December  2001 was  $0.075.  The  distributions  were paid in  November
through December 2001 and in January 2002. The rates for quarterly distributions
paid in April and July 2001 and January  2002 were $0.09,  $0.2075,  $0.2075 and
$0.225,  respectively,  per Unit.  Distributions  were from 2001 cash flows from
operations.

The following table presents summarized information regarding distributions to
Other Members:

                                                2002             2001
                                                ----             ----
Distributions of net income                       $ 0.0158         $ 0.2242
Return of investment                                0.8105           0.3357
                                           ---------------- ----------------
Distributions per unit                              0.8263           0.5599
Differences due to timing of distributions          0.0737           0.1668
                                           ---------------- ----------------
Nominal distribution rates from above             $ 0.9000         $ 0.7267
                                           ================ ================




                                       4
<PAGE>

Information provided pursuant to ss. 228.701 (Item 701(f)) (formerly included in
Form SR):

(1) Effective date of the offering:  January 16, 2001; File Number: 333-47196
(2) Offering commenced: January 16, 2001
(3) The offering did not terminate before any securities were sold.
(4) The offering was terminated prior to the sale of all of the securities on
    January 15, 2003.
(5) The managing underwriter is ATEL Securities Corporation.
(6) The title of the registered class of securities is "Units of Limited
Liability Company interest". (7) Aggregate amount and offering price of
securities registered and sold as of January 15, 2003:

<TABLE>
<CAPTION>
                                                         Aggregate                          Aggregate
                                                         price of                           price of
                                                         offering                           offering
                                          Units           amount            Units            amount
          Title of Security            Registered       registered          sold              sold
          -----------------            ----------       ----------          ----              ----

<S>                                       <C>            <C>                <C>             <C>
   Limited Company units                  15,000,000     $150,000,000       12,110,460      $121,104,600

(8) Costs incurred for the issuer's account in connection with the issuance and
    distribution of the securities registered for each category listed below:

                                      Direct or
                                      indirect
                                      payments to
                                      directors,
                                      officers,
                                      managing
                                      members of the
                                      issuer or
                                      their
                                      associates; to
                                      persons owning
                                        ten percent or more of any        Direct or
                                      class of equity securities of       indirect
                                     the issuer; and to affiliates of    payments to
                                       the issuer                          others             Total
                                       ----------                          ------             -----

   Underwriting discounts and
   commissions                           $ 1,816,569                       $ 9,688,368       $11,504,937

   Other expenses                                  -                         4,709,641         4,709,641
                                     ----------------                  ----------------  ----------------
   Total expenses                        $ 1,816,569                       $14,398,009       $16,214,578
                                     ================                  ================  ================

 (9) Net offering proceeds to the issuer after the total expenses in item (8) above:        $104,890,022

(10) The amount of net  offering  proceeds  to the  issuer  used for each of the
purposes listed below:

                                      Direct or
                                      indirect
                                      payments to
                                      directors,
                                      officers,
                                      managing
                                      members of the
                                      issuer or
                                      their
                                      associates; to
                                      persons owning
                                        ten percent or more of any        Direct or
                                      class of equity securities of       indirect
                                     the issuer; and to affiliates of    payments to
                                       the issuer                          others             Total
                                       ----------                          ------             -----

   Purchase and installation of
   machinery and equipment                       $ -                      $104,284,499      $104,284,499

   Working capital                                 -                           605,523           605,523
                                     ----------------                  ----------------  ----------------
                                                 $ -                      $104,890,022      $104,890,022
                                     ================                  ================  ================
</TABLE>

(11) The use of the  proceeds  in item (10) above does not  represent a material
change in the uses of proceeds described in the prospectus.




                                       5
<PAGE>

Item 6.  SELECTED FINANCIAL DATA

     The following  table  presents  selected  financial  data of the Company at
December 31, 2002, 2001 and 2000 and for the periods then ended.  This financial
data should be read in  conjunction  with the financial  statements  and related
notes included under Part II Item 8.

<TABLE>
<CAPTION>
                                                     2002             2001              2000
                                                     ----             ----              ----
<S>                                                 <C>              <C>                       <C>
Gross revenues                                      $ 7,073,495      $ 3,393,685               $ -
Net income                                            $ 603,150        $ 584,176               $ -
Weighted average Units                                7,280,533        2,167,171                50
Net income allocated to Other Members                 $ 115,396        $ 485,897               $ -
Net income per Unit, based on weighted
   average Units outstanding                             $ 0.02           $ 0.22               $ -
Distributions per Unit, based on weighted average
   Units outstanding                                     $ 0.83           $ 0.56               $ -
Total Assets                                        $89,419,224      $36,828,411             $ 600
Total Members' Capital                              $88,816,997      $36,550,603             $ 600
</TABLE>


Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
              RESULTS OF OPERATIONS


     Statements contained in this Item 7, "Management's  Discussion and Analysis
of Financial  Condition and Results of  Operations,"  and elsewhere in this Form
10-K, which are not historical facts, may be  forward-looking  statements.  Such
statements  are  subject  to risks and  uncertainties  that could  cause  actual
results to differ  materially from those projected.  Investors are cautioned not
to attribute undue certainty to these  forward-looking  statements,  which speak
only as of the date of this Form 10-K.  We undertake no  obligation  to publicly
release any revisions to these  forward-looking  statements to reflect events or
circumstances  after the date of this Form 10-K or to reflect the  occurrence of
unanticipated events, other than as required by law.

Capital Resources and Liquidity

     The  Company  commenced  its  offering  of Units on January  16,  2001.  On
February 21, 2001,  the Company  commenced  operations  in its primary  business
(leasing  activities).  Until the Company's  initial  portfolio of equipment has
been  purchased,  funds  that  have  been  received,  but that have not yet been
invested  in leased  equipment,  are  invested in  interest-bearing  accounts or
high-quality/short-term commercial paper. The Company's public offering provided
for a total maximum capitalization of $150,000,000.

     During the funding  period,  the Company's  primary source of liquidity was
subscription  proceeds from the public  offering of Units.  The liquidity of the
Company will vary in the future, increasing to the extent cash flows from leases
and proceeds of asset sales exceed expenses,  and decreasing as lease assets are
acquired,  as  distributions  are made to the other  members  and to the  extent
expenses exceed cash flows from leases and proceeds from asset sales.

As another source of liquidity, the Company is expected to have contractual
obligations with a diversified group of lessees for fixed lease terms at fixed
     rental  amounts.  As the initial  lease  terms  expire,  the  Company  will
re-lease or
sell the equipment. The future liquidity beyond the contractual minimum rentals
will depend on ATEL's success in re-leasing or selling the equipment as it comes
off lease.

     The  Company  participates  with the  Managing  Member  and  certain of its
affiliates  in  a  $55,645,837   revolving  line  of  credit  (comprised  of  an
acquisition facility and a warehouse facility) with a financial institution that
includes  certain  financial  covenants.  The line of credit expires on June 28,
2004. As of December 31, 2002, borrowings under the facility were as follows:

<TABLE>
<CAPTION>
<S>                                                                                                 <C>
Amount  borrowed by the Company under the acquisition facility                                      $            -
Amounts borrowed by affiliated partnerships and limited liability companies under the acquisition
   facility                                                                                             29,000,000
                                                                                                   ----------------
Total borrowings under the acquisition facility                                                         29,000,000
Amounts borrowed by the Managing Member and its sister corporation under the warehouse facility                  -
                                                                                                   ----------------
Total outstanding balance                                                                           $  29,000,000
                                                                                                   ================

Total available under the line of credit                                                            $  55,645,837
Total outstanding balance                                                                              (29,000,000)
                                                                                                   ----------------
Remaining availability                                                                              $  26,645,837
                                                                                                   ================
</TABLE>



                                       6
<PAGE>

     Draws on the  acquisition  facility by any individual  borrower are secured
only  by  that  borrower's  assets,  including  equipment  and  related  leases.
Borrowings  on the  warehouse  facility are  recourse  jointly to certain of the
affiliated  partnerships and limited  liability  companies,  the Company and the
Managing Member.

     The Company anticipates reinvesting a portion of lease payments from assets
owned in new leasing  transactions.  Such reinvestment will occur only after the
payment  of  all  obligations,   including  debt  service  (both  principal  and
interest),  the payment of management  to the Managing  Member and providing for
cash  distributions to the Other Members.  At December 31, 2002, the Company had
commitments to purchase lease assets totaling approximately $10,460,000.

     ATEL or an affiliate may purchase equipment in its own name, the name of an
affiliate or the name of a nominee,  a trust or otherwise and hold title thereto
on a temporary or interim basis for the purpose of facilitating  the acquisition
of such  equipment or the  completion of manufacture of the equipment or for any
other purpose  related to the business of the Company,  provided,  however that:
(i) the transaction is in the best interest of the Company;  (ii) such equipment
is  purchased  by the Company for a purchase  price no greater  than the cost of
such  equipment  to ATEL or  affiliate  (including  any  out-of-pocket  carrying
costs),  except for  compensation  permitted by the Operating  Agreement;  (iii)
there is no difference  in interest  terms of the loans secured by the equipment
at the time  acquired by ATEL or affiliate and the time acquired by the Company;
(iv)  there  is no  benefit  arising  out of  such  transaction  to  ATEL or its
affiliate  apart from the  compensation  otherwise  permitted  by the  Operating
Agreement;  and (v) all income  generated by, and all expenses  associated with,
equipment so acquired will be treated as belonging to the Company.

