Is Atmel's (NASDAQ:ATML) Performance Sustainable?

Atmel (NASDAQ:ATML) caught Wall Street off guard with its latest quarterly performance, and the company soared 10 percent on handily beating expectations.

The company had adjusted earnings of $0.25 a share which easily beat analyst expectations of $0.17, and revenue of $458 million surpassed estimates of $436.1 million. Revenue guidance of $440 million to $463 million next quarter easily beat estimates of $420 million.

As to sustainability, is it in the cards for Atmel or was this an anomaly?

It appears Atmel is positioned to make this a long-term event for the company, based mostly on the increasing sales of touchscreens and microcontollers.

Wedbush analyst Betsy Van Hees said, "We expect continued design-win momentum and ramp of microcontroller products, particularly capacitive touch."

Since November Atmel has soared 65 percent after another strong quarter.

Atmel closed Wednesday at $16.10, gaining $1.44, or 9.82 percent. Van Hees raised her price target on Atmel from $18.50 to $20.