Non-GAAP income from operations in the second quarter of 2013 was $27.6 million or 7.9% of revenue, compared to first quarter non-GAAP income from operations of $14.2 million or 4.3% of revenue, and second quarter 2012 non-GAAP income from operations of $43.0 million or 11.7% of revenue.  Refer to the non-GAAP reconciliation table included in this release for more details.

Income tax provision, on a GAAP basis, totaled $5.7 million for the second quarter of 2013. This compares to a benefit from income taxes of $14.4 million for the first quarter of 2013 and a provision for income taxes of $3.7 million for the second quarter of 2012.  Non-GAAP provision for income taxes for the second quarter of 2013 was $1.6 million compared to non-GAAP income tax provisions of $1.0 million for the first quarter of 2013 and $1.8 million for the second quarter of 2012.

Cash provided by operations totaled approximately $8.6 million for the second quarter of 2013, compared to cash used in operations of $12.0 million for the first quarter of 2013 and cash provided by operations of $7.9 million for the second quarter of 2012. Combined cash balances (cash and cash equivalents plus short-term investments) totaled $226.6 million at the end of the second quarter of 2013, a decrease of $18.3 million from the immediately preceding quarter. The decrease in cash balances during the second quarter of 2013 resulted principally from payments for previously accrued legal settlements, restructuring charges, and for common stock repurchases.

Company Highlights

• XSense qualified for volume production in our Colorado facility
• Launched new low-power ARM Cortex-M0+ based family of microcontrollers
• VIZIO selects Atmel's ultra-low power Wi-Fi solution for television remote control
• Licensed Sensinode's 6LoWPAN software stack for use in ultra-low power wireless hardware platforms
• Atmel ARM- and AVR-based microcontrollers power Secret Labs' ultra-low-power smart watch
• Introduced new products with maXTouch® inside including smartphones, Android and Windows 8 tablets, Ultrabooks, and automotive navigation  
• maXTouch powers touchscreens for Samsung's Galaxy S4 Mini smartphone and Galaxy Tab 3 10.1" tablet
• maXTouch T Series single-chip controllers power touchscreens for multiple new ASUS tablets and Ultrabooks
• Received best partner award from ASUS
• Qualified new automotive maXTouch controller family, enabling single-layer shieldless touchscreens and touchpad designs
• Launched new family of crypto memory products

Stock Repurchase
During the second quarter of 2013, Atmel repurchased 2.0 million shares of its common stock in the open market at an average price of $7.00 per share.

Non-GAAP Metrics
Non-GAAP net income excludes charges and credits related to gain on foundry arrangements,  recovery of receivables from foundry suppliers, restructuring charges, settlement charges, acquisition-related charges, gain on sale of assets, credit from reserved grant income, share-based compensation, as well as the non-GAAP income tax adjustment and other non-recurring income tax 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 2013 financial results. The conference call will be webcast live and can also be monitored by dialing 1-706-758-4519. The conference ID number is 96471278 and participants are encouraged to initiate their calls 10 minutes prior to the 2:00 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 31, 2013 conference call will be available the same day at approximately 5:00 p.m. PT and will be archived for 48 hours. The replay access number is 1-404-537-3406. The access code is 96471278.

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 complete system solutions focused on industrial, consumer, communications, computing and automotive markets.

© 2013 Atmel Corporation. Atmel®, Atmel logo and combinations thereof, and others are registered trademarks or trademarks of Atmel Corporation or its subsidiaries. Other terms and product names may be trademarks of others.

Safe Harbor for Forward-Looking Statements
Information in this release regarding Atmel's forecasts, business outlook, expectations, new product launches, and beliefs 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 2013 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, 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 conditions (especially in Europe and Asia); 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; the impact of competitive products and pricing; disruption to our business caused by our increased dependence on outside foundries,  and the financial instability or insolvencies of those foundries 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 (including, for example, our XSense and new maXTouch products) 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; 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 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, 2012, filed on February 26, 2013. 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