Semiconductor chip giant
) recently announced the addition of five 28 nm Cyclone V FPGA
development kits to its portfolio. The new low-cost kits
facilitate system design by allowing designers to
cost-effectively integrate Cyclone V FPGAs.
The five Cyclone V FPGAs (Field-programmable gate array) include
Arrow BeMicro, TerASIC Cyclone, Altima Cyclone, EBV Elektronik
GmbH and Mercury Code Cyclone V GX development kits that provide
a quick and simple way to develop low-cost and low-power,
The new kits will enable customers to quickly develop low-power
video systems, which in turn will help Altera to increase its
customer base, going forward. The deployment will also help
Altera to strengthen its product portfolio and offer more
comprehensive and high-value programmable solutions.
Altera reported total revenue of $421.8 million in the second
quarter of 2013, down 9.3% year over year. The weakness was
across products applications and geographies with a few
Growth in 4G/LTE deployments in particular will increase demand
for FPGAs, which will be beneficial for Altera. Additionally,
Altera's transition to 14nm FPGAs in association with
) is likely to be a competitive differentiator.
Though Altera's association with Intel will keep it ahead of its
peers, synergies from the partnership are not likely to boost
fundamentals in the near term. But Altera's solid book-to-bill
ratio and backlog position are encouraging.
However, macroeconomic weakness, competition from
Lattice Semiconductor Corporation
), consolidation in the telecom market, declining margins and
volatility in the semiconductor market are concerns.
Currently, Altera holds a Zacks Rank #3 (Hold).
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