Atmel Corporation Beats Estimates; CEO Gets Excited About Internet of Things

Semiconductor maker Atmel overcame a factory incident to deliver strong first-quarter results, with an eye to significant long-term growth markets.

Apr 30, 2014 at 10:36PM

Image source: Atmel.

Microcontroller and radio chip maker Atmel (NASDAQ:ATML) just reported results for the first quarter of fiscal year 2014.

Analysts were expecting adjusted earnings of $0.06 per share on roughly $326 million in sales. Atmel's earnings more than doubled year over year, landing at $0.07 per share. Revenue increased 2.4% to $337 million.

The adjusted results exclude a $7 million charge for damage and production stoppage in a Colorado Springs manufacturing facility. In late December, a fire at the semiconductor facility caused some damage to the installed equipment and forced an extended cleanup operation. The company also recorded a $2 million charge in the fourth quarter, related to the same incident.

"Our microcontroller business performed better than seasonal and continues to benefit from the investments in new product introductions including devices related to the Internet of Things which are driving increasing revenue as the number of microcontrollers connected to the Internet grows extensively," said Atmel CEO Steve Laub in a prepared statement.

Atmel shares moved up as much as 4.5% and down as much as 2.2% in after-hours trading, before settling down close to Wednesday's closing price.

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