NEW YORK ( TheStreet) -- Shares of Atmel (ATML - Get Report) surged in late trades on Tuesday after the San Jose, Calif.-based maker of microcontrollers and other electronic component products reported better-than-expected quarterly earnings.
After the closing bell, the company posted an adjusted profit of $119.5 million, or 25 cents a share, for the three months ended Dec. 31, on revenue of $457.8 million, up 33% year-over-year and 3% on a sequential basis. The average estimate of analysts polled by
Thomson Reuters was for a profit of 16 cents a share in the December period for revenue of $436.1 million.
The company said its gross margin was 49.5% in the fourth quarter, its highest level since the third quarter of 1996, and up from 46.8% in the third quarter and 37% in last year's fourth quarter. Atmel cited increased volumes, an improved mix of higher margin products, and its divestiture of its Smart Card business for the better gross margins.
The stock was last quoted at $15.38, up 4.9%, on volume of 1.4 million, according to Nasdaq.com. Based on their regular session close at $14.66, the shares are up more than 200% in the past 52 weeks. Of the 13 analysts covering the stock, 10 are at either strong buy (6) or buy (4).