UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    Form 10-K

                    |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, 2004
                                       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 000-50210

                       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: Limited  Liability
Company Units

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

The number of Limited  Liability  Company Units  outstanding  as of December 31,
2004 was 12,058,516.

                       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
(AFS),  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 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 AFS 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),  thus exceeding the $7,500,000 minimum  requirement
for  Pennsylvania,  and AFS requested  that the remaining  funds in escrow (from
Pennsylvania  investors) be released to the Company. As of January 15, 2003, the
Company's  offering  was  terminated.  Subscriptions  for a total of  12,065,216
($120,652,160) Units had been received and accepted.

As of  December  31,  2004,  12,058,516  Units  ($120,585,160)  were  issued and
outstanding.

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  ("Reinvestment  Period"),  ending 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 AFS 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,  2004,  the Company had  purchased  equipment  with a total
acquisition price of $118,038,701.  The Company has also invested  $8,076,060 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 AFS, 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 AFS, 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, as described in (ii) above.

During 2004, 2003 and 2002,  certain lessees generated  significant  portions of
the Company's total lease revenues as follows:

Lessee                             Type of Equipment          2004   2003   2002
Basin Electric                     Walking dragline           14%    14%    23%
Graham Offshore Inc.               Off shore supply vessels   10%    11%    17%
General Electric Aircraft Engines  Machine tools               *     15%    11%


*  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 AFS 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.

AFS 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, 2004 and the
industries to which the assets have been leased.

                        Purchase Price Excluding           Percentage of Total
Asset Types                  Acquisition Fees                 Acquisitions
Mining equipment                $40,453,233                          34.27%
Materials handling               27,459,946                          23.26%
Manufacturing                    21,328,915                          18.07%
Marine vessels                   11,200,000                           9.49%
Communications                    7,156,818                           6.06%
Office automation                 4,037,055                           3.42%
Aircraft                          2,680,000                           2.27%
Furniture and fixtures            2,363,419                           2.00%
Natural gas compressors             696,451                           0.59%
Test Equipment                      662,866                           0.56%
                             ---------------                 ---------------
                               $118,038,701                         100.00%
                             ===============                 ===============

                        Purchase Price Excluding           Percentage of Total
Industry of Lessee           Acquisition Fees                 Acquisitions
Manufacturing                   $47,322,281                          40.09%
Mining                           29,137,836                          24.68%
Electric utilities               11,315,397                           9.59%
Marine transportation            11,200,000                           9.49%
Communications                    7,016,446                           5.94%
Health Services                   4,411,028                           3.74%
Land Transportation               3,081,360                           2.61%
Air transportation                2,680,000                           2.27%
Retail                            1,177,902                           1.00%
Oil and gas                         696,451                           0.59%
                             ---------------                 ---------------
                               $118,038,701                         100.00%
                             ===============                 ===============

Through  December 31, 2004, the Company has disposed of certain leased assets as
set forth below:

                                                                 Excess of
 Asset                          Original                         Rents Over
 Types                       Equipment Cost     Sale Price       Expenses *
     Manufacturing              $ 5,633,271      $ 5,205,964      $ 1,518,072
     Test equipment               1,454,642           74,807        1,837,570
     Office automation            1,273,682          781,101          629,794
     Furnitures and fixtures        169,601                -          204,860
     Other                          173,833          116,988          145,407
                             ---------------  ---------------  ---------------
                                $ 8,705,029      $ 6,178,860      $ 4,335,703
                             ===============  ===============  ===============

* Includes only those expenses directly related to the production of the related
rents.

For further information  regarding the Company's equipment lease portfolio as of
December  31,  2004,  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.



                                       3
<PAGE>

Item 3.  LEGAL PROCEEDINGS

In the ordinary  course of  conducting  business,  there may be certain  claims,
suits, and complaints  filed against the Company.  In the opinion of management,
the  outcome of such  matters,  if any,  will not have a material  impact on the
Company's consolidated financial position or results of operations.  No material
legal  proceedings  are currently  pending against the Company or against any of
its assets.  The  following  is a  discussion  of legal  matters  involving  the
Company, but which do not represent claims against the Company or its assets.

Silicon Access Networks, Inc.:

Silicon Access Networks, Inc. ("SAN") advised AFS on July 8, 2002, that due to a
further decline in expectations of future demand for SAN's products by potential
customers  in  its  target  markets,  SAN's  Board  of  Directors  had  directed
management to close a branch office located in North Carolina, which occurred in
July 2002.

In September 2003, SAN defaulted on its note payable to the Company. Essentially
all of the equipment  financed was recovered and sold at auction in 2003. Assets
remaining in inventory  are carried at the  estimated  net  realizable  value of
approximately  $5,200.  On December 22, 2003, SAN filed for protection under the
Bankruptcy  Act.  The  Company's  remaining  claims  are  unsecured.  No amounts
relating to the unsecured claims have been included in the financial  statements
of the Company as of December 31, 2003 and 2004.

Photuris, Inc.:

Photuris,  a debtor of the Company,  has ceased operations.  As of this date, no
legal action has been initiated against the debtor. The Company also owns Series
C preferred stock of Photuris.  The original cost of the stock was $190,158. The
value of the stock was  written  off in the first  quarter of 2004.  The Company
also had a promissory note from Photuris for $300,000. The note has been written
down completely  during the year ended December 31, 2004..  The Company received
$44,986 on November 30,  2004,  as its share of the proceeds of funds due to the
secured creditors. The Company still retains an unsecured claim.

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

There are certain material  conditions and restrictions on the transfer of Units
imposed  by the terms of the  Limited  Liability  Company  Operating  Agreement.
Consequently, there is no public market for Units and it is not anticipated that
a public  market for Units will  develop.  In the absence of a public market for
the Units, there is no currently ascertainable fair market value for the Units.

Holders

As of December 31, 2004, a total of 3,211 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.

AFS has sole  discretion in determining the amount of  distributions;  provided,
however, that AFS 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
AFS.

The rate for monthly  distributions from 2004 operations was $0.075 per Unit for
January through December 2004. The  distributions  were paid in February through
December 2004 and in January 2005. The rate for quarterly  distributions paid in
April,  July,  October 2004 and January 2005 was $0.225 per Unit.  Distributions
were from 2004 cash flows from operations.

The rate for monthly  distributions from 2003 operations was $0.075 per Unit for
January through December 2003. The  distributions  were paid in February through
December 2003 and in January 2004. The rate for quarterly  distributions paid in
April,  July,  October 2003 and January 2004 was $0.225 per Unit.  Distributions
were from 2003 cash flows from operations.



