SAN JOSE, Calif., July 28, 2015 /PRNewswire/
-- Atmel® Corporation (Nasdaq: ATML), a leader in
microcontroller and touch solutions, today announced financial
results for its second quarter ended June
30, 2015.
|
GAAP
|
|
Non-GAAP
|
|
Q2
2015
|
Q1
2015
|
Q2
2014
|
|
Q2
2015
|
Q1
2015
|
Q2
2014
|
Net
revenue
|
$ 306.4
|
$ 318.3
|
$ 355.5
|
|
$ 306.3
|
$ 316.9
|
$ 355.5
|
Gross
margin
|
46.1%
|
46.3%
|
45.4%
|
|
47.0%
|
47.6%
|
45.3%
|
Operating
margin
|
4.8%
|
6.5%
|
7.4%
|
|
11.6%
|
13.6%
|
11.5%
|
Net income
|
$
6.3
|
$ 16.5
|
$ 19.2
|
|
$
33.7
|
$ 45.1
|
$ 38.3
|
Diluted
EPS
|
$
0.02
|
$ 0.04
|
$ 0.05
|
|
$
0.08
|
$ 0.11
|
$ 0.09
|
|
(In millions,
except earnings per share data and percentages)
|
Revenue for the second quarter of 2015 was $306.4 million, a 4% decrease compared to
$318.3 million for the first quarter
of 2015, and 14% lower compared to $355.5
million for the second quarter of 2014. Non-GAAP
revenue for the second quarter of 2015 was $306.3 million.
GAAP gross margin was 46.1% in the second quarter of 2015
compared with 46.3% in the first quarter of 2015, and 45.4% in the
second quarter of 2014.
Non-GAAP gross margin was 47.0% in the second quarter of 2015
compared to 47.6% in the immediately preceding quarter and 45.3% in
the second quarter of 2014. Refer to the non-GAAP
reconciliation table included in this release for more details.
GAAP net income totaled $6.3
million or $0.02 per diluted
share for the second quarter of 2015. This compares to net
income of $16.5 million or
$0.04 per diluted share for the first
quarter of 2015 and net income of $19.2
million or $0.05 per diluted
share for the second quarter of 2014.
Non-GAAP net income for the second quarter of 2015 totaled
$33.7 million or $0.08 per diluted share, compared to non-GAAP net
income of $45.1 million or
$0.11 per diluted share in the first
quarter of 2015, and $38.3 million or
$0.09 per diluted share for the
second quarter of 2014. Refer to the non-GAAP reconciliation table
included in this release for more details.
"Last quarter we delivered solid operating margins and earnings
despite a weaker global semiconductor industry environment and the
adverse impact of foreign exchange rates," said Steve Laub, Atmel's President and Chief
Executive Officer. "Our attractive product portfolio and
resilient operating model position us for meaningful margin
expansion and increased cash generation once the industry
resumes growth."
Cash provided by operations totaled $25.9
million for the second quarter of 2015, compared to
$40.1 million for the first quarter
of 2015 and $52.5 million for the
second quarter of 2014. Combined cash balances (cash and cash
equivalents plus short-term investments) totaled $196.4 million at the end of the second quarter
of 2015, a decrease of $4.5 million
from the immediately preceding quarter resulting principally from
the acquisition of fixed assets of $10.9
million, the payment of $16.7
million for our common stock dividend, the repurchase of
$2.9 million in common stock during
the second quarter, and $10.1 million
debt repayments, offset by our cash generated from operations,
$8.9 million proceeds from the sale
of the XSense division and $3.8
million proceeds from the sale of investments in a
privately-held company.
Company Highlights
- Released for production Atmel | SMART ARM® Cortex® M7 based
microcontrollers, world's highest performing M-based MCU, for IoT,
industrial and automotive applications
- Launched new family of Atmel | SMART ARM® Cortex® M0+ based
microcontrollers combining 5V functionality with integrated
peripheral touch controller for the rapidly expanding smart
appliance and industrial markets
- Arduino began volume shipments of Zero board featuring
Atmel | SMART ARM® Cortex® M0+ based microcontrollers for the IoT
development Maker community
- Arduino began volume shipments of Wi-Fi Shield enabling
secure Wi-Fi connectivity for all Arduino platforms
- Launched IoT cloud ecosystem partner program to accelerate IoT
development
- Showcased wearable turnkey solution at Computex 2015 featuring
Atmel's ultra-low power embedded processing, wireless, touch,
security and sensor technologies
- Expanded maXTouch® U series touch controllers with six new
devices enabling next-generation touchscreens from 1.2" to 10.1"
for wearables, super phones and tablets
- ASUS selected maXTouch® and maXStylus® to power world's first
on-cell touchscreen with capacitive active stylus enabling
'pen-to-paper' writing experience
Stock Repurchase
During the second quarter of 2015,
Atmel repurchased 345 thousand shares of its common stock in the
open market at an average price of $8.37 per share.
