SAN FRANCISCO Bouncing back from consecutive quarterly losses, semiconductor vendor Atmel Corp. Tuesday (Jan. 31) reported a fourth quarter net income of $53.8 million, a substantial improvement over net losses for both the year-ago and prior sequential quarters.
Net income of $53.8 million equates to roughly 11 cents per diluted share.
Atmel (San Jose, Calif.) had reported a net loss of $7.1 million for the fourth quarter of 2004 and a net loss of $1.1 million for the third quarter of 2005.
Atmel posted fourth quarter revenue of $425.2 million, up 4.1 percent from the $408.3 million that the company reported for the fourth quarter of 2004 and up 1.6 percent from the $418.6 million it reported for the third quarter of 2005.
For the full year, Atmel reported 2005 revenue of $1.68 billion, up 1.6 percent from the $1.65 billion the company posted in 2004. Net loss for the full year was $32.9 million, or 7 cents per share, substantially greater than the net loss of $2.4 million that the company posted for 2004.
Atmel said it recorded restructuring and impairment charges of $28.2 million in the fourth quarter, which primarily reflects the loss on the sale of its manufacturing facility in Nantes, France. These non-recurring charges were offset by a $43.1 million November 2005 arbitration award against LM Ericsson Telefon AB, a $5.8 million gain on the sale of a private equity investment and an income tax benefit of $7.5 million during the quarter, Atmel said.
"The second half of 2005 was a turnaround for Atmel," said George Perlegos, Atmel president and CEO, in a statement. "We are pleased that we achieved revenue growth while reducing products and expenses that are not core to our business. We continued to shift the company's product focus towards the Microcontroller and RF businesses with an added emphasis on security and encryption. "
Atmel said it anticipates revenue for the current quarter to be flat to down 2 percent sequentially, reflecting "normal seasonality."