                                       4
<PAGE>

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 following table presents summarized  information regarding  distributions to
members other than the Managing Member ("Other Members"):

<TABLE>
<CAPTION>
                                                                   2004            2003            2002             2001
Net (loss) income per Unit, based on weighted
<S>                                                                  <C>             <C>              <C>              <C>
   average Units outstanding                                         $ (0.09)        $ (0.02)         $ 0.02           $ 0.22
Return of investment                                                    0.99            0.90            0.81             0.34
                                                              --------------- --------------- ---------------  ---------------
Distributions per Unit, based on weighted average
   Units outstanding                                                    0.90            0.88            0.83             0.56
Differences due to timing of distributions                                 -            0.02            0.07             0.17
                                                              --------------- --------------- ---------------  ---------------
Actual distribution rates, per Unit                                   $ 0.90          $ 0.90          $ 0.90           $ 0.73
                                                              =============== =============== ===============  ===============
</TABLE>



Item 6.  SELECTED FINANCIAL DATA

The following table presents selected  financial data of the Company at December
31,  2004,  2003,  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>
                                                   2004            2003            2002            2001             2000
<S>                                              <C>             <C>             <C>             <C>                      <C>
Gross revenues                                   $12,727,300     $11,531,560     $ 7,073,495     $ 3,393,685              $ -
Net (loss) income                                 $ (259,142)      $ 591,015       $ 603,150       $ 584,176              $ -
Weighted average Units outstanding                12,062,469      12,035,095       7,280,533       2,167,171               50
Net (loss) income allocated to                  $ (1,139,191)     $ (271,127)      $ 115,396       $ 485,897              $ -
     Other Members
Net (loss) income per Unit, based on
    weighted average Units outstanding               $ (0.09)        $ (0.02)         $ 0.02          $ 0.22              $ -
Distributions per Unit, based on weighted
   average Units outstanding                          $ 0.90          $ 0.88          $ 0.83          $ 0.56              $ -
Total Assets                                     $92,795,879     $87,530,487     $89,419,224     $36,828,411            $ 600
Total Members' Capital                           $74,879,479     $86,906,015     $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  form those  projected.  In  particular,  economic
recession and changes in general economic conditions, including, fluctuations in
demand for equipment,  lease rates,  and interest rates, may result in delays in
investment and reinvestment,  delays in leasing,  re-leasing, and disposition of
equipment, and reduced returns on invested capital. The Company's performance is
subject to risks  relating to lessee  defaults and the  creditworthiness  of its
lessees.  The Fund's  performance is also subject to risks relating to the value
of  its  equipment  at the  end of its  leases,  which  may be  affected  by the
condition of the equipment,  technological  obsolescence and the markets for new
and used  equipment at the end of lease terms.  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.



                                       5
<PAGE>

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 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 AFS's  success in re-leasing or selling the equipment as it comes
off lease.

The Company  participates  with AFS and certain of its affiliates in a financing
arrangement  (comprised  of a term loan to AFS, an  acquisition  facility  and a
warehouse facility) with a group of financial institutions that includes certain
financial  covenants.  The financial  arrangement is $75,000,000  and expires in
June 2006. The  availability  of borrowings  available to the Company under this
financing  arrangement  is reduced by the amount AFS has  outstanding  as a term
loan. As of December 31, 2004 borrowings under the facility were as follows:

<TABLE>
<CAPTION>
<S>                                                                              <C>
Total amount available under the financing arrangement                           $  75,000,000
Term loan to AFS as of December 31, 2004                                            (2,027,636)
                                                                                ---------------
Total available under the acquisition and warehouse facilities                      72,972,364

Amount  borrowed  by the Company  under the  acquisition  facility                 (17,000,000)
Amounts  borrowed by affiliated  partnerships  and limited  liability  companies
under the
     acquisition facility                                                          (13,500,000)
                                                                                ---------------
Total remaining available under the acquisition and warehouse facilities         $  42,472,364
                                                                                ===============
</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 AFS.

The credit agreement  includes certain  financial  covenants  applicable to each
borrower.  The Company was in  compliance  with its covenants as of December 31,
2004.

AFS 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 AFS 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 AFS or affiliate and the time acquired by the Company; (iv) there is
no benefit  arising out of such  transaction to AFS 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. AFS envisions
no such requirements for operating purposes.

In August  2002,  the Company  established  a $102 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  AFS, 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.  AFS
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,  2004 the Company had no
borrowings under this program.



                                       6
<PAGE>

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

In order to maintain the availability of the program, the Company is required to
make payments of standby fees.  These fees totaled $385,000 and $238,000 in 2004
and 2003,  respectively,  and are included in interest  expense in the Company's
statement of operations.

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  fees to AFS  and  providing  for  cash
distributions  to the Other  Members.  At  December  31,  2004,  the Company had
commitments to purchase lease assets totaling approximately $23,043,690.

AFS 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 2004.

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

2004 vs. 2003:

In both 2004 and 2003, our primary source of cash from operations was rents from
operating leases.  Cash flows from operations  increased from $8,661,683 in 2003
to  $9,561,426  in 2004,  an increase of  $899,743.  The increase is largely the
result of increases in operating lease revenues. Operating lease rents increased
from  $9,762,725  in 2003 to  $11,490,794  in 2004,  an increase of  $1,728,069.
Offsetting this increase is a decline of $689,178 in gain on sale of assets from
a gain of $658,865 in 2003 to a loss of $30,313 in 2004.

In 2004  and  2003,  usages  of cash  from  investing  activities  consisted  of
purchases of equipment on operating leases and advances on notes receivable. The
amounts of purchases of equipment on operating leases increased from $11,777,539
in 2003 to  $38,395,198  in 2004,  an increase of  $26,617,659.  At December 31,
2003, the Company had a receivable  from an affiliate of $4,142,025 with respect
to the sale of certain assets.  This was subsequently paid off in 2004. The sale
was  part of a  larger  sale of  assets  to a third  party.  Advances  in  notes
receivables  leases  increased  from $46,196 in 2003 to  $5,410,320  in 2004, an
increase  of  $5,364,124.  Proceeds  from sale of lease  assets  decreased  from
$5,370,886 in 2003 to $95,571 in 2004. The primary  equipment types sold include
test equipment, manufacturing, furnitures and fixtures, and computers.

In 2004,  the main source of cash from  financing  activities was the borrowings
under the line of credit of  $17,000,000.  In 2003, our only source of cash from
financing activities was the proceeds of $10,281,250 from the public offering of
the  Company's  Units.  The offering was concluded in January 2003. We used cash
from the public  offering  proceeds in 2003 to pay the costs of the  offering in
the amount of  $1,286,096,  which was absent in 2004.  In 2004,  the  borrowings
under the line of credit were used to acquire additional lease assets.

2003 vs. 2002:

In both 2003 and 2002, our primary source of cash from operations was rents from
operating leases.  Cash flows from operations  increased from $5,521,904 in 2002
to $8,661,683 in 2003,  an increase of  $3,139,779.  The increase is largely the
result of increases in operating lease revenues. Operating lease rents increased
from $6,269,908 in 2002 to $9,762,725 in 2003, an increase of $3,492,817.



                                       7
<PAGE>

In 2003 and  2002,  sources  of cash  from  investing  activities  consisted  of
proceeds from sales of lease  assets,  payments on direct  financing  leases and
payments received on notes receivable.  The amounts of sales proceeds  increased
from  $749,408 in 2002 to  $5,370,886  in 2003,  an increase of  $4,621,478.  At
December 31, 2003, the Company had a receivable  from an affiliate of $4,142,025
with respect to the sale of certain  assets.  The sale was part of a larger sale
of assets to a third party. See Note 5 to the financial  statements  included in
Item 8 of Part I of this report on Form 10K for further details. Cash flows from
financing  leases  increased  from  $220,691  in 2002 to  $929,968  in 2003,  an
increase  of  $709,277.  Increases  in the  amounts we have  received  on direct
financing leases have resulted from asset  acquisitions over the last two years.
We used cash to purchase  assets on operating  leases  ($11,777,539  in 2003 and
$29,839,551  in  2002)  and  direct  financing  leases  ($5,778,880  in 2003 and
$995,270 in 2002), to pay initial direct costs  associated with those leases and
to make note receivable advances.

