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EXHIBIT 99.1
THURSDAY JULY 19, 4:31 PM EASTERN TIME
PRESS RELEASE
ATMEL REPORTS SECOND QUARTER 2001 FINANCIAL RESULTS
COMPANY TO IMPLEMENT AGGRESSIVE COST REDUCTION PROGRAM
SAN JOSE, Calif.--(BUSINESS WIRE)--July 19, 2001--Atmel Corporation
(Nasdaq:ATML - news) today announced financial results for the second quarter
ended June 30, 2001. Revenues for the second quarter of 2001 totaled
$366,996,000, down 23% from a year ago, and down 30% sequentially. Net income
for the second quarter of 2001 was approximately breakeven, totaling a net loss
of $31,000, or $0.00 per share. In the previous quarter, the Company reported
net income of $56,014,000 or $0.12 per share. In last year's second quarter, the
Company's net income was $61,325,000 or $0.13 per share.
George Perlegos, Atmel's President and Chief Executive Officer, stated,
"Business conditions at the end of the past quarter were very difficult. As we
indicated in our previous guidance, sales were impacted by continued weakness in
the Flash market, the European Smart Card business, and our North American
distribution business. During the quarter we implemented several cost reduction
measures, and intend to continue our strong focus on maintaining tight expense
control. Atmel is fully committed to remaining profitable. We will not hesitate
to take the necessary cost reduction actions to align our costs with the market
environment."
Perlegos concluded, "As we look ahead, we are accelerating our strategy
of investing in new technologies and products. We believe this will be the key
to success in the next cycle. Based on information available to us today, we
believe that our business should bottom out in the third quarter, with a return
to growth thereafter."
Teleconference
Atmel will hold a teleconference for the financial community at 3:00 PM
Pacific Daylight Time today to discuss first quarter financial results. Atmel
will provide a real-time audio broadcast of the teleconference in the Investor
Relations page of its website at http://www.atmel.com. Atmel will also provide
real-time access to the teleconference by dialing 212-699-6810, passcode 356070.
The webcast replay will be available for two weeks after the teleconference at
http://www.atmel.com. Atmel will also provide a telephone recording of the
teleconference, which will be available at approximately 5:00 PM PDT today.
Interested parties may listen to the playback of the teleconference by calling
the following number: 1-303-590-3000 and entering the passcode 356070.
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About Atmel
Founded in 1984, Atmel Corporation is headquartered in San Jose,
California with principal manufacturing facilities in Colorado Springs,
Colorado, Grenoble, Nantes and Rousset, France and Heilbronn, Germany, Irving,
Texas, and North Tyneside, England. Atmel designs, manufactures and markets on a
worldwide basis advanced logic, mixed-signal, nonvolatile memory, and RF
semiconductors. Atmel is also a leading provider of system-level integration
semiconductor solutions using advanced CMOS, BiCMOS, BiPolar and SiGe process
technologies.
Atmel product and financial information can be retrieved from its
Fax-on Demand service. In North America call 1(800) 292-8635. Internationally
from a fax phone, dial 1(408) 441-0732. Requests may be sent via e-mail to
literature@atmel.com or by visiting Atmel's website at http://www.atmel.com.
Except for historical information contained herein, the matters set
forth in this press release are forward looking statements that are subject to
risks and uncertainties that could cause actual results to differ materially,
including 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 overcapacity, effective and cost efficient
utilization of manufacturing capacity, financial stability in foreign markets,
ability to integrate and manage acquisitions, and other risks detailed from time
to time in the Atmel's SEC reports and filings.
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Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2001 2001
------------ ------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 538,598 $ 448,281
Short-term investments 164,921 514,263
Accounts receivable, net 275,663 392,384
Inventories 327,999 289,054
Other current assets 144,620 148,212
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Total current assets 1,451,801 1,792,194
Fixed assets, net 2,136,456 1,927,817
Other assets 66,093 53,876
Cash-restricted 51,000 51,000
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Total assets $3,705,350 $3,824,887
========== ==========
Current liabilities:
Current portion of long-term debt $ 157,806 $ 173,866
Trade accounts payable 234,280 655,450
Accrued liabilities and other 442,144 326,352
Deferred income on
shipments to distributors 31,941 33,703
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Total current liabilities 866,171 1,189,371
Convertible notes 337,393 132,792
Long-term debt less current portion 512,054 535,711
Other long-term liabilities 70,846 72,156
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Total liabilities 1,786,464 1,930,030
Stockholders' equity:
Common stock 1,141,455 1,173,409
Retained earnings 777,431 721,448
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Total stockholders' equity 1,918,886 1,894,857
Total liabilities
and stockholders' equity $3,705,350 $3,824,887
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Atmel Corporation
Condensed Consolidated Income Statements
(In thousands, except per-share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2001 2000 2001 2000
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Net revenues: $ 366,996 $ 478,758 $ 892,940 $ 907,944
Expenses:
Cost of sales 249,942 270,707 564,692 523,429
Research and development 69,274 62,616 138,469 124,529
Selling, general
and administrative 45,293 52,433 100,442 97,543
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Total expenses 364,509 385,756 803,603 745,501
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Operating income 2,487 93,002 89,337 162,443
Other income (expense), net (2,536) 2,818 (1,864) (1,230)
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Income before taxes (49) 95,820 87,473 161,213
Income tax (18) (34,495) 31,490 (58,036)
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Net income $ (31) $ 61,325 $ 55,983 103,177
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Basic net income per share $ 0.00 $ 0.14 $ 0.12 $ 0.24
Diluted net income per share $ 0.00 $ 0.13 $ 0.12 $ 0.23
Shares used in
basic net income
(loss) per-share 464,121 449,166 463,761 439,584
calculation
Shares used in diluted
net income (loss) loss
per-share calculation 474,767 482,894 74,875 473,902
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Contact:
Atmel Corporation
Donald Colvin, 408/436-4360
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