The 10-second takeaway
For the quarter ended March 31 (Q1), Atmel beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank to a loss.
Margins shrank across the board.
Atmel booked revenue of $329.1 million. The 16 analysts polled by S&P Capital IQ hoped for a top line of $321.2 million on the same basis. GAAP reported sales were 8.0% lower than the prior-year quarter's $357.8 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 $0.03. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.03 per share. Non-GAAP EPS of $0.03 for Q1 were 63% lower than the prior-year quarter's $0.08 per share. GAAP EPS were -$0.11 for Q1 against $0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.9%, 270 basis points worse than the prior-year quarter. Operating margin was 0.0%, 750 basis points worse than the prior-year quarter. Net margin was -14.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $347.4 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $1.43 billion. The average EPS estimate is $0.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 375 members out of 413 rating the stock outperform, and 38 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give Atmel a green thumbs-up, and five 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 $7.92.
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