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Semtech (SMTC) Showcases FiberEdge Strength at ECOC 2023
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Semtech Corporation (SMTC - Free Report) showcased its 200G PAM4 MZM driver at the European Conference on Optical Communication (ECOC) 2023 exhibition, in collaboration with Coherent (COHR - Free Report) .
Notably, Semtech demonstrated the PAM4 MZM driver’s capabilities by using Coherent’s 200G DFB-MZ laser.
We note that this Coherent partnership will allow Semtech to deploy 200G per lane using advanced optics.
Further, this collaboration will pave the way for 1.6T and 3.2T optical transceiver deployments.
Semtech is expected to gain solid traction across Mach-Zehnder modulator-based applications offering enhanced linearity and signal integrity, on the back of the latest move.
Moreover, we believe that this move will demonstrate Semtech’s increased focus on FiberEdge developments in the 200G per lane space.
The latest move bodes well for the company’s efforts to penetrate into the 200G per lane multi-mode fiber market rapidly. Moreover, the move will likely strengthen its footprint in the global fiber optics market.
Per a Grand View Research report, the global fiber optics market is expected to witness a CAGR of 6.9% during the forecast period of 2023-2030.
An Expert Market Research report suggests the global fiber optics market size to reach $13.03 billion by 2028, exhibiting a CAGR of 8.5% between 2023 and 2028.
We believe that the growing presence in the promising fiber optics market is expected to aid the company in winning investor optimism in the near term.
However, macroeconomic headwinds, including demand softness, inflationary pressure and supply-chain constraints remain major concerns.
Semtech shares have declined 12.4% in the year-to-date period against the industry’s growth of 14.8%.
Growing Focus in Signal Integrity Segment
The latest collaboration is in sync with Semtech’s growing efforts to boost its Signal Integrity segment through ongoing collaborations and product launches.
Apart from the latest move, Semtech collaborated with Broadcom (AVGO - Free Report) to demonstrate a 200G/lane optical transceiver at ECOC 2023, featuring FiberEdge 200G PAM4 PMDs and Broadcom's DSP PHY and single-mode optics.
Semtech’s partnership with Broadcom will develop next-generation optical modules, capable of bandwidths up to 1.6TB, to drive the adoption of 51.2TB next-generation switching platforms.
Further, the company showcased 100G/lane linear pluggable optical links with FiberEdge 100G PAM4 PMDs and 800G SR8 Linear Pluggable Optics (LPO) module, interoperating with the latest switch ASIC technology and other LPO modules from a multi-vendor ecosystem.
This apart, Semtech expanded its portfolio of PAM4 Transimpedance Amplifiers and Linear Laser Drivers with FiberEdge GN1816 and GN1848 chipsets designed to offer high linearity and low noise, making them ideal for high-speed short-reach interconnects, re-timed linear drive, and active optical cable applications.
All the above-mentioned endeavors will likely strengthen the Signal Integrity segment’s performance, which is suffering from sluggish demand.
For second-quarter fiscal 2024, Signal Integrity (20% of net sales) sales were $46.51 million, exhibiting a year-over-year decline of 46.8%.
Our model estimates fiscal 2024 Signal Integrity revenues to be $200 million, down 34.3% from the figure recorded in fiscal 2023.
Moreover, the aforementioned efforts will enhance the company’s overall portfolio offerings, which will likely benefit its financial performance in the days ahead.
For third-quarter fiscal 2024, management expects net sales of $190-$210 million.
Zacks Rank & A Stock to Consider
Currently, Semtech carries a Zacks Rank #3 (Hold).
Image: Bigstock
Semtech (SMTC) Showcases FiberEdge Strength at ECOC 2023
Semtech Corporation (SMTC - Free Report) showcased its 200G PAM4 MZM driver at the European Conference on Optical Communication (ECOC) 2023 exhibition, in collaboration with Coherent (COHR - Free Report) .
Notably, Semtech demonstrated the PAM4 MZM driver’s capabilities by using Coherent’s 200G DFB-MZ laser.
We note that this Coherent partnership will allow Semtech to deploy 200G per lane using advanced optics.
Further, this collaboration will pave the way for 1.6T and 3.2T optical transceiver deployments.
Semtech is expected to gain solid traction across Mach-Zehnder modulator-based applications offering enhanced linearity and signal integrity, on the back of the latest move.
Moreover, we believe that this move will demonstrate Semtech’s increased focus on FiberEdge developments in the 200G per lane space.
Semtech Corporation Price and Consensus
Semtech Corporation price-consensus-chart | Semtech Corporation Quote
Growth Prospects
The latest move bodes well for the company’s efforts to penetrate into the 200G per lane multi-mode fiber market rapidly. Moreover, the move will likely strengthen its footprint in the global fiber optics market.
Per a Grand View Research report, the global fiber optics market is expected to witness a CAGR of 6.9% during the forecast period of 2023-2030.
An Expert Market Research report suggests the global fiber optics market size to reach $13.03 billion by 2028, exhibiting a CAGR of 8.5% between 2023 and 2028.
We believe that the growing presence in the promising fiber optics market is expected to aid the company in winning investor optimism in the near term.
However, macroeconomic headwinds, including demand softness, inflationary pressure and supply-chain constraints remain major concerns.
Semtech shares have declined 12.4% in the year-to-date period against the industry’s growth of 14.8%.
Growing Focus in Signal Integrity Segment
The latest collaboration is in sync with Semtech’s growing efforts to boost its Signal Integrity segment through ongoing collaborations and product launches.
Apart from the latest move, Semtech collaborated with Broadcom (AVGO - Free Report) to demonstrate a 200G/lane optical transceiver at ECOC 2023, featuring FiberEdge 200G PAM4 PMDs and Broadcom's DSP PHY and single-mode optics.
Semtech’s partnership with Broadcom will develop next-generation optical modules, capable of bandwidths up to 1.6TB, to drive the adoption of 51.2TB next-generation switching platforms.
Further, the company showcased 100G/lane linear pluggable optical links with FiberEdge 100G PAM4 PMDs and 800G SR8 Linear Pluggable Optics (LPO) module, interoperating with the latest switch ASIC technology and other LPO modules from a multi-vendor ecosystem.
This apart, Semtech expanded its portfolio of PAM4 Transimpedance Amplifiers and Linear Laser Drivers with FiberEdge GN1816 and GN1848 chipsets designed to offer high linearity and low noise, making them ideal for high-speed short-reach interconnects, re-timed linear drive, and active optical cable applications.
All the above-mentioned endeavors will likely strengthen the Signal Integrity segment’s performance, which is suffering from sluggish demand.
For second-quarter fiscal 2024, Signal Integrity (20% of net sales) sales were $46.51 million, exhibiting a year-over-year decline of 46.8%.
Our model estimates fiscal 2024 Signal Integrity revenues to be $200 million, down 34.3% from the figure recorded in fiscal 2023.
Moreover, the aforementioned efforts will enhance the company’s overall portfolio offerings, which will likely benefit its financial performance in the days ahead.
For third-quarter fiscal 2024, management expects net sales of $190-$210 million.
Zacks Rank & A Stock to Consider
Currently, Semtech carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Asure Software (ASUR - Free Report) . Asure Software sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software shares have lost 5.6% in the year-to-date period. ASUR’s long-term earnings growth rate is currently projected at 27%.