Outlook – Q3 2015
- Revenue between $283 and $303
million
- Non-GAAP gross margin 47.5% plus or minus 100 basis points
- Non-GAAP operating expenses $104
million, plus or minus $2
million
Non-GAAP Metrics
Non-GAAP net income excludes share-based compensation expense,
acquisition-related charges, restructuring charges (credits),
operating results of the exited XSense business for 2015, loss from
manufacturing facility damage and shutdown, French building
underutilization and other (credits), loss (gain) related to
foundry arrangements, gain on sale of assets and investments,
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 hold a teleconference at 2 p.m.
PT today to discuss the second quarter 2015 financial
results. The conference call will be webcast live and can also be
monitored by dialing 1-706-758-4519. The conference access
code is 68295827 and participants are encouraged to initiate their
calls 10 minutes prior to the 2 p.m.
PT start time to ensure a timely connection. The webcast and
earnings release will be accessible at http://ir.atmel.com/ and
will be archived for 12 months.
A replay of the July 28, 2015
conference call will be available the same day at approximately
5 p.m. PT and will be archived for 48
hours. The replay access number is 1-404-537-3406. The access code
is 68295827.
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 third 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 third quarter 2015 outlook, which may
change. These statements are not guarantees of future performance
and actual results could differ materially from our current
expectations. 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 transactions related to acquisitions,
restructuring activities or other initiatives in a timely manner or
at all; consolidation occurring within the semiconductor industry
through mergers and acquisitions; the impact of competitive
products and pricing; disruption to our business caused by our
increased dependence on outside foundries, financial instability or
insolvency proceedings affecting some of those foundries, and
associated litigation involving us in some cases; industry and/or
company overcapacity or undercapacity, including capacity
constraints of our independent assembly contractors; the success of
our customers' end products and timely design acceptance by our
customers; timely introduction of new products and technologies and
implementation of new manufacturing technologies; our ability to
ramp new products into volume production; our reliance on
non-binding customer forecasts and the absence of long-term supply
contracts with most of our customers; financial stability in
foreign markets and the impact or volatility of foreign exchange
rates and significant devaluation of the Euro against the U.S.
dollar; unanticipated changes in environmental, health and safety
regulations; our dependence on selling through independent
distributors; the complexity of our revenue recognition policies;
information technology system failures; business interruptions,
natural disasters or terrorist acts; unanticipated costs and
expenses or the inability to identify expenses which can be
eliminated; the market price or increased volatility of our common
stock; disruptions in the availability of raw materials; compliance
with U.S. and international laws and regulations by us and our
distributors; our dependence on key personnel; our ability to
protect our intellectual property rights; litigation (including
intellectual property litigation in which we may be involved or in
