Atmel is a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel provides the electronics industry with complete system solutions focused on consumer, industrial, security, communications, computing and automotive markets.
Safe Harbor for Forward-Looking Statements
Information in this release regarding Atmel's forecasts, outlook, expectations and beliefs are forward-looking statements that involve risks and uncertainties. These statements include statements about new product introductions, markets for our products and market share gains, restructuring initiatives, manufacturing optimization, cost savings strategies and future operating and financial performance. All forward-looking statements included in this release are based upon information available to Atmel as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or Company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, the inability to realize the anticipated benefits of our recent strategic transactions, restructuring plans and other initiatives in a timely manner or at all, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, impact of Microchip's and ON Semiconductor's unsolicited acquisition proposal and the Company's response thereto, the market price of our common stock, unfavorable results of legal proceedings and other risks detailed from time to time in Atmel's SEC reports and filings, including our Form 10-K for the year ended December 31, 2007, filed on February 29, 2008, and our subsequent Form 10-Q reports.
Investor Contact: Media Contact:
Robert Pursel Barrett Golden / Sharon Stern
Director of Investor Relations Joele Frank, Wilkinson Brimmer Katcher
408-487-2677 212-355-4449
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30, June 30, December 31,
2008 2008 2007
Current assets
Cash and cash equivalents $394,231 $354,003 $374,130
Short-term investments 26,702 21,786 55,817
Accounts receivable, net 220,978 220,956 209,189
Inventories 315,358 336,415 357,301
Current assets held for sale 10,537 - -
Prepaids and other current assets 83,736 94,215 88,781
Total current assets 1,051,542 1,027,375 1,085,218
Fixed assets, net 407,024 471,569 579,566
Goodwill and intangible assets, net 98,540 109,395 19,552
Non-current assets held for sale 2,357 - -
Other assets 35,184 42,118 18,417
Total assets $1,594,647 $1,650,457 $1,702,753
Current liabilities
Current portion of long-term debt $131,383 $133,654 $142,471
Trade accounts payable 109,976 127,596 191,856
Accrued and other liabilities 225,793 227,225 266,987
Liabilities held for sale 5,368 - -
Deferred margin on shipments to
distributors 39,237 19,541 19,708
Total current liabilities 511,757 508,016 621,022
Long-term debt less current portion 15,304 18,641 20,408
Long-term liabilities held for sale 23,986 - -
Other long-term liabilities 207,267 245,738 237,844
Total liabilities 758,314 772,395 879,274
Stockholders' equity 836,333 878,062 823,479
Total liabilities and stockholders'
equity $1,594,647 $1,650,457 $1,702,753
Atmel Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September June September September September
30, 30, 30, 30, 30,
2008 2008 2007 2008 2007
Net revenues $400,008 $420,908 $418,097 $1,232,153 $1,213,657
Operating expenses
Cost of revenues 241,999 267,382 269,063 774,564 783,044
Research and
development 63,856 68,218 63,609 198,451 200,174
Selling, general and
administrative 63,898 68,573 58,518 196,033 184,458
Acquisition-related
charges 6,690 6,709 - 17,110 -
Charges for grant
repayments 291 292 1,189 464 1,189
Restructuring charges 26,625 8,676 1,386 63,209 528
Loss (gain) on sale
of assets - 810 - (29,948) -
Asset impairment charges
(recovery) 7,969 - (1,057) 7,969 (1,057)
