Atmel Corporation reported GAAP net income of $13.0 million or 3 cents per share in second quarter 2013 compared with a net income of $0.8 million or break-even results in the year-earlier quarter.
Excluding one-time items, non-GAAP net income for the second quarter of 2013 was $25.3 million or 6 cents per share compared with $37.4 million or 8 cents per share in the year-ago quarter. The adjusted earnings for the reported quarter surpassed the Zacks Consensus Estimate of 2 cents.
The company reported net sales of $347.8 million, down 6% year over year and it marginally beat the Zacks Consensus Estimate of $347 million.
GAAP gross margin was 42.5% in the reported quarter, compared with 44.0% in the prior-year period. Non-GAAP gross margin was 42.6 % in the second quarter of 2013 versus 44.6% in the second quarter of 2012.
Operating margin was 5.6% versus 2.2% in the year ago quarter. Non-GAAP Operating margin was 7.9 % in the second quarter of 2013 versus 11.7 % in the second quarter of 2012.
During the reported quarter, XSense product achieved production qualification in Colorado facility. The company launched new products with maXTouch inside including smartphones, Android and Windows 8 tablets, Ultrabooks, and automotive navigation. Additionally, the company launched a family of crypto memory products and maXTouch powers touchscreens for multiple tablets, Ultrabooks and mobile phones.
Additionally, the company introduced other products and launched low-power ARM Cortex-M0+ product family to further aid growth in the microcontroller business.
As part of its share repurchase program, Atmel bought back 2.0 million shares at an average price of $7.00 each during the reported quarter.
Balance Sheet and Cash Flows
The company ended the quarter with cash and cash equivalents of $224.0 million, down from $293.4 million as of Dec 31, 2012. Cash provided by operations totaled $8.6 million for the reported quarter versus $7.9 million provided by operations in the year-ago period.
Atmel is continuously upgrading its product portfolio to fuel growth and thwart intense competition and price wars from rivals. Moving ahead, the company expects improving business conditions and product portfolio to drive its earnings.
Atmel currently has a Zacks Rank #4 (Sell). Other stocks that look promising in the industry and are worth a look include Diodes Incorporated (DIOD - Snapshot Report) , LSI Corporation. (LSI - Snapshot Report) and Rambus Inc (RMBS - Snapshot Report) , each carrying a Zacks Rank #1 (Strong Buy).