) announced another share repurchase authorization to buy back
around $200 million of its own common stock. This marked an
addition to the company's existing $500 million common stock
The company has the option of conducting this buyback program
either in the open market, through privately negotiated
transactions or through certain other means. This, however, will be
in accordance with market condition assessments and other related
factors. There is no expiration date for this authorization.
Previously, Atmel had announced a $200 million repurchase
program in August 2010 and another $300 million common stock
repurchase program in May 2011, making the total repurchase
authorization of $500 million. Currently, it has bought back common
stock of around $489.4 million under the existing
It appears clear that Atmel considers retaining shareholders'
interests to be its top priority. However, it is also quite
approbatory that the company is quite prescient about maintaining a
hold on its capital and cash flow. During the first quarter of
2012, Atmel generated nearly $61 million cash from operating
However, the company should not be complacent about its advances
with regard to catering to investor interests. Atmel should remain
conscious of competition within the industry as it consists of big
players such as
Mellanox Technologies, Ltd.
Cirrus Logic Inc.
) who continue to pose an ominous threat to the company.
The current Zacks Consensus Estimate for the second quarter of
2012 and for fiscal 2012 are 6 cents and 39 cents, respectively.
The company currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. However, we presently maintain our
Neutral recommendation on the stock.
ATMEL CORP (ATML): Free Stock Analysis Report
CIRRUS LOGIC (CRUS): Free Stock Analysis Report
FORMFACTOR INC (FORM): Free Stock Analysis
MELLANOX TECH (MLNX): Free Stock Analysis
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