     The Company currently has available adequate reserves to meet its immediate
cash  requirements  and those of the next twelve months,  but in the event those
reserves were found to be inadequate,  the Company would likely be in a position
to  borrow  against  its  current  portfolio  to meet  such  requirements.  ATEL
envisions no such requirements for operating purposes.

     In August 2002, the Company  established a $100 million receivables funding
program with a receivables  financing company that issues commercial paper rated
A1 from  Standard  and  Poors and P1 from  Moody's  Investor  Services.  In this
receivables  funding  program,  the  lenders  would  receive  liens  against the
Company's  assets.  The  lender  will be in a  first  position  against  certain
specified assets and will be in either a subordinated or shared position against
the remaining assets.  The program provides for borrowing at a variable interest
rate and requires the Managing Member,  on behalf of the Company,  to enter into
interest  rate swap  agreements  with certain hedge  counterparties  (also rated
A1/P1) to mitigate the interest rate risk  associated  with a variable  interest
rate note.  The  Managing  Member  anticipates  that this program will allow the
Company to have a more cost  effective  means of obtaining  debt  financing than
available for  individual  non-recourse  debt  transactions.  As of December 31,
2002, the Company had not borrowed under the facility.

     It is the intention of the Company to use the  receivables  funding program
as its primary  source of debt  financing.  The Company will continue to use its
sources of non-recourse secured debt financing on a transaction basis as a means
of mitigating credit risk.

     ATEL expects that aggregate  borrowings in the future will be approximately
50% of aggregate  equipment cost. In any event,  the Operating  Agreement limits
such borrowings to 50% of the total cost of equipment, in aggregate.

     The  Company  commenced  regular  distributions,  based on cash  flows from
operations, beginning with the month of February 2001. The distribution was made
in April 2001 and additional  distributions  have been consistently made through
December 2002.

     If inflation in the general economy becomes significant,  it may affect the
Company  inasmuch as the residual  (resale) values and rates on re-leases of the
Company's  leased assets may increase as the costs of similar  assets  increase.
However, the Company's revenues from existing leases would not increase, as such
rates are generally  fixed for the terms of the leases  without  adjustment  for
inflation.

     If interest rates increase significantly,  the lease rates that the Company
can obtain on future  leases will be expected to increase as the cost of capital
is a significant  factor in the pricing of lease  financing.  Leases  already in
place, for the most part, would not be affected by changes in interest rates.

Cash Flows

     In 2002 and 2001,  operating  lease rents were the  primary  source of cash
flows from  operations.  The Company's  primary source of cash in both years was
the proceeds of its offering of Limited Liability Company Units.

     Sources of cash from investing  activities  included  amounts  received for
notes  receivable  principal  payments and direct finance lease payments in both
2002 and 2001.  In 2002,  the Company also  received  proceeds from the sales of
lease assets.

     Cash was used to purchase  assets on operating and direct  finance  leases.
Cash was also used to pay  initial  direct  lease  costs and to pay  syndication
costs  (associated  with the  offering)  to the  Managing  Member and one of its
affiliates. Cash was also used to make distributions to the members.



                                       7
<PAGE>

Results of Operations

     As of  February  21,  2001,  subscriptions  for the  minimum  amount of the
offering  ($1,200,000) had been received and accepted by the Company. As of that
date,  the  Company  commenced  operations  in  its  primary  business  (leasing
activities).  There  were no  operations  in 2000.  Because of the timing of the
commencement of operations and the fact that the initial portfolio  acquisitions
were not  completed at December 31, 2002,  the results of operations in 2002 and
2001 are not expected to be  comparable to future  periods.  After the Company's
public offering and its initial asset acquisition  stage terminate,  the results
of operations are expected to change significantly.

     Substantially  all  employees  of ATEL track time  incurred  in  performing
administrative  services on behalf of the Company.  ATEL believes that the costs
reimbursed  are the lower of (i) actual costs  incurred on behalf of the Company
or (ii) the amount the Company would be required to pay independent  parties for
comparable administrative services in the same geographic location.

     Operations  in 2002  and  2001  resulted  in net  income  of  $603,150  and
$584,176,  respectively. The primary source of revenues was rents from operating
leases.  The  Company  is  continuing  to acquire  significant  amounts of lease
assets. As a result, results of operations in future periods are not expected to
be comparable to 2002 or 2001.

Derivative Financial Instruments

     In June 1998, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement of Financial  Accounting  Standards  ("SFAS") No. 133,  Accounting for
Derivative Instruments and Hedging Activities,  which established new accounting
and  reporting  standards  for  derivative  instruments.  SFAS No.  133 has been
amended by SFAS No. 137,  issued in June 1999,  and by SFAS No.  138,  issued in
June 2000.

     SFAS No. 133, as amended, requires the Company to recognize all derivatives
as  either  assets  or  liabilities  in the  balance  sheet  and  measure  those
instruments  at  fair  value.  It  further  provides   criteria  for  derivative
instruments  to be  designated  as fair value,  cash flow,  or foreign  currency
hedges, and establishes  accounting  standards for reporting changes in the fair
value of the derivative  instruments.  If derivative  financial  instruments are
utilized,  the Company will be required to record derivative instruments at fair
value in the  balance  sheet and  recognize  the  offsetting  gains or losses as
adjustments to net income or other comprehensive income, as appropriate.

     The Company adopted SFAS No. 133, as amended, on January 1, 2001, which had
no impact as the Company  did not  utilize  derivatives  in 2002.  However,  the
Company expects to enter into interest rate swap agreements in future periods.

Recent Accounting Pronouncements

     In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment
or  Disposal  of  Long-Lived  Assets  (SFAS  144),  which  addresses   financial
accounting and reporting for the impairment or disposal of long-lived assets and
supersedes SFAS No. 121,  Accounting for the Impairment of Long-Lived Assets and
for  Long-Lived  Assets to be  Disposed  Of, and the  accounting  and  reporting
provisions  of APB Opinion No. 30,  Reporting the Results of  Operations,  for a
disposal  of a segment of a business.  SFAS 144 is  effective  for fiscal  years
beginning  after December 15, 2001,  with earlier  application  encouraged.  The
Company  adopted SFAS 144 as of January 1, 2002.  The adoption of the  Statement
did not have a  significant  impact  on the  Company's  financial  position  and
results of operations.

Internal Controls

     As of December 31, 2002, an evaluation was performed  under the supervision
and with the  participation of the Company's  management,  including the CEO and
CFO of the Managing Member,  of the effectiveness of the design and operation of
the Company's disclosure controls and procedures.  Based on that evaluation, the
Company's  management,  including  the  CEO  and  CFO  of the  Managing  Member,
concluded that the Company's  disclosure  controls and procedures were effective
as of December 31, 2002. There have been no significant changes in the Company's
internal controls or in other factors that could  significantly  affect internal
controls subsequent to December 31, 2002.

Critical Accounting Policies

     The  policies   discussed   below  are  considered  by  management  of  the
Partnership to be critical to an  understanding of the  Partnership's  financial
statements because their application  requires significant complex or subjective
judgments,  decisions, or assessments,  with financial reporting results relying
on  estimation  about  the  effect of  matters  that are  inherently  uncertain.
Specific  risks for these  critical  accounting  policies  are  described in the
following  paragraphs.  The Partnership also states these accounting policies in
the  notes  to  the  financial  statements  and in  relevant  sections  in  this
discussion and analysis.  For all of these  policies,  management  cautions that
future  events  rarely  develop  exactly  as  forecast,  and the best  estimates
routinely require adjustment.



                                       8
<PAGE>

Use of Estimates:

     The  preparation  of financial  statements  in conformity  with  accounting
principles  generally accepted in the United States requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting  period.  Actual results could differ from those estimates.
Such estimates  primarily relate to the  determination of residual values at the
end of the lease term.

Asset Valuation:

     Recorded values of the Company's asset portfolio are periodically  reviewed
for impairment in accordance  with Statement of Financial  Accounting  Standards
(SFAS) No. 144,  Accounting for the Impairment or Disposal of Long-Lived Assets.
An impairment loss is measured and recognized only if the estimated undiscounted
future cash flows of the asset are less than their net book value. The estimated
undiscounted  future cash flows are the sum of the estimated  residual  value of
the asset at the end of the asset's  expected  holding  period and  estimates of
undiscounted future rents. The residual value assumes,  among other things, that
the asset is  utilized  normally  in an open,  unrestricted  and stable  market.
Short-term  fluctuations  in the market place are  disregarded and it is assumed
that there is no  necessity  either to dispose  of a  significant  number of the
assets, if held in quantity,  simultaneously or to dispose of the asset quickly.
Impairment is measured as the  difference  between the fair value (as determined
by the  discounted  estimated  future cash flows) of the assets and its carrying
value on the measurement date.