In both 2003 and 2002, our only source of cash from financing activities was the
proceeds  from the public  offering of the  Company's  Units.  The  offering was
concluded in January of 2003. We used cash in both years to pay the costs of the
offering and to make  distributions to the members.  The amounts  distributed to
members other than AFS increased  from  $6,015,627 in 2002 to  $10,633,086  as a
result of the increase in the weighted  average  number of Units  outstanding in
2003 compared to 2002.

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).
Because of the timing of the  commencement  of operations  and the fact that the
initial  portfolio  acquisitions  were not  completed at December 31, 2004,  the
results of operations  in 2004,  2003 and 2002 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.

Cost  reimbursements  to Managing  Member are based on costs  incurred by AFS in
performing  administrative  services for the Company that are  allocated to each
Company  that AFS  manages  based on certain  criteria  such as  existing or new
leases,  number of investors or equity  depending on the type of cost  incurred.
AFS  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.

As of December 31, 2004 and 2003, 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:

                                                   2004            2003
            Manufacturing                          36%             40%
            Mining                                 26%             17%
            Electric utilities                     15%             23%
            Marine transportation                  11%             17%

2004 vs. 2003:

Operations  in 2004 and 2003 resulted in a net loss of $259,142 and a net income
of  $591,015,  respectively.  Our  primary  source  of  revenues  is rents  from
operating  leases.  We are continuing to acquire  additional lease assets.  As a
result  of our  acquisitions,  our  operating  leases  revenues  increased  from
$9,762,725 in 2003 to $11,490,794 in 2004, an increase of $1,728,069.

Our largest expense is  depreciation.  It is directly related to operating lease
assets and the revenues we earn on them.  Our  continued  acquisitions  of these
assets has led to the  increases  in revenues we noted above and to the increase
in  depreciation  expense from  $7,798,332  in 2003 to  $9,477,669  in 2004,  an
increase  of  $1,679,337.  In  additon,  amortization  of initial  direct  costs
increased from $491,376 in 2003 to $728,843 in 2004, an increase of $237,467.

In 2004,  we  provided  $293,868  for losses and  doubtful  accounts,  which was
$202,479 less than 2003. The amounts provided  related to marketable  securities
available  for sale  $95,158;  asset held for lease or sale  $16,710;  and notes
receivable  $170,000.  In 2003,  we provided  $496,347  for losses and  doubtful
accounts. The amounts provided related to assets held for lease or sale $61,712;
marketable  securities  available  for  sale,  included  in other  assets in the
balance  sheet  $95,000;  accounts  receivable  $13,000;  and  notes  receivable
$326,635.

2003 vs. 2002:

Operations  in 2003 and 2002  resulted in net income of $591,015  and  $603,150,
respectively.  Our primary source of revenues is rents from operating leases. We
are  continuing  to  acquire  additional  lease  assets.  As  a  result  of  our
acquisitions, our operating leases revenues increased from $6,269,908 in 2002 to
$9,762,725 in 2003, an increase of $3,492,817.



                                       8
<PAGE>

Our largest expense is  depreciation.  It is directly related to operating lease
assets and the revenues we earn on them.  Our  continued  acquisitions  of these
assets has led to the  increases  in revenues we noted above and to the increase
in  depreciation  expense from  $5,019,123  in 2002 to  $7,798,332  in 2003,  an
increase of $2,779,209.

Our  management  fees are  calculated  based on our revenues plus the amounts of
proceeds  from sales of assets that we  generated.  The amounts of cash flows on
which the fees are based  increased  from  approximately  $7,130,000  in 2002 to
$15,020,000 in 2003, an increase if $7,890,000. As a result, our management fees
increased from $264,622 in 2002 to $686,013 in 2003, an increase of $421,691.

The level of our leasing  activities  has  increased  in 2003  compared to 2002.
During 2002, the average cost of assets on operating leases was $36,563,919.  In
2003, that average had increased to  $54,179,761,  and increase of 48%. Our cost
reimbursements  to AFS  increased  from  $343,120  in 2002 to  $627,320 in 2003,
largely as a result of this increased activity.

In 2003,  we provided  $496,347  for losses and doubtful  accounts.  The amounts
provided related assets held for lease or sale ($61,712);  marketable securities
available  for sale,  included in other asset in the  balance  sheet  ($95,000);
accounts receivable  ($13,000);  and notes receivable  ($326,635.) There were no
similar provisions in 2002.

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 2003 or 2002.

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, by SFAS No. 138,  issued in June 2000 and by
SFAS No. 149, issued in June 2003.

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  2004,  2003 or 2002.
However,  the Company  expects to enter into  interest  rate swap  agreements in
future periods.

Recent Accounting Pronouncements

On October 13, 2004, the FASB concluded that SFAS No. 123R,  Share-Based Payment
("SFAS 123R"), which requires all companies to measure compensation cost for all
share-based payments (including stock options and employee stock purchase plans)
at fair value,  will be  effective  for public  companies  for interim or annual
periods beginning after June 15, 2005.  Nonpublic  companies will be required to
adopt the new statement at the  beginning of the first annual  period  beginning
after  December 15, 2005.  The Company does not expect the adoption of SFAS 123R
to have a material impact on its financial statements.

In  January   2003,   the  FASB  issued   Interpretation   No.  46  ("FIN  46"),
"Consolidation of Variable Interest Entities,  an interpretation of ARB 51." The
primary  objectives  of  this  interpretation  are to  provide  guidance  on the
identification  of entities for which  control is achieved  through  means other
than through voting rights ("variable  interest  entities") and how to determine
when  and  which  business   enterprise  (the  "primary   beneficiary")   should
consolidate  the  variable  interest  entity.  This new model for  consolidation
applies to an entity in which  either (i) the equity  investors  (if any) do not
have a controlling  financial interest; or (ii) the equity investment at risk is
insufficient to finance that entity's  activities  without receiving  additional
subordinated  financial support from other parties. In addition, FIN 46 requires
that  the  primary  beneficiary,  as  well  as  all  other  enterprises  with  a
significant  variable  interest in a variable  interest entity,  make additional
disclosures.  Certain  disclosure  requirements  of FIN 46  were  effective  for
financial statements issued after January 31, 2003.

In  December  2003,  the  FASB  issued  FIN  No.  46  (revised  December  2003),
"Consolidation  of Variable  Interest  Entities" ("FIN 46-R") to address certain
FIN 46 implementation  issues.  The effective dates and impact of FIN 46 and FIN
46-R are as follows:

(i) Special  purpose  entities  ("SPEs")  created prior to February 1, 2003. The
company must apply either the provisions of FIN 46 or early adopt the provisions
of FIN 46-R at the end of the first  interim or annual  reporting  period ending
after December 15, 2003.



                                       9
<PAGE>

(ii)  Non-SPEs  created  prior to February  1, 2003.  The company is required to
adopt FIN 46-R at the end of the first interim or annual reporting period ending
after March 15, 2004.