Total operating expenses 411,328 420,660 392,708 1,227,852 1,168,336
(Loss) income from
operations (11,320) 248 25,389 4,301 45,321
Interest and other
income (expense), net 2,530 (859) 1,299 (3,716) 2,888
(Loss) income before
income taxes (8,790) (611) 26,688 585 48,209
Income tax benefit
(provision) 4,052 (4,296) (10,135) (3,442) (2,038)
Net (loss) income $(4,738) $(4,907) $16,553 $(2,857) $46,171
Basic net (loss) income
per share:
Net (loss) income $(0.01) $(0.01) $0.03 $(0.01) $0.09
Weighted-average shares
used in basic net (loss)
income per share
calculations 447,013 445,793 485,540 445,826 487,731
Diluted net (loss)
income per share:
Net (loss) income $(0.01) $(0.01) $0.03 $(0.01) $0.09
Weighted-average shares
used in diluted net
(loss) income per share
calculations 447,013 445,793 489,791 445,826 492,747
Atmel Corporation
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September June September September September
30, 30, 30, 30, 30,
2008 2008 2007 2008 2007
GAAP net (loss) income $(4,738) $(4,907) $16,553 $(2,857) $46,171
Special items:
Stock-based compensation
expense 7,426 6,353 4,893 20,086 11,506
Acquisition-related
charges 6,690 6,709 - 17,110 -
Charges for grant
repayments 291 292 1,189 464 1,189
Restructuring charges 26,625 8,676 1,386 63,209 528
Loss (gain) on sale
of assets - 810 - (29,948) -
Asset impairment charges
(recovery) 7,969 - (1,057) 7,969 (1,057)
Income tax effect of
non-GAAP items (1,653) (658) (160) (2,811) (300)
Total special items 47,348 22,182 6,251 76,079 11,866
Non-GAAP net income $42,610 $17,275 $22,804 $73,222 $58,037
Diluted non-GAAP net
income per share:
Net income $0.09 $0.04 $0.05 $0.16 $0.12
Excluding impact of
conversion of European
distributors to sell
through model:
Revenue from conversion
of European distributors
to sell through model 19,891 - - 19,891 -
Cost of revenues from
conversion of European
distributors to sell
through model (9,183) (9,183)
Income Tax effect from
conversion of European
distributors to sell
through model (664) - - (664) -
Total impact from
conversion of European
distributors to sell
through model 10,044 - - 10,044 -
Non-GAAP net income from
conversion of European
distributors to sell
through model $52,654 $17,275 $22,804 $83,266 $58,037
Impact of conversion to
non-GAAP net income per
diluted share $0.02 $- $- $0.02 $-
Non-GAAP net income per
diluted share excluding
impact of conversion $0.11 $0.04 $0.05 $0.18 $0.12
Atmel Corporation
Reconciliation of GAAP Gross Profit
Margins to Non-GAAP Gross Profit Margins
(In thousands, except percentages)
(Unaudited)
Three Months Ended Nine Months Ended
September June September September September
30, 30, 30, 30, 30,
2008 2008 2007 2008 2007
Net revenues $400,008 $420,908 $418,097 $1,232,153 $1,213,657
Cost of revenues 241,999 267,382 269,063 774,564 783,044
GAAP gross profit
margin percentage 39.5% 36.5% 35.6% 37.1% 35.5%
Stock-based compensation
expense in costs of
revenues (1,087) (984) (487) (2,908) (1,488)
Non-GAAP cost of
revenues 240,912 266,398 268,576 771,656 781,556
Non-GAAP gross profit
margin percentage 39.8% 36.7% 35.8% 37.4% 35.6%
Atmel Corporation
Supplemental Financial Information (Non-GAAP)
(In thousands, except percentages and per share data)
( Unaudited)
Including Excluding
adjustments adjustments
for for
EU Distributor EU Distributor
As Reported Conversion Conversion
(GAAP) (Non-GAAP) (Non-GAAP)
Revenue $400,008 $400,008 $419,899
Gross Profit 158,009 159,096 169,804
Gross Profit % 39.5% 39.8% 40.4%
Operating Income (11,320) 37,681 48,389
Operating Income % -2.8% 9.4% 11.5%
Net Income (4,738) 42,610 52,654
Net Income % -1.2% 10.7% 12.5%
Net (loss) income per share (0.01) 0.09 0.11
