Atmel Reports Fourth Quarter and Year End Results; Fourth Quarter Revenues Up 20% From Year Ago.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. 21, 1999--Atmel Corporation (Nasdaq:ATML ATML Automatic Test Markup Language ATML Automated Test Markup Language ) today reported fourth quarter revenues of $288,681,000 and net income of $8,532,000 or $0.09 per share. In the third quarter of 1998, the Company reported revenues of $273,814,000 and net income of $4,182,000 or $0.04 per share. Revenues for 1998 were $1,111,092,000. Including non-recurring charges of $102,241,000, Atmel reported a net loss of $57,800,000 or $0.58 per share for 1998. Revenues for 1997 were $958,282,000. Including a $160,000,000 non-recurring charge, the Company reported net income for 1997 of $1,801,000 or $0.02 per share. In the fourth quarter of 1997, the Company reported revenues of $240,350,000 and a net loss of $94,694,000 or $0.95 per share, including the non-recurring charge of $160,000,000. George Perlegos, President and Chief Executive Officer commented, "We are pleased with the progress we achieved in this final quarter of 1998. All actions taken to better align our cost structure with prevailing market conditions enabled us to meet our financial performance objectives. We enter 1999 with a lower cost base, a well-positioned product portfolio, diversified sales base, both by markets and by geography, and an improved financial condition, including cash and investments of over $320 million. "During 1998 we achieved several major objectives," continued Mr. Perlegos. "We have successfully completed our restructuring plan and have continued to make strategic investments and acquisitions and introduced more advanced process technologies in our manufacturing facilities to position Atmel for growth as the semiconductor industry recovers." "In terms of new products, we introduced a number of high density Flash products targeted primarily at the wireless telecommunications end market. The 16 Megabit One million bits. Also Mb, Mbit and M-bit. See mega and space/time. ConCurrentFlash(TM) Read-While-Write integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for (IC) has entered into its first volume shipments. Demand for our Flash products from the high-density disk drive end market and the telecommunications and networking markets continues to grow. Our system-level-integration product family continues to develop well as we leverage our core technologies with our expertise in mixed processes and embedded Inserted into. See embedded system. nonvolatile memory See non-volatile memory. to design highly integrated solutions for our customers," continued Mr. Perlegos. "In addition to many new products introduced during the year, we announced a number of acquisitions and strategic alliances that enable Atmel to continue its growth strategy with complementary technologies and expertise. Of great importance is our acquisition of the Temic Semiconductor Group, purchased in March of 1998. This acquisition has brought to Atmel expertise in radio frequency (RF) circuitry design, automotive ICs, microcontrollers, and a very promising 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) process technology, critical to our focus on the wireless telecommunications end market. During the year we also bought the DCT (Discrete Cosine Transform) An algorithm that is widely used for data compression. Similar to Fast Fourier Transform, DCT converts data (pixels, waveforms, etc.) into sets of frequencies. The first frequencies in the set are the most meaningful; the latter, the least. Group to enhance our multimedia capabilities. These business additions are complementary to our core product offering, and enable us to pursue broader market opportunities." Capital expenditures totaled approximately $170 million for the year, and were primarily focused on purchases of advanced manufacturing equipment that will enable us to accelerate our transition to leading edge process technologies. Q4 Business Review -- 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. , microcontrollers, logic, automotive and RF product sales were greater than 70% of total sales. -- Flash and EPROM EPROM in full erasable programmable read-only memory Form of computer memory that does not lose its content when the power supply is cut off and that can be erased and reused. were only 22% of fourth quarter sales. -- Prices stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. across all product lines during the fourth quarter. -- Flash, EPROM and 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. units increased during the quarter. -- The embedded 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. business is growing with our SLI (Scalable Link Interface) A multi-GPU interface from NVIDIA for connecting two or four NVIDIA display adapters together for faster graphics rendering on one monitor or two monitors. product offering. -- Additional members of Atmel's Flash-based smart card microcontroller product family were introduced, broadening the scope