(iii) All entities, regardless of whether a SPE, that were created subsequent to
January  31,  2003.  The  provisions  of FIN 46  were  applicable  for  variable
interests in entities obtained after January 31, 2003.


The company  adopted FIN 46-R as of March 31, 2004. The adoption of FIN 46-R did
not have a  material  impact on the  Company's  financial  position,  results of
operations, or liquidity.

Critical Accounting Policies

The policies  discussed  below are considered by management of the Company to be
critical to an understanding of the Company'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
Company  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.

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.

Allowances for losses on direct financing leases are typically established based
on historical charge offs and collections  experience and are usually determined
by specifically identified lessees and billed and unbilled receivables.

Direct financing leases are placed in a non-accrual status based on specifically
identified lessees.  Such leases are only returned to an accrual status based on
a case by case  review  of AFS.  Direct  financing  leases  are  charged  off on
specific identification by AFS.

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.



                                       10
<PAGE>

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 to be  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, AFS 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, 2004,  there was an outstanding  balance of $17,000,000 on the floating rate
line of credit and the  effective  interest rate of the  borrowings  ranged from
4.18% to 5.25%.

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 through December 31, 2004.

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  Registered  Public  Accounting  Firm,  Financial
Statements and Notes to Financial Statements attached hereto at pages 12 through
28.

                                       11
<PAGE>




   REPORT OF ERNST & YOUNG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



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, 2004 and 2003,  and the related  statements
of operations,  changes in members' capital and cash flows for each of the three
years in the period ended December 31, 2004. 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 the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  We were not engaged to perform an
audit of the Company's  internal  control over  financial  reporting.  Our audit
included  consideration of internal control over financial  reporting as a basis
for designing audit  procedures that are appropriate in the  circumstances,  but
not for the  purpose  of  expressing  an  opinion  on the  effectiveness  of the
Company's internal control over financial reporting.  Accordingly, we express no
such  opinion.  An audit also  includes  examining,  on a test  basis,  evidence
supporting the amounts and  disclosures in the financial  statements,  assessing
the accounting principles used and significant estimates made by management, and
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, 2004 and 2003,  and the results of its  operations  and its
cash flows for each of the three years in the period ended December 31, 2004, in
conformity with U.S. generally accepted accounting principles.

                                                           /s/ ERNST & YOUNG LLP

San Francisco, California
March 9, 2005





                                       12
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                                 BALANCE SHEETS

                           DECEMBER 31, 2004 AND 2003



                                                     2004             2003
                                     ASSETS


Cash and cash equivalents                          $ 1,779,803      $29,429,383

Due from affiliate                                       8,815        4,142,025

Accounts receivable, net of allowance for
   doubtful accounts of $16,667 in 2004
   $13,000 in 2003                                   1,782,230        1,323,526

Notes receivable                                     4,857,778          268,196

Other assets                                           858,464          310,158

Investment in equipment and leases                  83,508,789       52,057,199
                                                ---------------  ---------------
                                                   $92,795,879      $87,530,487
                                                ===============  ===============


                        LIABILITIES AND MEMBERS' CAPITAL


Accounts payable:
   Managing Member                                   $ 196,718         $ 18,804
   Other                                                86,740          476,740

Accrued interest expense                                35,880                -

Deposits due lessees                                   131,017                -

Line of credit obligation                           17,000,000                -

Unearned operating lease income                        466,045          128,928
                                                ---------------  ---------------
Total liabilities                                   17,916,400          624,472

Total Members' capital                              74,879,479       86,906,015
                                                ---------------  ---------------
Total liabilities and Members' capital             $92,795,879      $87,530,487
                                                ===============  ===============


                             See accompanying notes.



                                       13
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                            STATEMENTS OF OPERATIONS

                               FOR THE YEARS ENDED
                        DECEMBER 31, 2004, 2003 AND 2002


<TABLE>
<CAPTION>
Revenues:                                                                          2004            2003             2002
   Leasing activities:
<S>                                                                              <C>             <C>              <C>
      Operating leases                                                           $11,490,794     $ 9,762,725      $ 6,269,908
      Direct financing leases                                                        605,277         315,801          114,980
      Gain (loss) on sales of assets                                                 (30,313)        658,865          107,353
      Gain on securities sales and foreign exchange                                   64,966               -                -
Interest                                                                             591,984         741,634          579,486
Other                                                                                  4,592          52,535            1,768
                                                                              --------------- ---------------  ---------------
                                                                                  12,727,300      11,531,560        7,073,495
Expenses:
Depreciation of operating lease assets                                             9,477,669       7,798,332        5,019,123
Asset management fees to Managing Member                                             620,104         686,013          264,322
Cost reimbursements to Managing Member                                               680,045         627,320          343,120
Provision for losses and doubtful accounts                                           293,868         496,347                -
Amortization of initial direct costs                                                 728,843         491,376          158,964
Interest expense                                                                     533,934         349,319          336,696
Professional fees                                                                    250,481         106,167           99,730
Insurance                                                                             23,430         104,588                -
Other                                                                                378,068         281,083          248,390
                                                                              --------------- ---------------  ---------------
                                                                                  12,986,442      10,940,545        6,470,345
                                                                              --------------- ---------------  ---------------
Net income (loss)                                                                 $ (259,142)      $ 591,015        $ 603,150
                                                                              =============== ===============  ===============

Net income (loss):
   Managing Member                                                                 $ 880,049       $ 862,142        $ 487,754
   Other Members                                                                  (1,139,191)       (271,127)         115,396
                                                                              --------------- ---------------  ---------------
                                                                                  $ (259,142)      $ 591,015        $ 603,150
                                                                              =============== ===============  ===============

Net (loss) income per Limited Liability Company Unit (Other Members)                 $ (0.09)        $ (0.02)          $ 0.02

Weighted average number of Units outstanding                                      12,062,469      12,035,095        7,280,533
</TABLE>





                             See accompanying notes.



                                       14
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                    STATEMENTS OF CHANGES IN MEMBERS' CAPITAL

                               FOR THE YEARS ENDED
                        DECEMBER 31, 2004, 2003 AND 2002


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

<S>                                                   <C>          <C>                 <C>           <C>
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

Capital contributions                                 1,028,125      10,281,250               -       10,281,250
Less selling commissions to affiliates                        -        (976,719)              -         (976,719)
Other syndication costs to affiliates                         -        (309,377)              -         (309,377)
Limited Liability Company Units repurchased                (250)         (1,923)                          (1,923)
Distributions to Other Members ($0.88 per Unit)               -     (10,633,086)              -      (10,633,086)
Distributions to Managing Member                              -               -        (862,142)        (862,142)
Net income (loss)                                             -        (271,127)        862,142          591,015
                                                 --------------- --------------- ---------------  ---------------
Balance December 31, 2003                            12,065,016      86,906,015               -       86,906,015

Other syndication costs to affiliates                         -          22,683               -           22,683
Limited Liability Company Units repurchased              (6,500)        (56,093)              -          (56,093)
Distributions to Other Members ($0.90 per Unit)               -     (10,853,935)              -      (10,853,935)
Distributions to Managing Member                              -               -        (880,049)        (880,049)
Net income (loss)                                             -      (1,139,191)        880,049         (259,142)
                                                 --------------- --------------- ---------------  ---------------
Balance December 31, 2004                            12,058,516     $74,879,479             $ -      $74,879,479
                                                 =============== =============== ===============  ===============
</TABLE>










                             See accompanying notes.



