Atmel Lives Up To Expectations ... And Then Some

What is the best thing a company can do when its shares look overvalued? Deliver excellent quarters with better-than-expected performance and grow into that valuation. That seems to be the theme for microcontroller maven Atmel (Nasdaq:ATML), as a great earnings report should help maintain what has been torrid momentum in the second half of this year. 

Nothing "Micro" About The Quarter
Despite plenty of evidence from analog giants like Linear Technology (Nasdaq:LLTC) and Texas Instruments (NYSE:TXN) that ship-ahead risks may prove real in many sectors (especially computers, but also industrial and automotive to some extent), Atmel logged a fine quarter and guided toward sequential growth.

Revenue jumped 40% this quarter on an annual basis, and 13% sequentially. The microcontroller business was even stronger, with 29% sequential growth and nearly $256 million in revenue contributions. All in all, it was good enough for a 4% beat, relative to analysts' expectations. (For more, see Strategies For Quarterly Earnings Season.)


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