) reported Non-GAAP net income of $67.5 million or 14 cents per
diluted share in its fourth quarter financial results of fiscal
2011 compared to $119.2 million or 25 cents per diluted share in
the previous year quarter and $124.0 million or 26 cents per
diluted share in the third quarter of 2011, beating the Zacks
Consensus Estimate of 10 cents per share.
In 2011, Non-GAAP net income came in at $438 million or 92 cents
per diluted share versus $283 million or 59 cents per diluted share
in 2010. The earnings results comprehensively beat the Zacks
Consensus Estimate of 68 cents per share in 2011.
The company reported net sales of $383.6 million in the final
quarter of fiscal 2011, down 16.2% year over year and 20%
sequentially, in line with management's revised guidance. The
softness in demand was brought about from enervated yields from the
touch screen solutions segment and overall weakened performances
from the industrial and consumer markets.
Microcontrollers business generated revenues of $216 million,
falling 25% year over year and 28% sequentially, partially offset
by the ASIC sales which were encouraging, coming in at $66 million,
rising 12% year over year and 9% sequentially.
Geographically, Asia constituted majority share of revenues with
54% in the fourth quarter, EMEA was 29% and the Americas improved
to 17% of total revenues.
Revenues in 2011 grew 10% annually to $1.8 billion. After
adjusting for the Smart Card divestiture completed at the end of
the third quarter of 2010, overall revenues in 2011 grew 15% year
Non-GAAP gross margin in the fourth quarter of 2011 came in at
48.7% versus 50% in the previous year quarter and 50.4% in the
third quarter of 2011. The decline was a result of factory
under-utilization and weakened revenues.
Non-GAAP operating margin for the quarter was 17.9% compared to
24.5% in the last year quarter and 25.9% in the previous
In full year 2011, gross margin increased to 50.8% from 44.8% in
2010. Operating margin came in at 24.5% compared to 17.5% in
Share Repurchase and Acquisition
By the end of fiscal year 2011, Atmel repurchased 28.8 million
shares of its own common stock in the open market at an average
price of $10.57 per share.
Balance Sheet and Cash Flows
The company ended the year with cash and cash equivalents of
$329.4 million, down from $478.1 million at the end of the previous
quarter. As of December 31, 2011, trade accounts payable were $76.4
million, down from $106.9 million at the end of the previous
Atmel generated $43.4 million cash from operations during the
fourth quarter of 2011 versus $84.6 million in the previous year
quarter. Cash used for capital expenditures during the quarter was
approximately $10 million, compared to $20 million in the previous
quarter, falling just within management's expectations of $10
million - $15 million in the quarter.
In 2011, capital expenditures came at $85 million, whereas cash
flow from operations was $221 million.
Management projects revenues to fall 6% - 11% sequentially in
the first quarter of 2012 with non-GAAP gross margin to be slightly
low, falling between 44.6% and 46.6%. Non-GAAP operating expenses
are expected to be $117 million - $121 million.
Capital expenditures for the first quarter of 2012 are estimated
at $5 million - $10 million. Cash tax rate is expected to lie
between 2% - 3%.
ATMEL CORP (
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