                                       15
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                            STATEMENTS OF CASH FLOWS

                               FOR THE YEARS ENDED
                        DECEMBER 31, 2004, 2003 AND 2002


<TABLE>
<CAPTION>
Operating activities:                                                              2004            2003             2002
<S>                                                                               <C>              <C>              <C>
Net income (loss)                                                                 $ (259,142)      $ 591,015        $ 603,150
Adjustments to reconcile net income (loss) to cash provided by operating
   activities:
   Gain on securities sales and foreign exchange                                     (53,875)
   (Gain)/loss on sales of lease assets                                               30,313        (658,865)        (107,353)
   Depreciation of operating lease assets                                          9,477,669       7,798,332        5,019,123
   Amortization of initial direct costs                                              728,843         491,376          158,964
   Provision for losses and doubtful accounts                                        293,868         496,347                -
   Residual value income                                                                   -               -             (201)
   Changes in operating assets and liabilities:
      Other assets                                                                  (485,807)         59,999         (465,157)
      Accounts receivable                                                           (462,371)       (138,766)         (11,041)
      Accounts payable, Managing Member                                              177,914        (415,712)         276,797
      Accounts payable, other                                                       (390,000)        386,073           66,196
     Accrued interest payable                                                         35,880               -                -
     Deposits due lessees                                                            131,017               -                -
      Unearned operating lease income                                                337,117          51,884          (18,574)
                                                                              --------------- ---------------  ---------------
Net cash provided by operations                                                    9,561,426       8,661,683        5,521,904
                                                                              --------------- ---------------  ---------------

Investing activities:
Purchases of equipment on operating leases                                       (38,395,198)    (11,777,539)     (29,839,551)
Purchases of equipment on direct financing leases                                 (4,478,953)     (5,778,880)        (995,270)
Proceeds from sales of lease assets                                                   95,571       5,370,886          749,408
Receipts from/(Payments made to) affiliates                                        4,133,210      (4,142,025)               -
Payments of initial direct costs to Managing Member                               (1,404,033)     (1,515,987)      (1,092,641)
Reduction of net investment in direct financing leases                             2,494,197         929,968          220,691
Payments received on notes receivable                                                530,537         506,974          958,258
Note receivable advances                                                          (5,410,319)        (46,196)      (1,031,605)
Purchases of marketable securities                                                   (62,499)              -                -
Proceeds from sale of marketable securities                                           53,875               -                -
                                                                              --------------- ---------------  ---------------
Net cash used in investing activities                                            (42,443,612)    (16,452,799)     (31,030,710)
                                                                              --------------- ---------------  ---------------

Financing activities:
Borrowings under line of credit                                                   17,000,000               -                -
Capital contributions received                                                             -      10,281,250       66,737,320
(Payment)/refund of syndication costs (to)/from Managing Member                       22,683      (1,286,096)      (8,570,695)
Distributions to Other Members                                                   (10,853,935)    (10,633,086)      (6,015,627)
Distributions to Managing Member                                                    (880,049)       (862,142)        (487,754)
Limited Liability Company Units repurchased                                          (56,093)         (1,923)               -
                                                                              --------------- ---------------  ---------------
Net cash provided by (used in) financing activities                                5,232,606      (2,501,997)      51,663,244
                                                                              --------------- ---------------  ---------------

Net (decrease) increase in cash and cash equivalents                             (27,649,580)    (10,293,113)      26,154,438

Cash and cash equivalents at beginning of period                                  29,429,383      39,722,496       13,568,058
                                                                              --------------- ---------------  ---------------
Cash and cash equivalents at end of period                                       $ 1,779,803     $29,429,383      $39,722,496
                                                                              =============== ===============  ===============

Supplemental disclosures of cash flow information:
Cash paid during the period for interest                                           $ 498,054       $ 349,319        $ 336,696
                                                                              =============== ===============  ===============
</TABLE>

                             See accompanying notes.



                                       16
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


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
(AFS),  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 AFS'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 AFS 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 AFS requested that the remaining funds in escrow
(from Pennsylvania investors) be released to the Company.

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  members  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 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:

Cash and cash equivalents:

Cash and cash equivalents includes cash in banks and cash equivalent investments
with original maturities of ninety days or less.

Accounts receivable:

Accounts  receivable  represent  the amounts  billed under lease  contracts  and
currently  due to the Company.  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.

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.  Allowances for doubtful accounts are typically established
based on  historical  charge  offs and  collection  experience  and are  usually
determined by specifically identified notes. Notes receivable are charged off on
specific identification by AFS.




                                       17
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


2. Summary of significant accounting policies (continued):

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.

Allowances for losses on direct financing leases are typically established based
on historical charge offs and collections  experience and are usually determined
by specifically identified lessees and billed and unbilled receivables.

Direct financing leases are placed in a non-accrual status based on specifically
identified lessees.  Such leases are only returned to an accrual status based on
a case by case  review  of AFS.  Direct  financing  leases  are  charged  off on
specific identification by AFS.

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.

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 :

                                                     2004            2003
  Financial statement basis of net assets        $   74,879,479   $  86,906,015
  Tax basis of net assets (unaudited)                76,841,325      94,208,823
                                                --------------- ---------------
  Difference                                     $    1,961,846  $    7,302,808
                                                =============== ===============

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.



                                       18
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


2. Summary of significant accounting policies (continued):

The  following  reconciles  the net income  (loss)  reported in these  financial
statements to the loss reported on the Company's federal tax return  (unaudited)
for each of the years ended December 31:

<TABLE>
<CAPTION>
                                                        2004            2003             2002
<S>                                                 <C>             <C>            <C>
 Net income (loss) per financial statements         $    (259,142)  $     591,015  $       603,150
 Adjustment to depreciation expense                    (8,062,206)     (6,258,019)      (4,486,980)
 Provision for losses and doubtful accounts                98,825         496,347                -
 Adjustments to lease revenues                          2,645,101       1,450,188          (64,120)
                                                   --------------- ---------------  ---------------
 Net loss per federal tax return                    $  (5,577,422) $   (3,720,469)  $   (3,947,950)
                                                   =============== ===============  ===============
</TABLE>

Per unit data:

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

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.

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.

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, 2004 and 2003.

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, by SFAS No. 138,  issued in June 2000 and by
SFAS No. 149, issued June 2003.



                                       19
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


2. Summary of significant accounting policies (continued):

Derivative financial instruments (continued):

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 2004, 2003 or 2002.

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.

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.

Recent accounting pronouncements:

On October 13, 2004, the FASB concluded that SFAS No. 123R,  Share-Based Payment
("SFAS 123R"), which requires all companies to measure compensation cost for all
share-based payments (including stock options and employee stock purchase plans)
at fair value,  will be  effective  for public  companies  for interim or annual
periods beginning after June 15, 2005.  Nonpublic  companies will be required to
adopt the new statement at the  beginning of the first annual  period  beginning
after  December 15, 2005.  The Company does not expect the adoption of SFAS 123R
to have a material impact on its financial statements.

