Atmel (ATML) was up 2.3% in early trading despite a warning late Wednesday that it expects to break even in the second quarter, on revenue of $367 million, down 30% from the first quarter.

Analysts had expected the specialty microchip company to earn 6 cents a share on revenue 10% to 15% lower than the first quarter.

The company blamed continued weakness in the smart-card markets.

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