Item 7a.  QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

     The Company, like most other companies, is exposed to certain market risks,
including primarily changes in interest rates. The Company believes its exposure
to other market risks,  including foreign currency exchange rate risk, commodity
risk and equity price risk, are insignificant to both its financial position and
results of operations.

     In general,  the Company  expects to manage its  exposure to interest  rate
risk by obtaining  fixed rate debt.  The fixed rate debt is  structured so as to
match the cash flows  required to service the debt to the payment  streams under
fixed rate lease receivables.  The payments under the leases are assigned to the
lenders  in  satisfaction  of the debt.  Furthermore,  the  Managing  Member has
historically been able to maintain a stable spread between its cost of funds and
lease yields in both periods of rising and falling interest rates. Nevertheless,
the Company  expects to frequently  fund leases with its floating  interest rate
line of credit and will, therefore, be exposed to interest rate risk until fixed
rate  financing is arranged,  or the  floating  interest  rate line of credit is
repaid.  As of  December  31,  2002,  there was no  outstanding  balance  on the
floating interest rate line of credit.

     Also, as described in the caption  "Capital  Resources and  Liquidity," the
Company entered into a receivables  funding  facility in 2002. Since interest on
the  outstanding  balances  under the  facility  will vary,  the Company will be
exposed to market risks  associated  with changing  interest rates. To hedge its
interest rate risk, the Company expects to enter into interest rate swaps, which
will effectively convert the underlying interest  characteristic on the facility
from floating to fixed.  Under the swap agreements,  the Company expects to make
or receive variable  interest  payments to or from the  counterparty  based on a
notional  principal amount. The net differential paid or received by the Company
is  recognized  as an  adjustment  to interest  expense  related to the facility
balances.  The amount paid or received will represent the difference between the
payments  required under the variable interest rate facility and the amounts due
under the facility at the fixed (hedged) interest rate. There were no borrowings
under this facility as of December 31, 2002.

     In general, it is anticipated that these swap agreements will eliminate the
Company's interest rate risk associated with variable rate borrowings.  However,
the Company would be exposed to and would manage credit risk associated with the
counterparty by dealing only with institutions it considers financially sound.


Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     See the Report of Independent  Auditors,  Financial Statements and Notes to
Financial Statements attached hereto at pages 10 through 23.

                                       9
<PAGE>










                REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS



The Members
ATEL Capital Equipment Fund IX, LLC

     We have audited the accompanying  balance sheets of ATEL Capital  Equipment
Fund IX, LLC (Company) as of December 31, 2002 and 2001, the related  statements
of income for the two years ended December 31, 2002, and the related  statements
of changes in members'  capital and cash flows for the two years ended  December
31, 2002 and for the period from September 27, 2000 (inception) through December
31, 2000.  These financial  statements are the  responsibility  of the Company's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

     We conducted our audits in accordance  with  auditing  standards  generally
accepted in the United States.  Those standards require that we plan and perform
the audit to obtain reasonable  assurance about whether the financial statements
are free from material  misstatement.  An audit  includes  examining,  on a test
basis,  evidence  supporting  the  amounts  and  disclosures  in  the  financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

     In our opinion,  the financial statements referred to above present fairly,
in all material respects,  the financial position of ATEL Capital Equipment Fund
IX, LLC at December 31, 2002 and 2001, the results of its operations for the two
years  ended  December  31,  2002,  and its cash  flows for the two years  ended
December 31, 2002 and for the period from September 27, 2000 (inception) through
December 31, 2000, in conformity with accounting  principles  generally accepted
in the United States.

                                                           /s/ ERNST & YOUNG LLP

San Francisco, California
February 7, 2003





                                       10
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                                 BALANCE SHEETS

                           DECEMBER 31, 2002 AND 2001



                                                   2002              2001
                                                   ----              ----
                                     ASSETS


Cash                                              $39,722,496       $13,568,058

Accounts receivable                                 1,197,760         1,186,719

Notes receivable                                    1,055,609           982,262

Other assets                                          465,157                 -

Investment in equipment and leases                 46,978,202        21,091,372
                                              ----------------  ----------------
                                                  $89,419,224       $36,828,411
                                              ================  ================


                        LIABILITIES AND MEMBERS' CAPITAL


Accounts payable:
   Managing Member                                  $ 434,516         $ 157,719
   Other                                               90,667            24,471

Unearned operating lease income                        77,044            95,618
                                              ----------------  ----------------
Total liabilities                                     602,227           277,808

Total members' capital                            $88,816,997        36,550,603
                                              ----------------  ----------------
Total liabilities and members' capital            $89,419,224       $36,828,411
                                              ================  ================


                             See accompanying notes.



                                       11
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                              STATEMENTS OF INCOME

                               FOR THE YEARS ENDED
                           DECEMBER 31, 2002 AND 2001


Revenues:                                          2002              2001
                                                   ----              ----
   Leasing activities:
      Operating leases                            $ 6,269,908       $ 3,102,265
      Direct financing leases                         114,980            53,589
      Gain on sales of assets                         107,353                 -
Interest                                              579,486           232,116
Other                                                   1,768             5,715
                                              ----------------  ----------------
                                                    7,073,495         3,393,685
Expenses:
Depreciation and amortization                       5,178,087         2,078,895
Cost reimbursements to Managing Member                343,120           374,507
Interest expense                                      336,696           199,230
Asset management fees to Managing Member              264,322            83,341
Professional fees                                      99,730            39,384
Other                                                 248,390            34,152
                                              ----------------  ----------------
                                                    6,470,345         2,809,509
                                              ----------------  ----------------
Net income                                          $ 603,150         $ 584,176
                                              ================  ================

Net income:
   Managing Member                                  $ 487,754          $ 98,279
   Other Members                                      115,396           485,897
                                              ----------------  ----------------
                                                    $ 603,150         $ 584,176
                                              ================  ================

Net income per Limited Liability Company Unit
   (Other Members)                                     $ 0.02            $ 0.22
Weighted average number of Units outstanding        7,280,533         2,167,171





                             See accompanying notes.



                                       12
<PAGE>

              ATEL CAPITAL EQUIPMENT FUND IX, LLC

                    STATEMENTS OF CHANGES IN MEMBERS' CAPITAL

                               FOR THE YEARS ENDED
                         DECEMBER 31, 2002 AND 2001 AND
               FOR THE PERIOD FROM SEPTEMBER 27, 2000 (INCEPTION)
                            THROUGH DECEMBER 31, 2000


<TABLE>
<CAPTION>
                                                     Other Members                       Managing
                                                     -------------
                                                         Units           Amount           Member             Total
                                                         -----           ------           ------             -----

<S>                                                      <C>             <C>                      <C>       <C>
Initial capital contributions, September 2000                    50            $ 500            $ 100             $ 600
                                                    ---------------- ---------------- ----------------  ----------------
Balance December 31, 2000                                        50              500              100               600
Capital contributions                                     4,363,359       43,633,590                -        43,633,590
Less selling commissions to affiliates                                    (4,145,191)               -        (4,145,191)
Other syndication costs to affiliates                                     (2,210,852)               -        (2,210,852)
Distributions to Other Members ($0.56 per Unit)                           (1,213,341)               -        (1,213,341)
Distributions to Managing Member                                                   -          (98,379)          (98,379)
Net income                                                                   485,897           98,279           584,176
                                                    ---------------- ---------------- ----------------  ----------------
Balance December 31, 2001                                 4,363,409       36,550,603                -        36,550,603
Capital contributions                                     6,673,732       66,737,320                -        66,737,320
Less selling commissions to affiliates                                    (6,340,045)               -        (6,340,045)
Other syndication costs to affiliates                                     (2,230,650)               -        (2,230,650)
Distributions to Other Members ($0.83 per Unit)                           (6,015,627)               -        (6,015,627)
Distributions to Managing Member                                                   -         (487,754)         (487,754)
Net income                                                                   115,396          487,754           603,150
                                                    ---------------- ---------------- ----------------  ----------------
Balance December 31, 2002                                11,037,141      $88,816,997              $ -       $88,816,997
                                                    ================ ================ ================  ================
</TABLE>












                             See accompanying notes.



