Exhibit 99.1
ATMEL REPORTS REVENUE GROWTH IN THE FIRST QUARTER OF 2005
SAN JOSE, Calif., April 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 first quarter
ended March 31, 2005.
Revenues for the first quarter of 2005 totaled $419.8 million, versus $408.3
million in the fourth quarter of 2004 and $407.4 million in the first quarter of
2004. Net loss for the first quarter of 2005 totaled $43.0 million or $0.09 per
share. These results compare to a net loss of $7.1 million or $0.01 per share
for the fourth quarter of 2004, as well as a net income of $11.0 million or
$0.02 per share for the first quarter of 2004.
"Demand for our products strengthened during the first quarter, as
illustrated by the 3% sequential revenue growth, despite a tough pricing
environment," stated George Perlegos, Atmel's President and Chief Executive
Officer. "As we experienced some manufacturing difficulties during the quarter,
our gross margins came under pressure. We are now taking steps to improve our
overall cost structure in such a way that allows our increasing demand to more
fully yield increased profits.
"Our ASIC revenue grew 3% sequentially in the first quarter, and was up 4%
over the first quarter of 2004. Smart card ICs were the main contributor to the
revenue growth. As this business continues to provide revenue growth and market
share gains, we are working diligently to improve the yields of our smart card
IC wafers as well as to increase the production of our smart card ICs on a
0.18-micron line width in order to improve their profitability. Up to this point
of the second quarter of 2005, we have already seen material improvements in
both the yields and the ramp of our 0.18-micron smart card wafers.
"During the first quarter of 2005, our microcontroller sales grew
approximately 2% sequentially, while they declined by approximately 20% year
over year. We experienced growth in our proprietary AVR and 8051 microcontroller
products. The decline in revenue from the first quarter of 2004 is primarily
related to the end of life buys for some of our military and aerospace products
during the first quarter of 2004.
"Sales in our RF and Automotive business unit in the first quarter were up
21% sequentially and 40% year over year. An increase in our production of RF
BiCMOS products for CDMA phones was the main reason for the growth during the
quarter.
"During the first quarter, our Non Volatile Memory business declined 10%
sequentially and declined 8% when compared to the first quarter of 2004.
Recently, we have chosen to significantly shift our approach to selling memory
by focusing on our serial memory products, which include serial EEPROM and
serial DataFlash(TM) products. Our serial products have experienced 6%
sequential and 6% year over year growth, and have maintained the number one
market share position in their respective markets," concluded Mr. Perlegos.
Outlook
The Company anticipates that for the second quarter of 2005, revenues should
be flat to slightly up when compared to the first quarter of 2005. Additionally,
R&D should be approximately $70-$74 million, while SG&A should be between
$48-$52 million. Finally, gross margins should be up two to three points during
the second quarter, primarily due to manufacturing improvements in our smart
card ICs. Net interest expense for the quarter should be approximately $4-$6
million, while income taxes should be approximately $2-$6 million. We anticipate
that depreciation and amortization will be approximately $77-$80 million.
Teleconference
Atmel will hold a teleconference for the financial community at 3:00 p.m.
Pacific Time today to discuss the first 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 5524468.
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: 800-374-2441, and using the passcode 5524468,
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 second
quarter operating results, including revenues, gross margins, operating
expenses, 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 25, 2005 and subsequent Form 10-Q reports.
Contact: Steven Horwitz, Director, Investor Relations: 408-487-2677
Atmel Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per-share data)
(Unaudited)
Three Months Ended
March 31,
---------------------------
2005 2004
------------ ------------
Net revenues $ 419,777 $ 407,395
Operating expenses:
Cost of revenues 332,775 286,761
Research and development 68,721 56,644
Selling, general and administrative 52,316 43,217
Total operating expenses 453,812 386,622
Income (loss) from operations (34,035) 20,773
Interest and other expenses, net (3,923) (5,896)
Income (loss) before income taxes (37,958) 14,877
Provision for income taxes (5,063) (3,868)
Net income (loss) $ (43,021) $ 11,009
Basic net income (loss) per share $ (0.09) $ 0.02
Diluted net income (loss) per share $ (0.09) $ 0.02
Shares used in basic net income (loss)
per-share calculation 479,609 474,527
Shares used in diluted net income (loss)
per-share calculation 479,609 485,872
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, December 31,
2005 2004
------------ ------------
Current assets:
Cash and cash equivalents $ 322,847 $ 346,350
Short-term investments 48,298 58,858
Accounts receivable, net 242,966 228,544
Inventories 334,155 346,589
Other current assets 96,175 91,588
Total current assets 1,044,441 1,071,929
Fixed assets, net 1,134,065 1,204,852
Other assets 44,771 46,742
Total assets $ 2,223,277 $ 2,323,523
Current liabilities:
Current portion of long-term debt $ 136,937 $ 141,383
Trade accounts payable 198,976 245,240
Accrued and other liabilities 246,134 208,942
Deferred income on shipments to distributors 16,850 18,124
Total current liabilities 598,897 613,689
Long-term debt less current portion 123,207 110,302
Convertible notes 216,176 213,648
Other long-term liabilities 267,151 274,288
Total liabilities 1,205,431 1,211,927
Stockholders' equity 1,017,846 1,111,596
Total liabilities and stockholders'
equity $ 2,223,277 $ 2,323,523
SOURCE Atmel Corporation
-0- 04/26/2005
/CONTACT: Steven Horwitz, Director, Investor Relations of Atmel
Corporation, +1-408-487-2677/
/Web site: http://www.atmel.com /