Recently announced, Microchip Technology Inc. (MCHP) entered into a component extension agreement with Altium to add advanced board-level components to its product database. This task shall be executed by Altium using AltiumLive.
AltiumLive is an online content delivery system which deals with finished board-level components. It also makes accessory and supplementary information such as price, material support, and supplier information of these products available using its Altium Designer 10.
The Altium Content Development Center will help Microchip design its new board-level part models which would include Michrochip’s Linear, Mixed-Signal and Interface analog devices. Customers can now easily avail these products using the least bit of effort and time by logging on to the AltiumLive portal which would also give information on other substitute products to make the choice as exhaustive and informed as possible.
Already the existing Microchip components available at AltiumLive are its 8, 16 and 32-bit PIC microcontrollers. While this venture proliferates this existing product database for Microchip, it also caters to providing more prolific and updated board-level component parts to its customers. Thus, benefits accruing from this venture are two-fold.
It is time Microchip starts off on a positive note and strides ahead with the firm resolve of making advancement as the last financial quarter results declared by the company painted quite a grim picture. Revenues and margins were both down comprehensively across all geographic regions. Hence, it becomes imperative for the company to engage in product innovations and market extension strategies to convalesce quickly from its past quarter.
We currently project EPS for the coming fourth quarter of 2012 to be at 41 cents per share and $1.72 per share for full fiscal year 2012. We continue to maintain a Neutral recommendation on Microchip. Our view is supported with a Zacks #3 Rank on the stock which translates into a short-term rating of Hold.
To read this article on Zacks.com click here.
Zacks Investment Research
