Atmel Announces Growth in all Four Business Units During Second Quarter 2003; 7% Sequential Revenue Growth for Q2
17 Jul 2003, 4:31pm ET
E-mail or Print this story
- - - - -
SAN JOSE, Calif.--(BUSINESS WIRE)--July 17, 2003--Atmel Corporation (Nasdaq:ATML), a worldwide leader in the development, fabrication and sale of advanced semiconductors, today announced financial results for the second quarter ended June 30, 2003.
Revenues for the second quarter of 2003 totaled $318,472,000, versus $296,478,000 in the first quarter of 2003 and $314,753,000 in the second quarter of 2002. This represents a sequential increase in revenues of 7% and year over year growth of 1%. Net loss for the second quarter of 2003 totaled $44,077,000 or $0.09 per share. In the first quarter of 2003, the Company reported a net loss of $53,120,000 or $0.11 per share. In the second quarter of 2002, the Company's net loss was $478,931,000 or $1.02 per share. Included in the net loss for the second quarter of 2002 were approximately $341 million of restructuring and asset impairment charges. The net impact of currency changes during the second quarter of 2003 was approximately $5 million, lowering results by one penny per share.
After adding back the $70 million non-cash expense of depreciation and amortization to the net loss of $44 million for the second quarter 2003, the Company generated $26 million to use towards the reduction of debt. During the quarter, the Company paid off approximately $135 million related to the 2018 convertible bond. Cash and cash equivalents, short-term investments and restricted cash as of June 30, 2003 were approximately $313 million.
"We are very excited to report that we saw an increase in demand in the majority of our product lines during the second quarter," stated George Perlegos, Atmel's President and Chief Executive Officer. "Revenue grew in each of our four business units, led by continued market share gains in smart cards and record unit shipments of our proprietary AVR microcontrollers."
Perlegos added, "During the quarter, we continued the migration to higher density non-volatile memory products, introducing our 128Mb DataFlash, the world's fastest serial interface flash memory.
"Additionally, we jointly introduced with Wavecom SA a single chip GPS/GPRS baseband processor that will serve 2.5G phones as well as future generations of phones. Through this partnership, we anticipate the introduction of many wireless application components over the coming quarters.
"The Company also introduced a new secure memory solution that utilizes the strengths of our smart card products. This new family of lower-cost products is focused on access control and secure data applications such as PDAs and networking systems. Additionally, this product family provides the industry with the only secure memory with data encryption, demonstrating Atmel's growing presence in the security industry," concluded Perlegos.
Outlook
The Company believes that in the third quarter of 2003, revenues should be sequentially flat to up slightly, as much of the European business is seasonally slow. Additionally, R&D should be approximately $63-65 million, while SG&A should remain between $34-36 million. Finally, gross margins should be sequentially flat in the third quarter.
Teleconference
Atmel will hold a teleconference at 3:00 PM Pacific Daylight Time today to discuss second quarter financial results. Atmel will provide a real-time audio broadcast of the teleconference from the Investor Relations page of its website at atmel.com . Investors may access the live teleconference by dialing 212-329-1452, passcode 542797.
A webcast replay will be available for twelve months after the teleconference at atmel.com . Atmel will also provide a telephone recording of the teleconference, which will be available for 48 hours, starting approximately at 6:00 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 542797. |
