SAN FRANCISCO—Chip vendor Atmel Corp. Wednesday (Feb. 8) reported fourth quarter 2011 sales and set a first quarter sales target that both fell short of analysts' expectations.
Atmel (San Jose, Calif.) reported fourth quarter sales of $383.6 million, down 20 percent from the previous quarter and down 16 percent compared with the year-ago quarter. The company posted a net income in accordance with generally accepted accounting principles (GAAP) of $32.9 million, or 7 cents per diluted share, down from a net income of $116.7 million, or 25 cents per share, in the third quarter (including a $33.4 million gain from the sale of the company's corporate headquarters) and $223.1 million, or 47 cents per share, in the fourth quarter of 2010 (which included $118.1 million from releasing reserves for deferred tax assets).
On a non-GAAP basis, excluding charges, Atmel reported a fourth quarter net income of $67.5 million, or 14 cents per diluted share, down from $124 million in the previous quarter and $119.2 million in the year-ago quarter.
Atmel's fourth quarter sales came up short of consensus analysts' expectations of $388 million, according to Yahoo Finance. The company's non-GAAP net income for the quarter beat analysts' views of 8 cents per share.
For the full year 2011, Atmel reported sales of $1.8 billion, up 10 percent from 2010. The company reported a net income for the year of $315 million, or 68 cents per diluted share, down 26 percent from 2010. Adjusting for the divestiture of its smart card business at the end of the third quarter of 2010, full year 2011 revenue increased 15 percent from 2010, Atmel said.
"After 10 consecutive quarters of sequential revenue growth and substantially faster growth in our semiconductor peers, the industry slowdown that began the second half of 2011 adversely impacted Atmel's fourth quarter results," said Steve Laub, Atmel’s president and CEO, in a conference call with analysts following the quarterly report.
Atmel said it expects revenue for the first quarter of this year to decline 6 to 11 percent to between $341.4 million and $360.6 million. Analysts had been expecting Atmel to report first quarter sales of more than $386 million, according to Yahoo Finance.