Form 10-K/A

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

            |X| Annual report pursuant to section 13 or 15(d) of the
                Securities Exchange Act of 1934 (fee required)
                For the Year Ended December 31, 2003
                                       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,
2003 was 12,065,016.

                       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.

This   amendment  is  being  filed  in  order  to  correct  the  format  of  the
certifications included as Exhibits 31.1 and 31.2.

                                       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, 2003, 12,065,016 Units ($120,650,160) 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,  2003,  the Company had  purchased  equipment  with a total
acquisition  price of $69,486,647.  The Company has also invested  $2,665,740 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 2003, 2002 and 2001,  certain lessees generated  significant  portions of
the Company's total lease revenues as follows:

Lessee                            Type of Equipment           2003    2002  2001
------                            -----------------           ----    ----  ----
General Electric Aircraft Engines Machine tools                15%     11%    *
Basin Electric                    Walking dragline             14%     23%   54%
Graham Offshore Inc.              Off shore supply vessels     11%     17%    *
Photuris, Inc.                    Various lab, computer         *       *    14%
                                     and office equipment

*  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, 2003 and the
industries  to which the assets have been  leased.  The  Company  has  purchased
certain assets subject to existing non-recourse debt.

                        Purchase Price Excluding         Percentage of Total
Asset Types                Acquisition Fees                 Acquisitions
-----------                ----------------                 ------------
Mining equipment             $25,681,512                            36.95%
Manufacturing                 16,908,402                            24.33%
Marine vessels                11,200,000                            16.12%
Materials handling             7,838,171                            11.28%
Communications                 3,033,933                             4.37%
Furniture and fixtures         2,143,896                             3.09%
Office automation              1,680,478                             2.42%
Natural gas compressors          696,451                             1.00%
Test Equipment                   303,804                             0.44%
                          ---------------                  ----------------
                             $69,486,647                           100.00%
                          ===============                  ================

                        Purchase Price Excluding             Percentage of Total
Industry of Lessee         Acquisition Fees                     Acquisitions
------------------         ----------------                     ------------
Manufacturing                $31,105,814                            44.77%
Mining                        14,366,115                            20.67%
Electric utilities            11,315,397                            16.28%
Marine transportation         11,200,000                            16.12%
Retail                             802,870                           1.16%
Oil and gas                        696,451                           1.00%
                          ---------------                  ----------------
                             $69,486,647                           100.00%
                          ===============                  ================

Through December 31, 2003, the Company has disposed of certain leased assets as
set forth below:

                                                                Excess of
           Type of        Original                             Rents Over
          Equipment     Equipment Cost      Sale Price         Expenses *
          ---------     --------------      ----------         ----------
      Manufacturing        $ 5,373,271        $ 5,163,964        $ 1,300,489
      Research                 774,314             63,141          1,006,066
      Electronics              769,502            749,800            121,255
      Computers                357,207             31,301            331,012
      Other                     77,180             65,850             31,091
                      -----------------   ----------------   ----------------
                           $ 7,351,474        $ 6,074,056        $ 2,789,913
                      =================   ================   ================

* 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,  2003,  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.

Photuris, Inc.:

Photuris,  a debtor of the Company, was on the verge of ceasing operations as it
was unable to secure new equity under favorable terms when the Company commenced
negotiations  regarding  Photuris'  debt with the Company.  As of this date,  no
legal action has been  initiated  against the debtor;  however,  the account has
been  restructured.  In concert with  several  other  lessors and  lenders,  the
Company  concluded   negotiations  and  executed  a  Settlement  Agreement  with
Photuris.  Under the terms of the Settlement Agreement,  the Company received an
initial $200,000 in cash in July 2002.

The  Company is carrying a  promissory  note from  Photuris  for  $300,000  (the
carrying  value in the  financial  statements  is $234,000 at December 31, 2003)
that is payable interest only at prime plus 1.25% from August 1, 2002 to October
2003, at which time payments  will convert to an equal  principal  plus interest
basis, spread over 36 months.  During 2003, Photuris made interest payments each
month,  but made only two of the three  scheduled  payments  of  principal.  The
agreement  was again  modified in 2004 and Photuris is scheduled to start making
payments of principal again on April 1, 2004.

The Company also owns Series C preferred  stock of Photuris.  The carrying value
of the stock  (included  in other  assets on the balance  sheet at December  31,
2003) was $95,158 and the  original  cost of the stock was  $190,158.  The write
down of $95,000 was recorded in 2003 and resulted from AFS's  determination that
the stock had permanently declined in value.


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

None.


                                     PART II

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

Market Information

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

Holders

As of December 31, 2003, a total of 3,238 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.

                                       4
<PAGE>

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.