which our customers may be involved, especially in the mobile
device sector), and the possible unfavorable results of legal
proceedings; and other risks detailed from time to time in Atmel's
SEC reports and filings, including our Form 10-K for the year ended
December 31, 2014, filed on
February 26, 2015. Atmel assumes no
obligation and does not intend to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Investor Contact:
Peter Schuman
Senior Director, Investor Relations
(408) 437-2026
ATMEL
CORPORATION
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
(In thousands,
except for per share data)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
306,353
|
|
$
318,288
|
|
$
355,534
|
|
$
624,641
|
|
$
692,895
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
165,039
|
|
170,991
|
|
194,296
|
|
336,030
|
|
391,667
|
Research and
development
|
59,998
|
|
59,129
|
|
70,082
|
|
119,127
|
|
139,834
|
Selling, general and
administrative
|
59,922
|
|
62,073
|
|
64,783
|
|
121,995
|
|
128,862
|
Acquisition-related
charges
|
3,807
|
|
4,403
|
|
1,497
|
|
8,210
|
|
3,125
|
Restructuring charges
(credits)
|
4,882
|
|
1,147
|
|
(1,583)
|
|
6,029
|
|
(1,807)
|
Gain on sale of
assets
|
(2,053)
|
|
-
|
|
-
|
|
(2,053)
|
|
-
|
Total operating
expenses
|
$
291,595
|
|
$
297,743
|
|
$
329,075
|
|
$
589,338
|
|
$
661,681
|
Income from
operations
|
14,758
|
|
20,545
|
|
26,459
|
|
35,303
|
|
31,214
|
Interest and other
income (expense), net
|
1,162
|
|
3,700
|
|
(1,202)
|
|
4,862
|
|
(1,125)
|
Income before
income taxes
|
15,920
|
|
24,245
|
|
25,257
|
|
40,165
|
|
30,089
|
Provision for income
taxes
|
(9,693)
|
|
(7,699)
|
|
(6,021)
|
|
(17,392)
|
|
(8,687)
|
Net
income
|
6,227
|
|
16,546
|
|
19,236
|
|
22,773
|
|
21,402
|
Less: net loss
(income) attributable to noncontrolling interest
|
85
|
|
(51)
|
|
-
|
|
34
|
|
-
|
Net income
attributable to Atmel
|
$
6,312
|
|
$
16,495
|
|
$
19,236
|
|
$
22,807
|
|
$
21,402
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per share attributable to Atmel:
|
|
|
|
|
|
|
|
|
|
Net income per
share
|
$
0.02
|
|
$
0.04
|
|
$
0.05
|
|
$
0.05
|
|
$
0.05
|
Weighted-average
shares used in basic net income per share calculations
|
417,861
|
|
417,038
|
|
421,090
|
|
417,474
|
|
423,233
|
Diluted net income
per share attributable to Atmel:
|
|
|
|
|
|
|
|
|
|
Net income per
share
|
$
0.02
|
|
$
0.04
|
|
$
0.05
|
|
$
0.05
|
|
$
0.05
|
Weighted-average
shares used in diluted net income per share calculations
|
419,158
|
|
418,462
|
|
422,834
|
|
418,784
|
|
424,876
|
Cash dividends
declared and paid per share
|
$
0.04
|
|
$
0.04
|
|
$
-
|
|
$
0.08
|
|
$
-
|
ATMEL
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
196,359
|
|
$
206,937
|
Accounts receivable,
net
|
206,070
|
|
222,021
|
Inventories
|
275,268
|
|
278,242
|
Prepaids and other
current assets
|
78,225
|
|
89,101
|
Total current
assets
|
755,922
|
|
796,301
|
Fixed assets,
net
|
154,943
|
|
158,281
|
Goodwill
|
191,451
|
|
191,088
|
Intangible assets,
net
|
44,019
|
|
50,286
|
Other
assets
|
164,939
|
|
166,348
|
Total
assets
|
$
1,311,274
|
|
$
1,362,304
|
|
|
|
|
Current
liabilities
|
|
|
|
Trade accounts
payable
|
$
76,928
|
|
$
97,467
|
Accrued and other
liabilities
|
128,373
|
|
147,109
|
Deferred income on
shipments to distributors
|
53,324
|
|
49,059
|
Total current
liabilities
|
258,625
|
|
293,635
|
Other long-term
liabilities
|
185,931
|
|
198,670
|
Total
liabilities
|
444,556
|
|
492,305
|
|
|
|
|
Stockholders'
equity
|
866,718
|
|
869,999
|
Total liabilities
and stockholders' equity
|
$
1,311,274
|
|
$
1,362,304
|
ATMEL
CORPORATION
|
|
|
|
|