                                       13
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                            STATEMENTS OF CASH FLOWS

                               FOR THE YEARS ENDED
                         DECEMBER 31, 2002 AND 2001 AND
               FOR THE PERIOD FROM SEPTEMBER 27, 2000 (INCEPTION)
                            THROUGH DECEMBER 31, 2000


<TABLE>
<CAPTION>
Operating activities:                                                    2002             2001              2000
                                                                         ----             ----              ----
<S>                                                                       <C>              <C>                     <C>
Net income                                                                $ 603,150        $ 584,176               $ -
Adjustments to reconcile net income to cash provided by operating
   activities:
   Gain on sales of lease assets                                           (107,353)               -                 -
   Depreciation and amortization                                          5,178,087        2,078,895                 -
   Residual value income                                                       (201)          (9,890)                -
   Changes in operating assets and liabilities:
      Other assets                                                         (465,157)               -                 -
      Accounts receivable                                                   (11,041)      (1,186,719)                -
      Accounts payable, Managing Member                                     276,797          157,719                 -
      Accounts payable, other                                                66,196           24,471                 -
      Unearned operating lease income                                       (18,574)          95,618                 -
                                                                    ---------------- ----------------  ----------------
Net cash provided by operations                                           5,521,904        1,744,270                 -
                                                                    ---------------- ----------------  ----------------

Investing activities:
Purchases of equipment on operating leases                              (29,839,551)     (22,025,405)                -
Note receivable advances                                                 (1,031,605)      (1,587,939)                -
Purchases of equipment on direct financing leases                          (995,270)        (819,124)                -
Proceeds from sales of lease assets                                         749,408                -                 -
Payments received on notes receivable                                       958,258          605,677                 -
Investment in residuals                                                           -          (66,093)                -
Payments of initial direct costs to Managing Member                      (1,092,641)        (317,985)                -
Reduction of net investment in direct financing leases                      220,691           68,230                 -
                                                                    ---------------- ----------------  ----------------
Net cash used in investing activities                                   (31,030,710)     (24,142,639)                -
                                                                    ---------------- ----------------  ----------------

Financing activities:
Capital contributions received                                           66,737,320       43,633,590               600
Payment of syndication costs to Managing Member                          (8,570,695)      (6,356,043)                -
Distributions to Other Members                                           (6,015,627)      (1,213,341)                -
Distributions to Managing Member                                           (487,754)         (98,379)                -
                                                                    ---------------- ----------------  ----------------
Net cash provided by financing activities                                51,663,244       35,965,827               600
                                                                    ---------------- ----------------  ----------------

Net increase in cash and cash equivalents                                26,154,438       13,567,458               600

Cash and cash equivalents at beginning of period                         13,568,058              600                 -
                                                                    ---------------- ----------------  ----------------
Cash and cash equivalents at end of period                              $39,722,496      $13,568,058             $ 600
                                                                    ================ ================  ================

Supplemental disclosures of cash flow information:
Cash paid during the period for interest                                  $ 336,696        $ 199,230               $ -
                                                                    ================ ================  ================
</TABLE>


                             See accompanying notes.


                                       14
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2002


1.  Organization and Limited Liability Company matters:

     ATEL Capital Equipment Fund IX, LLC (the Company) was formed under the laws
of the state of  California  on September  27, 2000 for the purpose of acquiring
equipment to engage in equipment leasing and sales activities,  primarily in the
United States. The Managing Member of the Company is ATEL Financial Services LLC
(ATEL), a California  limited  liability  corporation.  The Company may continue
until December 31, 2019. Contributions in the amount of $600 were received as of
December 31, 2000, $100 of which  represented the Managing  Member's  continuing
interest, and $500 of which represented the Initial Member's capital investment.

     The Company  conducted a public  offering of 15,000,000  Limited  Liability
Company  Units  (Units),  at a price of $10 per  Unit.  On  February  21,  2001,
subscriptions for the minimum number of Units (120,000, representing $1,200,000)
had been received and ATEL requested that the  subscriptions  be released to the
Company. On that date, the Company commenced  operations in its primary business
(leasing   activities).   As  of  April  3,  2001,   the  Company  had  received
subscriptions  for  753,050  Units  ($7,530,500)  and  ATEL  requested  that the
remaining  funds in escrow  (from  Pennsylvania  investors)  be  released to the
Company.  As of December 31, 2002,  the Company had received  subscriptions  for
11,037,141  ($110,371,410)  Units,  including the Initial Members' Units. All of
the Units were issued and outstanding as of December 31, 2002.

     As of January 15, 2003, the offering was  terminated.  As of that date, the
Company had received subscriptions for 12,110,460 Units ($121,104,600).

     The Company's principal objectives are to invest in a diversified portfolio
of equipment that will (i) preserve,  protect and return the Company's  invested
capital;  (ii)  generate  regular  distributions  to the  partners  of cash from
operations and cash from sales or refinancing,  with any balance remaining after
certain minimum distributions to be used to purchase additional equipment during
the reinvestment period, ending 72 months after the end of the year in which the
Final  Closing  occurs   (December  31,  2009)  and  (iii)  provide   additional
distributions following the reinvestment period and until all equipment has been
sold.  The  Company is  governed  by its  Limited  Liability  Company  Operating
Agreement (Operating Agreement).


2.  Summary of significant accounting policies:

Equipment on operating leases:

     Equipment  on  operating  leases is stated at cost.  Depreciation  is being
provided by use of the straight-line method over the terms of the related leases
to the equipment's estimated residual values at the end of the leases.

     Revenues from operating leases are recognized  evenly over the lives of the
related leases.

Direct financing leases:

     Income from  direct  financing  lease  transactions  is reported  using the
financing method of accounting,  in which the Company's investment in the leased
property is reported as a  receivable  from the lessee to be  recovered  through
future rentals. The income portion of each rental payment is calculated so as to
generate a constant rate of return on the net receivable outstanding.



                                       15
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2002


2.  Summary of significant accounting policies (continued):

Investment in notes receivable:

     Income from notes  receivable  is reported  using the  financing  method of
accounting.  The  Company's  investment  in notes  receivable is reported as the
present  value of the future  note  payments.  The  income  portion of each note
payment is  calculated  so as to  generate a constant  rate of return on the net
balance  outstanding.  To date, the Company has made no provisions for losses on
notes receivable nor has the Company written off any notes receivables.

Accounts receivable:

     Accounts receivable  represent the amounts billed under lease contracts and
currently due to the Partnership. Allowances for doubtful accounts are typically
established  based on historical  charge offs and collection  experience and are
usually determined by specifically identified lessees and invoiced amounts.

Statements of cash flows:

     For purposes of the  Statements  of Cash Flows,  cash and cash  equivalents
includes cash in banks and cash equivalent  investments with original maturities
of ninety days or less.

Income taxes:

     The Company  does not provide for income  taxes since all income and losses
are the liability of the individual members and are allocated to the members for
inclusion in their individual tax returns.

     The tax basis of the Company's net assets and  liabilities  varies from the
amounts presented in these financial statements (unaudited):

                                                    2002             2001
                                                    ----             ----
      Financial statement basis of net assets   $  88,816,997    $  36,550,603
      Tax basis of net assets                       99,145,193       42,430,089
                                               ---------------- ----------------
      Difference                                $  10,328,196    $    5,879,486
                                               ================ ================

     The primary differences between the tax basis of net assets and the amounts
recorded in the financial statements are the result of differences in accounting
for syndication costs and differences  between the depreciation  methods used in
the financial statements and the Company's tax returns.

     The  following  reconciles  the net  income  reported  in  these  financial
statements to the loss reported on the Company's federal tax return (unaudited):

<TABLE>
<CAPTION>
                                                2002             2001              2000
                                                ----             ----              ----
<S>                                         <C>             <C>                <C>
 Net income per financial statements        $      603,150  $       584,176    $            -
 Adjustment to depreciation expense             (4,486,980)        (640,404)                -
 Adjustments to lease revenues                     (64,120)         163,847                 -
                                           ---------------- ----------------  ----------------
 Net income (loss) per federal tax return   $   (3,947,950)  $      107,619    $            -
                                           ================ ================  ================
</TABLE>



                                       16
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2002


2.  Summary of significant accounting policies (continued):

Per unit data:

     Net income and  distributions  per unit are based upon the weighted average
number of units outstanding during the period.

Initial direct costs:

     The  Company   capitalizes   initial  direct  costs   associated  with  the
acquisition  of lease assets.  The costs are  amortized  over a five year period
using a straight line method.

Credit risk:

     Financial   instruments   that   potentially   subject   the   Company   to
concentrations  of  credit  risk  include  cash  and  cash  equivalents,   notes
receivable,  direct  finance  lease  receivables  and accounts  receivable.  The
Company   places  its  cash  deposits  and  temporary  cash   investments   with
creditworthy,  high quality  financial  institutions.  The concentration of such
deposits and temporary  cash  investments  is not deemed to create a significant
risk to the Company.  Accounts receivable and notes receivable represent amounts
due from  lessees and debtors in various  industries,  related to  equipment  on
operating  and direct  financing  leases or  equipment  financed  through  notes
receivable.  See Note 7 for a description  of lessees and debtors by industry as
of December 31, 2002 and 2001.

Basis of presentation:

     The accompanying financial statements have been prepared in accordance with
accounting  principles  generally  accepted in the United States.  Certain prior
year amounts have been reclassified to conform to the current year presentation.

Use of estimates:

     The  preparation  of financial  statements  in conformity  with  accounting
principles  generally accepted in the United States requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting  period.  Actual results could differ from those estimates.
Such estimates  primarily relate to the  determination of residual values at the
end of the lease term.

Asset valuation:

     Recorded values of the Company's asset portfolio are periodically  reviewed
for impairment in accordance  with Statement of Financial  Accounting  Standards
(SFAS) No. 144,  Accounting for the Impairment or Disposal of Long-Lived Assets.
An impairment loss is measured and recognized only if the estimated undiscounted
future cash flows of the asset are less than their net book value. The estimated
undiscounted  future cash flows are the sum of the estimated  residual  value of
the asset at the end of the asset's  expected  holding  period and  estimates of
undiscounted future rents. The residual value assumes,  among other things, that
the asset is  utilized  normally  in an open,  unrestricted  and stable  market.
Short-term  fluctuations  in the market place are  disregarded and it is assumed
that there is no  necessity  either to dispose  of a  significant  number of the
assets, if held in quantity,  simultaneously or to dispose of the asset quickly.
Impairment is measured as the  difference  between the fair value (as determined
by the  discounted  estimated  future cash flows) of the assets and its carrying
value on the measurement date.


