Atmel sells its XSense product line, but Colorado Springs employees will stay on the job
By Rich Laden Updated: April 18, 2015 at 8:03 am • Published: April 18, 2015
Atmel Corp. said Friday it has sold its XSense product line to a subsidiary of a Texas competitor, which will continue to manufacture the product at Atmel's Colorado Springs plant and retain the roughly 60 employees involved in the operation. In fact, a spokesman for the buyer - UniPixel Inc....
Atmel Corp. said Friday it has sold its XSense product line to a subsidiary of a Texas competitor, which will continue to manufacture the product at Atmel's Colorado Springs plant and retain the roughly 60 employees involved in the operation.
In fact, a spokesman for the buyer - UniPixel Inc. of suburban Houston - said the company is poised for a "significant expansion" of the XSense operation in the Springs that likely will lead to more hiring.
"If you're going to expand manufacturing, it would make sense they'll have to add people," UniPixel spokesman Ron Both said.
However, Both said he doesn't know how much bigger the operation might become or how many more employees could be added.
Atmel spokesman Peter Schuman called the deal a positive step for both companies and local employees.
"They get to continue doing what they were doing - just for a different owner for now," Schuman said.
California-based Atmel, one of the Springs' largest private employers with 1,000 workers, has operated a semiconductor manufacturing plant for a quarter century at 1150 E. Cheyenne Mountain Blvd. on the city's south side.
In late 2013, the company introduced XSense , a thin film imprinted with ink that contains copper and can conduct electricity. Designed for use in smart phones, tablets
XSense related activities
Operating results of exited XSense business.
Operating results of exited XSense business include revenue, gross margin, research and development, and operating loss from the XSense business which assets were sold on April 16, 2015 and have been excluded from non-GAAP results beginning in the first quarter of 2015 after management determined to discontinue its investment and exit this business. Management believes that excluding the XSense operating results from non-GAAP measures provides investors a basis to compare operating results from continuing operations.
Impairment of XSense manufacturing assets.
Impairment of XSense manufacturing assets reflects a $26.6 million charge for the write-down of assets used in the manufacture of XSense touch sensors. The company determined in the fourth quarter 2014 to discontinue its investment and exit this business.
UNXL has owned this almost a month as of today. 5 months left to start the ramp.
This is now even better than just two years ago, buying in the $5 and $6, before the run to $41.
Shorty still has problems understanding many here are playing with shorty's lost opportunity money during that 8 fold run. And for those you got caught up in the two year delay with INTOUCH, they now have XSense, which is a proven commodity, and customers taking shipments from UNXL in real time and any even lower price point to average down.
The next move up from this level will be a game changer. Tablets and Cell Phones---doesn't get much better than that. And now with 100% of the revenues going to UNXL. Sweet !
And just like most investments, this is all predicated on the company performing. Things look better today than at any other time in this company's history. Just wait for the multiple PRs that will surface over the next 6-12 months.
You forget that they have the cash to remove the financing. They choose not to because of the opportunity at hand.
With projections of over $10M over the next three quarters and a 6 month technology conversion for a 4x ramp, that is money well spent, imo, should UNXL be profitable in early 2016, as stated by management.
These markets represent a huge upside potential, and being that they have already fulfilled orders and continue to do so, further indicates they should easily be able to achieve the 4 times growth projections in under a year's time from this acquisition.
Given the growth projections for these markets and the industry's planned move away from ITO, they likely will need to further expand beyond the 4x already in the works.
$10 M this year, $40 Mil next year and who knows what '17 will look like. $100M plus?
This is all on top of a less than $4 M/quarter operating expenses run rate. Rather amazing margins as volume expands.
1) Product shipping
2) atml IP
3) atml manufacturing plant
4) Key atml management running manufacturing and sales
5) a new application for Diamond Guard added to the XSense touch screen sensor
6) Retail products selling
7) Revenues being generated from touch screen products
8) a paying Tier-1 customer
9) a pipeline of multiple new product designs in the final stages of development
10) one less competitor in this space
11) a plan to consolidate manufacturing at Colorado reducing net costs
12) a scheduled 4x ramp with minimal cost
13) Another Tier-1 customer in final design stages
14) Proven talent at the CFO and COO higher levels of management
15) a CEO with GUTS to make critical and key moves to improve the company's opportunity
16) a pending new product introduction
17) 1st Time Guidance for a profitable 2016
Feel free to add to this list.
From the last call Hawthorne stated that atml had about $24 Mil into their plant. UNXL bought it all for $15 M, which includes Revenues to the tune of $10 Million. Not a bad deal at all, not even factoring in the IP and Tier 1 customers.
The Society for Information Display (SID) is partnering with Cowen and Company and IHS for the 11th Annual Investors Conference at Display Week, which runs from May 31-June 5, 2015, at the San Jose Convention Center. Part of the four-day SID Business Track, this day-long event will be held immediately following the Display Week keynote presentations on Tuesday, June 2, and will focus on "Trendspotting in the Emerging Display Technology Ecosystem."
The Investors Conference is a unique event where public and private investors, as well as business professionals, will hear about cutting-edge technology and leading industry innovators that are driving advancements in the global display ecosystem. This year, speakers will reveal what to expect from some of the hottest emerging technologies, such as OLEDs, wearables and quantum dots. Session topics include:
Quantum Dots: From the Lab to Commercial Success
Evolution of the Immersive Experience
Innovations Driving Wearable Displays
Advanced Technologies Impacting the Display Ecosystem
The OLED Revolution is Now
Following welcoming remarks from Josh Epstein, managing director for Cowen and Company, presenters from some of the most innovative companies in the display industry will deliver interactive talks. Participating firms currently on the roster include CBRITE, Cima NanoTech, Glo, Immersion, Innova Dynamics, Kateeva, Kopin, Nanoco, Nanosys, Prysm, QD Vision, Tactus, Uni-Pixel, Universal Display, VIA optronics and Vuzix.
Same moron, with his new daily alias gone, now up in smoke.
And there you go. A proven record of delivering and now his is our team leader on the operational front.
Can't wait to see what he does combining UNXL and atml technologies. I doubt we could find a better person to integrate new schemes to XSense.
Under promise and over deliver. How refreshing. This is very good news.
They previously stated they would have "Over" $10 M in revs in 2015.
XTouch sensors have replaced the INTOUCH link, and no KODAK references anymore.
With the VOTE this coming Monday, it appears the "corner" is about to be turned.
Time for a call to be announced.
"According to Atmel Marketing Director Stephan Thaler, AvantCar successfully demonstrates the future of human machine interface (HMI) in upcoming vehicles. Indeed, next-generation automotive designs will be influenced by a wide range of trends in the consumer market such as slick and curved centerstack designs, as well as customization by appearance, color, navigation and interaction with a smartphone or tablet."
Great video demo.
They reference the copper mesh film that is now owned by UNXL, and discuss the distinct advantages of its use.