Maxim Integrated Products Inc. (MXIM - Analyst Report) recently launched a transmitter chipset that will enable data centers to output data four times faster while consuming less power.
Data centers facilitate the secure storage of data and its retrieval for use on demand. In a cloud environment, data centers also run the applications of the core business process of the organization.
Given the fact that data centers have to satisfy demand for data storage and retrieval all through the day and every day of the year, they are in need of a huge and uninterrupted power supply. This makes electricity their most significant expense.
Big IT stalwarts such as Google Inc. (GOOG), IBM Corp. (IBM - Analyst Report), Microsoft Corp. (MSFT - Analyst Report) and others all run their own multiple datacenters around the globe. Demand for independent data centers is also on the rise, as even small and medium-sized businesses are beginning to understand the advantages.
Maxim’s transmitter chipset can improve the performance of data centers. The transmitter chipset has the ability to improve upon the speed and energy efficiency of data centers, thereby enabling better management and cost control.
According to Gartner, worldwide data center hardware spending is expected to be $106.4 billion in 2012, and cross $126.2 billion in 2015. The figure highlights the opportunity in the data center market for Maxim.
In the fourth quarter of 2012 (the last-reported quarter), Maxim posted revenue of $605.0 million, up 5.9% sequentially, down 3.4% year over year and within management’s guidance range of $590.0-620.0 million. Revenue was down across all end-markets in the last quarter.
Currently, Maxim Integrated Products Inc. has a Zacks #3 Rank, implying a short-term Hold rating.