                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2002


2.  Summary of significant accounting policies (continued):

Derivative financial instruments:

     In June 1998, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement of Financial  Accounting  Standards  ("SFAS") No. 133,  Accounting for
Derivative Instruments and Hedging Activities,  which established new accounting
and  reporting  standards  for  derivative  instruments.  SFAS No.  133 has been
amended by SFAS No. 137,  issued in June 1999,  and by SFAS No.  138,  issued in
June 2000.

     SFAS No. 133, as amended, requires the Company to recognize all derivatives
as  either  assets  or  liabilities  in the  balance  sheet  and  measure  those
instruments  at  fair  value.  It  further  provides   criteria  for  derivative
instruments  to be  designated  as fair value,  cash flow,  or foreign  currency
hedges, and establishes  accounting  standards for reporting changes in the fair
value of the derivative instruments.

     The Company adopted SFAS No. 133, as amended, on January 1, 2001, which had
no impact as the Company did not utilize derivatives during 2002 or 2001.

Recent accounting pronouncement:

     In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment
or  Disposal  of  Long-Lived  Assets  (SFAS  144),  which  addresses   financial
accounting and reporting for the impairment or disposal of long-lived assets and
supersedes SFAS No. 121,  Accounting for the Impairment of Long-Lived Assets and
for  Long-Lived  Assets to be  Disposed  Of, and the  accounting  and  reporting
provisions  of APB Opinion No. 30,  Reporting the Results of  Operations,  for a
disposal  of a segment of a business.  SFAS 144 is  effective  for fiscal  years
beginning  after December 15, 2001,  with earlier  application  encouraged.  The
Company  adopted SFAS 144 as of January 1, 2002.  The adoption of the  Statement
did not have a  significant  impact  on the  Company's  financial  position  and
results of operations.


3.  Investment in leases:

The Company's investment in leases consists of the following:

<TABLE>
<CAPTION>
                                                                                 Depreciation
                                                 Balance                          Expense and       Reclassi-          Balance
                                               December 31,                      Amortization     fications or      December 31,
                                                   2001           Additions        of Leases      Dispositions          2002
                                                   ----           ---------        ---------      ------------          ----
<S>                                           <C>                <C>              <C>             <C>               <C>
Net investment in operating leases            $    19,971,408    $  29,839,551    $  (5,019,123)  $     (642,055)   $   44,149,781
Net investment in direct financing leases             750,894          995,270         (220,691)               -         1,525,473
Residual values, other                                 75,983                -              201                -            76,184
Initial direct costs, net of accumulated
   amortization of $183,862 in 2002 and
   $24,898 in 2001                                    293,087        1,092,641         (158,964)               -         1,226,764
                                             ----------------- ---------------- ---------------- ----------------  ----------------
                                              $    21,091,372    $  31,927,462    $  (5,398,577)  $     (642,055)   $   46,978,202
                                             ================= ================ ================ ================  ================
</TABLE>



                                       17
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2002


3.  Investment in leases (continued):

Operating leases:

Property on operating leases consists of the following:

<TABLE>
<CAPTION>
                                                                   Reclass-
                              December 31,                       ifications or    December 31,
                                   2001           Additions      Dispositions          2002
                                   ----           ---------      ------------          ----
<S>                            <C>               <C>              <C>              <C>
Mining                          $   13,421,219   $   7,481,993              $ -       $20,903,212
Manufacturing                          989,709      14,062,257                -        15,051,966
Marine vessels                       5,712,000       5,488,000                -        11,200,000
Materials handling                     207,486       2,211,916                -         2,419,402
Natural gas compressors                696,451               -                -           696,451
Office furniture                       998,540         326,232         (762,524)          562,248
Communications                              -          269,153                -           269,153
                              ---------------- ---------------- ----------------  ----------------
                                   22,025,405       29,839,551         (762,524)       51,102,432
Less accumulated depreciation      (2,053,997)      (5,019,123)         120,469        (6,952,651)
                              ---------------- ---------------- ----------------  ----------------
                               $   19,971,408    $  24,820,428    $    (642,055)   $   44,149,781
                              ================ ================ ================  ================
</TABLE>

     The  average  assumed  residual  value for  assets on  operating  leases at
December  31,  2002  and  2001  were 30% and 26% of the  assets  original  cost,
respectively.

Direct financing leases:

     As of December 31, 2002,  investment in direct financing leases consists of
materials  handling  equipment and office  furniture.  The  following  lists the
components of the Company's investment in direct financing leases as of December
31, 2002 and 2001:

<TABLE>
<CAPTION>
                                                                 2002              2001
                                                                 ----              ----
<S>                                                          <C>               <C>
Total minimum lease payments receivable                      $    1,621,790    $      845,532
Estimated residual values of leased equipment (unguaranteed)        211,527           122,869
                                                            ----------------  ----------------
Investment in direct financing leases                             1,833,317           968,401
Less unearned income                                               (307,844)         (217,507)
                                                            ----------------  ----------------
Net investment in direct financing leases                    $    1,525,473    $      750,894
                                                            ================  ================
</TABLE>

     All of the property on leases was acquired in 2002 and 2001.

     At  December  31,  2002,  the  aggregate  amounts of future  minimum  lease
payments are as follows:

                                     Direct
   Year ending     Operating        Financing
  December 31,      Leases           Leases            Total
  ------------      ------           ------            -----
          2003   $    7,870,498   $      373,337  $     8,243,835
          2004        7,785,688          373,337        8,159,025
          2005        7,734,909          373,337        8,108,246
          2006        7,279,480          363,473        7,642,953
          2007        2,818,437          135,492        2,953,929
    Thereafter        2,399,528            2,814        2,402,342
                ---------------- ---------------- ----------------
                 $   35,888,540    $   1,621,790   $   37,510,330
                ================ ================ ================

     At December  31,  2002,  there were  commitments  to purchase  lease assets
totaling approximately $10,460,000.



                                       18
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2002



4.  Notes receivable:

The Company has various notes receivable from parties who have financed the
purchase of equipment through the Company. The terms of the notes receivable are
36 months and bear interest at rates ranging from 17.633% to 21.459%. The notes
are secured by the equipment financed. As of December 31, 2002, the minimum
future payments receivable are as follows:

                                  Year ending
                                 December 31,
                                 ------------
                                         2003        $ 780,378
                                         2004          208,020
                                         2005          100,000
                                         2006           75,000
                                               ----------------
                                                     1,163,398
           Less portion representing interest         (107,789)
                                               ----------------
                                                   $ 1,055,609
                                               ================
5.  Related party transactions:

     The terms of the Limited Liability Company Operating Agreement provide that
the Managing  Member and/or  affiliates are entitled to receive certain fees for
equipment acquisition, management and resale and for management of the Company.

     The  Limited  Liability   Company   Operating   Agreement  allows  for  the
reimbursement   of  costs   incurred  by  the   Managing   Member  in  providing
administrative services to the Company. Administrative services provided include
Company accounting,  investor  relations,  legal counsel and lease and equipment
documentation.  The Managing Member is not reimbursed for services whereby it is
entitled to receive a separate fee as  compensation  for such services,  such as
acquisition  and  management of equipment.  Reimbursable  costs  incurred by the
Managing  Member are allocated to the Company based upon actual time incurred by
employees  working on Company business and an allocation of rent and other costs
based on utilization studies.

     Each  of ATEL  Leasing  Corporation  ("ALC"),  ATEL  Equipment  Corporation
("AEC"),  ATEL Investor  Services  ("AIS") and ATEL Financial  Services LLC is a
wholly-owned  subsidiary  of ATEL Capital  Group and  performs  services for the
Company.  Acquisition  services are performed for the Company by ALC,  equipment
management, lease administration and asset disposition services are performed by
AEC,  investor  relations and  communications  services are performed by AIS and
general administrative  services for the Company are performed by ATEL Financial
Services LLC.

     Substantially  all employees of the Managing Member record time incurred in
performing administrative services on behalf of all of the Companies serviced by
the Managing Member.  The Managing Member believes that the costs reimbursed are
the lower of actual  costs  incurred  on behalf of the Company or the amount the
Company   would  be  required  to  pay   independent   parties  for   comparable
administrative  services in the same geographic location and are reimbursable in
accordance with the Limited Liability Company Operating Agreement.



                                       19
<PAGE>

                      ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2002


5.  Related party transactions (continued):

     The  Managing  Member  and/or  affiliates  earned  fees,   commissions  and
reimbursements, pursuant to the Limited Liability Company Agreement as follows:

<TABLE>
<CAPTION>
                                                                            2002              2001
                                                                            ----              ----
<S>                                                                     <C>                <C>
Selling commissions (equal to 9.5% of the selling price of the Limited
   Liability Company units, deducted from Other Members' capital)       $    6,340,045    $    4,145,191
Reimbursement of other syndication costs to Managing Member                  2,230,650         2,210,852
Administrative costs reimbursed to Managing Member                             343,120           374,507
Initial direct costs paid to Managing Member                                 1,092,641           317,985
Asset management fees to Managing Member                                       264,322            83,341
                                                                       ----------------  ----------------
                                                                        $   10,270,778     $   7,131,876
                                                                       ================  ================
</TABLE>


6.  Members' capital:

     As of December 31, 2002, 11,037,141 Units were issued and outstanding.  The
Company is authorized  to issue up to 15,000,000  Units in addition to the Units
issued to the initial members (50 Units).

