Atmel grows through challenging quarter

Edited by the Electronicstalk editorial team Feb 5, 2007

Atmel Corp has announced unaudited selected financial results for the fourth quarter and year ended 31st December 2006.

Atmel Corp has announced unaudited selected financial results for the fourth quarter and year ended 31st December 2006.

All revenues exclude those provided by the Company's Grenoble subsidiary which was sold in July 2006.

Revenues, excluding Grenoble, for the fourth quarter of 2006 totalled US $408.9 million, a sequential decrease of 5% compared with the $429.4 million reported in the third quarter of 2006, and a 4% increase compared with the $394.3 million reported in the fourth quarter of 2005.

Revenues, excluding Grenoble, for the year totalled $1.67 billion, representing a 7% increase over the $1.56 billion reported in 2005.

The company's cash, cash equivalents and short-term investments totalled $466.7 million at 31st December 2006.

"The fourth quarter was challenging as customers adjusted their ordering activity late in the quarter to balance their inventory levels", stated Steven Laub, Atmel's President and Chief Executive Officer.

"The restructuring and cost-savings initiatives announced in December will help us successfully manage through the general market weakness that is expected to continue into the first quarter of 2007".

"Looking at the coming year and beyond, we are confident that our industry leading technology and new strategy will position Atmel for continued growth".

"Atmel's balance sheet remains strong".

"Cash, cash equivalents and short-term investments were $466.7 million at year-end, an increase of $128.1 million over the $338.6 million at 31st December 2005", said Robert Avery, Atmel's Vice President Finance and Chief Financial Officer.

"Additionally, our cash position, net of debt, grew by $347.1 million as we redeemed all outstanding convertible debt and generated cash from operations and from the sale of our Grenoble subsidiary".

The company expects that for the first quarter of 2007 revenues will likely decline approximately 4-8% on a sequential basis as customers continue to work through current inventory levels.