Thursday October 19, 4:24 pm Eastern Time
Press Release
Atmel 3Q'00 Net Income Up 342% as Sales Rise 56%
versus 3Q'99
Earnings per share total $0.16, up 300% from 3Q'99
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 19, 2000--Atmel Corporation (Nasdaq:ATML - news), today announced
record results for the third quarter ended September 30, 2000.
Revenues for the third quarter of 2000 totaled $530,393,000, up 56% from a year ago, and up 11% sequentially. Net income
for the third quarter of 2000 totaled $76,519,000 or $0.16 per share on a fully diluted basis. Basic EPS for the quarter was
$0.17. In the previous quarter (second quarter 2000), the Company reported net income of $61,325,000 or $0.13 per share.
In last year's third quarter, the Company's net income was $17,306,000 or $0.04 per share.
The earnings per share and number of shares used in the earnings-per-share data for all periods presented reflect the
two-for-one stock split that was effective in August 2000.
George Perlegos, President and Chief Executive Officer commented, ``We achieved yet another quarter of exceptional financial
performance with revenues and net income for the third quarter of 2000 reaching the highest in Atmel's history. Revenues
exceeded our expectations and were driven by continued sales strength across all product categories, robust end customer
demand, a firm pricing environment, and the continued successful ramp of our manufacturing capacity. Sales growth was
particularly strong in our proprietary AVR microcontroller product family.
``During the third quarter we finalized two long-term supply agreements with leading customers in the communications end
market. One of these customers gave Atmel a significant cash advance in excess of $100 million to secure this agreement,''
added Mr. Perlegos. These agreements illustrate that our customers see a continued tight supply situation for our products over
the coming years.``
Mr. Perlegos continued, ``This quarter we continued improving Atmel's profitability with our gross margin increasing to 44.4
percent from 37.8 percent last year, and our operating margin more than doubling from a year ago to 22.7 percent. These
metrics demonstrate Atmel's dedication to expense control, and highlight the inherent leverage in our business model. Capital
expenditures for the quarter were approximately $300 million, and our balance sheet remained very strong with ending cash
and investments of $1.14 billion and EBITDA for the quarter of approximately $180 million. Receivables fell to 61 days and
inventory turns improved to 89 days.''
``As we stated earlier in the quarter, our results are not materially impacted by the current weakness in the Euro,'' added Mr.
Perlegos. ``Atmel's large amount of U.S. dollar-based sales and Euro-based costs act as a natural hedge against fluctuations in
the value of the Euro and the U.S. dollar.''
Mr. Perlegos concluded, `` Our backlog at the end of the quarter remains very strong, giving us full confidence in the future.
We are enthusiastic about the exciting growth opportunities we are addressing that take advantage of our leading expertise in a
broad range of product areas, including advanced logic, security and radio frequency capabilities. On the manufacturing front
we continued to ramp our 8 inch capacity. To increase our presence in leading edge manufacturing, during the quarter we
acquired a fully facilitized 8 inch factory from Siemens in North Tyneside in England. We anticipate starting manufacturing in this
facility by the middle of next year.''
Atmel will hold a teleconference for the financial community at 3:00 PM Pacific Daylight Time today to discuss third quarter
financial results. Atmel will provide a real-time audio broadcast of the teleconference in the Investor Relations page of its
website at www.atmel.com. The webcast replay will be available for two weeks after the teleconference.
Atmel will also provide a telephone recording of the teleconference, which will be available at approximately 5:00 PM PDT
today. Interested parties may listen to the playback of the teleconference by calling the following number: 1-303-590-3000 and
entering the code number 764395.
Founded in 1984, Atmel Corporation is headquartered in San Jose, California with principal manufacturing facilities in
Colorado Springs, Colorado, Grenoble, Nantes and Rousset, France and Heilbronn, Germany, Irving, Texas, and North
Tyneside, England. Atmel designs, manufactures and markets on a worldwide basis advanced logic, mixed-signal, nonvolatile
memory, and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using
advanced CMOS, BiCMOS, BiPolar and SiGe process technologies.
Atmel product and financial information can be retrieved from its Fax-on Demand service. In North America 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, industry overcapacity, 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.
