Atmel Announces First Quarter 2003 Financial Results.Business Editors SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--April 17, 2003 Atmel Corporation (Nasdaq: ATML ATML Automatic Test Markup Language ATML Automated Test Markup Language ), a worldwide leader in the development, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and sale of advanced semiconductors, today announced financial results for the first quarter ended March 31, 2003. Revenues for the first quarter of 2003 totaled $296,478,000, versus $304,631,000 in the fourth quarter of 2002 and $275,773,000 in the first quarter of 2002. This represents a sequential decline in revenues of 3% and year over year growth of 8%. Net loss for the first quarter of 2003 totaled $53,120,000 or $0.11 per share. The net loss for the first quarter included an expense of $10 million, or $0.02 per share, related to a patent licensing agreement with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) . In the fourth quarter of 2002, the Company reported a net loss of $16,207,000 or $0.03 per share. The net loss for the fourth quarter 2002 included a positive $0.03 per share related to a gain on early retirement of debt offset by restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . In the first quarter of 2002, the Company's net loss was $44,333,000 or $0.09 per share. Cash and cash equivalents and short term investments as of March 31, 2003 were approximately $434 million, representing a decrease of $12.1 million from December 31,2002. During the same period, total debt was reduced by $25.8 million. The Company also has $23.5 million in restricted cash. Additionally, accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and inventory decreased by $7.3 million and $8.8 million respectively during the quarter. "First quarter revenues were slightly lower than expected, primarily due to pricing pressure in the serial EEPROM (Electrically Erasable Programmable ROM) A rewritable memory chip that holds its content without power. Although EEPROMs spawned flash memory, EEPROMs are byte addressable at the write level, whereas flash chips must erase a block of bytes before rewriting. market," stated George Perlegos, Atmel's President and Chief Executive Officer. "However, we were very pleased with the performance of our ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor. business, specifically smart cards Example of widely used contactless smart cards are Hong Kong's Octopus card, Paris' Calypso/Navigo card and Lisbon' LisboaViva card, which predate the ISO/IEC 14443 standard. The following tables list smart cards used for public transportation and other electronic purse applications. , which experienced healthy growth and received significant design wins, including the silicon platform for the next generation of chip-based bank cards." Perlegos added, "During the quarter, we shipped a record number of our proprietary AVR (Automatic Voltage Regulation) See voltage regulator. microcontrollers and began seeing signs that this market is improving, as indicated by our current and potential customers' purchases of in-circuit emulators and starter kits. "Additionally, we remain focused on adding to our significant intellectual property and expertise to help customers offer smaller, portable, wireless, secure, cost-effective and complete system solutions. During the quarter, we introduced a single-chip dual Ethernet 802.11b wireless LAN A local area network that transmits over the air typically in the 2.4 GHz or 5 GHz unlicensed frequency band. It does not require line of sight between sender and receiver. Wireless base stations (access points) are wired to an Ethernet network and transmit a radio frequency over an area with advanced security features, established compliance with the Trusted Computing Group See TCG. , a newly formed organization driving the standards of security, and introduced the ARM-9 microcontroller A single chip that contains the processor (the CPU), non-volatile memory for the program (ROM or flash), volatile memory for input and output (RAM), a clock and an I/O control unit. architecture geared toward enhanced performance applications in our ASIC group," concluded Perlegos. Outlook The Company believes that in the second quarter of 2003, revenues should grow 2-4% sequentially, reaching about $302-308 million. Additionally, R&D should be approximately $60-63 million, while SG&A should remain between $30-33 million. Finally, gross margins should remain approximately 22% in the second quarter. Teleconference Atmel will hold a teleconference at 3:00 PM Pacific Daylight Time today to discuss first quarter financial results. Atmel will provide a real-time audio broadcast of the teleconference from the Investor Relations Investor relations The process by which the corporation communicates with its investors. page of its website at http://www.atmel.com. Investors may access the live teleconference by dialing 212-329-1452, passcode 532535. A webcast replay will be available for twelve months after the teleconference at http://www.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 PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico 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 532535. About Atmel Founded in 1984, Atmel Corporation is headquartered in San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. , with manufacturing facilities in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed-signal, nonvolatile memory See non-volatile memory. and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. , BiCMOS, SiGe, and high-voltage BCDMOS process technologies. Note to Editors: 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. These statements include statements about Atmel's expected revenue, operating costs operating costs npl → gastos mpl operacionales and gross margins for the second 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 o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. , 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , filed on March 24, 2003 and subsequent Form 10-Q Form 10-Q See 10-Q. reports.
Atmel Corporation
Condensed Consolidated Income Statements
(In thousands, except per-share data)
(Unaudited)
Three Months Ended
March 31
2003 2002
---------------------------
Net revenues: $296,478 $275,773
Expenses:
Cost of sales 232,400 223,469
Research and development 64,174 63,174
Selling, general and
administrative 31,573 30,305
Total expenses 328,147 316,948
--------------------------------
Operating loss (31,669) (41,175)
Interest and other income
(expense), net (18,451) (8,084)
--------------------------------
Loss before taxes (50,120) (49,259)
Income tax benefit (provision) (3,000) 4,926
--------------------------------
Net loss ($53,120) ($44,333)
================================
Basic net loss per share ($0.11) ($0.09)
Diluted net loss per share ($0.11) ($0.09)
Shares used in basic net loss per-
share calculation 467,473 466,782
Shares used in diluted net loss per-
share calculation 467,473 466,782
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, 2003 December 31, 2002
---------------------------------
Current assets:
Cash and cash equivalents $310,975 $346,371
Short-term investments 122,769 99,431
Accounts receivable, net 187,848 195,182
Inventories 267,247 276,069
Other current assets 125,216 107,672
---------------------------------
Total current assets 1,014,055 1,024,725
Fixed assets, net 1,026,973 1,049,031
Fixed assets held for sale 170,694 174,651
Other assets 45,569 32,025
Restricted cash 23,450 22,127
---------------------------------
Total assets $2,280,741 $2,302,559
=================================
Current liabilities:
Current portion of long-term debt $161,596 $163,444
Convertible notes 134,290 132,485
Trade accounts payable 104,286 95,002
Accrued liabilities and other 296,744 295,725
Deferred income on shipments to
distributors 20,294 20,791
---------------------------------
Total current liabilities 717,210 707,447
Convertible notes 196,546 194,248
Long-term debt less current portion 231,202 259,261
Other long-term liabilities 186,462 172,460
---------------------------------
Total liabilities 1,331,420 1,333,416
Stockholders' equity:
Common stock 1,341,137 1,307,839
Accumulated Deficit (391,816) (338,696)
---------------------------------
Total stockholders' equity 949,321 969,143
Total liabilities and
stockholders' equity $2,280,741 $2,302,559
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