Exhibit 99.1
Atmel Reports Third Quarter Earnings Results
23% Year Over Year Revenue Growth for the Third Quarter
SAN JOSE, Calif., Oct. 26 /PRNewswire-FirstCall/ -- Atmel Corporation
(Nasdaq: ATML), a worldwide leader in the development, fabrication and sale of
advanced semiconductors, today announced financial results for the third
quarter ended September 30, 2004.
Revenues for the third quarter of 2004 totaled $413,237,000, versus
$420,803,000 in the second quarter of 2004 and $335,187,000 in the third
quarter of 2003. Operating income for the third quarter of 2004 was
$4,901,000. Net loss for the third quarter of 2004 totaled $28,147,000 or
$0.06 per share. This is compared to a net income of $11,651,000 or $0.02 per
share for the second quarter of 2004, and a net loss of $31,791,000 or $0.07
per share for the third quarter of 2003. The net loss for the third quarter of
2004 includes $28,005,000 of tax expense for certain profitable foreign
subsidiaries. The Company uses the "effective tax rate" methodology, which has
resulted in a large amount of the total year tax expense to be recognized in
the third quarter as the Company's first half of 2004 profits exceed the
profits now anticipated from the second half of the year.
"During the quarter, we were able to grow the business over 20% on a year
over year basis, however, our revenue was down 2% on a sequential basis. Our
ASIC and RF businesses continue to grow due to our proprietary products. Our
memory business was approximately flat because of pricing pressure, while
lower demand in military and aerospace caused our Microcontroller business to
decline this quarter," stated George Perlegos, Atmel's President and Chief
Executive Officer.
"During the quarter, sales from the ASIC business unit grew 22% year over
year and 7% sequentially, led by our proprietary ASIC products. Also doing
well in our ASIC group are our smart card ICs, which continue to receive
strong design wins based on an architecture that is faster and more flexible
than our competitors.
"We also experienced year over year sales growth of 11% in our
Microcontroller business unit, while we had a sequential sales decline of 22%.
Although we experienced a weakening of demand in our military and aerospace
products, sales of our proprietary AVR products were up slightly.
"Sales in our RF and Automotive business unit were up 32% year over year
and 18% sequentially. We accomplished this by ramping the production of our
8" Silicon Germanium technology, and we continue to supply BiCMOS RF products
for CDMA phones.
"During the third quarter, our memory products experienced 29% year over
year sales growth with a 6% sequential decrease. This sequential decline is
mainly due to lower Serial EEPROM sales and pricing pressure for our Flash
products," concluded Mr. Perlegos.
"As we begin the fourth quarter, we see strength in our ASIC, RF and
Microcontroller businesses as demand for our proprietary products increases.
However, we anticipate that memory revenue will be down in the quarter as we
continue to see pricing pressure.
Outlook
The Company anticipates that in the fourth quarter of 2004,
revenues should be about flat. Additionally, R&D should be approximately
$65-68 million, while SG&A should be between $44-47 million. Gross margins
should be flat to down a point during the fourth quarter. Net interest expense
should be around $5.5 million for the fourth quarter. During the fourth
quarter, the Company expects to realize a tax benefit of about $8 million,
which is also a result of using the "effective tax rate" method. We anticipate
that depreciation and amortization will be approximately $72-73 million.
Teleconference
Atmel will hold a teleconference for the financial community at 3:00 p.m.
Pacific Time today to discuss third quarter financial results. Atmel will
provide a real-time audio broadcast of the teleconference from the Investor
Relations page of its website at http://www.atmel.com . Investors may access
the live teleconference by dialing 800-374-0405, and using the passcode
1426694.
A webcast replay will be available for one year after the teleconference
at http://www.atmel.com . Atmel will also provide a telephone recording of
the teleconference, which will be available shortly after the completion of
the call. Interested parties may listen to the playback of the teleconference
by calling the following number: 800-642-1687, and using the passcode 1426694,
within 48 hours of completion of the call.
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 Atmel's expected
fourth quarter operating results, including revenue, operating costs, gross
margins, demand levels, new product shipments and market conditions. 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 statement. 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 the impact of competitive products and
pricing, timely design acceptance by our customers, timely introduction of new
technologies, ability to ramp new products into volume, 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 other risks detailed
from time to time in Atmel's SEC reports and filings, including our Form 10-K,
filed on March 15, 2004 and subsequent Form 10-Q reports.
CONTACT: Steven Horwitz, Director, Investor Relations: 408-487-2677
Atmel Corporation
Condensed Consolidated Income Statements
(In thousands, except per-share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2004 2003 2004 2003
Net revenues: $413,237 $335,187 $1,241,435 $950,137
Expenses:
Cost of sales 298,103 261,608 885,952 752,575
Research and development 65,732 61,698 179,684 191,952
Selling, general and
administrative 44,501 34,345 131,668 102,749
Restructuring and
Asset Impairment Charge -- -- -- (360)
Total expenses 408,336 357,651 1,197,304 1,046,916
Operating income (loss) 4,901 (22,464) 44,131 (96,779)
Interest and other
expense, net (5,043) (6,327) (13,651) (23,209)
Income (loss) before taxes (142) (28,791) 30,480 (119,988)
Income tax provision (28,005) (3,000) (35,966) (9,000)
Net loss ($28,147) ($31,791) ($5,487)($128,988)
Basic net loss per share ($0.06) ($0.07) ($0.01) ($0.28)
Diluted net loss per share ($0.06) ($0.07) ($0.01) ($0.28)
Shares used in basic
net loss per-share
calculation 476,677 470,494 475,529 468,914
Shares used in diluted
net loss per-share
calculation 476,677 470,494 475,529 468,914
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
Sept. 30, 2004 Dec. 31, 2003
Current assets:
Cash and cash equivalents $353,889 $385,887
Short-term investments 59,579 45,167
Accounts receivable, net 251,245 215,303
Inventories 323,288 268,074
Other current assets 82,036 54,198
Total current assets 1,070,037 968,629
Fixed assets, net 1,115,716 1,121,367
Other assets 34,655 37,859
Restricted cash -- 26,835
Total assets $2,220,408 $2,154,690
Current liabilities:
Current portion of long-term debt $141,709 $155,299
Trade accounts payable 238,690 144,476
Accrued liabilities and other 273,926 232,251
Deferred income on shipments
to distributors 22,722 19,160
Total current liabilities 677,047 551,186
Long-term debt less current portion 103,853 154,182
Convertible notes 211,160 203,849
Other long-term liabilities 215,177 227,356
Total liabilities 1,207,237 1,136,573
Stockholders' equity: 1,013,171 1,018,117
Total liabilities
and stockholders' equity $2,220,408 $2,154,690
SOURCE Atmel Corporation
-0- 10/26/2004
/CONTACT: Steven Horwitz, Director, Investor Relations, Atmel
Corporation, +1-408-487-2677/
/Web site: http://www.atmel.com /
(ATML)
CO: Atmel Corporation
ST: California
IN: CPR STW
SU: ERN ERP CCA