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
Sept. 30, 2000 Dec. 31, 1999
------------------ -------------
(Unaudited)
Current assets:
Cash and cash equivalents .................. $ 882,530 $ 251,272
Short-term investments ..................... 257,201 161,190
Accounts receivable, net ................... 351,957 281,843
Inventories, net ........................... 286,285 274,065
Other current assets ....................... 99,872 70,938
---------- ----------
Total current assets ....................... 1,877,845 1,039,308
Other assets ............................... 44,060 37,040
Fixed assets, net .......................... 1,475,885 938,562
---------- ----------
Total assets ............................... $3,397,790 $2,014,910
========== ==========
Current liabilities:
Current portion of long-term debt .......... $ 132,710 $ 147,166
Trade accounts payable ..................... 421,948 278,562
Accrued liabilities and other .............. 310,269 94,584
Deferred income on shipments to distributors 32,791 31,500
---------- ----------
Total current liabilities .................. 897,718 551,812
Convertible notes .......................... 131,045 275,899
Long-term debt less current portion ........ 571,082 378,134
Other long-term liabilities ................ 7,586 7,586
---------- ----------
Total liabilities .......................... 1,607,431 1,213,431
---------- ----------
Shareholders' equity:
Common stock ............................... 1,155,191 346,007
Retained earnings .......................... 635,168 455,472
---------- ----------
Total shareholders' equity ................. 1,790,359 801,479
---------- ----------
Total liabilities and shareholders' equity... $3,397,790 $2,014,910
========== ==========
Atmel Corporation
Condensed Consolidated Income Statements
(In thousands, except per-share data)
(Unaudited)
Three Months Ended
Sept. 30,
2000 1999
---- ----
Net revenues: ....... $ 530,393 $ 340,244
Expenses:
Cost of sales ....... 294,899 211,767
Research and
development ......... 57,929 46,296
Selling, general
and administrative .. 57,044 46,321
----------- -----------
Total expenses ...... 409,872 304,384
----------- -----------
Operating income .... 120,521 35,860
Other (expense), net (960) (8,820)
----------- -----------
Income before taxes . 119,561 27,040
Income tax
(provision) ......... (43,042) (9,734)
----------- -----------
Income before
cumulative effect
of accounting change... 76,519 17,306
Cumulative effect
of accounting change
(net of tax effect)..... 0 0
----------- -----------
Net income .......... $ 76,519 $ 17,306
=========== ===========
Basic net income per share
Income per share
before cumulative
effect of
accounting change ... $ 0.17 $ 0.04
Cumulative effect
of accounting change
per share ........... 0.00 0.00
----------- -----------
Basic net
income per share .... $ 0.17 $ 0.04
=========== ===========
Diluted net income per share
Income per share
before cumulative
effect of
accounting change ... $ 0.16 $ 0.04
Cumulative effect
of accounting change
per share ........... 0.00 0.00
----------- -----------
Diluted net income
per share ........... $ 0.16 $ 0.04
=========== ===========
Shares used
in basic net income
per-share calculation... 461,678 401,900
=========== ===========
Net income used
in diluted net
income per share
calculation.......... $ 77,647 $ 17,306
=========== ===========
Shares used in
diluted net income
per-share calculation... 494,034 416,036
=========== ===========
Nine Months Ended
Sept. 30,
2000 1999
---- ----
Net revenues: ...... $ 1,438,337 $ 941,423
Expenses:
Cost of sales ....... 818,328 592,142
Research and
development ......... 182,458 136,649
Selling, general
and administrative .. 154,587 126,646
----------- -----------
Total expenses ...... 1,155,373 855,437
----------- -----------
Operating income .... 282,964 85,986
Other (expense), net (2,190) (8,788)
----------- -----------
Income before taxes... 280,774 77,198
Income tax
(provision) ......... (101,078) (27,790)
----------- -----------
Income before
cumulative effect
of accounting change.....179,696 49,408
Cumulative effect
of accounting change
(net of tax effect)..... 0 (29,068)
----------- -----------
Net income .......... $ 179,696 $ 20,340
=========== ===========
Basic net income per share
Income per share
before cumulative
effect of
accounting change ...$ 0.40 $ 0.12
Cumulative effect
of accounting change
per share ........... 0.00 (0.07)
----------- -----------
Basic net
income per share .... $ 0.40 $ 0.05
=========== ===========
Diluted net income per share
Income per share
before cumulative
effect of
accounting change ... $ 0.38 $ 0.12
Cumulative effect
of accounting change
per share ........... 0.00 (0.07)
----------- -----------
Diluted net income
per share ........... $ 0.38 $ 0.05
=========== ===========
Shares used
in basic net income
per-share calculation.....447,033 400,872
=========== ===========
Net income used
in diluted net
income per share
calculation.......... $ 185,340 $ 20,340
=========== ===========
Shares used in
diluted net income
per-share calculation 490,127 412,968
=========== ===========
Ein mitfühlender Dampf
