Dallas, Texas 10/18/2013 (Financialstrend) – In what could be construed as bad news for semi conductor component manufacturer Atmel Corporation (NASDAQ:ATML) analyst firm Needham has reported that its competitor Synaptics manufactured “touch controllers” have made their way into Amazon’s flagship Kindle tablets. Previously Amazon used to source the touch controllers going into its Kindle Fire range of tablets from Atmel.
Rajvindra Gill who authored the report for Needham’s has tied in his research findings with Synaptics, October 9 revision of revenue forecast for 4Q. He has postulated that the increase in revenue forecast to the tune of $10 million in the quarter could be linked to the build up of its order book based on increased demand from Amazon. Investors seem to have taken this news in their stride. The stock of Atmel has shed less than 0.69% of its market value in the past week of trading.
The markets have also discounted to take note of new product launch announcement from Atmel Corporation (NASDAQ:ATML) on the sidelines of European Utility Week on October 15. The touch controller market leader used the forum to showcase an end to end smart energy platform which is configured to fit seamlessly into smart grid set ups spanning across utility sectors. The new solution is expected to give the company an expanded share of utility “metering systems and energy measurement applications.”
In spite of the huge potential this new solution, the stock of Atmel did not show any enthusiasm at the browsers. At close of business on October 18, the price of the stock had settled at $7.3 per share representing a 0.15% dip in value over previous day close. Long term investors in the company would be hoping that the expected dip in sales volume due to the loss of Amazon order can be made up by expanding into the smart metering market.