The 10-second takeaway
For the quarter ended June 30 (Q2), Atmel met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank to zero.
Margins contracted across the board.
Atmel tallied revenue of $368.2 million. The 15 analysts polled by S&P Capital IQ foresaw net sales of $372.1 million on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $478.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.08 per share. GAAP EPS dropped to zero from the prior-year quarter's $0.19.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.0%, 780 basis points worse than the prior-year quarter. Operating margin was 6.7%, 1,670 basis points worse than the prior-year quarter. Net margin was 0.2%, 1,880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $401.3 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $0.46.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 381 members out of 417 rating the stock outperform, and 36 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Atmel a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Atmel is outperform, with an average price target of $10.46.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere