EX-99.1 2 ac1948ex991.txt Exhibit 99.1 ATMEL REPORTS FINANCIAL RESULTS FOR 2004 AND THE FOURTH QUARTER ANNUAL REVENUE GROWS 24% AND GROSS MARGIN IMPROVES BY OVER 5 POINTS IN 2004 SAN JOSE, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Atmel Corporation (Nasdaq: ATML), a worldwide leader in the development, fabrication and sale of advanced semiconductors, today announced financial results for the fourth quarter and year ended December 31, 2004. Revenues for the fourth quarter of 2004 totaled $408,287,000, versus $413,237,000 in the third quarter of 2004 and $380,498,000 in the fourth quarter of 2003. Operating income for the fourth quarter of 2004 was $2,876,000. Net loss for the fourth quarter of 2004 totaled $7,085,000 or $0.01 per share. These results compare to a net loss of $18,009,000 or $0.04 per share for the third quarter of 2004, as well as a net income of $10,996,000 or $0.02 per share for the fourth quarter of 2003. Revenues for the full year 2004 totaled $1,649,722,000, versus $1,330,635,000 in 2003. Operating income for the full year was $47,007,000. Net loss for the full year 2004 improved to $2,434,000 or $0.01 per share, compared to a net loss of $117,996,000 or $0.25 per share in 2003. "In 2004, we grew revenue by 24% and improved our gross margins 5 and a half points by achieving manufacturing efficiencies and by selling a richer product mix," stated George Perlegos, Atmel's President and Chief Executive Officer. "We were particularly pleased that the revenue growth for the year came from all of our business units. We believe that our approach of utilizing our expertise in microcontrollers, memory and RF to provide our customers with complete system solutions has positioned us well for the years to come. "While the ASIC revenue was down 2% sequentially in the fourth quarter, growth for the entire year was 23%. Smart card ICs continued to lead the way in having both a record revenue quarter and year, while maintaining strong design win activity. "During the fourth quarter, our microcontroller sales declined about 3% from Q3, while the growth for 2004 was approximately 24%. Our proprietary AVR product outpaced the market during 2004 by growing by more than 40%, over twice the pace of the 8-bit microcontroller industry. "Sales in our RF and Automotive business unit in the fourth quarter were up 5% sequentially and 24% year over year. The main reason for the growth during the quarter was continued increases in our production of RF BiCMOS products for CDMA phones. "During the fourth quarter, our Non Volatile Memory business declined 3% sequentially, while it grew 25% in 2004. Our serial EEPROM products were impacted during the second half of the year by inventory in Asia, although we believe that we are now returning to more normal levels. Additionally, our flash products continued to experience pricing pressure, while our DataFlash product continued to gain traction in the PC peripheral space," concluded Mr. Perlegos. Outlook The Company anticipates that for the first quarter of 2005, revenues should be about flat, slightly better than normal seasonal patterns. Additionally, R&D should be approximately $69-71 million, while SG&A should be between $48-50 million. Finally, gross margins should be down one to two points during the first quarter, primarily due to the weakening dollar. Net interest expense for the quarter should be approximately $5.5 million for the first quarter, while income taxes should be approximately $5 million. We anticipate that depreciation and amortization will be approximately $78-79 million. For the full year of 2005, the Company anticipates being able to grow revenue in the 5-9 percentage range. Gross margins should improve during the year, beginning in the second quarter. Teleconference Atmel will hold a teleconference for the financial community at 3:00 p.m. Pacific Time today to discuss third 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 800-374-0405, and using the passcode 3308437. A webcast replay will be available for one year after the teleconference at http://www.atmel.com . Atmel will also provide a telephone recording of the teleconference, which will be available shortly after the completion of the call. Interested parties may listen to the playback of the teleconference by calling the following number: 800-374-2441, and using the passcode 3308437, within 48 hours of completion of the call. 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 first quarter and 2005 operating results, including revenue, operating costs, gross margins, operating expenses demand levels, new product shipments and market conditions. 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, and other risks detailed from time to time in Atmel's SEC reports and filings, including our Form 10-K, filed on March 15, 2004 and subsequent Form 10-Q reports. Contact: Steven Horwitz, Director, Investor Relations: 408-487-2677 Atmel Corporation Condensed Consolidated Statement of Operations (In thousands, except per-share data) (Unaudited)
Three Months Ended Twelve Months Ended December 31 December 31 ------------------------------ ------------------------------ 2004 2003 2004 2003 ------------- ------------- ------------- ------------- Net revenues: $ 408,287 $ 380,498 $ 1,649,722 $ 1,330,635 Expenses: Cost of sales 294,718 271,824 1,180,670 1,024,399 Research and development 67,764 55,684 247,447 247,636 Selling, general and administrative 42,929 36,055 174,598 138,804 Restructuring and asset impairment -- 27,632 -- 27,272 Total expenses 405,411 391,195 1,602,715 1,438,111 Operating income (loss) 2,876 (10,697) 47,007 (107,476) Proceeds from legal award -- 37,850 -- 37,850 Interest and other expense, net (7,659) (11,216) (21,310) (34,425) Income (loss) before taxes (4,783) 15,937 25,697 (104,051) Provision for income taxes (2,302) (4,941) (28,131) (13,945) Net income (loss) $ (7,085) $ 10,996 $ (2,434) $ (117,996) Basic net income (loss) per share $ (0.01) $ 0.02 $ (0.01) $ (0.25) Diluted net income (loss) per share $ (0.01) $ 0.02 $ (0.01) $ (0.25) Shares used in basic net income (loss) per share calculation 477,667 472,471 476,063 469,869 Shares used in diluted net income (loss) per share calculation 477,667 482,797 476,063 469,869
Atmel Corporation Condensed Consolidated Balance Sheets (In thousands) (Unaudited) December 31, December 31, 2004 2003 ------------- ------------- Current assets: Cash and cash equivalents $ 346,350 $ 385,887 Short-term investments 58,858 45,167 Accounts receivable, net 228,909 215,303 Inventories 346,589 268,074 Other current assets 87,931 54,198 Total current assets 1,068,637 968,629 Fixed assets, net 1,204,852 1,121,367 Other assets 47,346 37,859 Restricted cash -- 26,835 Total assets $ 2,320,835 $ 2,154,690 Current liabilities: Current portion of long-term debt $ 141,383 $ 155,299 Trade accounts payable 245,240 144,476 Accrued liabilities and other 217,839 232,251 Deferred income on shipments to distributors 18,124 19,160 Total current liabilities 622,586 551,186 Convertible notes 213,648 203,849 Long-term debt less current portion 110,796 154,182 Other long-term liabilities 262,875 227,356 Total liabilities 1,209,905 1,136,573 Stockholders' equity: 1,110,930 1,018,117 Total liabilities and stockholders' equity $ 2,320,835 $ 2,154,690 SOURCE Atmel Corporation -0- 02/01/2005 /CONTACT: Steven Horwitz, Director, Investor Relations, of Atmel Corporation, +1-408-487-2677/ /Web site: http://www.atmel.com / _