Atmel Sales Rise, Outlook Dims

The microchip maker offers a dimmer outlook and will miss a 10-Q filing deadline.
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Atmel (ATML) said Thursday its third-quarter revenue rose 5.7% from a year ago to $443 million. Analysts were expecting revenue of $456.1 million.

In the third quarter, the company concluded the sale of its Grenoble, France, subsidiary for $140 million to

e2v technologies

.

The company anticipates fourth-quarter revenue to decline about 3% to 8% sequentially. Excluding the effect of the Grenoble facility, revenue is expected to decline from zero to 5% on a sequential basis.

The company's cash, cash equivalents and short-term investments totaled $484 million, an increase of $174 million, with the proceeds coming from the sale of its Grenoble business unit as well as operating cash flows generated during the quarter.

The San Jose, Calif.-based company said its audit committee reached a preliminary determination that the actual measurement dates for certain stock options differed from the recorded measurement dates for such stock options. The difference in these measurement dates will result in material, noncash, stock-based compensation expenses, the company added.

As a result of the continuing investigation, the company does not believe it will file its third-quarter form 10-Q by the extended due date of Nov. 14.

Shares of the company were trading down 12 cents, or 2.3%, at $5.15 after hours Thursday.

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