Atmel Reports 14% Sequential Growth in 4Q99 Revenues; 4Q99 Earnings Per Share Increase 78% Sequentially.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)--Jan. 20, 2000 Atmel Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ATML ATML Automatic Test Markup Language ATML Automated Test Markup Language ) today reported fourth quarter revenues of $388,738,000 and net income of $33,039,000 or $0.16 per share, which takes into account the Company's 2-for-1 stock split, effected in December 1999. In the immediately preceding third quarter of 1999, the Company reported revenues of $340,244,000 and net income of $17,306,000 or $0.09 per share. In the fourth quarter of 1998, the Company reported revenues of $288,681,000 and net income of $9,960,000 or $0.05 per share. Revenues for 1999 totaled $1,330,161,000, and before the cumulative effect of an accounting change made in the first quarter of 1999, net income was $82,447,000, or $0.40 per share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. Revenues for 1998 were $1,111,092,000. Atmel reported a net loss for 1998 of $50,038,000 or approximately $0.25 per share. George Perlegos, President and Chief Executive Officer commented, &uot;This quarter finishes a very successful year for Atmel. We are pleased by the increasing number of customers who are using Atmel's wide range of products, particularly in the wireless telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. end market. Revenue momentum and the increased manufacturing output of Fab 7 in Rousset, France, enabled us to achieve a 91% quarter-to-quarter increase in net income on a 14% sequential revenue gain.&uot; Mr. Perlegos continued, &uot;We are especially proud of the improvement we achieved in our balance sheet this past year. Despite retiring approximately $50 million of long-term obligations, we also achieved significant improvements in key balance sheet metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. particularly receivables days and cash, and we improved our cash position, ending the year with $412 million in cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has .&uot; &uot;During 1999 we introduced many new products and made key acquisitions that position the Company to take advantage of the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. recovery now underway. We purchased Motorola's Smart Card IC business, placing Atmel as the 3rd largest Smart Card IC manufacturer in the world. We also purchased in January a state-of-the-art 8 inch wafer fabrication Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. facility located in Irving, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to , where we will manufacture advanced semiconductors using BiCMOS and silicon germanium (SiGe) A semiconductor material made from silicon and germanium. Germanium is very similar to silicon, but when one layer is grown on top of the other to form the base of the transistor, the resulting transistor can switch faster and yield higher performance. (SiGe) BiCMOS processes. We will commence installation of 0.18 micron micron: see micrometer. One micrometer, which is one millionth of a meter or approximately 1/25,000 of an inch. The tiny elements that make up a transistor on a chip are measured in micrometers and nanometers. See process technology. manufacturing equipment later this year, and intend to run test wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. by year-end. Most recently, we announced our intent to acquire Thomson-CSF Semiconducteurs Specifique (TCS (Transportation Control System) A widely used integrated information system for railroad transportation developed by the Missouri Pacific Railroad Company in the late 1960s and early 1970s. It was later implemented by Union Pacific when the companies merged. ), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Thomson-CSF. With expertise in image sensors An image sensor is a device that converts a visual image to an electric signal. It is used chiefly in digital cameras and other imaging devices. It is usually an array of charge-coupled devices (CCD) or CMOS sensors such as active-pixel sensors. and RF and GPS for wireless transmission, TCS will be an excellent complement for our existing businesses. The engineering design team gives us added expertise in areas we believe to be strategically important to Atmel as we execute our strategy of becoming a world leader in providing integrated solutions for the fast-growing wireless and consumer end markets. &uot;Capital expenditures totaled approximately $180 million for the year, and were primarily focused on purchases of advanced equipment that will enable us to continue ramping manufacturing capacity at our state-of-the-art 8 inch manufacturing facility in Rousset, France. Atmel's book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can for the fourth quarter was similar to the third quarter level which was greater than 1.3.&uot; 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 principal manufacturing facilities in Colorado Springs, Colorado The City of Colorado Springs is the second most populous city (after Denver) in the state of Colorado and the 48th most populous city in the United States.[4] The city is the county seat of El Paso County. , Nantes and Rousset, France and Heilbronn, Germany. Atmel designs, manufactures and markets on a worldwide basis 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 advanced 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, BiPolar (1) See bipolar transmission. (2) One of two major categories of transistor; the other is "field effect transistor" (FET). Although the first transistors and first silicon chips were bipolar, most chips today are field effect transistors wired as CMOS logic, which and SiGe process technologies. Atmel product and financial information can be retrieved from its Fax-on Demand service. 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. call 1(800) 292-8635. Internationally from a fax phone, dial 1(408) 441-0732. Requests may be sent via e-mail to literature@atmel.com or by visiting Atmel's website at http://www.atmel.com. 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, timely introduction of new technologies, ability to ramp new products into volume, industry wide shifts in supply and demand for semiconductor products, industry 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. , 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.
