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 shrank. Non-GAAP earnings per share dropped significantly. GAAP earnings per share grew.
Gross margins contracted, operating margins shrank, net margins grew.
Atmel logged revenue of $347.8 million. The 17 analysts polled by S&P Capital IQ anticipated sales of $347.1 million on the same basis. GAAP reported sales were 5.5% lower than the prior-year quarter's $368.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.06. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.06 per share. Non-GAAP EPS of $0.06 for Q2 were 25% lower than the prior-year quarter's $0.08 per share. GAAP EPS of $0.03 for Q2 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 42.5%, 150 basis points worse than the prior-year quarter. Operating margin was 6.2%, 50 basis points worse than the prior-year quarter. Net margin was 3.7%, 350 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $372.2 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $1.43 billion. The average EPS estimate is $0.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 374 members out of 411 rating the stock outperform, and 37 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 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 $8.59.
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