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Analyst Blog

Recently announced, Microchip Technology, Inc. (MCHP - Analyst Report) expanded its zero-drift operational amplifiers (op amps) with the launch of its MCP6V11 and MCP6V31 single amplifiers. The intent behind the introduction of these products was to bring forth a performance boost in the applications used in the consumer, industrial and medical markets.

Using a low voltage supply of 1.6V and current of 7.5 µA, Microchip’s advanced amplifiers would ameliorate productivity of its applications substantially. One area where these products would be extremely beneficial is the medical sector where highly productive and inexpensive medical devices are much in demand. These products would not only provide for optimum productivity but also be uniquely power efficient.

Management averred that its state-of-the-art technologies allow for minute power consumption, flexible packaging and highly productive amplifiers. These not only elevate the power amplifier technology to a higher pedestal but also allows for market proliferation and enhancement of goodwill.

On May 1, 2012, the company reported its fourth quarter financial results of fiscal 2012. Revenues declined around 3% annually to reach around $339 million for the quarter. It can be inferred from the current technological advancements that we are likely to perceive a better performance from the upcoming quarter of Microchip.

Also, the presence of ominous rivals in the industry is something Microchip should guard itself against. Big players in this regard include Supertex Inc. , Maxim Integrated Products Inc. (MXIM - Analyst Report) and NXP Semiconductors N.V. (NXPI - Snapshot Report).

The current Zacks Consensus Estimates for the first quarter of fiscal 2013 and for fiscal 2013 are 44 cents per share and $1.90 per share, respectively. The company currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. We also have a ‘Neutral’ recommendation on the company’s stock.

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