San Jose, Calif. -- Atmel® Corporation (Nasdaq: ATML), a leader in microcontroller and touch solutions, today announced financial results for its third quarter ended September 30, 2015.
Revenue for the third quarter of 2015 was $286.5 million, a 6% decrease compared to $306.4 million for the second 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 milliontax 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 of 2015 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.
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
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.
Atmel will not hold a conference call due to its pending acquisition by Dialog.
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.
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