Atmel Reports Fourth Quarter and Year End Results
January 15, 1998 04:30 PM
SAN JOSE, Calif., Jan. 15 /PRNewswire/ -- Atmel Corporation ATML today reported fourth quarter revenues of $240,350,000. As previously announced, included in the results is a pre-tax charge of approximately $160,000,000 relating to a write-down of accounts receivables and inventory, and consolidation of the Company's Fab operations in France. As a result, the Company recorded a net loss for the quarter of $94,694,000, or $0.95 per share. In last year's fourth quarter, the Company's revenues were $281,112,000 and net income was $53,644,000 or $0.53 per share. Revenues for the third quarter of 1997 were $240,050,000 with net income of $30,349,000 or $0.30 per share.
Revenues for 1997 were $958,282,000. Including the $160,000,000 charge, the Company reported net income for the year of $1,801,000 or $0.02 per share. Revenues for 1996 totaled $1,070,288,000 with net income of $201,722,000 or $2.00 per share.
Additionally, in conjunction with the recently announced 5,000,000 share repurchase program, the Company has to date purchased approximately 1,000,000 shares of its Common Stock in the open market.
George Perlegos, Atmel's President and Chief Executive Officer, said, "While 1997 was disappointing in terms of our financial results, we are optimistic about Atmel's future prospects as we have made a number of important investments during the year, positioning the company for a return to growth.
"In the area of new products, we introduced two new Flash architectures, the Serial Data Flash, aimed at the voice storage market, and the low cost 49 Series Flash, to capture many new applications, particularly in the telecommunications and PC peripheral markets. We introduced several high density Serial EEPROM products and are enjoying considerable success in designing this product into consumer and automotive electronics and also wireless telecommunication applications.
"We began shipping samples of system-level solutions for such applications as personal digital communication devices, game cartridges, disk drives and watches. As our customers successfully market these products, we will benefit from volume production of these devices during 1998.
"We spent approximately $315M in completing our eight inch, 0.35 micron fabrication plant in France, and also upgrading the capability in our Colorado Springs facilities to 0.35 micron technology. These investments will be a critical element in our push towards higher density, more complex integrated silicon solutions in the future.
"As we disclosed in our press release on January 6, 1998, given current market conditions, we felt it prudent to aggressively manage the controllable aspects of our business and have taken steps to hold or reduce costs in our manufacturing operations. In particular, we have reduced our 1998 capital expenditure plan from $400 million to $250 million. We will focus our expenditures on CMP, 0.35 micron and 0.25 micron technologies, enabling us to produce many more units by reducing the die size of our products and to produce higher density parts."
Mr. Perlegos continued, "Of the $160 million in special charges taken this quarter, approximately $50 million was related to a writedown of accounts receivables, as collections have become more difficult. Another $50 million was the amount by which inventory, particularly in the commodity memory product area, has been written down to reflect lower prices and newer technologies. The remaining $60 million of the charge is related to a consolidation of our operations in France, where we will be migrating the manufacture of many of the Company's advanced products to our new eight inch, 0.35 micron Fab 7 facility located in Rousset, and converting Fab 6 to a test facility.
"Bookings remained level with the third quarter with good demand from the wireless telecomm and consumer markets. Importantly, microcontrollers, serial EEPROMs and ASICs increased as a percentage of overall bookings, as the Company is gradually shifting away from reliance on commodity memory products. Looking ahead we believe that the actions we have taken should reduce the risk in our business during the first half of 1998 as we manage through the uncertainty in the Asia markets," concluded Mr. Perlegos.
Except for historical information contained herein, the matters set forth in this press release are forward looking statements that 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, ability to ramp new products into volume, industry wide shifts in supply and demand for semiconductor products and other risks detailed from time to time in Atmel's SEC reports and filings.
Headquartered in San Jose, California, with principal manufacturing facilities in Colorado Springs, Colorado and in Rousset, France, Atmel designs, develops, manufactures, and markets on a worldwide basis non-volatile and embedded memory products, microcontrollers and system-level integration ASICs.
Atmel product and financial information can be retrieved from its Fax-on-Demand service. In North America call 800-292-8635. International, from a fax phone, call 408-441-0732. You can send your request via e-mail to literature@atmel.com or visit Atmel's Web site at atmel.com Atmel Corporation Consolidated Statements of Income (In thousands, except per-share amounts)
Three Months Ended Year Ended
(Unaudited)
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1997 1996
Net revenues $ 240,350 $281,112 $ 958,282 $1,070,288
Expenses:
Cost of sales 204,390 142,102 602,239 539,215
Research and
development 49,744 29,135 137,896 110,239
Selling, general
and administrative 75,335 28,970 150,098 115,362
Non-recurring charges 43,000 0 43,000 0
Total expenses 372,469 200,207 933,233 764,816
Operating income
(loss) (132,119) 80,905 25,049 305,472
Other income
(expense), net (10,333) 747 (19,048) 3,681
Income (loss)
before taxes (142,452) 81,652 6,001 309,153
Income tax
provision (benefit) (47,758) 28,008 4,200 107,431
Net income (loss) $(94,694) $53,644 $1,801 $201,722
Basic earnings
(loss) per share $(0.95) $0.54 $0.02 $ 2.06
Diluted earnings
(loss) per share $(0.95) $0.53 $0.02 $ 2.00
Shares outstanding
-- Basic EPS 99,685 98,527 99,438 98,070
Shares outstanding
-- Diluted EPS 99,685 101,003 101,601 100,680
All share and per-share amounts have been restated to reflect the requirements under FASB Statement 128. Atmel Corporation Condensed Consolidated Balance Sheets (In thousands)
At Dec. 31, 1997 At Dec. 31, 1996
Current assets:
Cash and short-term
investments $237,532 $157,278
Accounts receivable, net 216,991 174,515
Inventories 124,336 70,320
Deferred taxes and
other current assets 152,831 57,910
Total current assets 731,690 460,023
Other assets 23,865 23,849
Long-term investments 95,536 104,619
Fixed assets, net 1,028,949 867,423
Total assets $1,880,040 $1,455,914
Current liabilities:
Current portion,
long-term debt $67,522 $71,615
Trade accounts payable and
other accrued liabilities 348,890 236,852
Deferred income on
shipments to distributors 25,256 27,935
Total current liabilities 441,668 336,402
Long-term debt 571,389 278,576
Deferred income taxes 34,499 22,935
Put warrants 46,050 28,250
Shareholders' equity:
Common stock 334,303 339,421
Retained earnings 452,131 450,330
Total shareholders' equity 786,434 789,751
Total liabilities
and shareholders' equity $1,880,040 $ 1,455,914
Atmel's Internet address is: atmel.com
SOURCE Atmel Corporation
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