SAN FRANCISCO Buoyed by strong demand for its smart card ICs, Atmel Corp. reported first quarter revenue totaling $419.8 million, up from $408.3 million in the fourth quarter of 2004 and $407.4 million in the first quarter of 2004.
Net loss for the first quarter of 2005, however, totaled $43 million, or 9 cents per share, up significantly from $7.1 million, or 1 cent per share for the fourth quarter of 2004, and $11 million, or 2 cents per share, for the first quarter of 2004.
In a statement issued by the company Tuesday (April 26), George Perlegos, Atmel president and CEO, said demand for Atmel products strengthened during the year, but that gross margins came under pressure due to manufacturing difficulties. "We are now taking steps to improve our overall cost structure in such a way that allows our increasing demand to more fully yield increased profits," Perlegos said.
Perlegos said smart card ICs were the main contributor to Atmel's revenue growth and that the company is working diligently to improve the yields smart card IC wafers and increase the production of smart card ICs at the 180 nm node.
Atmel said it anticipates flat-to-slightly-increased revenue for the second quarter of 2005.