     As  defined in the  Limited  Liability  Company  Operating  Agreement,  the
Company's Net Income, Net Losses, and Distributions are to be allocated 92.5% to
the Members and 7.5% to ATEL. In  accordance  with the terms of the of Operating
Agreement,  additional allocations of income were made to the Managing Member in
2002 and 2001.  The amounts  allocated  were  determined  to bring the  Managing
Member's ending capital account balance to zero at the end of each year.


7.  Concentration of credit risk and major customers:

     The Company  leases  equipment  to lessees and provides  debt  financing to
borrowers in diversified industries.  Leases and notes receivable are subject to
the Managing Member's credit committee  review.  The leases and notes receivable
provide for the return of the equipment upon default.

     As of December 31, 2002 and 2001, there were  concentrations  (greater than
10%) of  equipment  leased to  lessees  and/or  financial  borrowers  in certain
industries (as a percentage of total equipment cost) as follows:

                                                2002             2001
                                                ----             ----
         Manufacturing                           37%               *
         Electric utilities                      21%              50%
         Marine transportation                   21%              25%
         Mining                                  18%               *

         *  Less than 10%

     During 2002,  three  customers  comprised 23%, 17% and 11% of the Company's
revenues from leases.  During 2001,  two customers  comprised 54% and 14% of the
Company's revenues from leases.




                                       20
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2002


8.  Line of credit:

     The  Company  participates  with the  Managing  Member  and  certain of its
affiliates  in  a  $55,645,837   revolving  line  of  credit  (comprised  of  an
acquisition facility and a warehouse facility) with a financial institution that
includes  certain  financial  covenants.  The line of credit expires on June 28,
2004. As of December 31, 2002, borrowings under the facility were as follows:

<TABLE>
<CAPTION>
<S>                                                                                                <C>
Amount  borrowed by the Company under the acquisition facility                                     $            -
Amounts borrowed by affiliated partnerships and limited liability companies under the acquisition
   facility                                                                                            29,000,000
                                                                                                  ----------------
Total borrowings under the acquisition facility                                                        29,000,000
Amounts borrowed by the Managing Member and its sister corporation under the warehouse facility                 -
                                                                                                  ----------------
Total outstanding balance                                                                          $  29,000,000
                                                                                                  ================

Total available under the line of credit                                                           $   55,645,837
Total outstanding balance                                                                             (29,000,000)
                                                                                                  ----------------
Remaining availability                                                                             $  26,645,837
                                                                                                  ================
</TABLE>

     Draws on the  acquisition  facility by any individual  borrower are secured
only  by  that  borrower's  assets,  including  equipment  and  related  leases.
Borrowings  on the  warehouse  facility are  recourse  jointly to certain of the
affiliated  partnerships and limited  liability  companies,  the Company and the
Managing Member.

     The Company has not borrowed under the line of credit. Interest on the line
of credit is based on either the thirty day LIBOR rate or the bank's prime rate.

     The credit agreement  includes certain  financial  covenants  applicable to
each borrower.  The Company was in compliance  with its covenants as of December
31, 2002.


9.  Fair value of financial instruments:

     The following  methods and assumptions were used to estimate the fair value
of each class of financial  instrument  for which it is  practicable to estimate
that value.

Cash and cash equivalents:

     The carrying amount of cash and cash  equivalents  approximates  fair value
because of the short-term maturity of these instruments.

Notes receivable:

     The  fair  value of the  Company's  notes  receivable  is  estimated  using
discounted  cash  flow  analyses,  based on the  Company's  current  incremental
lending rates for similar  types of lending  arrangements.  The  estimated  fair
value of the Company's notes receivable at December 31, 2002 is $899,418.



                                       21
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2002


10.  Selected quarterly data (unaudited):

<TABLE>
<CAPTION>
                                                                    March 31,        June 30,       September 30,     December 31,
Quarter ended                                                         2001             2001             2001              2001
                                                                      ----             ----             ----              ----

<S>                                                                     <C>           <C>              <C>                 <C>
Total revenues                                                          $ 94,283      $ 1,196,834      $ 1,316,784         $ 785,784
Net ncome (loss)                                                       $ (37,181)       $ 304,136        $ 193,622         $ 123,599
Net income (loss) per limited partnership unit                           $ (0.17)          $ 0.09           $ 0.19            $ 0.11

                                                                    March 31,        June 30,       September 30,     December 31,
Quarter ended                                                         2002             2002             2002              2002
                                                                      ----             ----             ----              ----

Total revenues                                                       $ 1,079,746      $ 1,540,510      $ 2,255,724       $ 2,197,515
Net ncome (loss)                                                        $ 78,721        $ 336,926        $ (27,874)        $ 215,377
Net income (loss) per limited partnership unit                               $ -           $ 0.04          $ (0.02)           $ 0.00
</TABLE>




                                       22
<PAGE>

Item 9. CHANGES IN AND  DISAGREEMENTS  WITH AUDITORS ON ACCOUNTING AND FINANCIAL
        DISCLOSURES

None.


                                    PART III

Item 10.  DIRECTORS AND EXECUTIVE OFFICERS

     The  registrant  is a Limited  Liability  Company  and,  therefore,  has no
officers or directors.

     All of the  outstanding  capital stock of ATEL Financial  Services LLC (the
Managing Member) is held by ATEL Capital Group ("ACG"), a holding company formed
to control ATEL and affiliated  companies.  The outstanding voting capital stock
of ATEL Capital Group is owned 5% by A. J. Batt and 95% by Dean Cash.

     Each  of ATEL  Leasing  Corporation  ("ALC"),  ATEL  Equipment  Corporation
("AEC"),  ATEL Investor Services ("AIS") and ATEL Financial Services LLC ("AFS")
is a wholly-owned subsidiary of ATEL Capital Group and performs services for the
Partnership.  Acquisition  services are  performed for the  Partnership  by ALC,
equipment  management,  lease  administration and asset disposition services are
performed by AEC, investor relations and  communications  services are performed
by AIS and general administrative  services for the Partnership are performed by
AFS. ATEL Securities Corporation ("ASC") is a wholly-owned subsidiary of AFS.

     The officers and directors of ATEL Capital Group and its  affiliates are as
follows:

Dean L. Cash          Chairman of the Board of Directors of ACG, AFS, ALC, AEC,
                         AIS and ASC; President and Chief Executive Officer of
                         ACG, AFS and AEC

Paritosh K. Choksi    Director, Executive Vice President, Chief Operating
                         Officer and Chief Financial Officer of ACG, AFS, ALC,
                         AEC and AIS

Donald E. Carpenter   Vice President and Controller of ACG, AFS, ALC, AEC and
                         AIS; Chief Financial Officer of ASC

Vasco H. Morais       Senior Vice President, Secretary and General Counsel for
                         ACG, AFS, ALC, AIS and AEC

     Dean L. Cash,  age 52, joined ATEL as director of marketing in 1980 and has
been a vice president  since 1981,  executive  vice  president  since 1983 and a
director  since 1984. He has been  President and CEO since April 2001.  Prior to
joining ATEL, Mr. Cash was a senior marketing representative for Martin Marietta
Corporation, data systems division, from 1979 to 1980. From 1977 to 1979, he was
employed  by  General  Electric  Corporation,   where  he  was  an  applications
specialist in the medical systems division and a marketing representative in the
information  services division.  Mr. Cash was a systems engineer with Electronic
Data Systems from 1975 to 1977, and was involved in  maintaining  and developing
software  for  commercial  applications.  Mr.  Cash  received  a B.S.  degree in
psychology and mathematics in 1972 and an M.B.A.  degree with a concentration in
finance in 1975 from Florida State  University.  Mr. Cash is an arbitrator  with
the American Arbitration Association.

     Paritosh K. Choksi, age 49, joined ATEL in 1999 as a director,  senior vice
president  and its  chief  financial  officer.  He  became  its  executive  vice
president  and COO in April 2001.  Prior to joining  ATEL,  Mr. Choksi was chief
financial officer at Wink  Communications,  Inc. from 1997 to 1999. From 1977 to
1997, Mr. Choksi was with Phoenix American  Incorporated,  a financial  services
and management  company,  where he held various positions during his tenure, and
was senior vice president, chief financial officer and director when he left the
company.  Mr.  Choksi was involved in all  corporate  matters at Phoenix and was
responsible  for Phoenix's  capital  market needs.  He also served on the credit
committee  overseeing  all  corporate  investments,  including its venture lease
portfolio.  Mr. Choksi was a part of the executive  management team which caused
Phoenix's  portfolio to increase  from $50 million in assets to over $2 billion.
Mr. Choksi  received a bachelor of technology  degree in mechanical  engineering
from the Indian Institute of Technology,  Bombay; and an M.B.A.  degree from the
University of California, Berkeley.

