Microcontroller expert Atmel
Its stock shot up by as much as 13% in early trading, thanks to a brilliant third-quarter report. Atmel shareholders have now seen 160% returns over the last year, and the stock hasn't been this expensive since 2002. And it's all for good reason.
Third-quarter sales jumped 40% year over year, and 13% quarter over quarter, to $444 million, riding a wave of touchscreen-controller design wins in products such as the Samsung Galaxy Tab, the Motorola
A $150 million windfall from a positive outcome in an IRS tax audit shot GAAP earnings up to $0.47 per diluted share, but even without that tax gain and other one-time benefits, Atmel obliterated market expectations with $0.18 non-GAAP earnings line.
Continued high demand for smartphones and the rising trend of tablet computers are two strong winds in Atmel's sails. Like rivals Cypress Semiconductor
This is another happy milestone in Atmel's ongoing turnaround story. There seems to be plenty of fuel left in the company's growth rockets, though the even faster share-price boost makes me wonder whether we mightn't have seen the best of this stock already.
Add Atmel to your watchlist, and then drop down to the comments box to discuss your investment thesis on Atmel -- or lack thereof.
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