Investopedia: Atmel Off To The Races

Some investors want nothing to do with companies that are in the midst of turning around their business and repositioning themselves for future growth. Well, that is their loss. Not all companies succeed in self-improvement to the extent that Atmel (Nasdaq:ATML) has, but this not-so-little semiconductor company is a good example of the rewards that can accrue when patient shareholders and committed management intersect. 

A Strong End to a Strong Year
Atmel has been doing better for a little while now, but the fourth quarter put something of a finer point on that. Revenue rose 3% sequentially and 33% from last year, which is not only above what analysts had projected, but rather compelling in comparison to rivals like Cypress (NYSE:CY), LSI Logic (NYSE:LSI) and Microchip Technology (Nasdaq:MCHP). Better still, that growth rate is somewhat inaccurate on an as-reported basis; subtracting the Smart Card business (which the company divested) shows sequential growth of 10% and year-on-year growth of 44%.

Clearly, then, thing are going well for this company. The company's microcontroller business is doing well, and Atmel is gaining share in the non-Apple gadget market with its line of maXTouch controllers (which basically run the touch-screen interfaces). Atmel is already on board with devices from Nokia (NYSE:NOK), Motorola (NYSE:MOT), and HTC and although it has a formidable competitor in the likes of Texas Instruments (NYSE:TXN) (as well as Cypress to some extent), these chips are gaining share and impressing designers. (For more, See Texas Instruments Suggests A Soft Landing In The Works.)


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