As chip companies go, Microsemi (NASDAQ:MSCC)
generally flies under the radar while executing on a fairly predictable
list of corporate priorities. Between last week's analyst day and the
not-so-surprising announcement of another acquisition, management has
showed yet again that it's sticking with a script that has served the
company relatively well.
I believe that the arrow is still
pointing up for this company and this stock. Management spoke of
improving backlogs in defense, communications, and satellites and
reiterated its goal of 60% gross margin and 30% operating margin by the
end of fiscal 2016. Adding in the contributions of Vitesse (NASDAQ:VTSS),
the shares are still modestly undervalued and if management is able to
drive better synergy from this deal (particularly in terms of product
development/growth), addition upside is still in play.
Read the full article here:
More Of The Same From Microsemi ... And That's Just Fine
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