for applications to include GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. sim cards SIM card abbr (= subscriber identity module card) → carte f SIM SIM card n (Tel) (= Subscriber Identity Module card) → SIM-Karte f , banking, pay TV, health cards, and drivers' licenses. In conclusion Mr. Perlegos added, "While we are still in a limited visibility business environment, feedback from the channel and our customers indicate that business conditions will improve in 1999. This combined with a general stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders in ASPs gives us confidence that revenues will continue to strengthen as we progress through this year. Recent design wins in such high growth areas as PC peripherals, consumer games, smart card applications, digital set top boxes and digital cellular phones give us confidence that Atmel will outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the industry average in 1999." Atmel separately announced that it received a comment letter from the Securities and Exchange Commission (SEC) related principally to the write-off of the $32 million in-process research and development related to the Temic acquisition. The SEC recently issued new guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. for the determination of write-offs of acquisition-related in-process R&D. The Company believes that its write-offs of in-process R&D were made in accordance with established industry practice at the time. In addition, these write-offs, were based upon valuations provided by the Company's independent appraisers. Once this issue has been clarified with the SEC, Atmel will make the appropriate amendments to its financial statements. 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, develops, manufactures and markets on a worldwide basis semiconductors, including nonvolatile and embedded memory, logic, analog, microcontroller products and system-level integration (SLI) 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 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, continued 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. , further deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of the financial situation in Asia, and other risks detailed from time to time in the Atmel's SEC reports and filings. -0-
Atmel Corporation
Condensed Consolidated Income Statements
(In thousands, except per-share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
(Unaudited)
------------------- ---------------------
Net revenues $ 288,681 $ 240,350 $ 1,111,092 $ 958,282
Expenses:
Cost of sales 180,465 204,390 713,215 602,239
Research and
development 48,415 49,744 173,986 137,896
Selling,
general and
administrative 41,332 75,335 149,069 150,098
Nonrecurring
charges 0 43,000 102,241 43,000
----------- ----------- ----------- -----------
Total expenses 270,212 372,469 1,138,511 933,233
Operating income
(loss) 18,469 (132,119) (27,419) 25,049
Other expense,
net (7,804) (10,333) (31,274) (19,048)
----------- ----------- ----------- -----------
Income (loss)
before taxes 10,665 (142,452) (58,693) 6,001
Income tax
provision
(benefit) 2,133 (47,758) (893) 4,200
----------- ----------- ----------- -----------
Net income
(loss) $ 8,532 $ (94,694) $ (57,800) $ 1,801
=========== =========== =========== ===========
Basic earnings
(loss) per
share $ 0.09 $ (0.95) $ (0.58) $ 0.02
=========== =========== =========== ===========
Diluted
earnings
(loss) per $ 0.09 $ (0.95) $ (0.58) $ 0.02
share =========== =========== =========== ===========
Shares
outstanding
- Basic EPS 99,612 99,685 99,358 99,438
=========== =========== =========== ===========
Shares
outstanding
- Diluted EPS 100,270 99,685 99,358 101,601
=========== =========== =========== ===========
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 31, 1998 Dec. 31, 1997
------------- -------------
Current assets:
Cash and short-term investments $ 210,571 $ 237,532
Accounts receivable, net 253,401 216,991
Inventories 240,258 124,336
Other current assets 92,567 119,358
---------- ----------
Total current assets 796,797 698,217
Other assets 99,818 42,338
Long-term investments 112,994 95,536
Fixed assets, net 945,366 985,949
========== ==========
Total assets $1,954,975 $1,822,040
========== ==========
Current liabilities:
Current portion, long-term debt $ 78,995 $ 67,522
Trade accounts payable and
other accrued liabilities 296,054 290,890
Deferred income on shipments
to distributors 24,170 25,256
---------- ----------
Total current liabilities 399,219 383,668
Convertible notes 269,250 150,000
Long-term debt 501,819 421,389
Other long-term liabilities 3,404 34,499
---------- ----------
Total liabilities 1,173,692 989,556
---------- ----------
Put warrants 56,850 46,050
---------- ----------
Shareholders' equity:
Common stock 330,102 334,303
Retained earnings 394,331 452,131
---------- ----------
Total shareholders' equity 724,433 786,434
---------- ----------
Total liabilities and
shareholders' equity $1,954,975 $1,822,040
========== ==========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion