Atmel Corp's (ATML) Prelim. Q4 Results Fall Short of Consensus
Atmel® Corporation (NASDAQ: ATML), a leader in microcontroller and touch solutions, today announced that it expects the following fourth quarter 2015 results:
- Revenue is expected to be between $261 and $262 million, compared to the original outlook of $266 to $286 million. The lower revenue was the result of weaker than expected billings, primarily in Asia, as distributors reduced inventory levels due to uncertainties associated with the company's ongoing acquisition process. Revenue would have been approximately $268 million had revenue from the Asian distribution channel been recognized on a resale basis.
- Non-GAAP gross margin is expected to be approximately 47.3 to 47.7%, at the midpoint of the original outlook of 47.0 to 48.0%
- Non-GAAP operating expenses are expected to be $98 to $100 million, below the midpoint of the original outlook of $98 to $102 million
- Non-GAAP operating margin is expected to be between 9% and 10%
- Non-GAAP earnings per diluted share is expected to be approximately $0.06
- Cash and cash equivalents of approximately $210 million
(Street sees Q4 EPS of $0.07 on revenue of $276.65 million)
On January 13, 2016, the company announced that its Board of Directors had determined that the unsolicited acquisition proposal received from Microchip Technology Inc. (Nasdaq: MCHP) constitutes a "Company Superior Proposal," as defined in Atmel's existing merger agreement with Dialog Semiconductor plc. Microchip's offer remains open and binding until 10:00 PM California time on Tuesday, January 19, 2016. There can be no assurance, however, that Atmel will terminate the Dialog merger agreement or enter into the Microchip merger agreement.
Atmel will not hold a conference call to discuss these preliminary results.