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

The rate for monthly  distributions from 2001 operations was $0.069 per Unit for
February (partial month) through September 2001. The distributions  were paid in
April through October 2001. The rate for the  distributions  for October through
December  2001 was $0.075,  per Unit.  The  distributions  were paid in November
through December 2001 and in January 2002. The rates for quarterly distributions
paid in April and July 2001 and January  2002 were  $0.090,  $0.208,  $0.208 and
$0.225,  respectively  per Unit.  Distributions  were from 2001 cash  flows from
operations.

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

<TABLE>
<CAPTION>
                                                                      2003             2002             2001
                                                                      ----             ----             ----
<S>                                                                      <C>               <C>              <C>
Net (loss) income per Unit, based on weighted
   average Units outstanding                                             $ (0.02)          $ 0.02           $ 0.22
Return of investment                                                        0.90             0.81             0.34
                                                                 ---------------- ---------------- ----------------
Distributions per Unit, based on weighted average
   Units outstanding                                                        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           $ 0.73
                                                                 ================ ================ ================
</TABLE>



Item 6.  SELECTED FINANCIAL DATA

The following table presents selected  financial data of the Company at December
31, 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>
                                                       2003             2002             2001              2000
                                                       ----             ----             ----              ----
<S>                                                   <C>              <C>              <C>                       <C>
Gross revenues                                        $11,531,560      $ 7,073,495      $ 3,393,685               $ -
Net income                                              $ 591,015        $ 603,150        $ 584,176               $ -
Weighted average Units outstanding                     12,035,095        7,280,533        2,167,171                50
Net (loss) income allocated to Other Members           $ (271,127)       $ 115,396        $ 485,897               $ -
Net (loss) income per Unit, based on weighted
   average Units outstanding                              $ (0.02)          $ 0.02           $ 0.22               $ -
Distributions per Unit, based on weighted average
   Units outstanding                                       $ 0.88           $ 0.83           $ 0.56               $ -
Total Assets                                          $87,530,487      $89,419,224      $36,828,411             $ 600
Total Members' Capital                                $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 from those projected.  Investors are cautioned not
to attribute undue certainty to these  forward-looking  statements,  which speak
only as of the date of this Form 10-K.  We undertake no  obligation  to publicly
release any revisions to these  forward-looking  statements to reflect events or
circumstances  after the date of this Form 10-K or to reflect the  occurrence of
unanticipated events, other than as required by law.

Capital Resources and Liquidity

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

                                       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 $58,627,656
revolving line of credit  (comprised of an acquisition  facility and a warehouse
facility)  with  a  financial   institution  that  includes  certain   financial
covenants. The line of credit expires on June 28, 2004. As of December 31, 2003,
borrowings under the facility were as follows:

Amount  borrowed by the Company under the acquisition facility  $            -
Amounts borrowed by affiliated partnerships and limited
   liability companies under the acquisition facility               23,000,000
                                                               ----------------
Total borrowings under the acquisition facility                     23,000,000
Amounts borrowed by AFS and its sister corporation under the
   warehouse facility                                                        -
                                                               ----------------
Total outstanding balance                                       $  23,000,000
                                                               ================

Total available under the line of credit                        $   58,627,656
Total outstanding balance                                          (23,000,000)
                                                               ----------------
Remaining availability                                          $  35,627,656
                                                               ================

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  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,  2003,  the Company had
commitments to purchase lease assets totaling approximately $17,162,000.

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, 2003,  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  $238,000 in 2003 and are
included in interest expense in the Company's statement of operations.

                                       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-0recourse  debt  financing,  which the Company will use on a transaction
basis as a means of mitigating credit risk.

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 2003.

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

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.

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.

2002 vs. 2001:

In 2002 and 2001,  operating  lease rents were the primary  source of cash flows
from  operations.  The  Company's  primary  source of cash in both years was the
proceeds of its offering of Limited  Liability  Company Units.  Operating  lease
rents have increased as discussed below under "Results of Operations".

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

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

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, 2003,  the
results of operations  in 2003,  2002 and 2001 are not expected to be comparable
to future  periods.  After the Company's  public  offering and its initial asset
acquisition  stage  terminate,  the results of operations are expected to change
significantly.



                                       7
<PAGE>

Substantially   all   employees  of  AFS  track  time   incurred  in  performing
administrative  services on behalf of the Company.  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, 2003, 2002 and 2001, there were concentrations  (greater than
10%) of  equipment  leased to  lessees  and/or  financial  borrowers  in certain
industries (as a percentage of total equipment cost) as follows:

                                     2003             2002             2001
                                     ----             ----             ----
    Manufacturing                     40%              37%               *
    Electric utilities                23%              21%              50%
    Marine transportation             17%              21%              25%
    Mining                            17%              18%               *

    *  Less than 10%

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.

