Atmel adding $300M to buyback program

|About: Atmel Corporation (ATML)|By:, SA News Editor

In tandem with its Q3 results, Atmel (ATML) announces it's adding $300M to its buyback program. Together with the funds remaining on an existing $700M program, Atmel is free to spend nearly $364M on buybacks. That's good for repurchasing 13% of outstanding shares at current levels.

Shares +1.2% AH following the Q3 report and the buyback announcement. Atmel posted a gross margin of 43.1% in Q3, +50 bps Q/Q and -60 bps Y/Y. The chipmaker expects further Q/Q margin expansion in Q4, but also says it's dealing with "a challenging industry environment."

R&D spend rose 11% Y/Y in Q3 to $66.8M. But SG&A spend fell 18% to $55.8M, thanks partly to job cuts. $34.4M was spent on buybacks.