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Atmel Corp. Reports Operating Results (10-Q)

August 03, 2012 | About:
10qk

10qk

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Atmel Corp. (ATML) filed Quarterly Report for the period ended 2012-06-30.

Atmel Corporation has a market cap of $2.83 billion; its shares were traded at around $5.615 with a P/E ratio of 11.8 and P/S ratio of 1.6.

Highlight of Business Operations:

Our net revenue totaled $368.2 million for the three months ended June 30, 2012, a decrease of 23%, or $110.4 million, from $478.6 million in net revenue for the three months ended June 30, 2011. Net revenue was $726.0 million for the six months ended June 30, 2012, a decrease of 23%, or $214.0 million, from $940.1 million for the six months ended June 30, 2011. Revenue for the three and six months ended June 30, 2012 was lower than the comparable periods for 2011 primarily as a result of lower sales throughout our distribution channel, particularly in Asia. Our Asian distributors continued their efforts to reduce inventory levels, which resulted in reduced purchasing requirements. We also continued generally to see softer global demand in the consumer and industrial markets, as the economic slowdown in Europe and Asia affected our customers and their purchasing requirements.

Microcontroller segment net revenue decreased 27% to $220.1 million for the three months ended June 30, 2012 from $302.2 million for the three months ended June 30, 2011. Microcontroller segment net revenue decreased 27% to $437.9 million for the six months ended June 30, 2012 from $596.0 million for the six months ended June 30, 2011. Revenue decreased primarily due to weaker demand in industrial and consumer markets, with ARM and maXTouch products most affected. Inventory reductions undertaken by our Asian distributors also adversely affected revenue. Microcontroller net revenue represented 60% of total net revenue for both the three and six months ended June 30, 2012, respectively, compared to 63% of total net revenue for both the three and six months ended June 30, 2011.

Nonvolatile Memory segment net revenue decreased 34% to $47.2 million for the three months ended June 30, 2012 from $71.3 million for the three months ended June 30, 2011. Nonvolatile Memory segment net revenue decreased 29% to $94.9 million for the six months ended June 30, 2012 from $134.6 million for the six months ended June 30, 2011. The decline in our memory business resulted primarily from reduced market demand, a weaker pricing environment and the end of life for several flash products, including Serial EE and Serial Flash products, which saw revenue decrease by 21% and 49%, respectively, for the three months ended June 30, 2012 compared to the same period in 2011 and decreased by 19% and 49%, respectively, for the six months ended June 30, 2012 compared to the same period in 2011.

ASIC segment net revenue increased 1% to $53.4 million for the three months ended June 30, 2012 from $52.6 million for the three months ended June 30, 2011. ASIC segment net revenue decreased 4% to $102.2 million for the six months ended June 30, 2012 from $106.0 million for the six months ended June 30, 2011. Our military and aerospace business revenue, which is approximately 32% of overall ASIC revenue, decreased approximately 7% during the six months ended June 30, 2012 compared to the six months ended June 30, 2011 primarily from reduced market demand.

Our net revenue in Asia decreased $90.3 million, or 31%, for the three months ended June 30, 2012, compared to the same period in 2011, and decreased $154.3 million, or 28%, for the six months ended June 30, 2012, compared to the same period in 2011. The decrease in this region for the three months and the six months ended June 30, 2012, compared to the three months and six months ended June 30, 2011 was primarily due to lower shipments of our microcontroller products due to weaker demand in industrial and consumer markets, with ARM and maXTouch products most affected. In the three months ended June 30, 2012 our distributors in Asia reduced their inventory of our products by 5% as compared to the three months ended March 31, 2012. Net revenue for the Asia region was 54% and 55% of total net revenue for the three months and the six months ended June 30, 2012, respectively, compared to 60% and 59% of total net revenue for the three months and the six months ended June 30, 2011, respectively.

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