) reported second-quarter 2014 non-GAAP net income (excluding
one-time items) of $38.3 million or 9 cents per share compared with
$25.3 million or 6 cents per share in the year-ago quarter.
Adjusted earnings for the reported quarter with employee stock
option adjustments matched the Zacks Consensus Estimate of 6
Atmel Corporation - Earnings Surprise |
GAAP net income in second-quarter 2014 was $19.2 million or 5 cents
per share compared with $13.0 million or 3 cents per share in the
Atmel reported net sales of $355.5 million in the reported quarter,
up from $347.8 million in the year-ago quarter. The increase in
revenues was driven by improved performance in the microcontroller
business and new product introductions. However, net sales missed
the Zacks Consensus Estimate of $357 million.
Geographically, Asia represented 59% of total revenue, while EMEA
(Europe, Middle East and Africa) and the Americas contributed 25%
and 16% of revenues, respectively.
GAAP gross margin improved to 45.4% in the reported quarter from
42.5% in the prior-year period. Non-GAAP gross margin also went up
to 45.3% in the second quarter of 2014 from 42.6% in the second
quarter of 2013.
Total operating expenses in the quarter stood at $329.1 million
versus $328.4 million in the year-ago quarter.
During the reported quarter, Atmel introduced new products and
released Atmel SMART- a new brand of ARM-based microcontrollers for
Internet of Things (IoT) applications. Atmel is increasingly
focusing on its core microcontroller products as it aims to target
high-growth businesses. These controllers deliver high performance
and lower power consumption and are also claimed to be more
effective than other available variants in the market.
Balance Sheet and Cash Flow
The company ended the quarter with cash and cash equivalents of
$264.0 million, down from $276.9 million as of Dec 31, 2013. Cash
provided by operations totaled $52.5 million for the reported
quarter versus $8.6 million in the year-ago period.
As part of its share repurchase program, Atmel repurchased 3.6
million shares during the reported quarter at an average price of
$8.00 each. Since the inception of the share repurchase program in
the second half of 2010, the company has repurchased approximately
$744 million worth of stock.
For the third quarter of 2014, the company expects revenues in the
range of $364 million and $382 million. Non-GAAP gross margin is
expected to increase by 170 basis points to 47.0 %.
Atmel is continuously upgrading its product portfolio to fuel
growth and thwart intense competition and price wars from rivals.
Moving ahead, the company expects improving business conditions and
new product portfolio to drive its earnings and margins. The recent
acquisition of Newport Media is expected to strengthen its
leadership position in the IoT market.
Atmel currently has a Zacks Rank #3 (Hold). Other stocks that
look promising and are worth considering in the industry include
AXT Inc (
), NVE Corp (
) and Silicon Motion Technology Corp (
), each carrying a Zacks Rank #1 (Strong Buy).
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