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.

2002 vs. 2001:

Operations  in 2002 and 2001  resulted in net income of $603,150  and  $584,176,
respectively.  The primary source of revenues was rents from  operating  leases.
The Company is continuing to acquire  significant  amounts of lease assets. As a
result,  results  of  operations  in  future  periods  are  not  expected  to be
comparable  to 2002 or 2001,  nor are they  expected  to be  comparable  to each
other.  During these two years,  the Company was conducting  public  offering of
Units and was acquiring  the majority of its initial  portfolio of lease assets.
During  this phase of the  Company's  life  cycle,  revenues  and  expenses  are
expected to change significantly from one period to another.

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  2003,  2002 or 2001.
However,  the Company  expects to enter into  interest  rate swap  agreements in
future periods.

                                       8
<PAGE>

Recent Accounting Pronouncements

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.

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 is  required  to adopt FIN 46-R at the end of the first  interim or
annual  reporting  period  ending  after  March 15,  2004.  The  adoption of the
provisions  applicable to SPEs and all other variable  interests  obtained after
January  31,  2003 did not have a  material  impact on the  company's  financial
statements.  The company is currently evaluating the impact of adopting FIN 46-R
applicable  to Non-SPEs  created prior to February 1, 2003 but does not expect a
material impact.

In April 2002,  the FASB  issued FASB  Statement  No.  145,  Rescission  of FASB
Statements No. 4, 44, and 64,  Amendment of FASB Statement No. 13, and Technical
Corrections (Statement No. 145). Among other things,  Statement No. 145 rescinds
Statement No. 4, which required that all gains and losses from extinguishment of
debt be reported as an  extraordinary  item.  The adoption of Statement No. 145,
effective January 1, 2003, did not have any effect on the Company's consolidated
financial position, consolidated 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.



                                       9
<PAGE>

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.
mpairment is measured as the difference between the fair value (as determined by
the discounted estimated future cash flows) of the assets and its carrying value
on the measurement date.


Item 7a.  QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

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

In general,  the Company expects to manage its exposure to interest rate risk by
obtaining  fixed rate debt.  The fixed  rate debt is 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, 2003, there was no outstanding balance on the floating interest rate line of
credit.

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

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


Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

See the  Report  of  Independent  Auditors,  Financial  Statements  and Notes to
Financial Statements attached hereto at pages 11 through 28.

                                       10
<PAGE>










                REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS



The Members
ATEL Capital Equipment Fund IX, LLC

We have audited the accompanying  balance sheets of ATEL Capital  Equipment Fund
IX, LLC  (Company) as of December 31, 2003 and 2002,  the related  statements of
income,  changes in  members'  capital  and cash flows for the three years ended
December 31, 2003.  These  financial  statements are the  responsibility  of the
Company's  management.  Our  responsibility  is to  express  an opinion on these
financial statements based on our audits.

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

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of ATEL Capital Equipment Fund IX,
LLC at December 31, 2003 and 2002,  the results of its  operations  and its cash
flows for each of the three years in the period  ended  December  31,  2003,  in
conformity with accounting principles generally accepted in the United States.

                                                           /s/ ERNST & YOUNG LLP

San Francisco, California
February 20, 2004





                                       11
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                                 BALANCE SHEETS

                           DECEMBER 31, 2003 AND 2002



                                                   2003              2002
                                                   ----              ----
                                     ASSETS


Cash                                              $29,429,383       $39,722,496

Due from affiliate                                  4,142,025                 -

Accounts receivable, net of allowance for
doubtful accounts of $13,000 in 2003 and zero
   in 2002                                          1,323,526         1,197,760

Notes receivable                                      268,196         1,055,609

Other assets                                          310,158           465,157

Investment in equipment and leases                 52,057,199        46,978,202
                                              ----------------  ----------------
                                                  $87,530,487       $89,419,224
                                              ================  ================


                        LIABILITIES AND MEMBERS' CAPITAL


Accounts payable:
   Managing Member                                   $ 18,804         $ 434,516
   Other                                              476,740            90,667

Unearned operating lease income                       128,928            77,044
                                              ----------------  ----------------
Total liabilities                                     624,472           602,227

Total Members' capital                             86,906,015        88,816,997
                                              ----------------  ----------------
Total liabilities and Members' capital            $87,530,487       $89,419,224
                                              ================  ================


                             See accompanying notes.



