Atmel Corporation (ATML) recently announced that it has received the “Compatible with Windows 7″ logo for over 10 multi-touches on a 10.1 inch maXTouch technology touchscreen device.
 
Atmel’s maXTouch technology passed the certification program, tested in the Windows Hardware Quality Labs (“WHQL”).
 
The Windows 7 logo program aims at helping customers identify products that have passed compatibility and reliability tests on Windows 7 through the “Compatible with Windows 7” logo. These tests have been designed by Microsoft Corp. (MSFT). This program now includes the new Windows Touch qualifier.
 
WindowsTouch is a new feature in the Windows 7 operating system that allows users to control Windows and their application using the multi-touch input. The technology, maXTouch, qualified for more than 10 touches for this logo program.
 
In recent times, management has been taking steps to transform Atmel into a purely microcontroller-based company to focus on its core microcontrollers and touch products. Management believes that this move will improve its cost structure and unlock value.
 
The company has already reduced its wafer fabrication facilities from five to one and successfully divested/closed down approximately 14 non-core product lines.
 
In June, Atmel announced that it will sell its Secure Microcontroller Solutions business (also known as the smartcard business or SMS) based in Rousset, France and East Kilbride, U.K. to Contactless S.A. (INSIDE).
 
INSIDE will pay $37 million in cash for the purchase and an additional cash consideration of up to $21 million if certain earn-out targets are met in 2010 and 2011. As part of the proposed transaction, Atmel would make a minority investment in INSIDE. In addition, INSIDE would enter a multi-year supply agreement to continue sourcing wafers from the fabrication operation in Rousset that Atmel recently agreed to sell to LFoundry GmbH.
 
The agreement also provides INSIDE a royalty-based, non-exclusive license to certain business-related intellectual properties in order to support the current SMS business and future product development. The transaction is expected to close by the end of the third quarter of 2010.
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