ON Semiconductor Corp. (ON - Free Report) released Strata Developer Studio, a new cloud-based development platform to assist engineers in developing and designing with ON Semiconductor technologies in a simpler and secure environment.
The Strata platformis designed to boost security and accelerate engineer’s ability to offer advanced solutions by offering latest documentation, product information, design and application notes directly to the desktop. This in turn will aid customers in developing innovative new products.
The platform and solutions are capable of providing protected authentication, data transfers and full information control using encrypted and EU General Data Protection Regulation (“GDPR”) compliant databases.
Per the press release, “The Strata Developer Studio is provided as a Microsoft signed application connecting to the company’s SaaS platform.” The Software as a Service (SaaS) solution will enable users to deploy a variety of secured applications and services using a range of tools and frameworks.
ON Semiconductor Corporation Price
ON Semiconductor in Cloud
In the past year, ON Semiconductor has been trying to utilize its resources to make investments in cloud and Internet of Things (IoT) platforms, and expand its footprint in newer markets.
Cloud still remains an expanding market with high growth prospects. In a recent report, Gartner projected the public cloud market to reach $411.4 billion by 2020. Per a recent report by research firm Forrester’s, the global cloud computing market is expected to surpass $200 billion in 2019.
In the last reported quarter (third-quarter fiscal 2018), computing (11%of total revenues) grew 16% year over year to $163 million, thanks to the ramp in cloud and server solutions segments, and a favorable client PC market.
ON Semiconductor has a well-diversified business and an end-market focus that would typically generate relatively steady revenues throughout the year. Further, we expect the recent launches and numerous design wins in the cloud-based market to act as strong catalysts over the long term.
ON Semiconductor anticipates long-term growth backed by robust demand for products in the automotive and industrial end markets. Specifically, power management and imaging products which are gaining traction remain key catalysts.
However, ON Semiconductor has significant debt burden. The company exited the third quarter with total debt (long-term plus short term) amounting to $2.71 billion. Net debt at the end of the quarter amounted to $1.76 billion. A high debt position increases the risk profile of the business.
The company faces significant competition in all of the served markets. Being a maker of building block components of a general purpose nature, competition comes from every kind of integrated circuit manufacturer.
Zacks Rank & Stocks to Consider
Currently, ON Semiconductorsports a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Upland Software (UPLD - Free Report) , Marvell Technology Group Ltd. (MRVL - Free Report) and Infineon Technologies AG (IFNNY - Free Report) , all flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for Upland Software, Marvell and Infineon Technologies is currently pegged at 20%, 9.4% and 8.6%, respectively.
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