Actionable news
All posts from Actionable news
Actionable news in ATML: Atmel Corporation,

Atmel: N E W S R E L E A S E

The following excerpt is from the company's SEC filing.

Atmel Reports Third Quarter 2015 Financial Results

-- Atmel® Corporation (Nasdaq: ATML), a leader in microcontroller and touch solutions, today announced financial results for its third quarter ended September 30, 2015.


Q3 2015

Q2 2015

Q3 2014

Net revenue

Gross margin

Operating margin

Net (loss) income

Diluted EPS

(In millions, except earnings per share data and percentages)

Revenue for the third quarter of 2015 was $286.5 million, a 6% decrease compared to $306.4 million for the se cond quarter of 2015, and 23% lower compared to $374.5 million for the third quarter of 2014.

GAAP gross margin was 46.5% in the third quarter of 2015 compared with 46.1% in the second quarter of 2015, and 47.2% in the third quarter of 2014.

Non-GAAP gross margin was 48.0% in the third quarter of 2015 compared to 47.0% in both the immediately preceding quarter and third quarter of 2014. Refer to the non-GAAP reconciliation table included in this release for more details.

GAAP net loss totaled $(0.6) million or $(0.00) per diluted share for the third quarter of 2015, principally as a result of a $11.1 million tax provision related to a higher GAAP tax rate and $7.8 million of merger related expenses. This compares to net income of $6.3 million or $0.02 per diluted share for the second quarter of 2015 and net income of $17.3 million or $0.04 per diluted share for the third quarter of 2014.

Non-GAAP net income for the third quarter of 2015 totaled $34.7 million or $0.08 per diluted share, compared to non-GAAP net income of $33.7 million or $0.08 per diluted share in the second quarter of 2015, and $49.8 million or $0.12 per diluted share for the third quarter of 2014. Refer to the non-GAAP reconciliation table included in this release for more details.

“In a softer industry environment, we are pleased that Atmel’s core microcontrollers grew sequentially during the third quarter led by double digit sequential growth in our 32-bit products,” said Steve Laub, Atmel's President and Chief Executive Officer. “We are excited about the pending combination with Dialog Semiconductor and the synergies and value this creates for our customers, employees, and stockholders.”

Cash provided by operations totaled $30.6 million

for the third quarter of 2015, compared to $25.9 million for the second quarter

and $43.9 million for the third quarter of 2014. Combined cash balances (cash and cash equivalents plus short-term investments) totaled $218.7 million at the end of the third quarter of 2015, an increase of $22.4 million from the immediately preceding quarter resulting principally from the cash generated from operations, a reduction in inventories, lower receivables, lower capital expenditures, and $11.5 million proceeds from the sale of the Heilbronn, Germany facility, offset partially by $4.7 million of capital expenditures and the payment of a $16.8 million dividend during the third quarter.

Company Highlights

Dialog Semiconductor to acquire Atmel in a cash and stock transaction, expected to close during the first quarter of 2016

Sampling Atmel | SMART ARM® Cortex® M0+ based microcontrollers featuring ultra-low power capacitive touch with a segment LCD controller, ideal for IoT, industrial and medical applications

Launched new family of Atmel | SMART ARM® Cortex® A5-based microprocessors delivering world’s lowest power MPU with leading security features for IoT, wearables and industrial applications

Shipping world’s lowest power and smallest Bluetooth Smart (BLE) solution, the BTLC1000, for the rapidly growing IoT and wearables markets

Non-mobile touch revenue achieved 50% of quarterly maXTouch revenue led by continued strong double digit sequential growth of sales to automotive customers

Expanded industry leading automotive qualified series of capacitive touch controllers with the maXTouch® 641T, industry’s first auto-qualified self and mutual capacitance controllers

Announced collaboration with Intel Corporation on Enhanced Privacy ID (Intel® EPID) technology on all Atmel SmartConnect wireless solutions ensuring a more secure platform for developing next-generation IoT solutions

Achieved prestigious Golden Unit status for the BitCloud ZigBee PRO Software Development Kit providing enhanced interoperability for the latest smart home applications

Launched Atmel Studio 7, our next generation integrated design tools which supports both Atmel 32-bit ARM® Cortex® -M series microcontrollers and Atmel AVR® based MCUs and bridges the gap between the Arduino MakerSpace and the commercial MarketPlace

Unveiled Atmel START, world’s first intuitive web-based platform for software configuration and code generation for the IoT marketplace

Stock Repurchase

Atmel did not repurchase any shares during the third quarter 2015 and does not expect to make any further repurchases pending the completion of its acquisition by Dialog

Dialog Transaction Update

All required anti-trust filings (U.S., Germany and Romania) have been submitted.

U.S. CFIUS filing has been preliminarily submitted.

Dialog has posted to its shareholders the Offering Circular through which it is seeking authorization to issue Dialog shares in connection with the merger. The Dialog General Meeting is scheduled for November 19, 2015. As previously disclosed, Dialog shareholder transaction approval requires the affirmative vote of the holders of a majority of Dialog shares voting in person or by proxy at the Dialog General Meeting.

Outlook - Q4 2015

Revenue between $266 and $286 million

Non-GAAP gross margin between 47.0 and 48.0%

Non-GAAP operating expenses between $98 and $102 million


Non-GAAP net income excludes share-based compensation expense, (gain) loss from manufacturing facility damage and shutdown, loss (gain) related to foundry arrangements, fair value adjustments to inventory from businesses acquired, French building underutilization and other (credits), operating results of the exited XSense business for 2015, merger related expenses associated with the Dialog transaction, acquisition-related charges, restructuring (credits) charges, loss (gain) on sale of assets, gain on sale of investments in privately-held companies, write-down of investments in privately-held companies, non-GAAP tax adjustments, as well as net (loss) income attributable to noncontrolling interest. A reconciliation of GAAP results to non-GAAP results is included following the financial statements below.

Conference Call

Atmel will not hold a conference call due to its pending acquisition by Dialog.

About Atmel

Atmel is a worldwide leader in the design and manufacture of microcontrollers, capacitive touch solutions, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel is able to provide the electronics industry with intelligent and connected solutions focused on the industrial, automotive, consumer, communications, and computing markets.

©2015 Atmel Corporation. Atmel®, Atmel logo and combinations thereof, Enabling Unlimited Possibilities®, and others are registered trademarks or trademarks of Atmel Corporation in the U.S. and other countries. Other terms and product names may be trademarks of others.

Safe Harbor for Forward-Looking Statements

Statements in this release, including those regarding Atmel's financial outlook for the fourth quarter of 2015, long-term forecasts, business outlook, expectations, new product launches, and beliefs, among others, are forward-looking statements that involve risks and uncertainties. These statements may include comments about our future operating and financial performance, including our outlook for 2015 and beyond, our expectations regarding market share and product revenue growth, and Atmel's strategies. All forward-looking statements included in this release are based upon information available to Atmel as of the date of this release, including our fourth quarter 2015 outlook, which may change. These statements are not guarantees of future performance and

actual results could differ materially from our current expectations. The pending acquisition of Atmel by Dialog may have significant effects on Atmel, including, among others, the deferral, delay or cancellation of customer orders and a significant diversion of management and employee attention from ordinary course matters. Other factors that could cause or contribute to such differences include, without limitation, general global macroeconomic and geo-political conditions; the cyclical nature of the semiconductor industry; the inability to realize the anticipated benefits of...