Atmel Corp (ATML)

microcontrollers

Atmel now has the fastest chip in the world

Dedicated management team, and potential high growth semiconductor company

Atmel Offer Keeps It Strong

Posted Mon Oct 13, 02:38 pm ET
Posted By: Abdul Saleh

Atmel Corporation (ATML) is expected to release its Q3:FY08 results on Oct. 29. Earlier, the company reported Q2:FY08 revenues of $420.9 million, up 4.1% y/y and up 2.4% q/q. Microcontrollers posted record revenues of $143 million and the ASIC segment posted revenues of $121 million.

Recently, Microchip, Inc. (MCHP) and ON Semiconductor (ONNN) announced an unsolicited offer to acquire ATML for $5/share in cash. The offer represents a 52.4% premium to Oct. 2 closing price, and values ATML at $2.3 billion. The deal is led by MCHP, with ONNN acquiring the NVM and RF/Auto businesses.

MCHP plans to sell Atmel's ASIC business together with the French fab to a third party. Going forward, management expects revenues to be down 3% 7% in Q3:FY08, due to onetime revenue adjustment. Excluding these adjustments, Q3 organic revenue guidance is for up 1% to 4% sequentially. We had earlier upgraded ATML to a Hold and have adjusted our target price to $5.00, reflecting the current cash offer price by MCHP.

While focusing at improving its cost structure, Atmel must struggle with ASP erosion in key product markets and face the challenges of manufacturing new products on advanced technologies. Aside from such ASP erosion and cyclical market risks, a key concern is Qualcomm's (QCOM) plans to move away from Atmel's Bi-CMOS process to RF-CMOS.

Buyout by Microchip and ON Semiconductor looks good.

Quantum will be a huge boost to Atmel's bottom line. The decline in the Euro is going to substantially increase revenue for the current quarter.

Up or down ?

ATMEL CORP (ATML) is a tech company that has a small name but carries huge plans. What are these plans? ATMEL CORP announced/introduced the AVRUSBRF01 reference design for development with AVR microcontrollers in the un-licensed 2.4 GHz ISM band and connection to PCs with USB.

Today the price for technology is very high, but there is hope in buying the newest trends and that my friends is why I am speaking about (ATML)

This company is putting together a blueprint for an energy saving PC that can be battery powered. This press release came about in May 15, 2008. Yes, I know this came out last month, but old news can still drive a company in the future. (look at Microsoft)

I am going to leave you by setting one thing and that is:

Designing products with the AT86RF212 chipset enables battery operated devices to run for many years on a single battery because of the AT86RF212's low current consumption in both active and in sleep mode.

That type of battery power is going to be the life of this company for many years.

Stagnet and will not perform as their output will suffer a 20% loss for 2008.

This company has a lot of unrecognizerd value. One area is in all of the real estate they own, Ive seen it estimated several times that the value of their real estate is generally worth more than the market cap of the company. In addition, I dont believe that the chip market is dead. As they put old management issues behind them, and the chip market recovers, I suspect there are gains of 50 to 60% ready to be had here. I triple-bagged with this stock once before.

looking for a $1 or so raise in the short term..Yahoo stock screener

stock price is at a low, should have about 60 percent increase by years end.

Another contrarian semiconductor pick. Atmel will not take your portfolio to the graceland over the long-term as it is a highly cyclical company, but I feel we are nearing the low-end of their cycle and thus it looks safe for an entry point here. Atmel has lost 33% of its value over the last month as the semi's as a whole have been hammered. Truthfully I can understand Atmel being hit a bit because their revenue growth is stagnant at best 0-5% per year. Still, they are remaining profitable on a yearly basis and at 10 times forward earnings seem reasonable. ATML has 150M in cash more than debt and that will serve as a pleasant buffer. My advice is to jump aboard and ride this out for roughly 3 years and you should have a 125-140% gain.

Nero

Sagetrade

New Leadership is moving in the right direction.

growth and gb sall paying off debt first quarter

new management, low debt, consolidation of operations to be more profitable

More embedded systems in consumer products means this company moves higher.

atmel will supply more demand in their expertise and will expand operations as communications continue to be in demand multi-culturally and globally. Helen Hapanowicz.

Relative strength moving up. Should break out soon from
a long term base.

Yeah, I know I'm nuts by picking this one especially with all of the scandal and drama.