Cash provided by operations totaled approximately $46.2 million for the first quarter of 2014, compared to $50.4 million for the fourth quarter of 2013 and cash used in operations of $12.0 million for the first quarter of 2013. Combined cash balances (cash and cash equivalents plus short-term investments) totaled $255.5 million at the end of the first quarter of 2014, a decrease of $23.6 million from the immediately preceding quarter resulting principally from the repurchase of $54.9 million in common stock during the first quarter.

Company Highlights

• Introduced SmartConnect, a breakthrough new product family which integrates Atmel's ultra-low power microcontrollers and wireless connectivity solutions into turnkey solutions for the Internet of Things
• Expanded family of low-power ARM Cortex M0+ microcontrollers with new products featuring Atmel's innovative event system, support for capacitive touch button, slider and wheel user interfaces, multiple serial communications modules, along with a full-speed USB interface,  and additional pin and memory combinations
• Introduced new low-cost Xplained mini development board based on Atmel 8-bit AVR® technology
• Announced new evaluation kit with Newark element14 based on the ARM Cortex-A5 microprocessor
• Launched new smart metering modem for power line communications market
• Announced Atmel Studio 6.2, the latest version of the popular integrated development environment supporting both Atmel AVR and ARM based microcontrollers
• Collaboration with Mentor Graphics on real-time operating system and tools to accelerate development of next generation IoT devices using Atmel's ARM Cortex M3 and M4 based microcontrollers
• Extended product leadership in the large screen capacitive touch market with the launch of the maXTouch® 1066T and 1068T for 7" to 8.9" high performance tablets
• Introduced new automotive-qualified maXTouch S Series controller family for touchscreens up to 14" in center consoles, navigation systems, radio interfaces and rear-seat entertainment systems
• New smartphone introductions featuring maXTouch include LG's G Pro 2, G2 Mini, and L Series 3 L90, Verizon's Lucid 3, Xiaomi's RedRice 5.5", Gionee's Elife S5.5, and ZTE's Grand S Lite
• Android and Windows 8 tablets featuring maXTouch include Samsung's Galaxy Tab 4 10.1", Galaxy Tab 12.2", Galaxy Note 12.2", and HP's EliteBook 1000 G2
• Collaboration with Corning on developing ultra-thin, next-generation capacitive touchscreens using Gorilla Glass and featuring XSense®
• Extended automotive in-vehicle networking leadership position with the launch of a new generation of low-power local interconnect networking (LIN) systems

Stock Repurchase
During the first quarter of 2014, Atmel repurchased 6.9 million shares of its common stock in the open market at an average price of $7.97 per share.

Non-GAAP Metrics
Non-GAAP net income excludes loss from manufacturing facility damage and shutdown, French building underutilization and other, gain related to foundry arrangements, recovery of receivables from foundry suppliers, restructuring (credits) charges, settlement charges, acquisition-related (credits) charges, gain on sale of assets, share-based compensation expense, 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 p.m. PT today to discuss the first quarter 2014 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 15883788 and participants are encouraged to initiate their calls 10 minutes prior to the 2 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 April 30, 2014 conference call will be available the same day at approximately 5 p.m. PT and will be archived for 48 hours. The replay access number is 1-404-537-3406. The access code is 15883788.

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.

© 2014 Atmel Corporation. All Rights Reserved. Atmel®, Atmel logo and combinations thereof, AVR®, 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
Statements in this release, including those regarding Atmel's forecasts, business outlook, expectations, new product launches, and beliefs, among others, 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 2014 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 and geo-political conditions; 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, financial instability or insolvency proceedings affecting some of those foundries, and associated litigation involving us 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 increased 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, 2013, filed on February 28, 2014. 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