Golf Clap for Atmel

Atmel (NAS: ATML) reported earnings on July 31. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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The article Golf Clap for Atmel originally appeared on

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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