     Donald E.  Carpenter,  age 54, joined ATEL in 1986 as controller.  Prior to
joining ATEL, Mr.  Carpenter was an audit  supervisor  with Laventhol & Horwath,
certified public  accountants in San Francisco,  California,  from 1983 to 1986.
From 1979 to 1983, Mr.  Carpenter was an audit senior with  Deloitte,  Haskins &
Sells, certified public accountants, in San Jose, California. From 1971 to 1975,
Mr.  Carpenter  was a Supply  Corp  officer  in the U. S.  Navy.  Mr.  Carpenter
received a B.S. degree in mathematics  (magna cum laude) from  California  State
University,  Fresno in 1971 and  completed a second major in accounting in 1978.
Mr. Carpenter has been a California certified public accountant since 1981.



                                       23
<PAGE>

     Vasco H. Morais,  age 44, joined ATEL in 1989 as general counsel to provide
legal support in the drafting and reviewing of lease documentation,  advising on
general corporate law matters, and assisting on securities law issues. From 1986
to 1989,  Mr.  Morais was  employed  by the  BankAmeriLease  Companies,  Bank of
America's  equipment leasing  subsidiaries,  providing in-house legal support on
the  documentation  of  tax-oriented  and non-tax  oriented direct and leveraged
lease transactions, vendor leasing programs and general corporate matters. Prior
to the BankAmeriLease  Companies,  Mr. Morais was with the Consolidated  Capital
Companies in the corporate and securities legal department  involved in drafting
and reviewing  contracts,  advising on corporate law matters and  securities law
issues.  Mr.  Morais  received  a B.A.  degree  in 1982 from the  University  of
California in Berkeley,  a J.D.  degree in 1986 from Golden Gate  University Law
School and an M.B.A.  (Finance) in 1997 from Golden Gate University.  Mr. Morais
has been an active member of the State Bar of California since 1986.


Item 11.  EXECUTIVE COMPENSATION

     The  registrant  is a Limited  Liability  Company  and,  therefore,  has no
officers or directors.

     Set forth  hereinafter is a description of the nature of remuneration  paid
and to be paid to ATEL and its Affiliates.  The amount of such remuneration paid
in 2002  and  2001 is set  forth  in Item 8 of this  report  under  the  caption
"Financial Statements and Supplementary Data - Notes to the Financial Statements
- Related party  transactions,"  at Note 5 thereof,  which information is hereby
incorporated by reference.

Selling Commissions

     The  Company  paid  selling  commissions  in the  amount  of 9.5% of  Gross
Proceeds, as defined, to ATEL Securities Corporation, an affiliate of ATEL.

     Through December 31, 2002, $10,485,236 of such commissions had been paid to
ATEL or its affiliates.  Of that amount, $8,829,673 has been re-allowed to other
broker/dealers.

Asset Management Fee

     The Company will pay ATEL an Asset  Management Fee in an amount equal to 4%
of Operating  Revenues,  which will include  Gross Lease  Revenues and Cash From
Sales or Refinancing.  The Asset Management Fee will be paid on a monthly basis.
The amount of the Asset  Management  Fee payable in any year will be reduced for
that year to the  extent it would  otherwise  exceed  the Asset  Management  Fee
Limit, as described  below.  The Asset  Management Fee will be paid for services
rendered by ATEL and its  Affiliates in  determining  portfolio  and  investment
strategies (i.e.,  establishing and maintaining the composition of the Equipment
portfolio as a whole and the  Company's  overall debt  structure)  and generally
managing or supervising the management of the Equipment.

     ATEL will supervise  performance of among others activities,  collection of
lease revenues,  monitoring compliance by lessees with the lease terms, assuring
that  Equipment  is being  used in  accordance  with all  operative  contractual
arrangements,  paying operating expenses and arranging for necessary maintenance
and  repair  of  Equipment  in the  event a lessee  fails  to do so,  monitoring
property,  sales and use tax compliance and  preparation of operating  financial
data.  ATEL  intends  to  delegate  all or a portion of its duties and the Asset
Management  Fee to one or more of its  Affiliates  who  are in the  business  of
providing such services.

Asset Management Fee Limit:

     The Asset Management Fee will be subject to the Asset Management Fee Limit.
The Asset Management Fee Limit will be calculated each year during the Company's
term by  calculating  the total fees that would be paid to ATEL if the  Managing
Member were to be compensated on the basis of an  alternative  fee schedule,  to
include an Equipment  Management  Fee,  Incentive  Management Fee, and Equipment
Resale/Re-Leasing  Fee, plus ATEL's Carried Interest, as described below. To the
extent that the amount paid to ATEL as the Asset Management Fee plus its Carried
Interest for any year would exceed the aggregate amount of fees calculated under
this  alternative  fee schedule for the year,  the Asset  Management  Fee and/or
Carried  Interest  for that year will be reduced to equal the maximum  aggregate
fees under the alternative fee schedule.

     To the extent any such fees are reduced,  the amount of such reduction will
be accrued and  deferred,  and such accrued and deferred  compensation  would be
paid to ATEL in a  subsequent  period,  but only if and to the extent  that such
deferred compensation would be payable within the Asset Management Fee Limit for
the  subsequent  period.  Any  deferred  fees  which  cannot  be paid  under the
applicable  limitations in any subsequent period through the date of liquidation
would be forfeited by ATEL upon liquidation.

Alternative Fee Schedule:

     For purposes of the Asset  Management Fee Limit, the Company will calculate
an alternative schedule of fees,  including a hypothetical  Equipment Management
Fee,  Incentive  Management Fee,  Equipment  Resale/Re- Leasing Fee, and Carried
Interest as follows:



                                       24
<PAGE>

     An Equipment  Management  Fee will be calculated to equal the lesser of (i)
3.5% of annual  Gross  Revenues  from  Operating  Leases and 2% of annual  Gross
Revenues from Full Payout Leases which  contain Net Lease  Provisions),  or (ii)
the fees customarily  charged by others rendering similar services as an ongoing
public  activity  in the  same  geographic  location  and for  similar  types of
equipment. If services with respect to certain Operating Leases are performed by
nonaffiliated  persons under the active  supervision  of ATEL or its  Affiliate,
then the amount so calculated  shall be 1% of Gross Revenues from such Operating
Leases.

     An Incentive Management Fee will be calculated to equal 4% of Distributions
of Cash from  Operations  until Holders have received a return of their Original
Invested Capital plus a Priority Distribution, and, thereafter, to equal a total
of 7.5%  of  Distributions  from  all  sources,  including  Sale or  Refinancing
Proceeds.  In  subordinating  the increase in the Incentive  Management Fee to a
cumulative  return of a  Holder's  Original  Invested  Capital  plus a  Priority
Distribution,  a Holder  would  be  deemed  to have  received  Distributions  of
Original  Invested  Capital only to the extent that  Distributions to the Holder
exceed the amount of the Priority Distribution.

     An Equipment Resale/Re-Leasing Fee will be calculated in an amount equal to
the lesser of (i) 3% of the sale price of the  Equipment,  or (ii)  one-half the
normal competitive equipment sale commission charged by unaffiliated parties for
resale  services.  Such fee would apply only after the Holders  have  received a
return of their  Original  Invested  Capital  plus a Priority  Distribution.  In
connection  with the  releasing  of  Equipment  to lessees  other than  previous
lessees or their  Affiliates,  the fee would be in an amount equal to the lesser
of (i) the competitive rate for comparable  services for similar  equipment,  or
(ii)  2% of the  gross  rental  payments  derived  from  the  re-lease  of  such
Equipment,  payable out of each rental payment received by the Company from such
re-lease.

     A  Carried  Interest  equal  to 7.5%  of all  Distributions  of  Cash  from
Operations and Cash from Sales or Refinancing.

     See Note 6 to the financial statements included in Item 8 for amounts paid.

Managing Member's Interest in Operating Proceeds

     Net income,  net loss and investment tax credits are allocated 92.5% to the
Members and 7.5% to ATEL. See financial statements included in Item 8, Part I of
this report for amounts allocated to the Managing Member in 2002 and 2001.


Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
            MANAGEMENT

Security Ownership of Certain Beneficial Owners

     At December 31, 2002, no investor is known to hold  beneficially  more than
5% of the issued and outstanding Units.

Security Ownership of Management

     The parent of ATEL is the  beneficial  owner of Limited  Liability  Company
Units as follows:

<TABLE>
<CAPTION>
 (1)                 (2)                                        (3)                                (4)
                     Name and Address of                  Amount and Nature of               Percent
Title of Class       Beneficial Owner                     Beneficial Ownership               of Class
--------------       ----------------                     --------------------               --------

<S>                  <C>                                  <C>                                    <C>
Limited Liability    ATEL Capital Group                   Initial Limited Liability              0.0005%
Company Units        600 California Street, 6th Floor     Company Units
                     San Francisco, CA  94108             50 Units ($500)
</TABLE>

Changes in Control

     The Members have the right,  by vote of the Members owning more than 50% of
the outstanding Limited Liability Company Units, to remove a Managing Member.

