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What: Shares of Atmel (NASDAQ:ATML) have tanked today by as much as 15% after the company reported earnings.
So what: Revenue in the quarter came in at $345.1 million, with non-GAAP earnings per share of $0.07. Revenue was a beat but adjusted earnings were right on target with forecasts. The company's microcontroller business continues to grow but the overall business is suffering from a slow semiconductor market.
Now what: Atmel said it expects revenue in the current quarter to be in the range of $311 million to $328 million, while investors were expecting sales of $332.8 million. Canaccord Genuity is defending shares, saying the plunge is a buying opportunity as Atmel's addressable market expands with the ramp up of Microsoft Windows 8, where Atmel is the leading provider of touchscreen controllers. The analyst believes we're seeing a cyclical bottom and the business should begin recovering in the second quarter.
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Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.