Seeking Alpha: Despite Some Challenging Markets, Microsemi Continues To Move Forward

This is starting to shape up as a disappointing quarter for semiconductor companies (Maxim (NASDAQ:MXIM), Linear (NASDAQ:LLTC), and Skyworks (NASDAQ:SWKS) not withstanding), so I suppose that ought to temper some of the disappointment with Microsemi's (NASDAQ:MSCC) in-line December quarter and soft guidance for the next quarter. On a more positive note, management is starting to see restructuring/cost reduction efforts pay off in margin leverage and the company's book-to-bill remains above 1.0x.

I continue to believe that Microsemi remains overlooked and undervalued. The company is looking to farm its legacy discrete business for margins and cash flow, while driving growth from newer businesses like timing and FPGA where the company's addressable markets and market share appear to be growing. I continue to believe that fair value on Microsemi shares lies above $30 and that they remain a good buy within the chip space.

The full article can be read here:
Despite Some Challenging Markets, Microsemi Continues To Move Forward