RECONCILIATION OF
GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL
MEASURES
|
|
|
|
|
(In thousands,
except per share data)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
GAAP net
revenue
|
$
306,353
|
|
$
318,288
|
|
$
355,534
|
|
$
624,641
|
|
$
692,895
|
Revenue from the
XSense business
|
(58)
|
|
(1,371)
|
|
-
|
|
(1,429)
|
|
-
|
Non-GAAP net
revenue
|
$
306,295
|
|
$
316,917
|
|
$
355,534
|
|
$
623,212
|
|
$
692,895
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin
|
$
141,314
|
|
$
147,297
|
|
$
161,238
|
|
$
288,611
|
|
$
301,228
|
Loss from
manufacturing facility damage and shutdown
|
-
|
|
-
|
|
-
|
|
-
|
|
7,056
|
Loss (gain) related
to foundry arrangements
|
765
|
|
1,192
|
|
(2,071)
|
|
1,957
|
|
(2,129)
|
Share-based
compensation expense
|
1,682
|
|
1,115
|
|
1,971
|
|
2,797
|
|
3,287
|
Gross margin from the
XSense business
|
115
|
|
1,138
|
|
-
|
|
1,253
|
|
-
|
Non-GAAP gross
margin
|
$
143,876
|
|
$
150,742
|
|
$
161,138
|
|
$
294,618
|
|
$
309,442
|
|
|
|
|
|
|
|
|
|
|
GAAP research and
development expense
|
$
59,998
|
|
$
59,129
|
|
$
70,082
|
|
$
119,127
|
|
$
139,834
|
Share-based
compensation expense
|
(3,573)
|
|
(3,578)
|
|
(4,383)
|
|
(7,151)
|
|
(9,112)
|
French building
underutilization and other (credits)
|
(376)
|
|
296
|
|
(651)
|
|
(80)
|
|
(1,612)
|
Research and
development expense from the XSense business
|
(156)
|
|
(1,457)
|
|
-
|
|
(1,613)
|
|
-
|
Non-GAAP research
and development expense
|
$
55,893
|
|
$
54,390
|
|
$
65,048
|
|
$
110,283
|
|
$
129,110
|
|
|
|
|
|
|
|
|
|
|
GAAP selling,
general and administrative expense
|
$
59,922
|
|
$
62,073
|
|
$
64,783
|
|
$
121,995
|
|
$
128,862
|
Share-based
compensation expense
|
(7,282)
|
|
(8,994)
|
|
(8,924)
|
|
(16,276)
|
|
(18,496)
|
French building
underutilization and other (credits)
|
(126)
|
|
(8)
|
|
(515)
|
|
(134)
|
|
(850)
|
Selling, general and
administrative expense from the XSense business
|
37
|
|
64
|
|
-
|
|
101
|
|
-
|
Non-GAAP selling,
general and administrative expense
|
$
52,551
|
|
$
53,135
|
|
$
55,344
|
|
$
105,686
|
|
$
109,516
|
|
|
|
|
|
|
|
|
|
|
GAAP income from
operations
|
$
14,758
|
|
$
20,545
|
|
$
26,459
|
|
$
35,303
|
|
$
31,214
|
Share-based
compensation expense
|
12,537
|
|
13,687
|
|
15,278
|
|
26,224
|
|
30,895
|
Loss from
manufacturing facility damage and shutdown
|
-
|
|
-
|
|
-
|
|
-
|
|
7,056
|
Acquisition-related
charges
|
3,807
|
|
4,403
|
|
1,497
|
|
8,210
|
|
3,125
|
French building
underutilization and other (credits)
|
502
|
|
(288)
|
|
1,166
|
|
214
|
|
2,462
|
Restructuring charges
(credits)
|
4,882
|
|
1,147
|
|
(1,583)
|
|
6,029
|
|
(1,807)
|
Loss (gain) related
to foundry arrangements
|
765
|
|
1,192
|
|
(2,071)
|
|
1,957
|
|
(2,129)
|
Gain on sale of
assets
|
(2,053)
|
|
-
|
|
-
|
|
(2,053)
|
|
-
|
Operating loss from
the XSense business
|
234
|
|
2,531
|
|
-
|
|
2,765
|
|
-
|
Non-GAAP income
from operations
|
$
35,432
|
|
$
43,217
|
|
$
40,746
|
|
$
78,649
|
|
$
70,816
|
|
|
|
|
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
(9,693)
|
|
$
(7,699)
|
|
$
(6,021)
|
|
$
(17,392)
|
|
$
(8,687)
|
Non-GAAP tax
adjustments
|
(8,144)
|
|
(5,867)
|
|
(4,788)
|
|
(14,011)
|
|
(6,439)
|
Non-GAAP provision
for income taxes
|
$
(1,549)
|
|
$
(1,832)
|
|
$
(1,233)
|
|
$
(3,381)
|
|
$
(2,248)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Atmel
|
$
6,312
|
|
$
16,495
|
|
$
19,236
|
|
$
22,807
|
|
$
21,402
|
Share-based
compensation expense
|
12,537
|
|
13,687
|
|
15,278
|
|
26,224
|
|
30,895
|
Loss from
manufacturing facility damage and shutdown
|
-
|
|
-
|
|
-
|
|
-
|
|
7,056