     ATEL may at any time call a meeting of the Members or a vote of the Members
without a meeting, on matters on which they are entitled to vote, and shall call
such  meeting  or for vote  without a  meeting  following  receipt  of a written
request  therefore  of  Limited  Partners  holding  10% or  more  of  the  total
outstanding Limited Liability Company Units.


Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     The responses to Item 1 of this report under the caption "Equipment Leasing
Activities," Item 8 of this report under the caption  "Financial  Statements and
Supplemental  Data  -  Notes  to  the  Financial   Statements  -  Related  party
transactions"  at Note 5 thereof,  and Item 11 of this report  under the caption
"Executive Compensation," are hereby incorporated by reference.




                                       25
<PAGE>

Item 14.  CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

     Under the supervision and with the  participation  of our management  (ATEL
Financial  Services,  LLC as Managing  Member of the  registrant,  including the
chief  executive  officer and chief  financial  officer),  an  evaluation of the
effectiveness of the design and operation of the Company's  disclosure  controls
and  procedures  [as  defined in Rules  240.13a-14(c)  and  15d-14(c)  under the
Securities  Exchange Act of 1934] was  performed as of a date within ninety days
before the filing date of this annual report.  Based upon this  evaluation,  the
chief executive  officer and chief financial  officer  concluded that, as of the
evaluation  date, our disclosure  controls and procedures were effective for the
purposes of recording, processing,  summarizing and timely reporting information
required to be disclosed by us in the reports that we file under the  Securities
Exchange Act of 1934 and that such  information is accumulated and  communicated
to our  management  in  order  to  allow  timely  decisions  regarding  required
disclosure.

Changes in internal controls

     There have been no significant changes in our internal controls or in other
factors that could  significantly  affect our disclosure controls and procedures
subsequent to the evaluation  date, nor were there any significant  deficiencies
or material weaknesses in our internal controls.

                                     PART IV

Item 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS
               ON FORM 8-K

       (a)Financial Statements and Schedules
       1. Financial Statements
          Included in Part II of this report:
          Report of Independent Auditors
          Balance Sheets at December 31, 2002 and 2001
          Statements of income for the years ended December 31, 2002 and 2001
          Statement of Changes in Members' Capital for the years ended December
             31, 2002 and 2001 and for the period from September 27, 2000
             (inception) through December 31, 2000
          Statement of Cash Flows for the years ended December 31, 2002 and 2001
             and for the period from September 27, 2000 (inception) through
             December 31, 2000
          Notes to Financial Statements

       2. Financial Statement Schedules
          Allschedules for which provision is made in the applicable accounting
             regulations of the Securities and Exchange Commission are not
             required under the related instructions or are inapplicable and,
             therefore, have been omitted.

       (b)Reports on Form 8-K for the fourth quarter of 2002
          Not applicable

       (c)Exhibits
          (3)and (4) Agreement of Limited Liability Company, included as
             Exhibit B to Prospectus, is incorporated herein by reference to the
             report on Form 10K for the period ended December 31, 2001 (File
             Number 333-47196) (Exhibit 28.1)


                                       26
<PAGE>

                                   SIGNATURES


     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.



                 Date:         3/26/03

                               ATEL Capital Equipment Fund IX, LLC
                                 (Registrant)


     By:          ATEL Financial Services LLC,
                  Managing Member of Registrant



            By:   /s/ Dean L. Cash
                  ---------------------------------------------------
                  Dean Cash
                  President of ATEL Financial Services LLC (Managing Member)





            By:   /s/ Paritosh K. Choksi
                  ---------------------------------------------------
                  Paritosh K. Choksi
                  Executive Vice President of ATEL Financial Services
                  LLC (Managing Member)






                                       27
<PAGE>

     Pursuant to the  requirements of the Securities  Exchange Act of 1934, this
report has been signed below by the persons in the  capacities  and on the dates
indicated.


SIGNATURE                         CAPACITIES                            DATE



      /s/ Dean L. Cash      President, Chairman and Chief                3/26/03
--------------------------   Executive Officer of ATEL Financial
         Dean Cash           Services



   /s/ Paritosh K. Choksi   Principal financial officer of               3/26/03
     Paritosh K. Choksi      registrant; principal financial officer
                             and director of ATEL Financial
                             Services LLC


  /s/ Donald E. Carpenter   Principal accounting officer of              3/26/03
--------------------------   registrant; principal accounting C
    Donald E. Carpenter      officer of ATEL Financial Services LLC


     Supplemental  Information  to be Furnished  With Reports Filed  Pursuant to
Section 15(d) of the Act by  Registrants  Which Have Not  Registered  Securities
Pursuant to Section 12 of the Act:


     No proxy materials have been or will be sent to security holders. An annual
report will be furnished to security  holders  subsequent  to the filing of this
report on Form 10-K, and copies thereof will be furnished  supplementally to the
Commission when forwarded to the security holders.



                                       28
<PAGE>

                                 CERTIFICATIONS


I, Paritosh K. Choksi, certify that:

1. I have  reviewed  this annual  report on Form 10-K of ATEL Cash  Distribution
Fund IX, LLC;

2.  Based on my  knowledge,  this  annual  report  does not  contain  any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made,  not  misleading  with  respect to the period  covered by this annual
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included  in this annual  report,  fairly  present in all  material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this annual report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a) designed such disclosure controls and procedures to ensure that material
     information   relating  to  the  registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the  period  in which  this  annual  report  is being
     prepared;

     b) evaluated the effectiveness of the registrant's  disclosure controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     annual report (the "Evaluation Date"); and

     c) presented in this annual report our conclusions  about the effectiveness
     of the disclosure controls and procedures based on our evaluation as of the
     Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):

     a) all  significant  deficiencies  in the design or  operation  of internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and

     b) any fraud,  whether or not material,  that involves  management or other
     employees  who  have  a  significant  role  in  the  registrant's  internal
     controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
annual report whether there were significant  changes in internal controls or in
other factors that could  significantly  affect internal controls  subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.



Date:           3/26/03

/s/ Paritosh K. Choksi
----------------------------------------------------------------
Paritosh K. Choksi
Principal financial officer of registrant, Executive
Vice President of Managing Member


                                       29
<PAGE>

                                 CERTIFICATIONS


I, Dean L. Cash, certify that:

1. I have  reviewed  this annual  report on Form 10-K of ATEL Cash  Distribution
Fund IX, LLC;

2.  Based on my  knowledge,  this  annual  report  does not  contain  any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made,  not  misleading  with  respect to the period  covered by this annual
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included  in this annual  report,  fairly  present in all  material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this annual report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a) designed such disclosure controls and procedures to ensure that material
     information   relating  to  the  registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the  period  in which  this  annual  report  is being
     prepared;

     b) evaluated the effectiveness of the registrant's  disclosure controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     annual report (the "Evaluation Date"); and

     c) presented in this annual report our conclusions  about the effectiveness
     of the disclosure controls and procedures based on our evaluation as of the
     Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):

     a) all  significant  deficiencies  in the design or  operation  of internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and

     b) any fraud,  whether or not material,  that involves  management or other
     employees  who  have  a  significant  role  in  the  registrant's  internal
     controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
annual report whether there were significant  changes in internal controls or in
other factors that could  significantly  affect internal controls  subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.



Date:           3/26/03

/s/ Dean L. Cash
----------------------------------------------------------------
Dean L. Cash
President and Chief Executive
Officer of Managing Member


                                       30
<PAGE>

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     In connection with the Annual report on Form 10K of ATEL Cash  Distribution
Fund IX, LLC, (the  "Company")  for the period ended  December 31, 2002 as filed
with the Securities and Exchange  Commission on the date hereof (the  "Report"),
and  pursuant  to 18  U.S.C.  ss.1350,  as  adopted  pursuant  to  ss.906 of the
Sarbanes-Oxley  Act of 2002, I, Dean L. Cash,  Chief  Executive  Officer of ATEL
Financial Services, LLC, managing member of the Company, hereby certify that:

1. The Report fully complies with the  requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934 ; and

2. The  information  contained in the Report  fairly  presents,  in all material
respects, the financial condition and results of operations of the Company.

Date:           3/26/03



/s/ Dean L. Cash
---------------------------------------------
Dean L. Cash
President and Chief Executive
Officer of Managing Member


                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     In connection with the Annual report on Form 10K of ATEL Cash  Distribution
Fund IX, LP, (the  "Company")  for the period  ended  December 31, 2002 as filed
with the Securities and Exchange  Commission on the date hereof (the  "Report"),
and  pursuant  to 18  U.S.C.  ss.1350,  as  adopted  pursuant  to  ss.906 of the
Sarbanes-Oxley  Act of 2002, I, Paritosh K. Choksi,  Chief Financial  Officer of
ATEL Financial  Services,  LLC,  managing member of the Company,  hereby certify
that:

1. The Report fully complies with the  requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934 ; and

2. The  information  contained in the Report  fairly  presents,  in all material
respects, the financial condition and results of operations of the Company.

Date:           3/26/03



/s/ Paritosh K. Choksi
---------------------------------------------
Paritosh K. Choksi
Executive Vice President of General
Partner, Principal financial officer of registrant

                                       31
<PAGE>