Microsemi Corporation (MSCC - Free Report) , an original equipment manufacturer (OEM) of a broad range of high-reliability and analog/mixed signal integrated circuits, signed a global distribution agreement with Future Electronics, a distribution and marketing leader of electronics.
Founded in 1968, Future Electronics is a privately-held company and the fourth largest electronics distributor in the world. Headquartered in Quebec, it specializes in the distribution of electronic and electro-mechanical components. The company also has field applications engineers to assist circuit design engineers with product selection and engineering support.
According to the agreement, Future Electronics will promote, sell and support the full range of Microsemi’s semiconductor systems solutions, excluding certain government products and services. Microsemi’s product portfolio consists of energy-efficient power and signal management, logic and discrete solutions, serving a broad base of end-user markets, including defense, aerospace, communications, enterprise and commercial and industrial markets.
The agreement with Future Electronics should open up new markets for Microsemi’s product portfolio and also boost its customer base. Both the companies are trying to provide high-performance analog and energy-efficient solutions for different electronic applications used in various end markets thus meeting end users’ demand effectively.
We are positive about Microsemi’s endeavor to deliver innovative products and technologies to its customers. However, the company is experiencing weakness across its major markets. The company is trying to increase the electronic content per device and customer, which might eventually help its market share.
Microsemi’s revenues in the second quarter of fiscal 2013 were $235.3 million, down 5.0% sequentially and 5.6% year over year. However, adjusted earnings per share came in at 32 cents, beating the Zacks Consensus Estimate by 2 cents or 6.7%.
Microsemi has a Zacks Rank #3 (Hold). Other stocks that have been performing well and are worth a look include Magnachip Semiconductor (MX - Free Report) , Microchip Technology (MCHP - Free Report) and Maxlinear Inc. (MXL - Free Report) , all carrying a Zacks Rank #2 (Buy).