Analysts said DoD cuts will be offset by Microsemi’s other major
businesses: communications, which accounts for 31 percent of revenue;
aerospace (21 percent) and industrial (20 percent).
largest applications in the communications sector include
power-over-Ethernet, RF, timing and synchronization. Tier one customers
including Juniper Networks, Cisco, Huawei, Sony, Fujitsu, Alcatel-Lucent
Microsemi’s diversification drive also includes
acquisition’s. Tore Svanberg, an analyst with Stifel Nicolaus, said
Microsemi’s acquisitions of Zarlink Semiconductor
and Maxim’s timing/synchronous business
“has significantly improved and expanded its overall product portfolio
and reach in the wireless segment, particularly as it relates to
wireless infrastructure and exposure to core routers/switches….”
While Microsemi is planning acquisitions similar to its $430 million Actel deal
in 2010, it continues to looks for deals while investing in organic growth, Litchfield said.
this month, Microsemi appointed James Mazzo to its board. Mazzo serves
as senior vice president at Abbott Medical Optics, a leader in advanced
refractive technologies for eye care.
Meanwhile, the company
remains tightly focused on growing dollar content per application since
it is no longer discrete parts supplier. This systems strategy could
help Microsemi reach its projected growth rate of between 10 percent and
12 percent annually.
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