                                       12
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                              STATEMENTS OF INCOME

                               FOR THE YEARS ENDED
                        DECEMBER 31, 2003, 2002 AND 2001


<TABLE>
<CAPTION>
Revenues:                                                                 2003             2002              2001
                                                                          ----             ----              ----
   Leasing activities:
<S>                                                                      <C>              <C>               <C>
      Operating leases                                                   $ 9,762,725      $ 6,269,908       $ 3,102,265
      Direct financing leases                                                315,801          114,980            53,589
      Gain on sales of assets                                                658,865          107,353                 -
Interest                                                                     741,634          579,486           232,116
Other                                                                         52,535            1,768             5,715
                                                                     ---------------- ----------------  ----------------
                                                                          11,531,560        7,073,495         3,393,685
Expenses:
Depreciation of operating lease assets                                     7,798,332        5,019,123         2,053,997
Asset management fees to Managing Member                                     686,013          264,322            83,341
Cost reimbursements to Managing Member                                       627,320          343,120           374,507
Provision for losses and doubtful accounts                                   496,347                -                 -
Amortization of initial direct costs                                         491,376          158,964            24,898
Interest expense                                                             349,319          336,696           199,230
Professional fees                                                            106,167           99,730            39,384
Insurance                                                                    104,588                -                 -
Other                                                                        281,083          248,390            34,152
                                                                     ---------------- ----------------  ----------------
                                                                          10,940,545        6,470,345         2,809,509
                                                                     ---------------- ----------------  ----------------
Net income                                                                 $ 591,015        $ 603,150         $ 584,176
                                                                     ================ ================  ================

Net income (loss):
   Managing Member                                                         $ 862,142        $ 487,754          $ 98,279
   Other Members                                                            (271,127)         115,396           485,897
                                                                     ---------------- ----------------  ----------------
                                                                           $ 591,015        $ 603,150         $ 584,176
                                                                     ================ ================  ================

Net (loss) income per Limited Liability Company Unit (Other Members)         $ (0.02)          $ 0.02            $ 0.22

Weighted average number of Units outstanding                              12,035,095        7,280,533         2,167,171
</TABLE>





                             See accompanying notes.



                                       13
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                    STATEMENTS OF CHANGES IN MEMBERS' CAPITAL

                               FOR THE YEARS ENDED
                        DECEMBER 31, 2003, 2002 AND 2001


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

<S>                                                        <C>            <C>                 <C>            <C>
Balance December 31, 2000                                         50            $ 500            $ 100             $ 600

Capital contributions                                      4,363,359       43,633,590                -        43,633,590
Less selling commissions to affiliates                                     (4,145,191)               -        (4,145,191)
Other syndication costs to affiliates                                      (2,210,852)               -        (2,210,852)
Distributions to Other Members ($0.56 per Unit)                            (1,213,341)               -        (1,213,341)
Distributions to Managing Member                                                    -          (98,379)          (98,379)
Net income                                                                    485,897           98,279           584,176
                                                     ---------------- ---------------- ----------------  ----------------
Balance December 31, 2001                                  4,363,409       36,550,603                -        36,550,603

Capital contributions                                      6,673,732       66,737,320                -        66,737,320
Less selling commissions to affiliates                                     (6,340,045)               -        (6,340,045)
Other syndication costs to affiliates                                      (2,230,650)               -        (2,230,650)
Distributions to Other Members ($0.83 per Unit)                            (6,015,627)               -        (6,015,627)
Distributions to Managing Member                                                    -         (487,754)         (487,754)
Net income                                                                    115,396          487,754           603,150
                                                     ---------------- ---------------- ----------------  ----------------
Balance December 31, 2002                                 11,037,141       88,816,997                -        88,816,997

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
                                                     ================ ================ ================  ================
</TABLE>










                             See accompanying notes.



                                       14
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                            STATEMENTS OF CASH FLOWS

                               FOR THE YEARS ENDED
                        DECEMBER 31, 2003, 2002 AND 2001


<TABLE>
<CAPTION>
Operating activities:                                                   2003             2002              2001
                                                                        ----             ----              ----
<S>                                                                      <C>              <C>               <C>
Net income                                                               $ 591,015        $ 603,150         $ 584,176
Adjustments to reconcile net income to cash provided by operating
   activities:
   Gain on sales of lease assets                                          (658,865)        (107,353)                -
   Depreciation of operating lease assets                                7,798,332        5,019,123         2,053,997
   Amortization of initial direct costs                                    491,376          158,964            24,898
   Provision for losses and doubtful accounts                              496,347                -                 -
   Residual value income                                                         -             (201)           (9,890)
   Changes in operating assets and liabilities:
      Other assets                                                          59,999         (465,157)                -
      Accounts receivable                                                 (138,766)         (11,041)       (1,186,719)
      Accounts payable, Managing Member                                   (415,712)         276,797           157,719
      Accounts payable, other                                              386,073           66,196            24,471
      Unearned operating lease income                                       51,884          (18,574)           95,618
                                                                   ---------------- ----------------  ----------------
Net cash provided by operations                                          8,661,683        5,521,904         1,744,270
                                                                   ---------------- ----------------  ----------------

