) recently came up with an acquisition agreement to purchase
Ozmo, Inc. (Ozmo). The acquisition, which is likely to be
directly accretive to the company's earnings by 2014, is
scheduled to close by the end of 2012.
With the acquisition of Ozmo, Atmel will be able to facilitate
the growth of its wide range of wireless services including The
Internet of Things through augmenting the capability of its
developers. The company will be deploying Ozmo's Wi-Fi Direct
technologies to enhance the efficacy of its wireless personal
area network's (WPANs) entire communication system.
Ozmo's Wi-Fi solution, particularly introduced for consumer
electronics industry, can easily integrate fixed and portable
peripheral devices with Wi-Fi portals through its low power and
low cost solutions. While we await further details on the
agreement, we assume that this latest acquisition would stimulate
the company's position in the wireless networking market.
Management expects that this acquisition will seamlessly
strengthen Atmel's productivity moving ahead. The company
believes that Ozmo's Wi-Fi Direct products would help it enhance
its presence in the industry.
Earlier, Atmel reported a net income of $43.0 million or 10
cents per share in the third quarter of 2012 compared to a net
income of $37.4 million or 8 cents per share in the second
quarter of 2012. The reported earnings were ahead of the Zacks
Consensus Estimate of 5 cents per share. The company reported net
sales of $361 million in the third quarter of 2012, down 24.7%
year over year and 2% sequentially.
Atmel is a globally renowned enterprise; it operates in an
intensely competitive landscape. The company's primary
competitors include big players such as
Semiconductor Manufacturing International Corp.
The current Zacks Consensus Estimates for Atmel are 3 cents
and 18 cents for the fourth quarter and full year 2012,
respectively. The lingering weakness in the macro economy is
reflected in the stock's Zacks #3 Rank for the short term. We
also maintain a long-term Neutral recommendation on Atmel.
ATMEL CORP (ATML): Free Stock Analysis Report
LSI CORP (LSI): Free Stock Analysis Report
SEMICON MFG-ADR (SMI): Free Stock Analysis
To read this article on Zacks.com click here.