Atmel announced financial results for the fiscal year ended December 2008. Revenues were $1.57 billion compared to $1.64 billion for 2007 and were impacted by the slowdown in demand, particularly of non-volatile memory and automotive product shipments in the fourth quarter.

During 2008, Atmel exited the RF-CDMA foundry business which resulted in a revenue decline of approximately $50 million from 2007. The core Microcontroller business continued to experience double-digit revenue growth, rising 14% in 2008, compared to 2007, with 32-bit microcontrollers growing 30%. Net loss, on a GAAP basis, was $27.2 million or compared to net income of $47.9 million for 2007.

Atmel is pursuing strategic alternatives for the Company's ASIC business and related manufacturing assets, including a potential sale. The ASIC business is a provider of customer specific integrated circuits and security solutions to the industrial, aerospace and consumer markets operating in three distinct segments: Customer Specific Products (CSP), Smart Cards (SMS) and Aerospace.

The ASIC business also includes a 200mm fab located in Rousset, France, and a test and finishing operation located in East Kilbride, Scotland, UK, along with related design, operation, marketing, sales and support resources. Revenues for the ASIC business totaled $416 million for the twelve months ended December 2008.