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Technology Stocks : Atmel - the trend is about to change -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (13191)	10/17/2003 1:16:08 AM
From: tech101	Respond to of 13565

ATML -- TOP TEN POSITION IN THE SEMI WORLD? For those who don't have time to listen to the CC and don't have time to filter through the Yahoo message board: cc very strong by: margin321 (51/M/Minneapolis, MN) 10/16/03 11:05 pm Msg: 159549 of 159573 First of all Fran Barton was very smooth. He is very articulate and that adds a lot to the call. GP has a positive tone and good engineering knowledge but Fran KNOWS the numbers and speaks well. This is a much better combo that GP and DC. Fran said - "all we can do is increase 1) profitability, 2) liquidity, and 3) predictability - and then stated that he felt they were in good position to do all three. Ramp up of revenues and profits as debt is being reduced quarter after quarter in a monotonous (predictable) LLTC kind of way will move ATML to a top tier semi. I won't summarize the whole call but I will highlight a few things from call that were positive or surprising. (in order they were discussed) 1. No America only 17% of sales (38% in Europe and 45% in Asia) 2. Debt to equity down from .77 to .58 this year and will continue to drop every quarter 3. Shipped 5000 starter kits this quarter for potential asic's customers 4. Thye had two recent serious inquiries about Irving building (they expect more activity as semi cycle increases and demand outstrips capacity). 5. Tynesyde now making products that generate revenue. They may move some of the Irving equipment toTynesyde 6. Revenues will up 3-6% next quarter and low double digits for 2004 which will be ramp up year for 2005. As revenues grow GM will increase and R and D as % of revenues will decrease. 7. capex will be 160 million next year as business builds (about 10 million a quarter this year). Most will be second half of year. Plus they may move some production equipment from Irving to Tynesyde rather than continue to try to sell it. 8. If they move production equipment from Irving to Tynesyde they will have a one time non-cash write off of 30 to 35 million because they have already incurred some installation expense at Irving that would be wriiten off once assets changed from "for sale" to "moved elsewhere". 9. They may get a one time VERY cash adjustment from SST lawsuit.(38 million) 10. Memory business is 40% flash and 60% E-square. Both are growing and prices are firming or trending up in both areas. 11. 64 mb flash is 0.18 process - that starts shipping in volume in 1st quarter. 12. 128 AND 256 flash are 0.13 process and will ship a little further into next year. The 5% growth in memory this quarter was WITHOUT any meaningful contribution from high density flash - that will come later. (out of order - RF/Auto sales down 4% as expected - but they made more money on the lower sales. Almost all their current auto work is in Europe which slows in August. Fran mentioned that ATML is doing more foundry work in the RF/auto area.They are hoping to get more sales in US market. And finally 13) Fran Barton was asked about headcount and restructuring. He said that is mostly behind us. Not looking to decrease headcount further. But he did add << We are looking to low cost geography meaning Asia>> as demand increases. He said they couldn't say any more right now but it seems likely they are looking to put some production into Asia at the right time as demand ramps up - either with a foundry partner or with new production, likely in China I would guess. Anyway - lots of good stuff in the quarter report and in the conference call. If they can just continue to have every quarter better than the last one in a highly predictable fashion as they grow toward their goal of 3 billion in sales and a top ten position in the semi world - then ATML will move back toward the highs of the last cycle and will eventually surpass them.

To: SemiBull who wrote (13191)	10/17/2003 1:27:30 AM
From: tech101	Read Replies (1) \| Respond to of 13565

One Poster on Yahoo Claims: ********************** ATML has 60% of the 8bit micro market!! by: riccf_1999 Long-Term Sentiment: Strong Buy 10/17/03 12:44 am Msg: 159571 of 159577 Eroding MCHP AND MOT leads . AVR is the best 8 bit micro out there... jusk ask any embedded enginner. This thing is going to ROCK!!!!!!! *********************************** How true is this claim? Any insider or anyone in the KNOW? At least this guy knows something about AVR: atmel.com