Non-GAAP net income for the fourth quarter of 2015 totaled $24.9 million or $0.06 per diluted share, compared to non-GAAP net income of $34.7 million or $0.08 per diluted share in the third quarter of 2015, and $49.2 million or $0.12 per diluted share for the fourth quarter of 2014. For the full year 2015, non-GAAP net income was $138.4 million or $0.32 per diluted share compared to $166.4 million or $0.39 per diluted share. Refer to the non-GAAP reconciliation table included in this release for more details.

Cash provided by operations totaled $9.1 million for the fourth quarter of 2015, compared to $30.6 million for the third quarter of 2015 and $37.2 million for the fourth quarter of 2014.  For the full year 2015, cash provided by operating activities totaled $105.8 million compared to $179.8 million for 2014. Combined cash balances (cash and cash equivalents plus short-term investments) totaled $210.3 million at the end of the fourth quarter of 2015, a decrease of $8.5 million from the immediately preceding quarter resulting principally from lower cash generated from operations, a reduction in trade accounts payable, $9.0 million repayment of European loans, offset by a reduction in inventories, receivables, and capital expenditures.

Company Highlights

• Microchip Technology, Inc. to acquire Atmel
• Launched the Atmel | SMART SAM L21 microcontroller with the low energy BTLC1000 an ultra-low-power connected platform for cost-optimized IoT and wearable applications
• Atmel Bluetooth Smart Solution Named Product of the Year By Electronic Products Magazine
• Atmel | SMART Bluetooth (BLE) solution receives "Best IoT Product" award in 2015 ARM Innovation Challenge
• Atmel and WeChat collaborate on secure cloud access for IoT applications; Atmel provides ARM® Cortex® M0+-based module for ultra-low power Wi-Fi connectivity
• Introduced Atmel's first system-on-chip (SoC) hardware evaluation solution based on the ARM® mbed™ IoT platform
• Launched new security platform featuring Atmel's CryptoAuthentication device enabling companies of all sizes to develop secure IoT applications
• Atmel | SMART ARM Cortex M7-based MCU and AVR Powers TomTom Spark GPS fitness watches
• Sampling next-generation force sensing technology in the maXTouch U Series for smartphones enabling users control of their devices by the pressure of their touch
• Capacitive sensing technology is now available on the 8-bit Atmel megaAVR® family
• maXTouch firmware achieved industry's first automotive SPICE Level 3 certification for an auto touch controller supplier
• Launched next-generation highly integrated drivers and immobilizer base station for passive keyless entry, extending leadership in automotive car access

Outlook – Q1 2016

• In light of the company's pending acquisition by Microchip, Atmel will no longer be providing forward-looking guidance.

Non-GAAP Metrics
Non-GAAP net income excludes share-based compensation expense, loss from manufacturing facility damage and shutdown, loss (gain) related to foundry arrangements, fair value adjustments to inventory from businesses acquired, French building underutilization and other charges (credits), loss from the impairment of manufacturing assets related to the XSense business in 2014 and operating results of the exited XSense business for 2015, merger related expenses, acquisition-related charges, restructuring (credits) charges, recovery of receivables from foundry suppliers, loss (gain) on sale of assets, interest income from sale of assets, gain on sale of investments in privately-held companies, write-down of investments in privately-held companies, non-GAAP tax adjustments, as well as net income attributable to noncontrolling interest.  A reconciliation of GAAP results to non-GAAP results is included following the financial statements below.

Conference Call
Atmel will not hold a conference call due to its pending acquisition by Microchip.

About Atmel
Atmel is a worldwide leader in the design and manufacture of microcontrollers, capacitive touch solutions, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel is able to provide the electronics industry with intelligent and connected solutions focused on the industrial, automotive, consumer, communications, and computing  markets.

©2016 Atmel Corporation. Atmel®, Atmel logo and combinations thereof, Enabling Unlimited Possibilities®, and others are registered trademarks or trademarks of Atmel Corporation in the U.S. and other countries. Other terms and product names may be trademarks of others.

Safe Harbor for Forward-Looking Statements
This announcement contains, or may contain, "forward-looking statements" in relation to the pending merger transaction between Microchip and Atmel, as well as other future events and their potential effects on Atmel that are subject to risks and uncertainties. Generally, the words "will," "would," "continue," "believes," "intends" or similar expressions identify forward-looking statements.

These forward-looking statements are based upon the current beliefs and expectations of the management of Atmel and involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Atmel's ability to control or estimate precisely. Those factors include (1) the outcome of any legal proceedings that could be instituted against Atmel or its directors related to the proposed merger agreement with Microchip; (2) uncertainty as to the future profitability of any businesses acquired by Microchip, and delays in the realization of, or the failure to realize, any accretion from any other acquisition transactions by Microchip; (3) the ability to obtain governmental and regulatory approvals of the proposed merger between Atmel and Microchip; (4) the possibility that the proposed merger between Atmel and Microchip does not close when expected or at all, or that the parties, in order to achieve governmental and regulatory approvals, may be required to modify aspects of the proposed merger or the unsolicited proposal or to accept conditions that could adversely affect the combined company or the expected benefits of the proposed merger or the unsolicited proposal; (5) the possibility that other competing offers or acquisition proposals will be made; (6) the inherent uncertainty associated with financial projections; (7) the ability to realize the expected synergies or savings from the proposed merger or the unsolicited proposal in the amounts or in the timeframe anticipated; (8) the potential harm to customer, supplier, employee and other relationships caused by the announcement or closing of the proposed merger or the unsolicited proposal; (9) general global macroeconomic and geo-political conditions; (10) changes in foreign exchange rates, including changes in the exchange rate between the Euro and the U.S. dollar; (11) business interruptions, natural disasters or terrorist acts; (12) the ability to integrate Atmel's businesses into those of Microchip in a timely and cost-efficient manner; (13) the development of the markets for Atmel's and Microchip's products; (14) the combined company's ability to develop and market products containing the respective technologies of Atmel and Microchip in a timely and cost-effective manner; (15) the cyclical nature of the semiconductor industry; (16) an economic downturn in the semiconductor and telecommunications markets; (17) the inability to realize the anticipated benefits of transactions related to the proposed merger, other acquisitions, restructuring activities, including in connection with the proposed merger, or other initiatives in a timely manner or at all; (18) consolidation occurring within the semiconductor industry; (19) unanticipated costs and expenses or the inability to identify expenses which can be eliminated; (20) disruptions in the availability of raw materials; (21) compliance with U.S. and international laws and regulations by the combined company and its distributors; (22) dependence on key personnel; (23) the combined company's ability to protect intellectual property rights; (24) litigation (including intellectual property litigation in which the combined company may be involved or in which customers of the combined company may be involved, especially in the mobile device sector), and the possible unfavorable results of legal proceedings; (25) the market price or increased volatility of Microchip's  common stock (if the merger is completed); and (26) other risks and uncertainties, including those detailed from time to time in Atmel's periodic reports and other filings with the SEC or other regulatory authorities, including Atmel's Annual Report on Form 10-K for the fiscal year ended December 31, 2015.

Atmel cannot give any assurance that such forward-looking statements will prove to be correct. The reader is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this announcement. Neither Atmel nor any other person undertakes any obligation to update or revise publicly any of the forward-looking statements set out herein, whether as a result of new information, future events or otherwise, except to the extent legally required.