EX-99.1 2 f74353ex99-1.txt EXHIBIT 99.1 1 EXHIBIT 99.1 THURSDAY JULY 19, 4:31 PM EASTERN TIME PRESS RELEASE ATMEL REPORTS SECOND QUARTER 2001 FINANCIAL RESULTS COMPANY TO IMPLEMENT AGGRESSIVE COST REDUCTION PROGRAM SAN JOSE, Calif.--(BUSINESS WIRE)--July 19, 2001--Atmel Corporation (Nasdaq:ATML - news) today announced financial results for the second quarter ended June 30, 2001. Revenues for the second quarter of 2001 totaled $366,996,000, down 23% from a year ago, and down 30% sequentially. Net income for the second quarter of 2001 was approximately breakeven, totaling a net loss of $31,000, or $0.00 per share. In the previous quarter, the Company reported net income of $56,014,000 or $0.12 per share. In last year's second quarter, the Company's net income was $61,325,000 or $0.13 per share. George Perlegos, Atmel's President and Chief Executive Officer, stated, "Business conditions at the end of the past quarter were very difficult. As we indicated in our previous guidance, sales were impacted by continued weakness in the Flash market, the European Smart Card business, and our North American distribution business. During the quarter we implemented several cost reduction measures, and intend to continue our strong focus on maintaining tight expense control. Atmel is fully committed to remaining profitable. We will not hesitate to take the necessary cost reduction actions to align our costs with the market environment." Perlegos concluded, "As we look ahead, we are accelerating our strategy of investing in new technologies and products. We believe this will be the key to success in the next cycle. Based on information available to us today, we believe that our business should bottom out in the third quarter, with a return to growth thereafter." Teleconference Atmel will hold a teleconference for the financial community at 3:00 PM Pacific Daylight Time today to discuss first quarter financial results. Atmel will provide a real-time audio broadcast of the teleconference in the Investor Relations page of its website at http://www.atmel.com. Atmel will also provide real-time access to the teleconference by dialing 212-699-6810, passcode 356070. The webcast replay will be available for two weeks after the teleconference at http://www.atmel.com. 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 passcode 356070. 2 About Atmel 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 http://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. -2- 3 Atmel Corporation Condensed Consolidated Balance Sheets (In thousands)
June 30, December 31, 2001 2001 ------------ ------------ (Unaudited) Current assets: Cash and cash equivalents $ 538,598 $ 448,281 Short-term investments 164,921 514,263 Accounts receivable, net 275,663 392,384 Inventories 327,999 289,054 Other current assets 144,620 148,212 ---------- ---------- Total current assets 1,451,801 1,792,194 Fixed assets, net 2,136,456 1,927,817 Other assets 66,093 53,876 Cash-restricted 51,000 51,000 ---------- ---------- Total assets $3,705,350 $3,824,887 ========== ========== Current liabilities: Current portion of long-term debt $ 157,806 $ 173,866 Trade accounts payable 234,280 655,450 Accrued liabilities and other 442,144 326,352 Deferred income on shipments to distributors 31,941 33,703 ---------- ---------- Total current liabilities 866,171 1,189,371 Convertible notes 337,393 132,792 Long-term debt less current portion 512,054 535,711 Other long-term liabilities 70,846 72,156 ---------- ---------- Total liabilities 1,786,464 1,930,030 Stockholders' equity: Common stock 1,141,455 1,173,409 Retained earnings 777,431 721,448 ---------- ---------- Total stockholders' equity 1,918,886 1,894,857 Total liabilities and stockholders' equity $3,705,350 $3,824,887 ========== ==========
-3- 4 Atmel Corporation Condensed Consolidated Income Statements (In thousands, except per-share data) (Unaudited)
Three Months Ended Six Months Ended June 30 June 30 2001 2000 2001 2000 --------- --------- --------- --------- Net revenues: $ 366,996 $ 478,758 $ 892,940 $ 907,944 Expenses: Cost of sales 249,942 270,707 564,692 523,429 Research and development 69,274 62,616 138,469 124,529 Selling, general and administrative 45,293 52,433 100,442 97,543 --------- --------- --------- --------- Total expenses 364,509 385,756 803,603 745,501 --------- --------- --------- --------- Operating income 2,487 93,002 89,337 162,443 Other income (expense), net (2,536) 2,818 (1,864) (1,230) --------- --------- --------- --------- Income before taxes (49) 95,820 87,473 161,213 Income tax (18) (34,495) 31,490 (58,036) --------- --------- --------- --------- Net income $ (31) $ 61,325 $ 55,983 103,177 ========= ========= ========= ========= Basic net income per share $ 0.00 $ 0.14 $ 0.12 $ 0.24 Diluted net income per share $ 0.00 $ 0.13 $ 0.12 $ 0.23 Shares used in basic net income (loss) per-share 464,121 449,166 463,761 439,584 calculation Shares used in diluted net income (loss) loss per-share calculation 474,767 482,894 74,875 473,902
---------------- Contact: Atmel Corporation Donald Colvin, 408/436-4360 -4-