Investing activities:
Purchases of equipment on operating leases                             (11,777,539)     (29,839,551)      (22,025,405)
Purchases of equipment on direct financing leases                       (5,778,880)        (995,270)         (819,124)
Proceeds from sales of lease assets                                      5,370,886          749,408                 -
Due from affiliate                                                      (4,142,025)               -                 -
Payments of initial direct costs to Managing Member                     (1,515,987)      (1,092,641)         (317,985)
Reduction of net investment in direct financing leases                     929,968          220,691            68,230
Payments received on notes receivable                                      506,974          958,258           605,677
Note receivable advances                                                   (46,196)      (1,031,605)       (1,587,939)
Investment in residuals                                                          -                -           (66,093)
                                                                   ---------------- ----------------  ----------------
Net cash used in investing activities                                  (16,452,799)     (31,030,710)      (24,142,639)
                                                                   ---------------- ----------------  ----------------

Financing activities:
Capital contributions received                                          10,281,250       66,737,320        43,633,590
Payment of syndication costs to Managing Member                         (1,286,096)      (8,570,695)       (6,356,043)
Distributions to Other Members                                         (10,633,086)      (6,015,627)       (1,213,341)
Distributions to Managing Member                                          (862,142)        (487,754)          (98,379)
Limited Liability Company Units repurchased                                 (1,923)               -                 -
                                                                   ---------------- ----------------  ----------------
Net cash (used in) provided by financing activities                     (2,501,997)      51,663,244        35,965,827
                                                                   ---------------- ----------------  ----------------

Net (decrease) increase in cash and cash equivalents                   (10,293,113)      26,154,438        13,567,458

Cash and cash equivalents at beginning of period                        39,722,496       13,568,058               600
                                                                   ---------------- ----------------  ----------------
Cash and cash equivalents at end of period                             $29,429,383      $39,722,496       $13,568,058
                                                                   ================ ================  ================

Supplemental disclosures of cash flow information:
Cash paid during the period for interest                                 $ 349,319        $ 336,696         $ 199,230
                                                                   ================ ================  ================
</TABLE>

                             See accompanying notes.


                                       15
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


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.




                                       16
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


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 (unaudited):

                                               2003             2002
                                               ----             ----
  Financial statement basis of net assets  $  86,906,015    $  88,816,997
  Tax basis of net assets                     94,208,823       99,145,193
                                          ---------------- ----------------
  Difference                               $    7,302,808   $  10,328,196
                                          ================ ================

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.



                                       17
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


2. Summary of significant accounting policies (continued):

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

<TABLE>
<CAPTION>
                                                          2003             2002              2001
                                                          ----             ----              ----
<S>                                                   <C>             <C>               <C>
  Net income per financial statements                 $      591,015  $       603,150   $       584,176
  Adjustment to depreciation expense                      (6,258,019)      (4,486,980)         (640,404)
  Provision for losses and doubtful accounts                 496,347                -                 -
  Adjustments to lease revenues                            1,450,188          (64,120)          163,847
                                                     ---------------- ----------------  ----------------
  Net (loss) income per federal tax return            $   (3,720,469)  $   (3,947,950)   $      107,619
                                                     ================ ================  ================
</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, 2003, 2002 and 2001.

Derivative financial instruments:

In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial  Accounting  Standards ("SFAS") No. 133,  Accounting for Derivative
Instruments  and  Hedging  Activities,  which  established  new  accounting  and
reporting standards for derivative instruments. SFAS No. 133 has been amended by
SFAS No. 137,  issued in June 1999, by SFAS No. 138,  issued in June 2000 and by
SFAS No. 149, issued June 2003.



                                       18
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


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 2003, 2002 or 2001.

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:

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.



                                       19
<PAGE>

                      ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


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.

