Advertisement

News Wire

Atmel Reports Q1

SAN JOSE, Calif. — Atmel® Corporation (Nasdaq: ATML), a leader in microcontroller and touch solutions, today announced financial results for its first quarter ended March 31, 2011.

Revenues for the first quarter of 2011 were $461.4 million, a 1% increase compared to $457.8 million for the fourth quarter of 2010, and a 32% increase compared to $348.5 million for the first quarter of 2010. First quarter 2010 results include revenues and operating results from the former Smart Card business which was divested at the end of the third quarter of 2010. Adjusting for the Smart Card divestiture, first quarter revenues increased 43% from the first quarter of the prior year.

Net income, on a GAAP basis, totaled $74.6 million, or $0.16 per diluted share for the first quarter of 2011. Included in first quarter 2011 results were restructuring charges of $21.2 million or $0.05 per diluted share, related to personnel reductions at Rousset, France following the sale of our wafer fabrication and Smart Card businesses. The first quarter 2011 net income compares to net income of $223.1 million or $0.47 per diluted share for the fourth quarter of 2010, which included $118.1 million, or $0.25 per diluted share, primarily from releasing reserves for certain deferred tax assets. Net income, on a GAAP basis, was $16.6 million or $0.04 per diluted share in the first quarter of 2010.

Non-GAAP net income for the first quarter of 2011 totaled $122.2 million or $0.26 per diluted share, compared to non-GAAP net income of $119.2 million or $0.25 per diluted share for the fourth quarter of 2010, and non-GAAP net income of $25.2 million or $0.05 per diluted share for the year-ago quarter. Refer to the non-GAAP reconciliation table included in this release for more details. Gross margin improved to 51.0% in the first quarter of 2011, the highest level achieved since the company went public in 1991. This compares to gross margin of 49.5% in the fourth quarter of 2010 and 38.4% in the first quarter of 2010. The sequential gross profit improvement was the result of a more favorable mix of higher margin products and continued cost reduction activities.

“Our outstanding first quarter results, in a seasonally softer quarter, were driven by the continued success of our microcontroller business,” said Steve Laub, Atmel’s President and Chief Executive Officer. “With company revenues the highest in 10 years, record gross margin and robust design activity, we are well positioned for continued success in 2011.”

First quarter income from operations of $81.9 million or 17.7% of revenues compared with $93.8 million or 20.5% of revenues for the fourth quarter of 2010, and $14.9 million or 4.3% income from operations for the first quarter 2010. First quarter 2011 income from operations included $21.2 million of restructuring charges and a $1.9 million gain on the sale of assets while fourth quarter 2010 income from operations included a $1.6 million restructuring charge, and the first quarter of 2010 had a $1.0 million restructuring charge.

Income tax provision totaled $9.8 million for the first quarter of 2011. This compares to an income tax benefit of $133.1 million for the fourth quarter of 2010 and a provision of $2.6 million for the first quarter of 2010. The income tax benefit from fourth quarter 2010 resulted primarily from the release of tax reserves for certain deferred tax assets.

Cash provided from operations totaled approximately $74.1 million for the first quarter of 2011, compared to $84.6 million for the fourth quarter of 2010 and $70.4 million for the first quarter of 2010.

Combined cash balances (cash and cash equivalents plus short-term investments) totaled $496.7 million at the end of the first quarter of 2011, a decrease of $24.3 million from the end of the prior quarter that resulted principally from the repurchase of $85 million of common stock. Net cash balance (cash balances less current and long-term debt) was $492.3 million at March 31, 2011.

{complink 520|Atmel Corp.}

0 comments on “Atmel Reports Q1

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.