SUNNYVALE, Calif. – Despite a lull in the IC market, Maxim Integrated Products Inc. remains bullish.
The analog chip maker expects to see another ''record quarter,’’ due to demand on a number of fronts, said Maxim CEO Tunc Doluca, during a presentation here.
Sales are projected to range from $600-to-$630 million in its first fiscal quarter, Doluca said. According to Yahoo Finance, Maxim is projected to earn $0.37 a share on sales of $614.54 million for the quarter.
Maxim (Sunnyvale, Calif.) recently reported record sales of $566 million for the previous quarter ended June 26, up 11 percent compared with the previous quarter and up 43 percent compared with the year-ago quarter.
The company posted a net income in accordance with generally accepted accounting principles (GAAP) of $58.5 million, or 19 cents per diluted share, compared to a net loss of $33.9 million in the prior quarter and a net income of $8 million in the year ago quarter.
Still, there are fears of a slowdown in the market. The PC, LCD and other market are slowing.
But analog is ''holding steady’’ despite the lull, said Susie Inouye, an analyst at Databeans. “Obviously, the third quarter is softer,’’ she said.
The IC market is projected to grow 24 percent in 2010, she said. Of that, the analog market is expected to grow 30 percent this year.
Meanwhile, Maxim is seeing growth amid a transition phase for the analog chip maker. For years, the company was mainly competing in the industrial market. As part of its second phase of growth, Maxim has ''expanded its focus,'' Doluca said.
Today, it focuses on seven key markets: mobility, consumer, energy, security, high definition video, auto and health.
At the same time, the company has been on a buying spree. In 2008, Maxim entered into a definitive agreement to acquire Mobilygen Inc., a developer of H.264 video compression chips.
In January of 2009, Maxim acquired Innova Card, a fabless semiconductor company specializing in the design and development of secure solutions for terminals, for an undisclosed sum.Also in 2009, Maxim acquired Zilog Inc.'s secure transaction product line. This features the Zatara 32-bit, ARM-based microcontroller family for use in payment terminals.
Last last year, analog chip maker Maxim has sold some RFID intellectual-property (IP) to Intelleflex Corp. In return, Maxim received an equity position in Intelleflex, a developer of RFID products. In total, seven engineers from Maxim will be joining Intelleflex.
Moving into a new and emerging market, Maxim recently entered into a definitive agreement to acquire Teridian Semiconductor Corp. for approximately $315 million in cash.The acquisition positions Maxim in the smart meter chip market.
Continuing on its buying spree, analog chip maker Maxim recently acquired Phyworks Ltd. for approximately $72.5 million in cash. The acquisition expands Maxim's portfolio in the optical networking front. Phyworks’ transceivers and transimpedance amplifiers span the entire spectrum of data rates, from 1- through to 10-Gbps. Founded in 2001, Phyworks is a fabless company, based in Bristol, U.K.
The Teridian acquisition was really a good move providing the much needed exposure to Teridian, which can leverage Maxim's distribution network to further penetrate into the smart metering segment especially in the three phase class.
This is good news for the semiconductor market in general and analog chip makers in particular. Human Machine Interface is reaching new heights with capacitive touch sensing, optical navigation, accelerometers and others with increasing need for analog front end devices. As 'Robotics Developer' has mentioned, gaming & personal entertainment industries will further help proliferate these devices.
I am wondering if they are positioning themselves for the analog embedded ARM based market? It is great to see a company doing well and given the activity in consumer products (iPod, Netbooks, cellphones, etc.) I would not be surprised at the continued moderate growth of the analog devices that are needed. With touch screens, longer battery life, cameras, gaming devices proliferating it makes a lot of sense to see continued demand for analog chips.
1) Selling RFID IP
2) Buying company which is specialized making terminal with ARM-based MCU
3) Buying company which makes H264 chip.
4) Buying company which makes optical transceivers.
It sounds like Maxim is going after a product. What do you think?
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.