Atmel Announces 12% Year Over Year and 5% Sequential Revenue Growth in its Third Quarter 2003 Financial Results
Thursday October 16, 4:15 pm ET
Strong Cash Position with Continued Debt Reduction
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 16, 2003--Atmel Corporation (Nasdaq:ATML - News), a worldwide leader in the development, fabrication and sale of advanced semiconductors, today announced financial results for the third quarter ended September 30, 2003.
Revenues for the third quarter of 2003 totaled $335,187,000, versus $318,472,000 in the second quarter of 2003 and $298,657,000 in the third quarter of 2002. This represents a sequential increase in revenues of 5.2% and year over year growth of 12.2%. Net loss for the third quarter of 2003 totaled $31,791,000 or $0.07 per share. In the second quarter of 2003, the Company reported a net loss of $44,077,000 or $0.09 per share. In the third quarter of 2002, the Company's net loss was $102,325,000 or $0.22 per share. Included in the net loss for the third quarter of 2002 was approximately $39,630,000 of restructuring and asset impairment charges.
After adding back the $68 million non-cash expense of depreciation and amortization to the net loss of $32 million for the third quarter 2003, the Company generated $36 million to use towards the reduction of debt. Over the last twelve months, Atmel has reduced its overall debt by over $245 million, while cash has only decreased by approximately $90 million. Cash as of September 30, 2003 was approximately $408 million. Cash, in this context, refers to cash and cash equivalents, short-term investments and restricted cash.
"Demand for our products has increased significantly over the last two quarters," stated George Perlegos, Atmel's President and Chief Executive Officer. "As we are seeing this trend continue into the next couple of quarters, it provides us with a clear indication that the upturn for the next semiconductor cycle has arrived."
Perlegos added, "During the quarter, smart card ICs continued to be a key contributor to the Company's growth, as have system level ARM based ASICs and serial EEPROMs.
"Additionally, we introduced a number of new products during the quarter. Included in these new products is our fourth generation controller that goes into a Disk on Key solution for a key customer. We also introduced our high performance, low cost digital camera processor that can process images with up to 6 megapixels. This product optimizes speed and power consumption for the fast growing consumer digital camera market," concluded Perlegos.
Outlook
The Company anticipates that in the fourth quarter of 2003, revenues should be sequentially up 3-6%, raising its guidance from last quarter. Additionally, R&D should be approximately $57-61 million, while SG&A should remain between $33-36 million. Finally, gross margins should be up about one percentage point in the fourth quarter.
Teleconference
Atmel will hold a teleconference at 3:00 PM Pacific Daylight 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 atmel.com. Investors may access the live teleconference by dialing 303-262-2140, with pass code 552211.
A web cast 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: 303-590-3000 and entering the pass code 552211.
About Atmel
Founded in 1984, Atmel Corporation is headquartered in San Jose, California, with manufacturing facilities in North America and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed-signal, nonvolatile memory and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS, BiCMOS, SiGe, and high-voltage BCDMOS process technologies.
# (C) Atmel Corporation 2003. All rights reserved. Atmel and the Atmel logo are the registered trademarks of Atmel Corporation or its subsidiaries. Other terms and product names may be the trademarks of others.
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 revenue, operating costs and gross margins for the third quarter of 2003, new product shipments and market position. 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, ability to integrate and manage acquisitions, and other risks detailed from time to time in the Atmel's SEC reports and filings, including our Form 10-K, filed on March 24, 2003 and subsequent Form 10-Q reports.
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Atmel Corporation
Condensed Consolidated Income Statements
(In thousands, except per-share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
--------- ---------- ---------- ----------
Net revenues: $ 335,187 $ 298,657 $ 950,137 $ 889,183
Expenses:
Cost of sales 261,608 257,578 742,575 726,027
Research and
development 61,698 65,880 191,952 191,512
Selling,
general and
administrative 34,345 31,695 102,749 96,832
Restructuring
and Asset
Impairment Charge --- 39,630 (360) 381,013
--------- ---------- ---------- ----------
Total expenses 357,651 394,783 1,046,916 1,395,384
--------- ---------- ---------- ----------
Operating loss (22,464) (96,126) (86,779) (506,201)
Interest and other
expense, net (6,327) (6,199) (33,209) (25,531)
--------- ---------- ---------- ----------
Loss before taxes (28,791) (102,325) (119,988) (531,732)
Income tax provision (3,000) 0 (9,000) (93,857)
--------- ---------- ---------- ----------
Net loss ($31,791) ($102,325) ($128,988) ($625,589)
========= ========== ========== ==========
Basic net loss
per share ($0.07) ($0.22) ($0.28) ($1.34)
Diluted net loss
per share ($0.07) ($0.22) ($0.28) ($1.34)
Shares used in basic
net loss per-share
calculation 470,494 467,771 468,914 467,390
Shares used in diluted
net loss per-share
calculation 470,494 467,771 468,914 467,390
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30, 2003 December 31, 2002
------------------ -----------------
Current assets:
Cash and cash equivalents $ 326,427 $ 346,371
Short-term investments 56,164 99,431
Accounts receivable, net 195,001 195,182
Inventories 262,884 276,069
Other current assets 49,847 107,672
---------- ----------
Total current assets 890,323 1,024,725
Fixed assets, net 977,533 1,049,031
Fixed assets held for sale 157,158 174,651
Other assets 37,979 32,025
Restricted cash 25,120 22,127
---------- ----------
Total assets $2,088,113 $2,302,559
========== ==========
Current liabilities:
Current portion of long-term debt $ 167,605 $ 163,444
Convertible notes - 132,485
Trade accounts payable 115,643 95,002
Accrued liabilities and other 291,318 295,725
Deferred income on shipments
to distributors 18,392 20,791
---------- ----------
Total current liabilities 592,958 707,447
Long-term debt less current portion 172,607 259,261
Convertible notes 201,474 194,248
Other long-term liabilities 191,681 172,460
---------- ----------
Total liabilities 1,158,720 1,333,416
Stockholders' equity:
Common stock 1,262,972 1,252,739
Accumulated other
comprehensive income 134,105 55,100
Accumulated deficit (467,684) (338,696)
---------- ----------
Total stockholders' equity 929,393 969,143
---------- ----------
Total liabilities and
stockholders' equity $2,088,113 $2,302,559
========== ==========
Contact:
Atmel Corporation
Steven Horwitz, 408-487-2677
Source: Atmel Corporation |
