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Microchip (MCHP) Expands Trust Portfolio With Latest Solution
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Microchip Technology (MCHP - Free Report) recently introduced a groundbreaking addition to its Trust Platform portfolio aimed at bolstering cybersecurity in the ever-expanding realm of Internet of Things (IoT) devices.
MCHP’s latest ECC608 TrustMANAGER, coupled with Kudelski IoT keySTREAM, offers a dynamic solution to address the escalating need for robust security measures in interconnected IoT systems.
Traditionally, IoT security has been static, often relying on fixed certificate chains implemented during manufacturing. However, with the ECC608 TrustMANAGER and keySTREAM, Microchip is revolutionizing this landscape. This innovative pairing allows for the management and updating of security credentials in the field, eliminating the constraints of static security implementations.
At the heart of this technology is the ECC608 TrustMANAGER, which utilizes a secure authentication IC designed to safeguard cryptographic keys and certificates. These credentials are then managed by the keySTREAM Software as a Service, offering end-to-end security throughout an IoT product’s lifecycle. This dynamic approach enables the establishment of a self-serve root Certificate Authority (root CA) and public key infrastructure secured by Kudelski IoT, simplifying the process of provisioning and managing devices in the field.
One of the key advantages of the ECC608 TrustMANAGER with keySTREAM is its ability to facilitate in-field provisioning and certificate management, streamlining the process of managing IoT ecosystems. This is particularly crucial as security standards and regulations continue to evolve, necessitating the upgradability of security infrastructure for IoT devices.
Furthermore, this innovative solution addresses the challenges of scalability and efficiency in device management without requiring hardware changes. Devices can be securely managed and updated throughout their lifecycle, ensuring compliance with evolving security requirements while minimizing disruptions to supply chain processes.
Microchip Technology Incorporated Price and Consensus
The ECC608 TrustMANAGER with keySTREAM represents a significant step forward in IoT security, setting a new standard for smart device security. By leveraging Microchip's advanced semiconductor technologies alongside Kudelski IoT's security services, this collaboration delivers unparalleled protection and ease of provisioning for IoT device manufacturers.
With pricing starting at 75 cents each in 10,000-unit quantities and an activation fee applied only after the device's initial connection, the ECC608 TrustMANAGER offers a cost-effective solution for enhancing IoT security. Manufacturers can leverage Microchip’s Trust Platform Design Suite to explore the keySTREAM use case and integrate this cutting-edge technology into their IoT products.
Microchip Suffers From Weak Macroeconomic Conditions
Despite a strong and expanding portfolio, persistent inflation and high interest rates have been contributing to the weak macro environment. This has been detrimental to MCHP’s prospects.
It has been receiving requests to push out or cancel backlog as customers sought to rebalance their inventory due to weaker business conditions.
Microchip has paused internal capacity expansion that is expected to lower capital expenditure spending in fiscal 2024 and 2025 due to the weakening demand and challenging macroeconomic environment.
The company has been striving to lower lead times, which it believes is the best way to help customers during a period of macro weakness and growing uncertainty. However, shorter lead times are resulting in lower bookings and reduced short-term visibility.
Microchip expects net sales to be $1.225-$1.425 billion for the fourth quarter of fiscal 2024. Non-GAAP earnings are anticipated between 46 cents per share and 68 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, indicating a 40.57% year-over-year decline. The consensus mark for earnings stands at 57 cents per share, suggesting a 65.24% year-over-year decline.
Zacks Rank & Stocks to Consider
Microchip currently has a Zacks Rank #5 (Sell).
Its shares have declined 2.4% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 13.6%.
Image: Bigstock
Microchip (MCHP) Expands Trust Portfolio With Latest Solution
Microchip Technology (MCHP - Free Report) recently introduced a groundbreaking addition to its Trust Platform portfolio aimed at bolstering cybersecurity in the ever-expanding realm of Internet of Things (IoT) devices.
MCHP’s latest ECC608 TrustMANAGER, coupled with Kudelski IoT keySTREAM, offers a dynamic solution to address the escalating need for robust security measures in interconnected IoT systems.
Traditionally, IoT security has been static, often relying on fixed certificate chains implemented during manufacturing. However, with the ECC608 TrustMANAGER and keySTREAM, Microchip is revolutionizing this landscape. This innovative pairing allows for the management and updating of security credentials in the field, eliminating the constraints of static security implementations.
At the heart of this technology is the ECC608 TrustMANAGER, which utilizes a secure authentication IC designed to safeguard cryptographic keys and certificates. These credentials are then managed by the keySTREAM Software as a Service, offering end-to-end security throughout an IoT product’s lifecycle. This dynamic approach enables the establishment of a self-serve root Certificate Authority (root CA) and public key infrastructure secured by Kudelski IoT, simplifying the process of provisioning and managing devices in the field.
One of the key advantages of the ECC608 TrustMANAGER with keySTREAM is its ability to facilitate in-field provisioning and certificate management, streamlining the process of managing IoT ecosystems. This is particularly crucial as security standards and regulations continue to evolve, necessitating the upgradability of security infrastructure for IoT devices.
Furthermore, this innovative solution addresses the challenges of scalability and efficiency in device management without requiring hardware changes. Devices can be securely managed and updated throughout their lifecycle, ensuring compliance with evolving security requirements while minimizing disruptions to supply chain processes.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
The ECC608 TrustMANAGER with keySTREAM represents a significant step forward in IoT security, setting a new standard for smart device security. By leveraging Microchip's advanced semiconductor technologies alongside Kudelski IoT's security services, this collaboration delivers unparalleled protection and ease of provisioning for IoT device manufacturers.
With pricing starting at 75 cents each in 10,000-unit quantities and an activation fee applied only after the device's initial connection, the ECC608 TrustMANAGER offers a cost-effective solution for enhancing IoT security. Manufacturers can leverage Microchip’s Trust Platform Design Suite to explore the keySTREAM use case and integrate this cutting-edge technology into their IoT products.
Microchip Suffers From Weak Macroeconomic Conditions
Despite a strong and expanding portfolio, persistent inflation and high interest rates have been contributing to the weak macro environment. This has been detrimental to MCHP’s prospects.
It has been receiving requests to push out or cancel backlog as customers sought to rebalance their inventory due to weaker business conditions.
Microchip has paused internal capacity expansion that is expected to lower capital expenditure spending in fiscal 2024 and 2025 due to the weakening demand and challenging macroeconomic environment.
The company has been striving to lower lead times, which it believes is the best way to help customers during a period of macro weakness and growing uncertainty. However, shorter lead times are resulting in lower bookings and reduced short-term visibility.
Microchip expects net sales to be $1.225-$1.425 billion for the fourth quarter of fiscal 2024. Non-GAAP earnings are anticipated between 46 cents per share and 68 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, indicating a 40.57% year-over-year decline. The consensus mark for earnings stands at 57 cents per share, suggesting a 65.24% year-over-year decline.
Zacks Rank & Stocks to Consider
Microchip currently has a Zacks Rank #5 (Sell).
Its shares have declined 2.4% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 13.6%.
NVIDIA (NVDA - Free Report) , BILL Holdings (BILL - Free Report) and Synopsys (SNPS - Free Report) are some better-ranked stocks in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Year to date, shares of NVDA and SNPS have gained 80.6% and 10.7%, respectively. BILL shares have declined 21.8% year to date.
Long-term earnings growth rates for NVIDIA, BILL Holdings and Synopsys are currently pegged at 30.93%, 23.64% and 17.51%, respectively.