Microchip Technology, based in Chandler, recently said it has completed its acquisition of Atmel Corporation, which produces microcontrollers and touch technology for mobile and non-mobile applications.
The acquisition is expected to diversify Microchip's capacity for microcontroller production.
Microchip officials remain hopeful about the potential impacts of the acquisition, despite a nearly 16 percent drop in Atmel's net sales from the last quarter of 2015 to the most recent quarter of this year.
"The performance of Atmel since we engaged in discussions in August of 2015 has been disappointing," Microchip Chairman and CEO Steve Sanghi said. "We believe that the large drop in Atmel revenue in the March 2016 quarter is likely the result of an inventory correction in the distribution channel as distributors reduced inventory levels, overall weak business conditions, and concerns on the part of distributors surrounding the impact of the sale of Atmel to Microchip. We took some of this weakness into consideration in dropping the final acquisition price from our original offer."
Sanghi said Microchip remains committed to maximizing gains from the acquisition by boosting Atmel's sales, lowering operating costs, improving profit margins, and holding fast to other goals set for the company during the acquisition process.