Steve Skaggs, Senior Vice President and Chief Financial Officer of Atmel Corporation (ATML), announced that the company has shifted to a multiyear strategy to focus on the microcontroller market. He was speaking at the Canaccord Genuity 34th Annual Growth Conference at the Intercontinental Hotel in Boston.
Atmel is a designer and manufacturer of microcontrollers, capacitive touch solutions, advanced logic, mixed-signal, nonvolatile memory and radio frequency components. Atmel is involved providing system solutions in the industrial, consumer, communications, computing and automotive markets.
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The shift to the microcontroller market affords strong growth prospects, Skaggs said. While Atmel has a broad customer base, it sells about 75% of its revenue into the industrial, automotive and broad consumer market. “We’re not tied to any direct industry or customer,” Skaggs said. “Our largest customers are 5% of our revenue.”
Automotive has grown as a percentage of revenue over the last two years, Skaggs said, and smart energy products are also growing.
Atmel deals in 8-bit and 32-bit microcontrollers, currently a $12 billion market that Skaggs anticipates to grow to $18 billion by 2018. Atmel claims to be the third-largest supplier of legacy 8-bit controllers, with the business growing, Skaggs said. He said Atmel is the “fastest-growing” 32 bit supplier and last year released a record number of 32-bit products. “This year we’re on pace to establish another record in product introduction,” Skaggs said.
There is also a robust developer community at Atmel, with 65,000 users of Atmel Studio, a software tool that aids design. Ap store Atmel Gallery also offer over 200,000 downloads of code samples, some free and others for sale. “There’s a strong correlation between design activity and future revenue,” Skaggs said.
Skaggs also pointed out that connected devices (termed IoT for “Internet of Things”) is seen as an emerging trend that can add significant growth to the company. “We see it as a market that permeates all smart electronic devices,” Skaggs said, noting a number of industrial, medical and home automation devices, including smart lighting, building automation, patient monitoring, measurement of bodily diagnostics, smart meters, thermostats and appliances, among many other items. The company recently acquired Newport Media to bolster its technology expertise into IoT devices.
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