Atmel Corp. said any perceived weakness in the European PC market and continued slide in the value of the Euro will not have any impact on the company's financial results.
In a statement today, the non-volatile-memory supplier attempted to distance itself from last week's warning by Intel Corp. that its third quarter results will fall below expectations due to sluggish PC sales in Europe. San Jose-based Atmel also emphasized that its sales will not be affected by the weak Euro because a large portion of its revenue on the continent are denominated in U.S. dollar.
Recent statements by some technology companies indicating a possible revenue shortfall and an almost 30% decline in the value of the Euro since its launch earlier this year have sparked concerns that consumer product retailers and some electronics companies may be witnessing declining revenue growth. This development is forcing companies like Atmel to issue statements clarifying their exposure to the Euro and the PC market.
"We believe that Atmel's large amount of U.S. dollar-based sales and Euro-based costs act as a natural hedge against fluctuations in the value of the Euro and the U.S. dollar," said George Perlegos, Atmel's president and chief executive, in a statement. "Any speculation concerning weakness in the PC sector does not translate into a material adverse impact to
Atmel's near-term financial results."
According to Perlegos, demand for Atmel's products extend well beyond the PC market. The company's other end-markets continue to demonstrate exceptional strength, he said."
Atmel has four manufacturing sites in Europe with most of the costs at the plants incurred in Euro while sales are recorded in dollars. This translates into a "lower U.S. dollar cost to Atmel," the company said.