Revenues for the second quarter of 2009 were $285 million, a 5% increase compared to $272 million for the first quarter of 2009, and a 32% decrease compared to $421 million for the second quarter ended June 30, 2008.
Net loss, on a GAAP basis, for the second quarter of 2009 totaled $(12.4) million or $(0.03) per diluted share. This compares to net income of $3.6 million or $0.01 per diluted share for the first quarter of 2009 and a net loss of $(4.9) million or $(0.01) per diluted share for the year-ago quarter.
Non-GAAP net loss for the second quarter of 2009 totaled $(0.6) million or $(0.00) per diluted share compared to net income of $20.1 million or $0.04 per diluted share for the first quarter of 2009, and $17.3 million or $0.04 per diluted share for the year-ago quarter.
Gross profit, as a percent of revenue, was 32.3% for the second quarter of 2009. This compares to gross profit of 35.1% for the first quarter of 2009 and 36.5% for the year-ago quarter. During the second quarter, gross profit was impacted by a planned reduction in factory utilization at the Company's two wafer fabrication facilities.
"We are encouraged by order patterns that are beginning to normalize across all product lines," said Steve Laub, Atmel's President and Chief Executive Officer. "We are also pleased to have exceeded the upper end of our revenue guidance range this quarter despite the challenging macro environment. Although visibility remains limited, Atmel is well positioned with its leading product portfolio to capitalize on the improving global semiconductor market."
Loss from operations was $(17.6) million for the second quarter of 2009, or (6)% of revenue. This compares to a loss from operations of $(20.5) million for the first quarter of 2009 and income from operations of $0.2 million for the second quarter of 2008. Included in the second quarter 2009 loss from operations was $6.4 million of net charges related to acquisition, restructuring and grant repayments.
Stock-based compensation expense was $6.4 million for the second quarter of 2009, compared to $5.4 million for the first quarter of 2009 and $6.4 million for the year-ago quarter.
Income tax benefit totaled $9.7 million for the second quarter of 2009. This compares to an income tax benefit of $27.7 million for the first quarter of 2009 and a provision of $4.3 million for the second quarter of 2008. The income tax benefit for the second quarter of 2009 was the result of R&D tax credits generated in the current year as well as the reversal of tax liabilities no longer needed as a result of settlement of certain foreign tax audits.
Combined cash balances (cash and cash equivalents plus short-term investments) totaled $419.4 million at the end of the second quarter of 2009, an increase of $2.5 million from the end of the prior quarter. During the quarter, the Company repaid $20 million of its revolving credit facility, eliminating the restricted cash balance of $17.3 million reported in the previous quarter. Cash provided from operations totaled approximately $1.6 million for the second quarter of 2009. This compares to $5.6 million for the first quarter of 2009 and $50.4 million for the second quarter of 2008.
The Company's effective average exchange rate in the second quarter of 2009 was approximately $1.33 to the euro, compared to $1.32 to the euro in the first quarter of 2009 and $1.56 to the euro in the year-ago period. A $0.01 increase in the dollar/euro exchange rate decreases operating income by approximately $0.3 million each quarter.
Recent Product Highlights
-- Announced maXTouch(TM) - World's Most Powerful Touchscreen Technology
with Revolutionary Performance
-- Introduced Newest Release of QTouch(TM) Library Adding Capacitive Touch
Capabilities to AVR and AVR32 Microcontrollers
-- Introduced picoPower AVR32 AT32UC3L Microcontroller which Lowers
Industry's Best Power Consumption by 63%
-- Introduced Industry's First ARM Cortex-M3 Flash MCU with on-chip High
Speed USB Device-and-Transceiver
-- Introduced New ATtiny87 AVR Microcontroller Targeting Automotive LIN
Networking Applications
-- Industry's First Supplier to Provide LIN2.1 Conformity for its Entire
Automotive LIN Networking Product Range
-- Introduced Low Power Cryptographic Battery Authentication IC with
SHA-256 for Portable Electronic Devices
Business Outlook
The Company noted that while visibility remains limited, it anticipates third quarter 2009 revenues will increase 4% to 8% on a sequential basis.
Non-GAAP Metrics
Non-GAAP net (loss) income excludes charges related to restructuring activities, acquisitions, grant repayments, (gain) loss on sale of assets, and stock-based compensation, as well as distributor bad debt recovery, unsolicited M&A expense and the income tax effect of these excluded items. A reconciliation of GAAP results to non-GAAP results is included following the financial statements below.
Conference Call
Atmel will hold a teleconference at 2:00 p.m. PT today to discuss the second quarter 2009 financial results. The conference call will be webcast live and can also be monitored by dialing 1-800-374-0405 or 1-706-634-5185. The conference ID number is 23224915 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 2:00 p.m. PT start time to ensure a timely connection. The webcast can be accessed at www.atmel.com/ir/ and will be archived for 12 months.
A replay of the August 3, 2009 conference call will be available today at approximately 5:00 p.m. PT and will run for 48 hours. The replay access numbers are 1-800-642-1687 within the U.S. and 1-706-645-9291 for all other locations. The access code is 23224915.
About Atmel
Atmel is a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel provides the electronics industry with complete system solutions focused on consumer, industrial, security, communications, computing and automotive markets.
Safe Harbor for Forward-Looking Statements
Information in this release regarding Atmel's forecasts, business outlook, expectations and beliefs are forward-looking statements that involve risks and uncertainties. These statements include statements about our ability to capitalize on improving market dynamics and future operating and financial performance including third quarter 2009 revenues. All forward-looking statements included in this release are based upon information available to Atmel as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. 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 general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or Company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, the ability to realize the anticipated benefits of our recent strategic transactions, restructuring plans and other initiatives in a timely manner or at all, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, the market price of our common stock, compliance with U.S. and international trade and export laws and regulations by us and our distributors, 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, 2008, filed on March 2, 2009, and our subsequent Form 10-Q reports. Atmel assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.
