Atmel Corporation (ATML)
May 22, 2012 3:45 pm ET
Stephen Cumming - Chief Financial Officer and Vice President of Finance
The company has been primarily focused on the areas of embedded microcontrollers, but we've been particularly successful in the areas of capacitive [ph] touch, and I'll talk a little bit about that a little bit more later on. So today, I'll discuss Atmel's business strategy, the overall operations, and the transformation of the company and the significant impact that had on the financial results of the company. Okay. Before I do that, I'd like to draw your attention to the Safe Harbor statement. During the course of this presentation, I may be making forward-looking projections about Atmel's business outlook. Actual results may differ materially from those expressed in this presentation due to a number of risks and uncertainties, and those risks and uncertainties can be found in our 10-Q and 10-K filings. I urge you to read them whenever you get a chance. There's a lot of interesting stuff in there.
So turning to a discussion on Atmel, many of you are probably familiar with the transformation of Atmel, but for those of you that are new to the story, I'll just address that a little bit in the summary form. Approximately 5 years ago, we put in place, to make a lot of changes at the company. The changes we pursued were actually relatively simple, but the impact they've had on the overall operations and the financials of the company have been substantial. We focused on 3 key main areas. First and foremost, we recognized that the most valuable, most important part of the business with the highest growth opportunity and margin expansion was our Microcontroller business. We made ourselves a microcontroller-focused organization. We redeployed R&D resources. We redeployed sales and marketing resources over to microcontrollers. We also went into acquisition mode over the last 4 years. We've acquired a number of companies that have build out the IP and technology around microcontrollers, some of which you may be familiar, Quantum Research back in March of 2008, to gain us media access into the capacity of touch sensing market. We acquired ZigBee company, to allow us to play in the high-growth, high-margin smart-power metering areas, and more recently, a power line communications company. On top of the acquisitions, we also went through a fairly substantial transformation in terms of businesses we divested and shut down. We actually shut down or sold about 21 non-core businesses as part of the transformation.