In April 2002,  the FASB  issued FASB  Statement  No.  145,  Rescission  of FASB
Statements No. 4, 44, and 64,  Amendment of FASB Statement No. 13, and Technical
Corrections (Statement No. 145). Among other things,  Statement No. 145 rescinds
Statement No. 4, which required that all gains and losses from extinguishment of
debt be reported as an  extraordinary  item.  The adoption of Statement No. 145,
effective January 1, 2003, did not have any effect on the Company's consolidated
financial position, consolidated 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,                       Impairment     Direct Financing  fications or      December 31,
                                   2002           Additions         Losses           Leases        Dispositions          2003
                                   ----           ---------         ------           ------        ------------          ----
<S>                             <C>              <C>               <C>             <C>             <C>               <C>
Net investment in
   operating leases             $ 44,149,781     $   11,777,539    $          -    $  (7,798,332)  $   (4,685,551)   $   43,443,437
Net investment in direct
   financing leases                1,525,473          5,778,880               -         (929,968)         (17,158)        6,357,227
Assets held for sale or lease              -                  -         (61,712)                    -      66,872             5,160
Residual values, other                76,184                  -               -                -          (76,184)                -
Initial direct costs, net of
   accumulated amortization
   of $675,238 in 2003 and
   $183,862 in 2002                1,226,764          1,515,987               -         (491,376)               -         2,251,375
                               --------------  ----------------- --------------- ---------------- ----------------  ----------------
                                $ 46,978,202     $   19,072,406    $    (61,712)  $   (9,219,676)  $   (4,712,021)   $   52,057,199
                               ==============  ================= =============== ================ ================  ================
</TABLE>



                                       20
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


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 2002 or
2001.

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:

                                2003             2002             2001
                                ----             ----             ----
  Depreciation expense         $ 7,798,332      $ 5,019,123      $ 2,053,997
  Impairment losses                 61,712                -                -
                           ---------------- ---------------- ----------------
                               $ 7,860,044      $ 5,019,123      $ 2,053,997
                           ================ ================ ================

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

Operating leases:

Property on operating leases consists of the following:
<TABLE>
<CAPTION>
                                                                     Reclassi-
                                December 31,                       fications or     December 31,
                                     2002           Additions      Dispositions          2003
                                     ----           ---------      ------------          ----
<S>                                 <C>              <C>              <C>             <C>
 Mining                             $20,903,212      $ 4,618,772      $         -     $  25,521,984
 Manufacturing                       15,051,966          759,157       (5,373,271)       10,437,852
 Marine vessels                      11,200,000                -                -        11,200,000
 Materials handling                   2,419,402        3,460,162                -         5,879,564
 Communications                         269,153        2,764,780                -         3,033,933
 Natural gas compressors                696,451                -          (74,943)          621,508
 Office furniture                       562,248          174,668         (174,668)          562,248
                                ---------------- ---------------- ----------------  ----------------
                                     51,102,432       11,777,539       (5,622,882)       57,257,089
 Less accumulated depreciation       (6,952,651)      (7,798,332)         937,331       (13,813,652)
                                ---------------- ---------------- ----------------  ----------------
                                 $   44,149,781    $   3,979,207   $   (4,685,551)   $   43,443,437
                                ================ ================ ================  ================
</TABLE>

The average  assumed  residual value for assets on operating  leases at December
31, 2003 and 2002 were 28% and 30% of the assets original cost, respectively.



                                       21
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


3. Investment in leases (continued):

Direct financing leases:

As of December 31,  2003,  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, 2003 and 2002:

<TABLE>
<CAPTION>
                                                                 2003              2002
                                                                 ----              ----
<S>                                                          <C>               <C>
Total minimum lease payments receivable                      $    6,752,281    $    1,621,790
Estimated residual values of leased equipment (unguaranteed)        649,809           211,527
                                                            ----------------  ----------------
Investment in direct financing leases                             7,402,090         1,833,317
Less unearned income                                             (1,044,863)         (307,844)
                                                            ----------------  ----------------
Net investment in direct financing leases                    $    6,357,227    $    1,525,473
                                                            ================  ================
</TABLE>

At December 31, 2003, the aggregate amounts of future minimum lease payments are
as follows:

                                        Direct
      Year ending     Operating        Financing
     December 31,      Leases           Leases            Total
     ------------      ------           ------            -----
             2004   $    9,720,952   $    2,572,293   $   12,293,245
             2005        9,670,173        1,710,138       11,380,311
             2006        8,059,545        1,162,042        9,221,587
             2007        3,490,662          780,802        4,271,464
             2008        1,646,561          414,840        2,061,401
       Thereafter        1,154,256          112,166        1,266,422
                   ---------------- ---------------- ----------------
                    $   33,742,149    $   6,752,281   $   40,494,430
                   ================ ================ ================


4.  Notes receivable:

The Company has various  notes  receivable  from  parties who have  financed the
purchase of equipment through the Company. The terms of the notes receivable are
36 to 49 months and bear  interest at rates  ranging  from 15% to 18%. The notes
are secured by the  equipment  financed.  As of December 31,  2003,  the minimum
future payments receivable are as follows:

                           Year ending
                          December 31,
                                  2004        $ 133,922
                                  2005          124,828
                                  2006           76,715
                                        ----------------
                                                335,465
    Less portion representing interest           (67,269)
                                        ----------------
                                              $ 268,196
                                        ================




                                       22
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


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.

