Safe Harbor for Forward-Looking Statements
Information in this release regarding Atmel's forecasts, outlook, expectations and beliefs are forward-looking statements that involve risks and uncertainties. These statements include statements about future profit growth, our products, shareholder value and future operating and financial performance including first quarter 2009 revenues. All forward-looking statements included in this release are based upon information available to Atmel as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or Company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, the ability to realize the anticipated benefits of our recent strategic transactions, restructuring plans and other initiatives in a timely manner or at all, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, impact of Microchip's unsolicited acquisition proposal (including that it may seek to elect a slate of seven director representatives at Atmel's 2009 Annual Meeting of Stockholders) and the Company's response thereto, the market price of our common stock, unfavorable results of legal proceedings and other risks detailed from time to time in Atmel's SEC reports and filings, including our Form 10-K for the year ended December 31, 2007, filed on February 29, 2008, and our subsequent Form 10-Q reports. Atmel assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.
Investor Contact: Media Contact:
Robert Pursel Barrett Golden / Sharon Stern
Director of Investor Relations Joele Frank, Wilkinson Brimmer Katcher
408-487-2677 212-355-4449
Atmel Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
December 31, September 30, December 31,
2008 2008 2007
Current assets
Cash and cash equivalents $408,926 $394,231 $374,130
Short-term investments 31,707 26,702 55,817
Accounts receivable, net 184,698 220,978 209,189
Inventories 324,016 315,358 357,301
Current assets held for sale - 10,537 -
Prepaids and other
current assets 77,542 83,736 88,781
Total current assets 1,026,889 1,051,542 1,085,218
Fixed assets, net 383,107 407,024 579,566
Goodwill 51,010 58,005 -
Intangible assets, net 34,121 40,535 19,552
Non-current assets held
for sale - 2,357 -
Other assets 35,527 35,184 18,417
Total assets $1,530,654 $1,594,647 $1,702,753
Current liabilities
Current portion of
long-term debt $131,132 $131,383 $142,471
Trade accounts payable 116,392 109,976 191,856
Accrued and other liabilities 207,017 221,382 266,987
Liabilities held for sale - 5,368 -
Deferred margin on shipments
to distributors 41,512 39,237 19,708
Total current liabilities 496,053 507,346 621,022
Long-term debt less
current portion 13,909 15,304 20,408
Long-term liabilities held
for sale - 23,986 -
Other long-term liabilities 218,608 207,267 237,844
Total liabilities 728,570 753,903 879,274
Stockholders' equity 802,084 840,744 823,479
Total liabilities and
stockholders' equity $1,530,654 $1,594,647 $1,702,753
Atmel Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December September December December December
31, 30, 31, 31, 31,
2008 2008 2007 2008 2007
Net revenues $334,610 $400,008 $425,580 $1,566,763 $1,639,237
Operating
expenses
Cost of
revenues 201,659 241,999 275,962 976,223 1,059,006
Research and
development 61,859 63,856 71,867 260,310 272,041
Selling, general
and
administrative 77,163 63,898 58,353 273,196 242,811
Acquisition-
related charges 6,504 6,690 - 23,614 -
Charges for
grant repayments 254 291 275 718 1,464
Restructuring
charges 8,115 26,625 12,711 71,324 13,239
Gain on sale
of assets (2,706) - - (32,654) -
Asset impairment
charges
(recovery) - 7,969 - 7,969 (1,057)
Total operating
expenses 352,848 411,328 419,168 1,580,700 1,587,504
(Loss) income
from
operations (18,238) (11,320) 6,412 (13,937) 51,733
Interest and
other (expense)
income, net (2,590) 2,530 1,088 (6,306) 3,976
(Loss) income
before income
taxes (20,828) (8,790) 7,500 (20,243) 55,709
Income tax
(provision)
benefit (3,524) 4,052 (5,786) (6,966) (7,824)
Net (loss)
income $(24,352) $(4,738) $1,714 $(27,209) $47,885
Basic net
(loss)
income per
share:
Net (loss)
income $(0.05) $(0.01) $0.00 $(0.06) $0.10
Weighted-
average shares
used in basic
net (loss)
income per
share
calculations 448,524 447,013 446,003 4 46,504 477,213
Diluted net
(loss) income
per share:
Net (loss)
income $(0.05) $(0.01) $0.00 $(0.06) $0.10
Weighted-average
shares used in
diluted net
(loss) income
per share
calculations 448,524 447,013 449,136 446,504 481,737
Atmel Corporation
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December September December December December
31, 30, 31, 31, 31,
2008 2008 2007 2008 2007
GAAP net (loss)
income $(24,352) $(4,738) $1,714 $(27,209) $47,885
Special items:
Stock-based
compensation
expense 9,050 7,426 5,146 29,136 16,652
Acquisition-
related
charges 6,504 6,690 - 23,614 -
Charges for
grant
repayments 254 291 275 718 1,464
Restructuring
charges 8,115 26,625 12,711 71,324 13,239
Gain on sale
of assets (2,706) - - (32,654) -
Asset impairment
charges
(recovery) - 7,969 - 7,969 (1,057)
Pension benefit
related to
fab sale (4,267) - - (4,267) -
Distributor bad
debt expense 11,717 - - 11,717 -
Unsolicited M&A
expense 1,244 - - 1,244 -
Income tax effect
of non-GAAP
items (784) (1,653) (43) (3,595) (343)
Total special
items 29,127 47,348 18,089 105,206 29,955
Non-GAAP net
income $4,775 $42,610 $19,803 $77,997 $77,840
Diluted non-GAAP
net income
per share:
Net income $0.01 $0.09 $0.04 $0.17 $0.16
Non-GAAP
weighted-average
shares used in
diluted non-GAAP
net income per
share
calculations 466,901 462,277 452,243 460,804 482,998
Reconciliation of
GAAP to non-GAAP
shares used in
diluted income
per share
calculations: Three Months Ended Twelve Months Ended
December September December December December
31, 30, 31, 31, 31,
2008 2008 2007 2008 2007
Diluted weighted-
average shares
used in per
share calculations
- GAAP 448,524 447,013 449,136 446,504 481,737
Dilutive stock
awards 18,377 15,264 3,107 14,300 1,261
Diluted weighted-
average shares
used in per
share calculations
- non-GAAP 466,901 462,277 452,243 460,804 482,998
