Atmel Corp. announced its financial results for the quarter ended September 30, 2007. Revenues for the third quarter ended September 30, 2007 were $418.1 million, a 3.4% increase compared to the $404.2 million for the second quarter of 2007 and a 3.2% decrease compared to the $431.7 million for the third quarter ended September 30, 2006.
Gross profit, as a percentage of revenue, rose to 35.6% for the third quarter of 2007, an increase of 60 basis points from the prior quarter and a 50 basis points improvement from the same period last year.
Operating profit was $25.4 million for the third quarter, or 6.1% of revenue, and included non-recurring charges of $1.5 million for restructuring, impairment and grant repayments. This was an increase of $18.3 million from the prior quarter and a decline of $0.7 million from the year-ago quarter.
Net income for the third quarter of 2007 totaled $16.6 million or $0.03 per diluted share. This compares to net income of $0.7 million or $0.00 per diluted share for the second quarter of 2007 and net income of $124.3 million or $0.25 per diluted share for the year-ago quarter, which included income and gain from discontinued operations of $102 million or $0.21 per diluted share. Income tax provision of $10.1 million for the third quarter was primarily due to statutory taxes at our foreign subsidiaries. Stock-based compensation expense was $4.9 million for the third quarter.
Total cash (cash and cash equivalents plus short-term investments) was $251 million at the end of the third quarter, a decrease of $225 million from the end of the prior quarter. During the third quarter of 2007, the Company used $250 million to repurchase shares of its common stock under an accelerated stock repurchase program and reduced its debt (current and long- term) $20 million from the prior quarter. Cash flow from operations totaled approximately $46 million in the third quarter.
On August 27, 2007, Atmel announced that its Board of Directors approved a stock repurchase program under which the company has repurchased $250 million of its common stock. As of this date, an initial 43.4 million shares have been delivered to Atmel, and under this program the company may receive additional shares during a period of up to four months from September 20, 2007.
