Nokia, Atmel try to smooth over wireless worries

Two key wireless players made moves to soothe investors concerns Friday after their respective stocks took a hit following Nokia's profit warning.

Nokia (NYSE: NOK) met projections in the second quarter on Thursday, but issued a third quarter warning. Shares were hammered, falling 26 percent on the day.

On Friday, Nokia said its board of directors authorized a 36 million share buyback. When shares are hammered, companies often launch repurchase programs to boost earnings and show confidence in the stock's prospects.

Atmel (Nasdaq: ATML), a leading flash memory manufacturer, was a bit more direct. Flash memory is used in wireless devices. Nokia's warning sent Atmel shares down 15 percent Thursday. Texas Instruments (NYSE: TXN) and other related wireless component providers fell.

In a statement, Atmel said business was "exceptionally strong." The company said as wireless devices add functionality the demand for memory rises.

``As anticipated, there have been recent announcements regarding adjustments to expectations in the wireless telecommunications end market. All of this has been anticipated in the guidance that Atmel has already provided to the investors," said Atmel CEO George Perlegos, in a statement.

Atmel's chief also said that concerns about the flash memory market were overblown. Atmel expects strong growth going forward. Atmel last week issued a 2-for-1 stock split after reporting strong second quarter results.

Revenue for the quarter was $478.8 million, up 54 percent from the year-ago quarter. The company earned $61.3 million, or 26 cents per fully diluted share, in the quarter, well above the 22 cents per share expected by analysts surveyed by First Call Corp.
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