|
Acquisition-related
charges
|
3,807
|
|
4,403
|
|
1,497
|
|
8,210
|
|
3,125
|
French building
underutilization and other (credits)
|
502
|
|
(288)
|
|
1,166
|
|
214
|
|
2,462
|
Restructuring charges
(credits)
|
4,882
|
|
1,147
|
|
(1,583)
|
|
6,029
|
|
(1,807)
|
Loss (gain) related
to foundry arrangements
|
765
|
|
1,192
|
|
(2,071)
|
|
1,957
|
|
(2,129)
|
Gain on sale of
assets
|
(2,053)
|
|
-
|
|
-
|
|
(2,053)
|
|
-
|
Gain on sale of
investments in privately-held companies
|
(1,317)
|
|
-
|
|
-
|
|
(1,317)
|
|
-
|
Operating loss from
the XSense business
|
234
|
|
2,531
|
|
-
|
|
2,765
|
|
-
|
Non-GAAP tax
adjustments
|
8,144
|
|
5,867
|
|
4,788
|
|
14,011
|
|
6,439
|
Net (loss) income
attributable to noncontrolling interest
|
(85)
|
|
51
|
|
-
|
|
(34)
|
|
-
|
Consolidated
non-GAAP net income
|
$
33,728
|
|
$
45,085
|
|
$
38,311
|
|
$
78,813
|
|
$
67,443
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
per share - diluted attributable to Atmel
|
$
0.02
|
|
$
0.04
|
|
$
0.05
|
|
$
0.05
|
|
$
0.05
|
Share-based
compensation expense
|
0.03
|
|
0.03
|
|
0.03
|
|
0.06
|
|
0.07
|
Loss from
manufacturing facility damage and shutdown
|
-
|
|
-
|
|
-
|
|
-
|
|
0.02
|
Acquisition-related
charges
|
0.01
|
|
0.01
|
|
-
|
|
0.02
|
|
0.01
|
French building
underutilization and other (credits)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Restructuring charges
(credits)
|
0.01
|
|
-
|
|
-
|
|
0.01
|
|
-
|
Loss (gain) related
to foundry arrangements
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Gain on sale of
assets
|
(0.01)
|
|
-
|
|
-
|
|
-
|
|
-
|
Gain on sale of
investments in privately-held companies
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Operating loss from
the XSense business
|
-
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
Non-GAAP tax
adjustments
|
0.02
|
|
0.02
|
|
0.01
|
|
0.04
|
|
0.01
|
Net income per share
attributable to noncontrolling interest
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Consolidated
non-GAAP net income per share - diluted
|
$
0.08
|
|
$
0.11
|
|
$
0.09
|
|
$
0.19
|
|
$
0.16
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted
shares
|
419,158
|
|
418,462
|
|
422,834
|
|
418,784
|
|
424,876
|
Adjusted dilutive
stock awards - non-GAAP
|
6,486
|
|
7,070
|
|
7,212
|
|
6,414
|
|
7,288
|
Non-GAAP diluted
shares
|
425,644
|
|
425,532
|
|
430,046
|
|
425,198
|
|
432,164
|
ATMEL
CORPORATION
|
NET REVENUE - BY
OPERATING SEGMENT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Microcontroller
|
|
$
205,003
|
|
$
218,786
|
|
$
254,775
|
|
$
423,789
|
|
$
489,915
|
Nonvolatile
Memory
|
|
43,153
|
|
43,748
|
|
40,180
|
|
86,901
|
|
75,832
|
Automotive
|
|
37,216
|
|
35,745
|
|
35,994
|
|
72,961
|
|
76,965
|
Multi-Market and
Other
|
|
20,981
|
|
20,009
|
|
24,585
|
|
40,990
|
|
50,183
|
Total
Company Revenue
|
|
$
306,353
|
|
$
318,288
|
|
$
355,534
|
|
$
624,641
|
|
$
692,895
|
Notes to Non-GAAP Financial Measures
To supplement its consolidated financial results presented in
accordance with GAAP, Atmel uses non-GAAP financial measures,
including non-GAAP net income and non-GAAP net income per diluted
share, which are adjusted from the most directly comparable GAAP
financial measures to exclude certain items, as shown above and
described below. Management believes that these non-GAAP financial
measures reflect an additional and useful way of viewing aspects of
Atmel's operations that, when viewed in conjunction with Atmel's
GAAP results, provide a more comprehensive understanding of the
various factors and trends affecting Atmel's business and
operations.