In  January   2003,   the  FASB  issued   Interpretation   No.  46  ("FIN  46"),
"Consolidation of Variable Interest Entities,  an interpretation of ARB 51." The
primary  objectives  of  this  interpretation  are to  provide  guidance  on the
identification  of entities for which  control is achieved  through  means other
than through voting rights ("variable  interest  entities") and how to determine
when  and  which  business   enterprise  (the  "primary   beneficiary")   should
consolidate  the  variable  interest  entity.  This new model for  consolidation
applies to an entity in which  either (i) the equity  investors  (if any) do not
have a controlling  financial interest; or (ii) the equity investment at risk is
insufficient to finance that entity's  activities  without receiving  additional
subordinated  financial support from other parties. In addition, FIN 46 requires
that  the  primary  beneficiary,  as  well  as  all  other  enterprises  with  a
significant  variable  interest in a variable  interest entity,  make additional
disclosures.  Certain  disclosure  requirements  of FIN 46  were  effective  for
financial statements issued after January 31, 2003.

In  December  2003,  the  FASB  issued  FIN  No.  46  (revised  December  2003),
"Consolidation  of Variable  Interest  Entities" ("FIN 46-R") to address certain
FIN 46 implementation  issues.  The effective dates and impact of FIN 46 and FIN
46-R are as follows:  (i) Special  purpose  entities  ("SPEs")  created prior to
February 1, 2003.  The company  must apply  either the  provisions  of FIN 46 or
early adopt the provisions of FIN 46-R at the end of the first interim or annual
reporting  period ending after December 15, 2003. (ii) Non-SPEs created prior to
February  1, 2003.  The  company is required to adopt FIN 46-R at the end of the
first interim or annual  reporting period ending after March 15, 2004. (iii) All
entities,  regardless of whether a SPE, that were created  subsequent to January
31, 2003.  The provisions of FIN 46 were  applicable  for variable  interests in
entities obtained after January 31, 2003.



                                       20
<PAGE>

                      ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


2. Summary of significant accounting policies (continued):

Recent accounting pronouncements (continued):

In  December  2003,  the  FASB  issued  FIN  No.  46  (revised  December  2003),
"Consolidation  of Variable  Interest  Entities" ("FIN 46-R") to address certain
FIN 46 implementation  issues.  The effective dates and impact of FIN 46 and FIN
46-R are as follows:

(i) Special  purpose  entities  ("SPEs")  created prior to February 1, 2003. The
company must apply either the provisions of FIN 46 or early adopt the provisions
of FIN 46-R at the end of the first  interim or annual  reporting  period ending
after December 15, 2003.

(ii)  Non-SPEs  created  prior to February  1, 2003.  The company is required to
adopt FIN 46-R at the end of the first interim or annual reporting period ending
after March 15, 2004.

(iii) All entities, regardless of whether a SPE, that were created subsequent to
January  31,  2003.  The  provisions  of FIN 46  were  applicable  for  variable
interests in entities obtained after January 31, 2003.

The Company  adopted FIN 46-R as of March 31, 2004. The adoption of FIN 46-R did
not have a  material  impact on the  Company's  financial  position,  results of
operations, or liquidity.


3. Investment in leases:

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

<TABLE>
<CAPTION>
                                                                              Depreciation /
                                                                               Amortization
                                                                                Expense or
                                                 Balance                      Amortization of   Reclassi-         Balance
                                               December 31,                   Direct Financing fications or     December 31,
                                                   2003         Additions         Leases       Dispositions         2004
Net investment in
<S>                                            <C>             <C>             <C>             <C>              <C>
   operating leases                            $  43,443,437   $  38,145,198   $  (9,477,669)  $    (127,178)   $  71,983,788
Net investment in direct
   financing leases                                6,357,227       4,478,953      (2,494,197)          1,294        8,343,277
Assets held for sale or lease                          5,159         250,000               -               -          255,159
Initial direct costs, net of
   accumulated amortization
   of $1,404,303 in 2004 and
   $675,238 in 2003                                2,251,375       1,404,033        (728,843)              -        2,926,565
                                              --------------- --------------- --------------- ---------------  ---------------
                                               $  52,057,198   $  44,278,184   $ (12,700,709)  $    (125,884)   $  83,508,789
                                              =============== =============== =============== ===============  ===============
</TABLE>


                                       21
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


3. Investment in leases (continued):

Management  periodically reviews the carrying values of its assets on leases and
assets held for lease or sale. As a result of the reviews, management determined
that due to continuing  declines in markets for certain types of assets,  during
2003, the value of certain office equipment held for sale or lease was impaired.
The fair values of the assets were determined based on the sum of the discounted
estimated  future cash flows of the assets.  A charge to operations was recorded
for the  decline in value of the  assets in the  amount of $61,712  for the year
ended  December 31, 2003. No  impairment  losses were recorded in either 2004 or
2002.

Impairment losses are recorded as an addition to accumulated depreciation of the
impaired assets.  Depreciation expense and impairment losses on property subject
to operating leases and property held for lease or sale consist of the following
for each of the years ended December 31:

                                  2004            2003            2002

 Depreciation expense           $ 9,477,669     $ 7,798,332     $ 5,019,123
 Impairment losses                        -          61,712               -
                             --------------- --------------- ---------------
                                $ 9,477,669     $ 7,860,044     $ 5,019,123
                             =============== =============== ===============

All of the property on leases was acquired in 2004, 2003, 2002 and 2001.

Operating leases:

Property on operating leases consists of the following:

<TABLE>
<CAPTION>
                                                                 Reclassi-
                               December 31,                     fications or    December 31,
                                    2003         Additions      Dispositions         2004
<S>                               <C>             <C>                <C>           <C>
Mining                            $25,521,984     $14,771,720             $ -      $40,293,704
Manufacturing                      10,437,852       4,559,143        (981,038)      14,015,957
Marine vessels                     11,200,000               -               -       11,200,000
Materials handling                  5,879,564       6,675,177         697,032       13,251,773
Communications                      3,033,933       4,090,418               -        7,124,351
Transportation                              -       7,381,919               -        7,381,919
Natural gas compressors               621,508               -         (52,048)         569,460
Office furniture                      562,248         666,821               -        1,229,069
                               --------------- --------------- ---------------  ---------------
                                   57,257,089      38,145,198        (336,054)      95,066,233
Less accumulated depreciation     (13,813,652)     (9,477,669)        208,876      (23,082,445)
                               --------------- --------------- ---------------  ---------------
                                $  43,443,437   $  28,667,529   $    (127,178)   $  71,983,788
                               =============== =============== ===============  ===============
</TABLE>

The average  assumed  residual value for assets on operating  leases at December
31, 2004 and 2003 were 26% and 28% of the assets original cost, respectively.



