Sell-side likes Maxim/Volterra; OTR Global worried about Samsung sales


Analysts have mostly given a thumbs-up to Maxim's (MXIM -3.4%) purchase of high-power analog chipmaker Volterra (VLTR +54.8%).

Needham expects the all-cash deal to boost FY14 EPS by $0.05 and FY15 EPS by $0.10, bolster Maxim's server power management IC (PMIC) business, and help it expand within the telecom infrastructure, solar, and battery markets.

The firm also expects Maxim to eventually use Volterra's voltage envelope-tracking tech in its mobile PMICs.

The rising popularity of ultra-dense, "hyperscale," server deployments within Web/cloud data centers is forcing companies to get creative when it comes to power management and heat dissipation. That, in turn, could strengthen demand for Volterra's high-current ICs.

Evercore offered a more subdued take on the deal, calling it the "best possible outcome" for Volterra in light of tough competition and a lack of near-term revenue catalysts. Volterra has been forecast to see a 12% Y/Y sales drop in 2013, thanks in part to notebook-related weakness.

Separately, OTR Global is worried Samsung (27% of Maxim's revenue) has developed a home-grown PMIC, something that could lead it to buy fewer of Maxim's.

Maxim/Volterra CC transcript

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