Atmel Licenses IMMR TouchSense

Atmel Corp. (ATML) recently announced that it has licensed Immersion Corp.’s (IMMR) TouchSense technology for its products. Atmel will integrate this functionality into its touch product families to offer users a better experience in consumer products including mobile phones, game consoles, navigation devices, cameras, Netbooks, appliances, PCs and peripherals.

Immersion is a leading developer and licensor of touch feedback technology.

The company is aggressively marketing its new maxTouchTM technology. Touch-sensing technology is the fastest growing area in Atmel's microcontroller business and it is expected to remain a major growth driver in the coming quarters. Atmel's maxTouchTM is beginning to gain traction among the OEMs and is expected to be one of the leading new technologies in the smart-phone and large screen applications.

Management expects to release additional maXTouch touchscreen solutions in the fourth quarter of 2009 and 2010. Meanwhile, the company also announced that its plans to sell its wafer fabrication plant in France to LFoundry GmbH. In accordance with French law, Atmel has presented the proposed acquisition to the employee representatives of the Works Council in Rousset. The Works Council is expected to render its opinion on the proposed transaction by the first quarter of 2010. Atmel will then seek approval from the Board of Directors.

Other financial terms of the deal were not disclosed. In relation with the acquisition, Atmel expects to record a non-cash impairment charge of up to $200 million in the fourth quarter of 2009.

Last month, the company managed to post a smaller loss in the third quarter, compared to the previous quarters. Atmel recently undertook a restructuring program wherein it disposed off its non-core wafer fabrication operations, consolidated or eliminated numerous product lines and reducing the workforce by nearly 25%.

Atmel also plans to dispose off its Application Specific Integrated Circuits (ASIC) business as management is planning to transform Atmel into a microcontroller-based company, which it expects will improve the cost structure and unlock value.

Based in San Jose, California, Atmel designs, develops, manufactures, and markets a range of semiconductor integrated circuit (IC) products for communication, consumer electronics, and the computer market.

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