ATMEL CORPORATION

RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data)

(Unaudited)

Three Months Ended

March 31,

2013

December 31,

2012

March 31,

2012

GAAP gross margin

$

131,305

$

131,539

$

152,367

Loss related to foundry arrangement

—

10,628

—

Share-based compensation expense

1,844

1,329

2,255

Non-GAAP gross margin

$

133,149

$

143,496

$

154,622

GAAP research and development expense

$

68,308

$

58,872

$

66,289

Share-based compensation expense

(4,608)

(5,257)

(6,763)

Non-GAAP research and development expense

$

63,700

$

53,615

$

59,526

GAAP selling, general and administrative expense

$

63,577

$

66,376

$

69,855

Share-based compensation expense

(8,310)

(9,818)

(10,309)

Non-GAAP selling, general and administrative expense

$

55,267

$

56,558

$

59,546

GAAP (loss) income from operations

$

(62,380)

$

(13,186)

$

24,956

Share-based compensation expense

14,762

16,404

19,327

Acquisition-related charges

2,255

1,946

1,956

Restructuring charges

42,814

11,036

—

Loss related to foundry arrangement

—

10,628

—

(Recovery) impairment of receivables from foundry supplier

(439)

6,495

—

Credit from reserved grant income

—

—

(10,689)

Gain on sale of assets

(4,430)

—

—

Settlement charges

21,600

—

—

Non-GAAP income from operations

$

14,182

$

33,323

$

35,550

GAAP benefit from (provision for) income taxes

$

14,361

$

2,192

$

(4,345)

Adjustments for cash tax and other tax settlements

15,335

4,790

(4,274)

Non-GAAP provision for income taxes

$

(974)

$

(2,598)

$

(71)

GAAP net (loss) income

$

(47,667)

$

(12,332)

$

20,387

Share-based compensation expense

14,762

16,404

19,327

Acquisition-related charges

2,255

1,946

1,956

Restructuring charges

42,814

11,036

—

Loss related to foundry arrangement

—

10,628

—

(Recovery) impairment of receivables from foundry supplier

(439)

6,495

—

Credit from reserved grant income

—

—

(10,689)

Gain on sale of assets

(4,430)

—

—

Settlement charges

21,600

—

—

Tax adjustments

(15,335)

(4,790)

4,274

Non-GAAP net income

$

13,560

$

29,387

$

35,255

GAAP net (loss) income per share - diluted

$

(0.11)

$

(0.03)

$

0.05

Share-based compensation expense

0.03

0.04

0.04

Acquisition-related charges

0.01

0.01

—

Restructuring charges

0.10

0.02

—

Loss related to foundry arrangement

—

0.02

—

(Recovery) impairment of receivables from foundry supplier

(0.00)

0.01

—

Credit from reserved grant income

—

—

(0.02)

Gain on sale of assets

(0.01)

—

—

Settlement charges

0.05

—

—

Tax adjustments

(0.04)

—

0.01

Non-GAAP net income per share - diluted

$

0.03

$

0.07

$

0.08

GAAP diluted shares

428,999

429,312

444,927

Adjusted dilutive stock awards - non-GAAP

13,768

14,669

10,865

Non-GAAP diluted shares

442,767

443,981

455,792