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 31, 1999 Dec. 31, 1998
------------- -------------
Current assets:
Cash and cash equivalents $ 251,272 $ 161,721
Short-term investments 161,190 161,844
Accounts receivable, net 281,843 252,601
Inventories 274,065 240,258
Other current assets 70,938 74,967
---------- ----------
Total current assets 1,039,308 891,391
Other assets 37,040 107,220
Fixed assets, net 938,562 964,126
---------- ----------
Total assets $2,014,910 $1,962,737
========== ==========
Current liabilities:
Current portion of
long-term debt $ 85,102 $ 81,995
Trade accounts payable 216,102 141,842
Accrued liabilities
and other 157,044 151,212
Deferred income on
shipments to distributors 31,500 24,170
---------- ----------
Total current liabilities 489,748 399,219
Convertible notes 275,899 269,250
Long-term debt less current portion 440,198 501,819
Other long-term liabilities 7,586 3,404
---------- ----------
Total liabilities 1,213,431 1,173,692
---------- ----------
Put warrants 0 56,850
---------- ----------
Shareholders' equity:
Common stock 346,007 330,102
Retained earnings 455,472 402,093
---------- ----------
Total shareholders' equity 801,479 732,195
---------- ----------
Total liabilities and
shareholders' equity $2,014,910 $1,962,737
========== ==========
Atmel Corporation
Condensed Consolidated Income Statements
(In thousands, except per-share data)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
1999 1998 1999 1998
Net revenues: $ 388,738 $ 288,681 $1,330,161 $1,111,092
Expenses:
Cost of sales 234,159 180,581 826,301 717,147
Research and development 57,101 48,826 193,750 174,808
Selling, general and
administrative 40,486 41,332 167,132 149,069
In process research and
development 0 0 0 23,425
Restructuring charges 0 0 0 66,300
--------- --------- --------- ---------
Total expenses 331,746 270,739 1,187,183 1,130,749
--------- --------- --------- ----------
Operating income (loss) 56,992 17,942 142,978 (19,657)
Other income (expense),
net (5,369) (7,804) (14,157) (31,274)
--------- --------- --------- ---------
Income before taxes 51,623 10,138 128,821 (50,931)
Income tax (provision)
benefit (18,584) (178) (46,374) 893
--------- --------- --------- ---------
Income (loss) before
cumulative effect
of accounting change 33,039 9,960 82,447 (50,038)
Cumulative effect of
accounting change
(net of tax effect) 0 0 (29,068) 0
--------- --------- --------- -------
Net income (loss) $ 33,039 $ 9,960 $ 53,379 $ (50,038)
========= ========= ========== =========
Basic net income (loss)
per share
Income (loss) per share
before cumulative effect of
accounting change $ 0.16 $ 0.05 $ 0.41 $(0.25)
Cumulative effect of
accounting change
per share 0.00 0.00 (0.14) 0.00
--------- --------- ---------- ---------
Basic net income
(loss) per share $ 0.16 $ 0.05 $ 0.27 $ (0.25)
========= ========= ========= ========
Diluted net income
(loss) per share
Income (loss) per share
before cumulative
effect of accounting
change $ 0.16 $ 0.05 $ 0.40 $(0.25)
Cumulative effect of
accounting change
per share 0.00 0.00 (0.14) 0.00
--------- --------- -------- --------
Diluted net income
(loss) per share $ 0.16 $ 0.05 $ 0.26 $ (0.25)
========== ========= ========= =========
Shares used in basic
net income (loss)
per-share calculation 201,813 199,224 200,783 198,716
Shares used in diluted
net income (loss)
per-share calculation 209,201 200,540 207,322 198,716
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