GAAP net loss totaled $(12.3) million or $(0.03) per diluted share for the fourth quarter of 2012, principally as a result of a $10.6 million loss incurred on purchase commitments relating to a take-or-pay supply agreement, $11.0 million of charges incurred primarily for restructuring activities, and a $6.5 million write-off of receivables from a foundry supplier. This compares to GAAP net income of $21.6 million or $0.05 per diluted share for the third quarter of 2012, and $32.9 million or $0.07 per diluted share for the fourth quarter of 2011. For the full year of 2012, GAAP net income was $30.4 million or $0.07 per diluted share, compared to GAAP net income of $315.0 million or $0.68 per diluted share for 2011.
Non-GAAP net income for the fourth quarter of 2012 totaled $29.4 million or $0.07 per diluted share, compared to non-GAAP net income of $43.0 million or $0.10 per diluted share in the third quarter of 2012, and non-GAAP net income of $67.5 million or $0.14 per diluted share for the year-ago quarter. For the full year 2012, non-GAAP net income was $145.1 million or $0.32 per diluted share, compared to $438.0 million or $0.92 per diluted share for 2011. Refer to the non-GAAP reconciliation table included in this release for more details.
GAAP gross margin was 38.1% in the fourth quarter of 2012, compared to 43.1% in the third quarter of 2012 and 48.1% in the fourth quarter of 2011. For the full year 2012, GAAP gross margin was 42.0%, compared to 50.4% for 2011. Non-GAAP gross margin was 41.6% in the fourth quarter of 2012 as compared to 43.7% in the immediately preceding quarter and 48.7% in the fourth quarter of 2011. Non-GAAP gross margin excludes a $10.6 million loss on purchase commitments relating to a take-or-pay supply agreement and stock-based compensation expense. For the full year 2012, non-GAAP gross margin was 43.3% compared to 50.8% for 2011.
"Our microcontroller business grew four consecutive quarters in what was a challenging year for the semiconductor industry," said Steve Laub, Atmel's President and Chief Executive Officer. "As we enter 2013, we are well positioned with multiple growth opportunities to drive our revenue, while we remain committed to improving our cost structure which should result in improved earnings growth and cash flow generation."
Fourth quarter 2012 loss from operations on a GAAP basis was $(13.2) million or (3.8)% of revenue, compared to income from operations of $27.4 million or 7.6% of revenue for the third quarter of 2012 and $49.0 million or 12.8% of revenue for the fourth quarter of 2011. Fourth quarter 2012 loss from operations was adversely affected by a $10.6 million loss incurred on purchase commitments relating to a take-or-pay supply agreement, $11.0 million of charges incurred primarily for restructuring activities, a $6.5 million write-off of receivables from a foundry supplier, and $1.9 million in acquisition related charges. In comparison, third quarter 2012 income from operations included a $1.4 million credit to restructuring charges and $1.5 million in acquisition related charges, and fourth quarter 2011 income from operations included a $1.1 million restructuring credit and $2.3 million in acquisition related charges. The 2012 GAAP full year income from operations was $47.4 million compared to $382.0 million for 2011.
Non-GAAP income from operations in the fourth quarter of 2012 was $33.3 million or 9.7% of revenue, compared to third quarter non-GAAP income from operations of $45.8 million or 12.7% of revenue, and fourth quarter 2011 non-GAAP income from operations of $68.7 million or 17.9% of revenue. For the full year 2012, non-GAAP income from operations was $157.6 million compared to $440.3 million for 2011. Refer to the non-GAAP reconciliation table included in this release for more details.
Income tax benefit, on a GAAP basis, totaled $2.2 million for the fourth quarter of 2012. This compares to a provision for income taxes of $5.9 million for the third quarter of 2012 and a provision for income taxes of $14.4 million for the fourth quarter of 2011. Non-GAAP provision for income taxes for the fourth quarter of 2012 was $2.6 million compared to $2.9 million for the third quarter of 2012 and a non-GAAP income tax benefit of $0.5 million for the fourth quarter of 2011. For the full year 2012, the non-GAAP tax provision was $7.4 million compared to $1.5 million for 2011.
Cash provided from operations totaled approximately $78.7 million for the fourth quarter of 2012, compared to $53.6 million for the third quarter of 2012 and $43.4 million for the fourth quarter of 2011. For calendar 2012, operating cash flow exceeded $200 million. Combined cash balances (cash and cash equivalents plus short-term investments) totaled $296.1 million at the end of the fourth quarter of 2012, an increase of $6.9 million from the immediately preceding quarter.
Company Highlights
- Acquired Ozmo, Inc., a leader in ultra-low power Wi-Fi solutions
- Atmel and Celeno Communications collaborate on Wi-Fi Direct remote controls for consumer products
- Atmel introduced new family of ARM® Cortex™-A5 processor-based MPUs for embedded industrial and consumer applications
- Expanded ARM® Cortex™-M4 processor-based Flash family to include the SAM4E Series, featuring advanced connectivity peripherals, a floating point unit, advanced analog capabilities, and higher processing power
- Introduced new ATmegaRFR2 AVR® family of devices, offering industry's lowest power wireless microcontrollers for 2.4GHz industrial, scientific, and medical band (ISM) applications
- Joined G3-PLC Alliance, expanding development in standards-based smart grid communications
- Atmel and Wasion Group signed memorandum of understanding to develop PRIME power line communication solutions for smart metering
- ASUS selected XSense™ touch sensor for their next-generation tablet
- Demonstrated XSense with curved and ultra-thin 0.55mm Corning® Gorilla® Glass
- Won 2013 CES Innovations Award for XSense
- Expanded Atmel maXTouch® S family of touchscreen controllers with mXT540S
- Google selected maXTouch to power the touchscreen Nexus 10"Android tablet
- Windows 8 tablets and Ultrabooks featuring maXTouch include: ASUS' Vivo Tab, Vivo Tab RT, X202E, S400, and S56, Bluebird's Pidion BP80 tablet, DELL's XPS10, XPS 12 Convertible Touch Ultrabook and Inspiron 15z, Fujitsu's Arrows Tab QH55, HP's Envy, Envy X2, and Spectre XT TouchSmart Ultrabook, Lenovo's Think Pad Tablet 2 and X230, LG's H160 and Z160 Tab-Books, Samsung's ATIV Tab RT, Series 5 Slate, and Series 7 Slate, and Toshiba's 925t
- Recent smartphone introductions with maXTouch inside include: Samsung's I9105 Galaxy S II Plus, SCH-W889, and GT-B9388, Nokia's Lumia 510 and 620, Kyocera's Digno S, Sharp's Aquos SH930W, Fujitsu's F-03E Arrows Kiss, Gionee's GN700W, Meizu's MX2 and Xiaomi's MI2
- Introduced new LIN family for automotive switch scan and ambient lighting applications
- Launched industry's first integrated app store and collaboration workspace for embedded microcontroller designers in Atmel Studio 6