Atmel uses each of these non-GAAP financial measures for
internal purposes and believes that these non-GAAP measures provide
meaningful supplemental information regarding operational and
financial performance. Management uses these non-GAAP measures for
strategic and business decision making, internal budgeting,
forecasting and resource allocation processes. Atmel may, in the
future, determine to present non-GAAP financial measures other than
those presented in this release, which it believes may be useful to
investors. Any such determinations will be made with the intention
of providing the most useful information to investors and will
reflect information used by the company's management in assessing
its business, which may change from time to time.
Management believes that providing these non-GAAP financial
measures, in addition to the GAAP financial results, is useful to
investors because the non-GAAP financial measures allow investors
to see Atmel's results "through the eyes" of management as these
non-GAAP financial measures reflect Atmel's internal measurement
processes. Management believes that these non-GAAP financial
measures enable investors to better assess changes in each key
element of Atmel's operating results across different reporting
periods on a consistent basis. Thus, management believes that each
of these non-GAAP financial measures provides investors with
another method for assessing Atmel's operating results in a manner
that is focused on the performance of its ongoing operations. In
addition, these non-GAAP financial measures may facilitate
comparisons to Atmel's historical operating results and to
competitors' operating results.
There are limitations in using non-GAAP financial measures
because they are not prepared in accordance with GAAP and may be
different from non-GAAP financial measures used by other companies.
In addition, non-GAAP financial measures may be limited in value
because they exclude certain items that may have a material impact
upon Atmel's reported financial results. Management
compensates for these limitations by providing investors with
reconciliations of the non-GAAP financial measures to the most
directly comparable GAAP financial measures. The presentation of
non-GAAP financial information is not meant to be considered in
isolation or as a substitute for or superior to the most directly
comparable GAAP financial measures. The non-GAAP financial measures
supplement, and should be viewed in conjunction with, GAAP
financial measures. Investors should review the reconciliations of
the non-GAAP financial measures to their most directly comparable
GAAP financial measures as provided above.
As presented in the "Reconciliation of GAAP Financial Measures
to Non-GAAP Financial Measures" tables above, each of the non-GAAP
financial measures excludes one or more of the following items:
- Share-based compensation expense.
Share-based compensation expense relates primarily to equity
awards such as stock options and restricted stock units. This
includes share-based compensation expense related to
performance-based restricted stock units for which Atmel recognizes
share-based compensation expense to the extent management believes
it is probable that Atmel will achieve the performance criteria
which occurs before these awards actually vest. If the performance
goals are unlikely to be met, no compensation expense is recognized
and any previously recognized compensation expense is
reversed. Share-based compensation is a non-cash expense that
varies in amount from period to period and is dependent on market
forces that are often beyond Atmel's control. As a result,
management excludes this item from Atmel's internal operating
forecasts and models. Management believes that non-GAAP measures
adjusted for share-based compensation provide investors with a
basis to measure Atmel's core performance against the performance
of other companies without the variability created by share-based
compensation as a result of the variety of equity awards used by
other companies and the varying methodologies and assumptions
used.
- XSense related activities
Operating results of exited XSense business.
Assets related to the XSense business were sold on April 16. 2015. Operating results of this
business, including revenue, gross margin and operating expenses,
have been excluded from non-GAAP results beginning in the first
quarter of 2015 after management determined to discontinue its
investment and exit this business. Management believes that
excluding the XSense operating results from non-GAAP measures
provides investors a basis to compare operating results from
continuing operations.
Gain on sale of assets reflects the sale of the XSense assets.
Management believes that it is appropriate to exclude these gains
as they are not reflective of the ongoing operating performance and
should be excluded from period-over-period comparisons.
- Gain on sale of investments in privately-held companies.
Gain on sale of investments in privately-held companies.
