Microsemi Corporation (MSCC), an original equipment manufacturer (OEM) of a broad range of high-reliability and analog/mixed signal integrated circuits, has launched its fourth generation chipset called ZL880 series. The new chipset is supported by low power and offers voice solutions for broadband communication applications. Microsemi's new chipset boasts lower power consumption and bill-of-material costs (BOM) than its predecessors. The ZL880 series consumes 33.0% less power and satisfies the green initiatives criteria of the European Union (EU) Code of Conduct.
Through broadband communication applications, data, voice and videos can be sent in an effective and efficient manner. The business communities are rapidly adopting this technology as it also supports more flexible work practices and hours, thus significantly benefiting employees.
Microsemi is tapping the potential in broadband communication applications that have become a necessary part of modern-day fast-paced global businesses. Demand for efficient data transfer and communication continues to accelerate. Microsemi is therefore strengthening its broadband communications portfolio with its unique product solutions. The rising need for broadband communication in the business community may benefit Microsemi going forward.
According to research conducted by Gartner, broadband connectivity will continue to spread to households and may cover 743 million households globally by 2016, accounting for $201.0 billion of data access revenue. Therefore, this is a good time for Microsemi to build capabilities in broadband communication applications.
Microsemi's high-performance product portfolio comprises power management products, timing and voice processing devices, and RF solutions among others.
Microsemi's revenue in the third quarter of fiscal 2012 was $259.2 million, up 4.0% sequentially and 19.6% year over year. The communications market was the largest contributor, making up 31.0% of sales. The defense & security market generated 28.0% of sales and aerospace generated 21.0%. The defense, aerospace and medical markets largely use Microsemi's high-reliability chips, while the other markets use its analog/mixed signal products.
Microsemi Corporation, which competes with Maxim Integrated Products (MXIM), Linear Technology (LLTC), Texas Instruments (TXN), ARM Holdings Plc. (ARMH) and On Semiconductor (ONNN), has a Zacks #2 Rank, implying a short-term 'Buy' rating.