                                       22
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


3. Investment in leases (continued):

Direct financing leases:

As of December 31,  2004,  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, 2004 and 2003:

<TABLE>
<CAPTION>
                                                                 2004             2003
<S>                                                          <C>             <C>
Total minimum lease payments receivable                      $   8,248,342   $    6,752,281
Estimated residual values of leased equipment (unguaranteed)     1,048,243          649,809
                                                            ---------------  ---------------
Investment in direct financing leases                            9,296,585        7,402,090
Less unearned income                                              (953,308)      (1,044,863)
                                                            ---------------  ---------------
Net investment in direct financing leases                    $   8,343,277   $    6,357,227
                                                            ===============  ===============
</TABLE>

At December 31, 2004, the aggregate amounts of future minimum lease payments are
as follows:

                                                 Direct
                Year ending    Operating       Financing
               December 31,      Leases          Leases          Total
                       2005   $  16,703,784   $   2,881,912  $   19,585,696
                       2006      15,057,193       2,301,634      17,358,827
                       2007       9,398,145       1,653,624      11,051,769
                       2008       5,837,295         984,876       6,822,171
                       2009       4,147,171         426,296       4,573,467
                 Thereafter         497,291               -         497,291
                             --------------- --------------- ---------------
                              $  51,640,879   $   8,248,342   $  59,889,221
                             =============== =============== ===============


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
18 to 60 months and bear  interest at rates  ranging  from 11% to 22%. The notes
are secured by the  equipment  financed.  As of December 31,  2004,  the minimum
future payments receivable are as follows:

                          Year ending
                         December 31,
                                 2005     $ 1,798,899
                                 2006       1,365,313
                                 2007         822,598
                                 2008         457,030
                                 2009       1,818,006
                                       ---------------
                                            6,261,846
   Less portion representing interest      (1,404,068)
                                       ---------------
                                          $ 4,857,778
                                       ===============




                                       23
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


5. Related party transactions:

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

The Limited Liability  Company Operating  Agreement allows for the reimbursement
of costs  incurred by AFS in providing  administrative  services to the Company.
Administrative services provided include Company accounting, investor relations,
legal counsel and lease and equipment  documentation.  AFS is not reimbursed for
services  whereby it is entitled to receive a separate fee as  compensation  for
such services,  such as management of equipment.  Reimbursable costs incurred by
AFS are allocated to the Company based upon estimated 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 AFS.

Cost  reimbursements  to Managing  Member are based on costs  incurred by AFS in
performing  administrative  services for the Company that are  allocated to each
fund that AFS manages based on certain  criteria such as existing or new leases,
number  of  investors  or equity  depending  on the type of cost  incurred.  AFS
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.

AFS and/or affiliates earned fees,  commissions and reimbursements,  pursuant to
the Limited  Liability  Company  Agreement  as follows  during each of the years
ended December 31:

<TABLE>
<CAPTION>
                                                                                   2004            2003             2002
Selling commissions (equal to 9.5% of the selling price of the Limited
<S>                                                                            <C>              <C>           <C>
   Liability Company units, deducted from Other Members' capital)              $           -    $    976,719  $     6,340,045
Reimbursement of other syndication costs to Managing Member                          (22,683)        309,377        2,230,650
Administrative costs reimbursed to Managing Member                                   680,045         627,320          343,120
Initial direct costs paid to Managing Member                                       1,404,033       1,515,987        1,092,641
Asset management fees to Managing Member                                             620,104         686,013          264,322
                                                                              --------------- ---------------  ---------------
                                                                               $   2,681,499  $    4,115,416   $   10,270,778
                                                                              =============== ===============  ===============
</TABLE>

The Managing  Member makes  certain  payments to third  parties on behalf of the
Company for  convenience  purposes.  During the years ended  December  31, 2004,
2003,  and 2002, the Managing  Member made such payments of $461,697,  $325,920,
and $162,669, respectively.

On December 31,  2003,  the Company  sold  certain  assets  subject to operating
leases and direct financing  leases to the lessee.  The assets being sold were a
part of a larger sale involving the sale of assets  belonging to an affiliate of
the Company. On December 31, 2003, the lessee/purchaser sent the proceeds of the
sale by wire  transfer  to the  account of the  Company's  affiliate.  The funds
belonging to the Company were  transferred  to the Company on the next  business
day.



                                       24
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


6. Members' capital:

As of December  31,  2004,  12,058,516  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 AFS.  In  accordance  with the  terms of the of  Operating
Agreement,  additional  allocations of income were made to AFS in 2004, 2003 and
2002.  The amounts  allocated  were  determined  to bring AFS'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 AFS's
credit committee review.  The leases and notes receivable provide for the return
of the equipment upon default.

As of December 31, 2004 and 2003, 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:

                                              2004            2003
       Manufacturing                          36%             40%
       Mining                                 26%             17%
       Electric utilities                     15%             23%
       Marine transportation                  11%             17%

During 2004, two customers  comprised 14% and 10% of the Company's revenues from
leases. During 2003, three customers comprised 15%, 14% and 11% of the Company's
revenues from leases. During 2002, three customers comprised 23%, 17% and 11% of
the Company's revenues from leases.




                                       25
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


8. Line of credit:

The Company  participates  with AFS and certain of its affiliates in a financing
arrangement  (comprised  of a term loan to AFS, an  acquisition  facility  and a
warehouse facility) with a group of financial institutions that includes certain
financial  covenants.  The financial  arrangement is $75,000,000  and expires in
June 2006. The  availability  of borrowings  available to the Company under this
financing  arrangement  is reduced by the amount AFS has  outstanding  as a term
loan. As of December 31, 2004 borrowings under the facility were as follows:

<TABLE>
<CAPTION>
<S>                                                                              <C>
Total amount available under the financing arrangement                           $  75,000,000
Term loan to AFS as of December 31, 2004                                            (2,027,636)
                                                                                ---------------
Total available under the acquisition and warehouse facilities                      72,972,364

Amount  borrowed  by the Company  under the  acquisition  facility                 (17,000,000)
Amounts  borrowed by affiliated  partnerships  and limited  liability  companies
under the
     acquisition facility                                                          (13,500,000)
                                                                                ---------------
Total remaining available under the acquisition and warehouse facilities         $  42,472,364
                                                                                ===============
</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 AFS.

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,
2004.


9. Fair value of financial instruments:

The  recorded  amounts  of the  Company's  cash and cash  equivalents,  accounts
receivable,  accounts payable and accruals at December 31, 2004 approximate fair
value because of the liquidity and 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, 2004 is $4,857,778.

Line of Credit

The carrying amount of the Company's  variable line of credit  approximates fair
value.



                                       26
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


10. Selected quarterly data (unaudited):

<TABLE>
<CAPTION>
                                                                March 31,        June 30,      September 30,    December 31,
Quarter ended                                                      2003            2003            2003             2003

<S>                                                              <C>             <C>             <C>              <C>
Total revenues                                                   $ 2,440,826     $ 2,808,832     $ 2,801,887      $ 3,480,015
Net income (loss)                                                  $ 190,480       $ 239,830      $ (253,665)       $ 414,370
Net income (loss) per Limited Liability Company Unit                 $ (0.00)         $ 0.00         $ (0.04)          $ 0.02
</TABLE>

<TABLE>
<CAPTION>
                                                                March 31,        June 30,      September 30,    December 31,
Quarter ended                                                      2004            2004            2004             2004

<S>                                                              <C>             <C>             <C>              <C>
Total revenues                                                   $ 2,756,796     $ 2,795,334     $ 3,173,112      $ 4,002,058
Net income (loss)                                                 $ (376,410)      $ (47,924)       $ 13,167        $ 152,025
Net income (loss) per Limited Liability Company Unit                 $ (0.05)        $ (0.03)        $ (0.01)         $ (0.00)
</TABLE>


11. Commitments:

At December 31, 2004,  there were  commitments to purchase lease assets totaling
approximately $23,043,690.

