Atmelยฎ Corporation (NASDAQ: ATML) commented today that its financial guidance remains unchanged, and that the Company is executing on its restructuring plan to bring costs down and return the Company to profitability.
George Perlegos, President and Chief Executive Officer, stated, “We believe Atmel’s business is improving, as evidenced by the 14% sequential increase in second quarter revenues to $315 million, from $276 million in the first quarter of 2002. “Also, our financial position remains strong,” continued Perlegos. “Cash and equivalents totaled over $440 million at June 30, and our estimated EBITDA totaled $26 million for the second quarter, which is approximately double the level of the previous quarter.
“As we stated on the quarterly conference call last week, we have made a great deal of progress in the restructuring program to date, such as a reduction of approximately 1500 in headcount, and a $97 million reduction in operating expenses since the first quarter of 2001. Also we are continuing to take the appropriate steps to best position the Company for the upturn, such as the recently announced closure of Fab 8 in Irving, Texas.
Perlegos concluded, “We remain tightly focused on achieving our expense reduction goals by completing the Company-wide migration to more cost-effective technology processes such as 0.18 micron, closing or idling factories until the capacity is needed, and eventually closing some of our older facilities.”
Management believes these cost reduction measures should be completed over the next several quarters.
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