Semiconductor organization Atmel (ATML) is basically famous for its microcontrollers found in various touchscreen applications. The organization's chips are used in Microsoft (MSFT) and Samsung's (SSNLF) products, which is the reason it has a huge business sector to take advantage of the developments in mobiles and Windows 8.1 systems.
The company has been persistently updating its item portfolio. It has recorded various design wins and certifications to strengthen its chances of profiting from diverse opportunities going ahead. We should investigate how the organization is positioned and in the event that it is a decent long haul investment.
A strong product portfolio
Atmel has increased its piece of the pie in the center microcontroller business, accomplishing strong force with its new products. The presentation of a record number of new 32-bit center microcontroller products has helped Atmel strengthen its position in the business sector.
Atmel's new touch item portfolio, including the new T series of touchscreen controllers, should empower it to profit from expansive screen applications and increase piece of the overall industry in smartphones and small to medium sized tablets. Also, Atmel's Xsense metal mesh sensors are currently in volume generation and are, no doubt shipped to numerous customers.
Atmel is focused on making its products more proficient. For instance, its new Sama5d3 devices are small and can take higher temperatures while keeping up an abnormal state of execution and low-control operations. The gadget is used in industrial applications, including home and building mechanization, therapeutic electronics, and consumer applications.
Atmel's latest ARM Cortex-M4-based microcontrollers join superior and ultra-low power in a small structure element. The organization is focusing on battery-fueled consumer applications such as smartphones, tablets, and ultrabooks, alongside wearables and sound devices with these solutions. Further, Atmel has extended its sensor accomplice program with the expansion of Hillcrest Labs to create turnkey sensor center point solutions to drive request in the smartphone classification.
Key customers to drive development
The company also recorded a very important design win in mobiles in 2013 with Samsung. The organization gave its microcontroller to the Galaxy S4 Mini. This year, Samsung plans to release a smaller than usual version of its latest Galaxy S5 telephone as well. Given that Atmel provides shabby and low-control components, it may land a place in the Galaxy S5 Mini this time since it is a less expensive gadget.
Furthermore, Samsung's developing clout in the tablet business should also help Atmel profit from development in tablet shipments. As per Zdnet, Samsung's overall tablet piece of the pie in the first quarter increased to 23%, with the organization shipping 14 million tablets. Samsung is focusing on both developing markets and created countries with its tablet portfolio this year, and it aims to turn into the business sector pioneer by overwhelming Apple. This is extraordinary news for a Samsung supplier such as Atmel.
Then again, in the extensive screen windows gadget market, Atmel is actively occupied with well in excess of 225 separate Windows 8 and Windows 8.1 programs. It has won different designs and is stretching its presence in the tablet market, determined by the superior execution of its new products.
The company had provided the two chips for Microsoft's Surface 2 tablet. This is a ptentially big boost for Atmel since Microsoft's Surface sales had multiplied on a sequential basis last quarter. The Windows tablet raked in $893 million in sales in the Christmas season.
The rise in Surface sales is a plus point for Microsoft, and the same might be said about Atmel. Also, since support for Windows XP devices has been finished, and the Windows 8.1 working system is progressively picking up energy, Atmel can expect a boost in sales of touchscreen processing systems.
End result
Atmel has a great deal of great stuff letting in its favor. The organization's new products are picking up force, and the development in sales of customers such as Samsung and Microsoft should help extend its addressable business sector. The stock may have failed to meet expectations the NASDAQ record in the last year, with gains of just 17%, however it still looks like a decent investment considering the prospects.
