Atmel to Cut 650 Jobs; Weak 2nd Quarter Seen
Atmel Corp. said it will cut about 650 jobs, or about 10% of its work force, as part of a restructuring needed in light of continued weakness in the semiconductor market. The San Jose-based company, which makes integrated circuits, said it will take a second-quarter pretax charge of about $70 million to cover the costs of the restructuring and a write-down of assets associated with older technologies. Atmel also said it expects second-quarter 1998 revenue to be 10% higher than first-quarter levels of $260 million. It said it expects second-quarter earnings per share to be about break-even, excluding the restructuring charges. Analysts had expected the company to report earnings of 21 cents a share for the quarter, according to First Call. In the comparable year-ago quarter, the company reported net income of $27.4 million, or 27 cents a share, on revenue of $225 million. Nasdaq trading of Atmel shares was halted. They last traded at $13.63.