Why Atmel Shares Got Crushed
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of touchscreen-microcontroller maker Atmel (NAS: ATML) are getting crushed today by as much as 16% after the company reported earnings and soft guidance.
So what: First-quarter revenue came in at $357.8 million, with adjusted earnings per share of $0.08; both results handily topped the Street's forecasts of $352.6 million in sales and $0.04 per share in profit. CEO Steve Laub said that the company's business bottomed during the first quarter, as expected.
Now what: Next quarter's guidance was worse than expected, though, predicting revenue between $365 million and $379 million, while analysts thought $385.8 million was in order. The company continues to be held back by the lack of Google Android tablet adoption, where it carries a substantial market share in touchscreen controllers. Atmel also announced a $200 million stock repurchase program.
Interested in more info on Atmel? Add it to your watchlist byclicking here.
At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Google.Motley Fool newsletter serviceshave recommended buying shares of Google. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.