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Exec: Microsemi to support all Actel products

10/6/2010 10:23 PM EDT
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docdivakar
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re: Exec: Microsemi to support all Actel products
docdivakar   10/11/2010 8:10:34 PM
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@dylan.mcgrath: thanks for the clarification. It took less than two days for the big chiefs to backtrack on their statements. I would love to revisit this story a year from now! @elPresidente: I buy your explanation! Customers do see the wisdom in going to an alternate design from a different source if prices are raised. Actel products may see end of life sooner than their customers think! MP Divakar

Mr Bob
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re: Exec: Microsemi to support all Actel products
Mr Bob   10/9/2010 5:59:54 AM
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As part of an acquisition in the past, I have heard that statement before, "yeah we will support all products", right! As one of you said above, it's a profit game, as soon as a product drops, it's on the "not recommended for new designs list", then later when sales dip further, it's typically End of Life... but perhaps they are different?

Jogi1
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re: Exec: Microsemi to support all Actel products
Jogi1   10/8/2010 4:19:35 PM
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That's not a fit example to quote as the context is different here. Think, instead, what Cadence do to Neolinear Circuits after acquisition.

DuolopyForever
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re: Exec: Microsemi to support all Actel products
DuolopyForever   10/8/2010 7:23:28 AM
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After listening to Peterson's conference call about the merger, I am believe that Peterson was very straight-forward about his plans for Actel although delivered in a Freudian-slip like amateurish manner. By the time that Microsemi's management realizes that FPGAs products are significantly more complex to create, support and sell than discrete components, the number of Actel's knowledge workers will have dropped to unrecoverable levels. My question is whether the intangibles from an offer from Company C (or B) would have offset the relatively small ( ~5 %) share price ? Couldn't you push back your hedge fund board members harder ? This is the way the world ends This is the way the world ends This is the way the world ends Not with a bang but a whimper. The Hollow Men - TS Elliot

elPresidente
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re: Exec: Microsemi to support all Actel products
elPresidente   10/8/2010 1:21:24 AM
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Marketerspeak possible translation: "we're not going to kill any products like my boss said to everybody a couple of days ago, I'm just going to raise prices until those customers just go away or continue to pay through the nose to keep the product". Looks like there may be an Exec VP marketing opening at Microsemi real soon....

GMilliorn
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re: Exec: Microsemi to support all Actel products
GMilliorn   10/7/2010 9:42:31 PM
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This is a welcome clarification, thanks. Having used both Actel and Altera/Xilinx, for very different purposes, the idea that Actel were pursing the exact same sockets was a bizarre thing to read. Each family shines in different ways.

mcgrathdylan
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re: Exec: Microsemi to support all Actel products
mcgrathdylan   10/7/2010 4:30:40 PM
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@Sheetal.Pandey: Some background on the damage control aspect- Actel/Microsemi contacted me because the idea that products would be discontinued obviously made customers nervous. On the analyst call, Peterson made it very clear that Microsemi would pull Actel back from certain applications to cut costs and increase profitability. I took that to mean that they would kill certain products, but in fact Peterson never used the word product-- he only said they would walk away from some business. Russell Garcia said the word product was deliberately omitted from any messaging because that is not what they plan to do. And he went on the record stating in no uncertain terms that they don't plan to kill any products. In my opinion, Peterson emphasized cutting costs and increasing profitability on the analyst call because that plays well to that audience. It's not completely clear to me how you save meaningful dollars by stopping targeting certain sockets if you are still manufacturing the product (which would seem to be the bulk of the investment). But I do understand after talking with Garcia that, at least in Microsemi's mind, there are certain apps where customers are willing to pay more for Actel's low power and other differentiating factors and that they can clear higher margins by focusing all attention on those apps.

_hm
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re: Exec: Microsemi to support all Actel products
_hm   10/7/2010 6:39:19 AM
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Microsemi is very strong in Hi-Rel power and RF semiconductors. And Actel is also pioneer in space grade and military programmable logic. By acquiring Actel, Microsemi may have new product line in mind. It will combine embedded intelligence of Actels FPGAs with their unique power and RF products. This will provide smart power and RF products for military and space market.

andyneil
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re: Exec: Microsemi to support all Actel products
andyneil   10/7/2010 6:01:13 AM
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"You do not buy a firm to just kill the products" But that is exactly what Xilinx did to Triscend!

Sheetal.Pandey
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re: Exec: Microsemi to support all Actel products
Sheetal.Pandey   10/7/2010 2:41:03 AM
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But many comapnies after acquisition kills the product of the acquired company that have low revenue and profit. Sometimes if they conflict with their own products chances are high.lets wait and watch. Definitely some damage control is being done here.

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