There has been much interest in components that combine the best of state-based and event-based approaches. The interface of a component can be thought of as its specification and substituting components with the same interface cannot be observed by any user of the components. Here we will define the semantics of atomic components where both states and event can be part of the interface. The resulting semantics is very similar to that of (event only) processes. But it has two main novelties: one, it does not need recursion or unique fixed points to model nontermination; and two, the behaviour of divergence is modelled by abstraction, i.e. the construction of the observational semantics.