Various chip manufacturing companies reaped the booming Smartphone market in the past. We also noticed a paradigm shift of companies who were basically OEM for PC market showing willingness to join the bandwagon of Smartphone market as chip manufacturer. Atmel (ATML, Financial) is one such company that was focused on touch controller sensors to broaden it horizon of its core micro controller business.
The performance of the company in the past could not impress the investors. But, it seems with persistence efforts of the company it has started showing positive results to gain confidence in its investors. The company recently declared it quarterly results and was remarkable.
Financial performance
It has been a rough journey for the company in the past but it seems its finally taking a U-turn in its journey. The Q3-2014 reported a sales revenue of $374.5 million and was up by 5% from year ago quarter that recoded $356.3 million. This was basically due to higher sales from its micro controller segment. Not just the current quarter, but even on a nine month basis the company has recorded growth compared to the consolidated revenue of nine months in the prior year. In nine month of the current fiscal, the company recorded revenue of 1,067,380 million as compared to 1,033,227 million.
On a year-over-year basis, the company’s bottom line also very impressive. Major restructuring resulted in attaining higher revenues in fiscal 2014 that leveraged in posting a growth oriented bottom line. For nine month of the fiscal 2014, net income of $38,652 million was attained as against a loss of $29,265 million for the same tenure in previous year.
Journey Ahead
Atmel is heavily relying on it touch controller that has big potential as components in various devices like Smartphone and Tablet. The company is also focused on the PC segment that is enabled with windows 8x operating system. The company is enriching its product portfolio that will enable it to attain a higher sales volume. The maXTouch controller designed by Atmel is also winning the confidence of various manufacturers of Windows 8x enabled PC for touch enabled PC screens.
Companies like Asus and Sony have already endorsed this product this gives a brighter future for Atmel. Lenovo is another company that is looking to tap the market of touch screens and Atmel did win the order with Lenovo. This enables Atmel for a steady growth in future.
Ever since the launch of Windows 8, sales of touch enabled PC is witnessing a constant growth. This will enable growth of Atmel and can also be a perfect breather, considering the fact when it witnessed a decline in sales revenue in the past.
maXTouch® riding high
- It is selected by Sony Playstation 4
- Samsung releases new Smart TV remote control touch, powered by maXTouch.
- Other bigger players like ASUS, Toshiba, HP, LG are also featuring maXTouch for windows 8x designs on various hand held devices.
Conclusion
Atmel has been certainly emerging out from the dark phase in the past. The company has been winning order by as suppliers to major manufacturers. It is also constantly releasing new products which are a good sign as it shows its persistence to acquire a bigger market share and keep the competitors on the run. The company heavily relied on windows 8x touch screen and it paid off as its now being select by major PC , tablets and net book manufacturers that are windows 8 enabled.
The company also safeguards the interest of the investor by implementing various shares re-purchase programs. As a part of its Share repurchase program, the company implemented the share repurchase program in the recent quarter. It repurchased shares worth $25.0 million. Ever since the inception it has repurchased total shares of around $700 millions. This further goes on to conclude that Atmel can be good for long.
