San Jose, Calif.--July 16, 1998--Atmel Corp. (San Jose) reported second quarter revenues of $288,205,000, an increase of 28 percent versus the second quarter of 1997. As previously announced, included in the results is a $70,000,000 pre-tax restructuring charge to cover the costs of a writedown of assets associated with older process technologies and a ten percent workforce reduction. Consequently, the Company recorded a net loss for the quarter of $44,468,000, or $0.45 per share. Excluding the restructuring charge, net income would have been approximately breakeven for the quarter. Also included in the second quarter results is the first full quarter of operation of the Temic Semiconductor Group (Temic), which Atmel acquired in March 1998.
In last year's second quarter, the Company's revenues were $224,936,000 and net income was $27,408,000 or $0.27 per share. Revenues for the first quarter of 1998 were $260,392,000. Reflecting the retroactive adjustment of the previously announced writeoff of in-process research and development expenses associated with the Temic acquisition, the first quarter results were restated as a net loss of $26,046,000 or $0.26 per share. Excluding the in-process R&D charge, which totaled $32,241,000, first quarter net income was $17,727,000 or $0.18 per share.
Microcontroller unit shipments increased during the quarter, led by strong customer demand in the consumer electronics market.ASIC product sales increased led by sales in the telecomm end market.Unit shipments of Flash products increased quarter to quarter, driven primarily by higher sales of the 49 series.Serial EEPROM unit shipments increased during the quarter.EPROM unit shipments declined significantly versus the first quarter, as did ASPs, as customers transitioned to Flash and competition drove down pricing.The gross margin percentage of 32 percent declined 4.9 percent from the first quarter due to excessive pricing pressure on commodity products such as EPROM.Temic's revenue rose 10 percent from first quarter to second quarter on a standalone basis.
San Jose, CA
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