Management believes that it is appropriate to exclude these gains
as they are not reflective of the ongoing operating performance and
should be excluded from period-over-period comparisons.
- Acquisition-related charges.
Acquisition-related charges include: (1) amortization of
purchased intangibles, which include acquired intangibles such as
customer relationships, backlog, core developed technology, trade
names and non-compete agreements, (2) contingent compensation
expense, which includes compensation resulting from the employment
retention of certain key employees established in accordance with
the terms of the acquisitions, (3) adjustments to previously
recognized earn-out liability on contingent compensation expense
related to acquisitions, and (4) direct costs related to
acquisitions such as banker, legal and accounting fees. In most
cases, these acquisition-related charges are not factored into
management's evaluation of potential acquisitions or Atmel's
performance after completion of acquisitions, because they are not
related to Atmel's core operating performance. In addition, the
frequency and amount of such charges can vary significantly based
on the size and timing of acquisitions and the maturities of the
businesses being acquired. Management believes that excluding
acquisition-related charges from non-GAAP measures provides
investors with a basis to compare Atmel against the performance of
other companies without the variability caused by purchase
accounting.
- Restructuring charges (credits).
Restructuring charges (credits) primarily relate to expenses
necessary to make infrastructure-related changes to Atmel's
operating costs. Restructuring charges (credits) are excluded
from non-GAAP financial measures because they are not considered
core operating activities. Although Atmel has engaged in various
restructuring activities in recent years, each has been a discrete
event based on a unique set of business objectives. Management
believes that it is appropriate to exclude restructuring charges
(credits) from Atmel's non-GAAP financial measures as it enhances
the ability of investors to compare Atmel's period-over-period
operating results from continuing operations.
- Loss from manufacturing facility damage and shutdown.
Atmel experienced an unplanned shutdown of its semiconductor
manufacturing operations in Colorado
Springs, Colorado in the fourth quarter of 2013 due to
damage to the facility's nitrogen plant. All repairs were
completed in the first quarter of 2014 and the facility has resumed
normal operations. During the third quarter 2014 we received
an insurance payment of $3.6 million
related to our facility damage claim. Management believes
that the loss from the manufacturing facility damage and shutdown
is an individually discrete event that is not generally reflective
of ongoing operating performance and should be excluded from
period-over-period comparisons.
- Loss (gain) related to foundry arrangements.
Loss (gain) related to foundry arrangements relates to the
reduction of estimated loss (gain) previously recorded with
respect to European foundry "take or pay" arrangements for wafers
that were delivered during the term of the arrangement.
Management believes that it is appropriate to exclude loss (gain)
related to foundry arrangements from Atmel's non-GAAP financial
measures, as it enhances the ability of investors to compare
Atmel's period-over-period operating results from continuing
operations.
- French building underutilization and other (credits).
French building underutilization and other (credits) relates to
charges incurred as a result of the insolvency of our tenant in
France in the first quarter of
2014, and prior year real estate taxes relating to an audit
assessment of the same facilities in France. Management
believes that it is appropriate to exclude these charges as they
are individually discrete events and generally not reflective of
the ongoing operating performance and should be excluded from
period-over-period comparisons.
- Non-GAAP tax adjustments.
In conjunction with the implementation of Atmel's global
structure changes which took effect January
1, 2011, the company changed its methodology for reporting
non-GAAP taxes. Beginning in the first quarter of 2011, Atmel's
non-GAAP tax amounts approximate operating cash tax expense,
similar to the liability reported on Atmel's tax returns for the
current period/year. This approach is designed to enhance the
ability of investors to understand the company's tax expense on its
current operations, provide improved modeling accuracy, and
substantially reduce fluctuations caused by GAAP adjustments which
may not reflect actual cash tax expense.
Atmel forecasts its annual cash tax liability and allocates the
tax to each quarter in proportion to earnings for that period.
- Net (loss) income attributable to noncontrolling interest.
Net (loss) income attributable to noncontrolling interest
relates the share of profit and loss allocated to a noncontrolling
interest in one of Atmel's subsidiaries. Atmel excludes these
items from its non-GAAP financial measures primarily because these
(losses) gains are individually discrete events and generally not
reflective of the ongoing operating performance of Atmel's business
and can distort period-over-period comparisons.
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SOURCE Atmel Corporation