Needham & Company Maintains a 'Hold' on Atmel (ATML); Still Skeptical on New XSense

Needham & Company maintains a 'Hold' on Atmel (NASDAQ: ATML).

Analyst, Rajvindra S. Gill, said, "ATML announced a special investor event to introduce its newest product, XSense, a mesh touch sensor offering performance advantages over existing ITO sensor technology. XSense was developed in partnership with Carclo (UK private company), and through its performance advantages, advanced features, & lower system BOM, we believe it has the potential to take share from traditional ITO sensors. However, we remain skeptical for the following reasons: 1) the technology could be disruptive to the existing supply chain and may face resistance; 2) we remain uncertain that XSense reduces the overall BOM for the touch solution compared with in-cell ITO sensors; and 3) the product could have an adverse impact on gross margins over time as ATML manufactures these sensors internally. We will closely monitor the production ramp to further understand how these factors affect the initial adoption."

For an analyst ratings summary and ratings history on Atmel click here. For more ratings news on Atmel click here.

Shares of Atmel closed at $9.35 yesterday.

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