Record microcontroller revenues for Atmel, up 31% sequentially

Gross margin increased to 41% in the second quarter of 2010, the highest level Atmel has achieved since the fourth quarter of 2000. It compares to 38% in the first quarter of 2010 and 32% in the second quarter of 2009. According to Atmel, the sequential gross margin improvement was the result of higher business volumes, increased factory utilisation levels and an improved mix - as more than half of all product shipments during the quarter were higher margin microcontroller products. Steve Laub (pictured), president and chief executive officer of Atmel, said: "Our transformation to a higher growth and higher margin company is reflected in our increased revenues, improved gross margin, and strong cash flow from operations. We continue to build momentum in the microcontroller and touch businesses with increased design wins, particularly for our maXTouch solutions. We are also pleased to have achieved two major strategic milestones during the second quarter with the closing of the sale of our wafer manufacturing operations in Rousset, France, and the execution of a definitive agreement for the sale of our Smart Card business." The company announced record microcontroller revenues of $197.6m, up 31% sequentially and a record net cash balance of $468.6m.