Atmel Corporation
(
ATML
) has recently declared that it is now a part of G3-PLC Alliance
to support G3-PLC Communications service. G3-PLC Alliance is a
globally established organization, which is engaged in upgrading
the G3-PLC technology for improving the functionality of the
latest smart grid processes.
G3-PLC technology is regarded as the latest, lowest frequency,
orthogonal frequency division multiplexing (OFDM)-based
narrowband
powerline communications (NB-PLC) standard. Acknowledged by ITU
and IEEE 1901.2 recognized standard, G3-PLC technology is
considered as the first NB-PLC standard compatible with the IPv6
internet protocol. With the assistance of this technology the
companies will be able to attain a low-cost smart grid processes
and fulfill the requirement of its clientele.
The G3-PLC committee has selected the company given its
dominance in the semiconductor market, which will help this
organization to further enhance its potential. Management
expressed its optimism on the association by stating that its
advanced and best-in-class services would surely help
ameliorating the standard of G3-PLC technology through developing
the overall functionality among the smart meter and smart grid
system.
Atmel is in the process of transforming itself into a purely
microcontroller-based company, which it believes will augment its
cost structure and unlock value. The company is focusing more on
its core microcontroller business through introducing the latest
products with the aim of targeting high-growth and high-margin
businesses.
In the third quarter of 2012, the company reported net sales
of $361 million. Even though the sales were down 24.7% year over
year and 2% sequentially, it was within management's previously
provided guidance range of $357 million - $379 million. The
fall in revenue was caused by the downturn in the company's
business segments except its microcontroller business.
Although Atmel is a globally renowned enterprise, it operates
in an intensely competitive landscape. The company's primary
competitors include big players such as
LSI Corporation
(
LSI
) and
Semiconductor Manufacturing International Corp
. (
SMI
). LSI recently launched its latest Syncro MX-B Rack Boot
Appliance to enhance the potential of the boot drives. Hence, the
company has to go through rapid technological changes, evolving
standards which may turn out to be costly.
The current Zacks Consensus Estimates for Atmel are 4 cents
and 19 cents for fourth quarter of 2012 and for 2012,
respectively. As the current challenging macroeconomic conditions
persist the company continues to have a Zacks #3 Rank, which
translates into a short-term 'Hold' rating. Nevertheless, we
maintain a 'Neutral' recommendation on the stock for the long
run.
ATMEL CORP (ATML): Free Stock Analysis Report
LSI CORP (LSI): Free Stock Analysis Report
SEMICON MFG-ADR (SMI): Free Stock Analysis
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