Atmel Corporation
(
ATML
) recently unveiled its latest ATA664151 and ATA664251 LIN family
of devices, which can be used for automotive switch scan
processes and in-vehicle ambient lighting control
systems. Atmel's newly-introduced product ranges consist of
on-chip functionalities.
The ultra-miniLIN platform is particularly designed for
minimizing the end-application footprint as well as the overall
power consumption process. The company's newly introduced device
will be supporting switch scan applications to reduce its overall
energy consumption.
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. Going forward, the growing microcontrollers business
is expected to enhance the company's top-line growth. In
addition, the introduction of these devices would surely further
expand Atmel's portfolio of automotive-qualified
devices.
Recently, the company reported net sales of $361 million in
the third quarter of 2012, down 24.7% year over year and 2%
sequentially. Net sales in the quarter were 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.
Microcontroller business generated revenues of $226 million,
down 25% year over year but up 3% sequentially. 8-bit
microcontroller declined 7% sequentially and 35% year over year.
32-bit microcontrollers increased 33% sequentially and 11% year
over year.
Even though Atmel has globally established itself in the
microcontroller business, it operates in an intensely competitive
market. 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 macroeconomic conditions continue to
be challenging, 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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