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

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>
                                                                             2003             2002              2001
                                                                             ----             ----              ----
<S>                                                                      <C>             <C>                <C>
Selling commissions (equal to 9.5% of the selling price of the Limited
   Liability Company units, deducted from Other Members' capital)        $      976,719  $     6,340,045    $     4,145,191
Reimbursement of other syndication costs to Managing Member                     309,377        2,230,650          2,210,852
Administrative costs reimbursed to Managing Member                              627,320          343,120            374,507
Initial direct costs paid to Managing Member                                  1,515,987        1,092,641            317,985
Asset management fees to Managing Member                                        686,013          264,322             83,341
                                                                        ---------------- ----------------  ----------------
                                                                         $    4,115,416   $   10,270,778     $    7,131,876
                                                                        ================ ================  ================
</TABLE>

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 Company's next
business day.



                                       23
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


6.  Members' capital:

As of December  31,  2003,  12,065,016  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 2003, 2002 and
2001.  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, 2003, 2002 and 2001, there were concentrations  (greater than
10%) of  equipment  leased to  lessees  and/or  financial  borrowers  in certain
industries (as a percentage of total equipment cost) as follows:

                                         2003             2002             2001
                                         ----             ----             ----
  Manufacturing                           40%              37%               *
  Electric utilities                      23%              21%              50%
  Marine transportation                   17%              21%              25%
  Mining                                  17%              18%               *

  *  Less than 10%

'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. During 2001, two customers comprised 54% and
14% of the Company's revenues from leases.




                                       24
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


8.  Line of credit:

The Company participates with AFS and certain of its affiliates in a $58,627,656
revolving line of credit  (comprised of an acquisition  facility and a warehouse
facility)  with  a  financial   institution  that  includes  certain   financial
covenants. The line of credit expires on June 28, 2004. As of December 31, 2003,
borrowings under the facility were as follows:

Amount  borrowed by the Company under the acquisition facility  $            -
Amounts borrowed by affiliated partnerships and limited
   liability companies under the acquisition facility               23,000,000
                                                               ----------------
Total borrowings under the acquisition facility                     23,000,000
Amounts borrowed by AFS and its sister corporation under the
   warehouse facility                                                        -
                                                               ----------------
Total outstanding balance                                       $   23,000,000
                                                               ================

Total available under the line of credit                        $   58,627,656
Total outstanding balance                                          (23,000,000)
                                                               ----------------
Remaining availability                                          $   35,627,656
                                                               ================

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,
2003.


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, 2003 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, 2003 is $335,465.



                                       25
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


10. Selected quarterly data (unaudited):

<TABLE>
<CAPTION>
                                                         March 31,        June 30,       September 30,     December 31,
Quarter ended                                              2002             2002             2002              2002
                                                           ----             ----             ----              ----

<S>                                                       <C>              <C>              <C>               <C>
Total revenues                                            $ 1,079,746      $ 1,540,510      $ 2,255,724       $ 2,197,515
Net income (loss)                                            $ 78,721        $ 336,926        $ (27,874)        $ 215,377
Net income (loss) per Limited Liability Company Unit           $ 0.00           $ 0.04          $ (0.02)           $ 0.00
</TABLE>

<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>


11. Commitments:

At December 31, 2003,  there were  commitments to purchase lease assets totaling
approximately $17,162,000.


13.  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, 2003,  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  $238,000 in 2003 and are
included in interest expense in the Company's statement of operations.




                                       26
<PAGE>

                       ATEL CAPITAL EQUIPMENT FUND IX, LLC

                          NOTES TO FINANCIAL STATEMENTS

                                DECEMBER 31, 2003


14. 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>              <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
                                             ================= ================ ================ ================  ================
</TABLE>







                                       27
<PAGE>

Item 9. CHANGES IN AND  DISAGREEMENTS  WITH AUDITORS 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,  except as noted  below,  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.

Due to the increased scrutiny and reporting  requirements of Sarbanes-Oxley,  it
came to the  attention of the chief  executive  officer and the chief  financial
officer of the Company in connection  with the audit of the Company for the year
ended  December  31,  2003,  that  enhanced  internal  controls  were  needed to
facilitate a more effective closing of the Company's financial  statements,  and
that this would require additional skilled personnel.  To address this issue the
Company has taken steps to upgrade the accounting staff and will take additional
steps in 2004 to add personnel to its  accounting  department to ensure that the
Company's ability to execute internal controls in accounting and  reconciliation
in the closing process will be adequate in all respects. It should be noted that
the  control  issues  affecting  the  closing  process  and  disclosure  did not
materially  affect the  accuracy and  completeness  of the  Company's  financial
reporting and  disclosure  reflected in this report,  and the audited  financial
statements  included herein contain no  qualification or limitation on the scope
of the auditor's opinion.

