EX-99 3 a4378537ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Atmel Announces First Quarter 2003 Financial Results SAN JOSE, Calif.--(BUSINESS WIRE)--April 17, 2003--Atmel Corporation (Nasdaq: ATML), a worldwide leader in the development, fabrication and sale of advanced semiconductors, today announced financial results for the first quarter ended March 31, 2003. Revenues for the first quarter of 2003 totaled $296,478,000, versus $304,631,000 in the fourth quarter of 2002 and $275,773,000 in the first quarter of 2002. This represents a sequential decline in revenues of 3% and year over year growth of 8%. Net loss for the first quarter of 2003 totaled $53,120,000 or $0.11 per share. The net loss for the first quarter included an expense of $10 million, or $0.02 per share, related to a patent licensing agreement with IBM. In the fourth quarter of 2002, the Company reported a net loss of $16,207,000 or $0.03 per share. The net loss for the fourth quarter 2002 included a positive $0.03 per share related to a gain on early retirement of debt offset by restructuring charges. In the first quarter of 2002, the Company's net loss was $44,333,000 or $0.09 per share. Cash and cash equivalents and short term investments as of March 31, 2003 were approximately $434 million, representing a decrease of $12.1 million from December 31,2002. During the same period, total debt was reduced by $25.8 million. The Company also has $23.5 million in restricted cash. Additionally, accounts receivable and inventory decreased by $7.3 million and $8.8 million respectively during the quarter. "First quarter revenues were slightly lower than expected, primarily due to pricing pressure in the serial EEPROM market," stated George Perlegos, Atmel's President and Chief Executive Officer. "However, we were very pleased with the performance of our ASIC business, specifically smart cards, which experienced healthy growth and received significant design wins, including the silicon platform for the next generation of chip-based bank cards." Perlegos added, "During the quarter, we shipped a record number of our proprietary AVR microcontrollers and began seeing signs that this market is improving, as indicated by our current and potential customers' purchases of in-circuit emulators and starter kits. "Additionally, we remain focused on adding to our significant intellectual property and expertise to help customers offer smaller, portable, wireless, secure, cost-effective and complete system solutions. During the quarter, we introduced a single-chip dual Ethernet 802.11b wireless LAN with advanced security features, established compliance with the Trusted Computing Group, a newly formed organization driving the standards of security, and introduced the ARM-9 microcontroller architecture geared toward enhanced performance applications in our ASIC group," concluded Perlegos. Outlook The Company believes that in the second quarter of 2003, revenues should grow 2-4% sequentially, reaching about $302-308 million. Additionally, R&D should be approximately $60-63 million, while SG&A should remain between $30-33 million. Finally, gross margins should remain approximately 22% in the second quarter. Teleconference Atmel will hold a teleconference 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 from the Investor Relations page of its website at http://www.atmel.com. Investors may access the live teleconference by dialing 212-329-1452, passcode 532535. A webcast replay will be available for twelve months after the teleconference at http://www.atmel.com. Atmel will also provide a telephone recording of the teleconference, which will be available for 48 hours, starting approximately at 6:00 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 532535. About Atmel Founded in 1984, Atmel Corporation is headquartered in San Jose, California, with manufacturing facilities in North America and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed-signal, nonvolatile memory and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS, BiCMOS, SiGe, and high-voltage BCDMOS process technologies. Note to Editors: All rights reserved. Atmel and the Atmel logo are the registered trademarks of Atmel Corporation or its subsidiaries. Other terms and product names may be the trademarks of others. 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 Atmel's expected revenue, operating costs and gross margins for the second quarter of 2003, new product shipments and market position. 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 statement. 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 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 and/or company 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, including our Form 10-K, filed on March 24, 2003 and subsequent Form 10-Q reports. Atmel Corporation Condensed Consolidated Income Statements (In thousands, except per-share data) (Unaudited) Three Months Ended March 31 2003 2002 --------------------------- Net revenues: $296,478 $275,773 Expenses: Cost of sales 232,400 223,469 Research and development 64,174 63,174 Selling, general and administrative 31,573 30,305 Total expenses 328,147 316,948 -------------------------------- Operating loss (31,669) (41,175) Interest and other income (expense), net (18,451) (8,084) -------------------------------- Loss before taxes (50,120) (49,259) Income tax benefit (provision) (3,000) 4,926 -------------------------------- Net loss ($53,120) ($44,333) ================================ Basic net loss per share ($0.11) ($0.09) Diluted net loss per share ($0.11) ($0.09) Shares used in basic net loss per- share calculation 467,473 466,782 Shares used in diluted net loss per- share calculation 467,473 466,782 Atmel Corporation Condensed Consolidated Balance Sheets (In thousands) (Unaudited) March 31, 2003 December 31, 2002 --------------------------------- Current assets: Cash and cash equivalents $310,975 $346,371 Short-term investments 122,769 99,431 Accounts receivable, net 187,848 195,182 Inventories 267,247 276,069 Other current assets 125,216 107,672 --------------------------------- Total current assets 1,014,055 1,024,725 Fixed assets, net 1,026,973 1,049,031 Fixed assets held for sale 170,694 174,651 Other assets 45,569 32,025 Restricted cash 23,450 22,127 --------------------------------- Total assets $2,280,741 $2,302,559 ================================= Current liabilities: Current portion of long-term debt $161,596 $163,444 Convertible notes 134,290 132,485 Trade accounts payable 104,286 95,002 Accrued liabilities and other 296,744 295,725 Deferred income on shipments to distributors 20,294 20,791 --------------------------------- Total current liabilities 717,210 707,447 Convertible notes 196,546 194,248 Long-term debt less current portion 231,202 259,261 Other long-term liabilities 186,462 172,460 --------------------------------- Total liabilities 1,331,420 1,333,416 Stockholders' equity: Common stock 1,341,137 1,307,839 Accumulated Deficit (391,816) (338,696) --------------------------------- Total stockholders' equity 949,321 969,143 Total liabilities and stockholders' equity $2,280,741 $2,302,559 ================================= CONTACT: Atmel Corporation Bob Avery, 408/451-4841 (Interim CFO) Steven Horwitz, 408/487-2677 (Director, IR)