BW0304 Apr 22, 1999 13:05 PACIFIC 16:05 EASTERN
( BW)(CA-ATMEL)(ATML) Atmel Reports Record First Quarter Revenues;
Revenues up 11.4% Compared to the First Quarter of 1998
Business Editors
SAN JOSE, Calif.--(BUSINESS WIRE)--April 22, 1999--Atmel
Corporation (Nasdaq:ATML) today reported first quarter revenues of
$290,037,000 and net income of $16,698,000 or $0.17 per share before
an exceptional charge for an accounting change. In the previous
quarter (fourth quarter 1998), the Company reported revenues of
$288,681,000 and net income of $9,960,000 or $0.10 per share. In last
year's first quarter, the Company's revenues were $260,392,000 and net
income was $26,793,000 or $0.27 per share.
George Perlegos, President and Chief Executive Officer commented,
"Revenues for the first quarter of 1999 were Atmel's highest ever. The
entry of new orders was strong, approaching a 1.1 book-to-bill ratio
and a sequential increase of over 9% versus the fourth quarter of
1998. Business conditions remain encouraging, and the improving demand
over a wide range of Atmel products gives us confidence in growing our
revenues and margins. As anticipated this quarter we recognized an
exceptional accounting write-off of start-up costs of our new 0.18
micron 8 inch fab of $29.1 million after tax due to a change in
accounting principles while benefiting from a $14.9 million pre-tax
gain from asset sales. Just after the close of the first quarter,
Atmel completed the purchase of the Motorola Smart IC Division and we
believe this complementary business will be a major generator of
revenues in the future."
"The demand for Flash products remains very high and the prices
have improved. As anticipated we plan to ramp-up our shipment of high
density Flash during the second quarter of 1999. Demand in the quarter
was also very strong for our serial EEPROM and BiCMOS products. On a
segment basis the wireless communication segment was by far the
strongest and on a geographical basis we noted a strong return of
favorable conditions in the Asian market. Distribution sales in the
U.S. also improved. In addition during the quarter Atmel received the
'Technology Award Winner 98' for silicon germanium (SiGe) products
from the Wireless Design and Development Magazine," continued
Perlegos.
Capital expenditures for the quarter were $13 million and the
balance sheet remained very strong with a positive cash flow and an
ending cash balance in an excess of $330 million.
Q1 Business Review
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*T
-- ASIC, microcontrollers, logic, automotive and RF product sales
were over 70% of first quarter sales.
-- Flash and EPROM were 20% of first quarter sales.
-- Prices over a wide range of products continued to improve over
the quarter.
-- At the beginning of April, Atmel completed the acquisition of the
Motorola Smart IC division.
-- New 16 and 8 meg Flash products were released to production.
-- Many design wins were achieved by Atmel's new crypto smart card
the SC3232.
-- Strategic discussions advanced with more than 10 companies
interested in silicon germanium partnerships.
*T
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In conclusion, Perlegos added, "Our visibility has improved. The
signs indicate that the industry has entered into a positive cyclical
upturn. I am confident our revenues in 1999 will grow significantly
over last year with the production ramp-up of major new products."
Founded in 1984, Atmel Corporation is headquartered in San Jose,
California with principal manufacturing facilities in Colorado
Springs, Colorado, Nantes and Rousset, France and Heilbronn, Germany.
Atmel designs, develops, manufactures and markets on a worldwide basis
semiconductors, including nonvolatile and embedded memory, logic,
analog, microcontroller products and system-level integration (SLI)
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 www.atmel.com.
Except for historical information contained herein, the matters
set forth in this press release that are forward looking statements
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, continued industry over-capacity, and other risks detailed
from time to time in the Atmel's SEC reports and filings.
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Atmel Corporation
Condensed Consolidated Income Statements
(In thousands, except per-share amounts)
Three Months Ended
(unaudited)
March 31, 1999 March 31, 1998
Net revenues $290,037 $260,392
Expenses:
Cost of sales 186,165 164,192
Research and development 47,229 36,659
Selling, general and
administrative 35,920 27,826
--------- ---------
Total expenses 269,314 228,677
Operating income 20,723 31,715
Other income (expense), net 5,367 (4,443)
--------- ---------
Income before taxes 26,090 27,272
Income tax provision 9,392 479
--------- ---------
Income before cumulative
effect of accounting change 16,698 26,793
Cumulative effect of accounting
change (net of tax effect) (29,068) 0
--------- ---------
Net income (loss) ($ 12,370) $ 26,793
--------- ---------
Basic net income (loss) per share
Income per share before
cumulative effect of
accounting change $ 0.17 $ 0.27
Cumulative effect of
accounting change per share (0.29) 0
Basic net income
(loss) per share ($ 0.12) $ 0.27
Diluted net income (loss) per share
Income per share before
cumulative effect of
accounting change $ 0.17 $ 0.27
Cumulative effect of
accounting change per share (0.29) 0
Diluted net income
(loss) per share ($ 0.12) $ 0.27
Shares used in basic
net income (loss)
calculation 99,988 99,127
Shares used in diluted
net income (loss)
calculation 99,988 100,122
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
Mar. 31, 1999 Dec. 31, 1998
Current assets: (unaudited)
Cash and short-term
investments $ 335,189 $ 323,565
Accounts receivable, net 259,352 252,601
Inventories 240,637 240,258
Other current assets 62,588 74,967
Total current assets 897,766 891,391
Other assets 66,171 107,220
Fixed assets, net 900,146 964,126
Total assets $ 1,864,083 $ 1,962,737
Current liabilities:
Current portion,
long-term debt $ 79,798 $ 81,995
Trade accounts payable
and other accrued liabilities 258,793 293,054
Deferred income on
shipments to distributors 20,128 24,170
Total current liabilities 358,719 399,219
Convertible notes 270,875 269,250
Long-term debt 465,919 501,819
Other long-term liabilities 3,404 3,404
Total liabilities 1,098,917 1,173,692
Put warrants 29,850 56,850
Shareholders' equity:
Common stock 345,593 330,102
Retained earnings 389,723 402,093
Total shareholders' equity 735,316 732,195
Total liabilities and
shareholders' equity $ 1,864,083 $ 1,962,737
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--30--lmm/sf*
CONTACT: Atmel Corporation
Donald Colvin, 408/436-4360 (CFO)
atmel.com
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