M/A-COM: A Semi Name That Can Take The Heat
Darspal S Mann
Darspal S Mann
You Can Benefit From M/A-COM's Acquisitive Strategy
Tue, Apr. 26, 4:29 PM
Mon, Apr. 25, 5:35 PM
- AAPL, AFL, AIZ, AKAM, ARAY, ARI, ASH, AXS, BEAT, BLDP, BRX, BWLD, BXMT, BXP, BYD, CHRW, CINF, CLMS, CMG, COF, CREE, CRUS, CUDA, CVA, EBAY, EEFT, EQR, EW, EXAC, FE, FOE, FSP, FTI, FTNT, HAWK, HIW, HLS, HUBG, IRBT, ISIL, JBSS, JBT, KLAC, MKTO, MRCY, MTSI, MWA, NANO, NCR, NUVA, O, PEI, PNRA, PSA, PSB, RHI, RMD, RNR, SKT, SLCA, T, TEX, TMK, TSS, TWTR, TX, ULTI, VNTV, WNC, WRB, X, ZIXI
Tue, Mar. 8, 7:05 PM
- The sanctions placed by the Commerce Department on U.S. parts/equipment sales to ZTE are just a "temporary setback" for optical component firm Oclaro (OCLR -15.4%), insists Piper's Troy Jensen. He thinks a majority of the Oclaro shipments due for ZTE can be sent to other Chinese equipment makers, and considers Oclaro's revised guidance "extremely conservative."
- Jensen adds the selloff seen today in RF chipmaker M/A-COM (MTSI -4.3%) was also unjustified, given ZTE isn't a major direct customers. Meanwhile, Northland Securities' Tim Savageaux has joined in defending Oclaro, asserting the sanctions are only a short-term issue for the company and that ZTE's optical system rivals will benefit from its woes.
- Oclaro peer Lumentum (LITE -3.3%) has issued a short PR after the close in which it states ZTE accounted for less than 1% of its sales during the first half of FY16 (ends in June), and that recent ZTE business levels "have not been material."
- Earlier: Optical component firms sell off after ZTE hit with sanctions
Fri, Jan. 29, 9:15 AM
Tue, Jan. 26, 4:11 PM
Mon, Jan. 25, 5:35 PM
Dec. 15, 2015, 1:39 PM
- Aeroflex, a maker of high-reliability chips for the space and radiation-hardened semi markets, is selling its diode IC business to M/A-COM (MTSI +1.6%) for $38M in cash. With the business having 2014 revenue of $37M, M/A-COM is paying ~1x sales.
- The deal will be financed via cash on hand, and is expected to be accretive to EPS once all integration work is done. M/A-COM declares the purchase extends the company's leadership position in RF and microwave diodes, while allowing it to expand into the market for JAN-certified diodes and transistors.
- The acquisition comes shortly after M/A-COM closed a $60M deal (also all-cash) to buy Japanese optical networking sub-assembly maker FiBest.
Nov. 17, 2015, 4:07 PM
- M/A-COM Tech (NASDAQ:MTSI): FQ4 EPS of $0.34 in-line.
- Revenue of $112.6M (+19.9% Y/Y) beats by $0.39M.
Nov. 16, 2015, 5:35 PM
Jul. 28, 2015, 4:25 PM
- M/A-COM Tech (NASDAQ:MTSI): Q2 EPS of $0.42 beats by $0.02.
- Revenue of $130.66M (+16.3% Y/Y) beats by $2.42M.
Jul. 27, 2015, 5:35 PM
- AFL, AIZ, AJG, AKAM, APC, ARI, ATML, ATR, ATRC, AXS, BBRG, BGFV, BLDP, BMR, BOOM, BWLD, BXMT, CALX, CAP, CEB, CHRW, CINF, CLMS, CTXS, CUZ, DHT, EEFT, EQR, ESRX, ETH, EW, EXAC, EXAM, GAS, GCA, GILD, GPRE, HA, HT, HURN, IACI, IPHI, KIM, LNDC, MTSI, NATI, NCR, NEU, NGD, NUVA, NVDQ, NVMI, OIS, PEI, PNRA, RGR, RNR, RPXC, RRC, RSYS, RUBI, SLCA, SM, SPWR, SSW, TSS, TWTR, ULTI, VDSI, VR, VRSK, VRTU, WNC, WRI, WSH, X, YELP
Jul. 16, 2015, 7:14 PM
- A U.S. subsidiary of automotive safety system giant Autoliv (NYSE:ALV) is buying M/A-COM's (NASDAQ:MTSI) automotive module unit for $100M in cash up-front plus up to $30M in earn-out payments through 2019. The deal is expected to close in calendar Q3.
- The M/A-COM unit makes driver-assistance (ADAS) and GPS modules. It accounted for 18% of M/A-COM's FQ2 revenue of $124.9M. The company declares the sale will allow it to "realize its full potential as a pure-play high-performance analog [chip] company," and "significantly accelerate" its progress towards hitting long-term gross margin and op. margin targets of 60% and 30%.
- The announcement comes ahead of Autoliv's Q2 report, due tomorrow morning at 6AM ET. M/A-COM reports on July 28.
Jun. 12, 2015, 1:22 PM
Apr. 28, 2015, 4:50 PM
- M/A-COM Tech (NASDAQ:MTSI): FQ2 EPS of $0.41 beats by $0.02.
- Revenue of $124.9M (+16.2% Y/Y) beats by $2.74M.
Feb. 2, 2015, 4:16 PM
- M/A-COM Tech (NASDAQ:MTSI): FQ1 EPS of $0.38 beats by $0.03.
- Revenue of $114.86M (+36.4% Y/Y) beats by $0.69M.
Dec. 29, 2014, 8:05 AM
- Needham Quinn Bolton is turning more cautious on chip stocks following a blistering 2014: Skyworks (NASDAQ:SWKS), RF Micro (NASDAQ:RFMD), TriQuint (NASDAQ:TQNT), Cavium (NASDAQ:CAVM), M/A-COM (NASDAQ:MTSI), and MaxLinear (NYSE:MXL) have been downgraded to Hold, and Ambarella (NASDAQ:AMBA) downgraded to Underperform.
- Bolton often cites valuation. Regarding Skyworks, he notes shares are "up 161% YTD in 2014, vs. 30.3% for the SOX Index and 15.1% for the NASDAQ Composite, and trading above [Needham's] prior price target of $70, or 14x our CY16E non-GAAP EPS estimate."
- Likewise, Bolton notes RF Micro and TriQuint, who will be jointly known as Qorvo starting on Jan. 1, have exceeded his respective targets of $16.50 and $27.50 (12x 2016E EPS), and would prefer to see if a buying opportunity emerges in 1H15. Cavium is trading above Needham's $58 target (based on a DCF valuation model).
- Regarding Ambarella, he cites not only valuation, but also a belief the video processor vendor could underperform in 2015 due to slowing revenue growth, gross margin pressure, and price pressure from top customer GoPro. "A more challenging cable outlook and a push-out in the ramp of its satellite gateway and ODU opportunities" are cited as reasons for downgrading MaxLinear.
- SWKS -1.2% premarket. RFMD -1.1%. TQNT -1.9%. AMBA -3.5%.
- Last Friday: Chip industry growth expected to slow following strong 2014
- Bullish opinions: Brean, Rosenblatt
MACOM Technology Solutions Holdings, Inc. operates as a holding company. The company provides semiconductor solutions for use in wireless and wire line applications across the radio frequency, microwave, and millimeter wave spectrum through its primary operating subsidiary M/A-COM Technology... More
Industry: Semiconductor - Broad Line
Country: United States
Other News & PR