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,  except as described in the prior
paragraphs.


                                    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 5% by A. J. Batt
and 95% by Dean Cash.

Each of ATEL Leasing Corporation  ("ALC"),  ATEL Equipment  Corporation ("AEC"),
ATEL  Investor  Services  ("AIS") and ATEL  Financial  Services LLC ("AFS") is a
wholly-owned  subsidiary  of ATEL Capital  Group and  performs  services for the
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



                                       28
<PAGE>

Dean L. Cash,  age 53, joined ATEL as director of marketing in 1980 and has been
a vice president since 1981,  executive vice president since 1983 and a director
since 1984.  He has been  President  and CEO since April 2001.  Prior to joining
ATEL,  Mr.  Cash was a  senior  marketing  representative  for  Martin  Marietta
Corporation, data systems division, from 1979 to 1980. From 1977 to 1979, he was
employed  by  General  Electric  Corporation,   where  he  was  an  applications
specialist in the medical systems division and a marketing representative in the
information  services division.  Mr. Cash was a systems engineer with Electronic
Data Systems from 1975 to 1977, and was involved in  maintaining  and developing
software  for  commercial  applications.  Mr.  Cash  received  a B.S.  degree in
psychology and mathematics in 1972 and an M.B.A.  degree with a concentration in
finance in 1975 from Florida State  University.  Mr. Cash is an arbitrator  with
the American Arbitration Association.

Paritosh K.  Choksi,  age 50,  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 55, 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 45, 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 2003,
2002 and 2001 is set forth in Item 8 of this report under the caption "Financial
Statements and Supplementary Data - Notes to the Financial  Statements - Related
party transactions," at Note 5 thereof, which information is hereby incorporated
by reference.

Selling Commissions

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

Through December 31, 2003,  $11,461,955 of such commissions had been paid to AFS
or its  affiliates.  Of that amount,  $9,652,173  has been  re-allowed  to other
broker/dealers.  No additional amounts will be incurred in future periods as the
offering has been completed.



                                       29
<PAGE>

Asset Management Fee

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

AFS will supervise  performance of among others activities,  collection of lease
revenues,  monitoring  compliance by lessees with the lease terms, assuring that
Equipment  is  being  used  in  accordance   with  all   operative   contractual
arrangements,  paying operating expenses and arranging for necessary maintenance
and  repair  of  Equipment  in the  event a lessee  fails  to do so,  monitoring
property,  sales and use tax compliance and  preparation of operating  financial
data.  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 will be subject to the Asset Management Fee Limit. The
Asset  Management  Fee Limit will be  calculated  each year during the Company's
term by  calculating  the total fees that would be paid to 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 will be reduced to equal the maximum  aggregate fees under the  alternative
fee schedule.

To the extent any such fees are reduced,  the amount of such  reduction  will be
accrued and deferred,  and such accrued and deferred  compensation would be paid
to 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.



                                       30
<PAGE>

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 2003, 2002 and
2001.  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 2003,
2002 and 2001.


Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
            MANAGEMENT

Security Ownership of Certain Beneficial Owners

At December 31, 2003, 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:

                                          2003             2002
                                          ----             ----
   Audit fees                         $       37,889   $       43,532
   Audit related fees                              -                -
   Tax fees                                   19,150            1,561
   Other                                           -                -
                                     ---------------- ----------------
                                            $ 57,039         $ 45,093
                                     ================ ================

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 as a member of the board of directors of that company.




                                       31
<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 Auditors

          Balance Sheets at December 31, 2003 and 2002

          Statements of income for the years ended  December 31, 2003,  2002 and
          2001

          Statement of Changes in Members'  Capital for the years ended December
          31, 2003, 2002 and 2001

          Statement of Cash Flows for the years ended  December  31, 2003,  2002
          and 2001

          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 2003
          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



                                       32
<PAGE>

                                   SIGNATURES


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



Date:         3/26/2004

      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)






                                       33
<PAGE>

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


SIGNATURE                    CAPACITIES                                   DATE



      /s/ Dean L. Cash       President, Chairman and Chief Executive   3/26/2004
---------------------------   Officer of ATEL Financial Services LLC
         Dean Cash



   /s/ Paritosh K. Choksi    Executive Vice President and director     3/26/2004
---------------------------   of ATEL Financial Services LLC,
     Paritosh K. Choksi       Principal financial officer of
                              registrant; principal financial
                              officer and director of ATEL Financial
                              Services LLC




  /s/ Donald E. Carpenter    Principal accounting officer of           3/26/2004
---------------------------   registrant; principal accounting
    Donald E. Carpenter       officer of ATEL Financial Services LLC


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


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



                                       34
<PAGE>