12. Credit facility:

In August  2002,  the Company  established  a $102 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  AFS, 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.  AFS
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, 2004,  the Company had not borrowed  under the  facility.  In
order to maintain the  availability  of the program,  the Company is required to
make payments of standby fees.  These fees totaled $385,000 and $238,000 in 2004
and 2003,  respectively,  and are included in interest  expense in the Company's
statement of operations.




                                       27
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2004


13. Reserves, impairment losses and provisions for doubtful accounts:

The Company's reserves for losses are as follows:

<TABLE>
<CAPTION>
                                               Reserve for       Realized      Allowance for
                                                losses on       losses on        doubtful      Allowance for
                                              assets held for   marketable       accounts        doubtful
                                              sale or lease     securities       (notes)         accounts          Total
<S>                                                  <C>            <C>            <C>              <C>              <C>
Balance December 31, 2002                            $     -        $      -       $       -        $      -         $      -
Provision for losses and doubtful accounts            61,712          95,000         326,635          13,000          496,347
Write-offs                                           (61,712)        (95,000)       (326,635)              -         (483,347)
                                              --------------- --------------- --------------- ---------------  ---------------
Balance December 31, 2003                                  -               -               -          13,000           13,000
Provision for losses and doubtful accounts            16,710          95,158         170,000          12,000          293,868
Write-offs                                           (16,710)        (95,158)       (170,000)         (8,333)        (290,201)
                                              --------------- --------------- --------------- ---------------  ---------------
Balance December 31, 2004                            $     -        $      -       $       -        $ 16,667         $ 16,667
                                              =============== =============== =============== ===============  ===============
</TABLE>


14. Guarantees:

The Company enters into  contracts  that contain a variety of  indemnifications.
The Company's maximum exposure under these arrangements is unknown. However, the
Company  has not had prior  claims or losses  pursuant  to these  contracts  and
expects the risk of loss to be remote.




                                       28
<PAGE>

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

None.


Item 9A.  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) 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 the 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 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 AFS is held by  ATEL  Capital  Group
("ACG"), a holding company formed to control AFS and affiliated  companies.  The
outstanding  voting  capital  stock of ATEL Capital  Group is owned 100% 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
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 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 54, 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.



                                       29
<PAGE>

Paritosh K.  Choksi,  age 51,  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 56, 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.

Vasco H. Morais, age 46, 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.

Audit Committee

ATEL Leasing Corporation is the managing member of ATEL Financial Services, LLC.
ATEL Financial Services LLC is the Managing Member of the registrant.  The board
of  directors  of ATEL Leasing  Corporation  acts as the audit  committee of the
registrant.  Dean L. Cash and  Paritosh  K.  Choksi are  members of the board of
directors  of  ALC  and  are  deemed  to be  financial  experts.  They  are  not
independent of the Company.

Code of Ethics

ACG on  behalf  of AFS and ALC  has  adopted  a code  of  ethics  for its  Chief
Executive  Officer,  Chief Financial Officer and Chief Accounting  Officer.  The
Code of Ethics is included as Exhibit 14.1 to this report.

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 AFS and its Affiliates. The amount of such remuneration paid in 2004,
2003 and 2002 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.

Asset Management Fee

The  Company  pays  AFS an  Asset  Management  Fee in an  amount  equal to 4% of
Operating  Revenues,  which includes Gross Lease Revenues and Cash From Sales or
Refinancing. The Asset Management Fee are paid on a monthly basis. The amount of
the Asset  Management  Fee  payable in any year is reduced  for that year to the
extent it would  otherwise  exceed the Asset  Management Fee Limit, as described
below.  The Asset  Management  Fee is paid for services  rendered by AFS 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.



                                       30
<PAGE>

AFS  supervises  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.  AFS  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 is subject to the Asset Management Fee Limit. The Asset
Management  Fee Limit is  calculated  each year  during  the  Company's  term by
calculating  the  total  fees  that  would  be  paid  to AFS if AFS  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 AFS's Carried  Interest,  as described below. To the extent that the amount
paid to AFS 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 is 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 AFS 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 AFS 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:

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 AFS 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

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 AFS.  In  accordance  with the  terms of the of  Operating
Agreement,  additional  allocations of income were made to AFS in 2004, 2003 and
2002.  The amounts  allocated  were  determined  to bring AFS's  ending  capital
account  balance  to  zero at the end of each  year.  See  financial  statements
included in Item 8, Part I of this report for amounts  allocated to AFS in 2004,
2003 and 2002.




                                       31
<PAGE>

Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
               MANAGEMENT

Security Ownership of Certain Beneficial Owners

At December 31, 2004, no investor is known to hold  beneficially more than 5% of
the issued and outstanding Units.

Security Ownership of Management

The parent of AFS 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           0.0004%
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.

AFS 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  members  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.

Item 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES

During the most recent two years, the Company incurred audit, audit related, tax
and other fees with its principal auditors as follows:

                                      2004            2003

           Audit fees             $      155,243 $        37,889
           Audit related fees                  -               -
           Tax fees                       29,838          19,150
           Other                              -               -
                                 --------------- ---------------
                                      $ 185,081        $ 57,039
                                 =============== ===============

ATEL Leasing Corporation is the managing member of ATEL Financial Services, LLC.
ATEL Financial Services LLC is the Managing Member of the registrant.  The board
of  directors  of ATEL Leasing  Corporation  acts as the audit  committee of the
registrant.  Engagements  for audit  services,  audit  related  services and tax
services are approved in advance by the Chief Financial  Officer of ATEL Leasing
Corporation acting on behalf the board of directors of ATEL Leasing  Corporation
in its role as the audit committee of the Company.




                                       32
<PAGE>

                                     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 Registered Public Accounting Firm

          Balance Sheets at December 31, 2004 and 2003

          Statements of operations for the years ended  December 31, 2004,  2003
          and 2002

          Statement of Changes in Members'  Capital for the years ended December
          31, 2004, 2003 and 2002

          Statement of Cash Flows for the years ended  December  31, 2004,  2003
          and 2002

          Notes to Financial Statements

      2. Financial Statement Schedules

          All schedules 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 2004
         None

      (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)

          (14.1) Code of Ethics

          (31.1)  Certification  of Paritosh K. Choksi

          (31.2) Certification of Dean L. Cash

          (32.1)  Certification  Pursuant to 18 U.S.C.  section  1350 of Dean L.
          Cash

          (32.2) Certification Pursuant to 18 U.S.C. section 1350 of Paritosh K.
          Choksi



                                       33
<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:        3/29/2005

                       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)






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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 Executive     3/29/2005
-------------------------  Officer of ATEL Financial Services LLC
        Dean Cash



 /s/ Paritosh K. Choksi    Executive Vice President and director of    3/29/2005
-------------------------  ATEL Financial Services LLC, Principal
   Paritosh K. Choksi      financial officer of registrant; principal
                           financial officer and director of ATEL
                           Financial Services LLC




 /s/ Donald E. Carpenter   Principal accounting officer of registrant; 3/29/2005
-------------------------  principal accounting officer of ATEL
   Donald E. Carpenter     Financial Services LLC




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.

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