Atmel Announces Growth in all Four Business Units During Second Quarter 2003; 7% Sequential Revenue Growth for Q2.Business Editors/High-Tech Writers 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)--July 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 second quarter ended June 30, 2003. Revenues for the second quarter of 2003 totaled $318,472,000, versus $296,478,000 in the first quarter of 2003 and $314,753,000 in the second quarter of 2002. This represents a sequential increase in revenues of 7% and year over year growth of 1%. Net loss for the second quarter of 2003 totaled $44,077,000 or $0.09 per share. In the first quarter of 2003, the Company reported a net loss of $53,120,000 or $0.11 per share. In the second quarter of 2002, the Company's net loss was $478,931,000 or $1.02 per share. Included in the net loss for the second quarter of 2002 were approximately $341 million of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges. The net impact of currency changes during the second quarter of 2003 was approximately $5 million, lowering results by one penny per share. After adding back the $70 million non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) of depreciation and amortization to the net loss of $44 million for the second quarter 2003, the Company generated $26 million to use towards the reduction of debt. During the quarter, the Company paid off approximately $135 million related to the 2018 convertible bond. Cash and cash equivalents, short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments and restricted cash as of June 30, 2003 were approximately $313 million. "We are very excited to report that we saw an increase in demand in the majority of our product lines during the second quarter," stated George Perlegos, Atmel's President and Chief Executive Officer. "Revenue grew in each of our four business units, led by continued market share gains in 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. and record unit shipments of our proprietary AVR (Automatic Voltage Regulation) See voltage regulator. microcontrollers." Perlegos added, "During the quarter, we continued the migration to higher density non-volatile memory Refers to memory chips that hold their content without power being applied. It may refer to chips that are not changeable, such as ROMs and PROMs, or to chips that can be rewritten many times such as flash memory. products, introducing our 128Mb DataFlash, the world's fastest serial interface flash memory. "Additionally, we jointly introduced with Wavecom SA a single chip GPS/GPRS baseband processor that will serve 2.5G phones as well as future generations of phones. Through this partnership, we anticipate the introduction of many wireless application components over the coming quarters. "The Company also introduced a new secure memory solution that utilizes the strengths of our smart card products. This new family of lower-cost products is focused on access control and secure data applications such as PDAs and networking systems. Additionally, this product family provides the industry with the only secure memory with data encryption data encryption, the process of scrambling stored or transmitted information so that it is unintelligible until it is unscrambled by the intended recipient. Historically, data encryption has been used primarily to protect diplomatic and military secrets from foreign , demonstrating Atmel's growing presence in the security industry," concluded Perlegos. Outlook The Company believes that in the third quarter of 2003, revenues should be sequentially flat to up slightly, as much of the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. business is seasonally slow. Additionally, R&D should be approximately $63-65 million, while SG&A should remain between $34-36 million. Finally, gross margins should be sequentially flat in the third quarter. Teleconference Atmel will hold a teleconference at 3:00 PM Pacific Daylight Time today to discuss second 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 542797. 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 Playback could mean:
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. 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 Six Months Ended
June 30 June 30
2003 2002 2003 2002
Net revenues: $318,472 $314,753 $614,950 $590,526
Expenses:
Cost of sales 248,567 244,980 480,967 468,449
Research and development 66,080 62,458 130,254 125,632
Selling, general and
administrative 36,831 34,832 68,404 65,137
Asset Impairment Charge (360) 341,383 (360) 341,383
--------- --------- --------- ---------
Total expenses 351,118 683,653 679,265 1,000,601
Operating loss (32,646) (368,900) (64,315) (410,075)
Interest and other expense,
net (8,431) (11,248) (26,882) (19,332)
--------- --------- --------- ---------
Loss before taxes (41,077) (380,148) (91,197) (429,407)
Income tax provision (3,000) (98,783) (6,000) (93,857)
--------- --------- --------- ---------
Net loss ($44,077)($478,931) ($97,197)($523,264)
========= ========= ========= =========
Basic net loss per share ($0.09) ($1.02) ($0.21) ($1.12)
Diluted net loss per share ($0.09) ($1.02) ($0.21) ($1.12)
Shares used in basic net loss
per-share calculation 468,774 467,618 468,123 467,200
Shares used in diluted net
loss per-share calculation 468,774 467,618 468,123 467,200
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30, Dec. 31,
2003 2002
Current assets:
Cash and cash equivalents $221,659 $346,371
Short-term investments 66,184 99,431
Accounts receivable, net 196,683 195,182
Inventories 262,377 276,069
Other current assets 114,214 107,672
----------- -----------
Total current assets 861,117 1,024,725
Fixed assets, net 1,011,719 1,049,031
Fixed assets held for sale 168,734 174,651
Other assets 41,264 32,025
Restricted cash 24,704 22,127
----------- -----------
Total assets $2,107,538 $2,302,559
=========== ===========
Current liabilities:
Current portion of long-term debt $ 173,776 $ 163,444
Convertible notes -- 132,485
Trade accounts payable 109,149 95,002
Accrued liabilities and other 276,315 295,725
Deferred income on shipments to
distributors 19,618 20,791
----------- -----------
Total current liabilities 578,858 707,447
Long-term debt less current portion 200,445 259,261
Convertible notes 199,119 194,248
Other long-term liabilities 183,722 172,460
----------- -----------
Total liabilities 1,162,144 1,333,416
Stockholders' equity:
Common stock 1,381,287 1,307,839
Accumulated deficit (435,893) (338,696)
----------- -----------
Total stockholders' equity 945,394 969,143
Total liabilities and
stockholders' equity $2,107,538 $2,302,559
=========== ===========
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