Maxim Integrated Products Inc.
) recently launched a complete smart-meter system-on-a-chip (SoC)
called Zeus for the smart grid. The new smart meter SoC will
provide reliability, accuracy, faster processing power and advanced
security for communication protocols.
A smart meter keeps a record of the power consumed, provides
information about usage and helps utility companies for billing
Maxim's Zeus is superior because it allows greater precision in
the measurement of power within the smart grid and the efficient
communication of the information as required. It also takes care of
security, which is becoming more of a concern because smart meters
are increasingly getting connected.
In the present day, there is a growing imbalance between demand
and supply of energy, due to a rise in the world population,
greater industrialization and depleting natural resources to feed
this demand. This is leading to energy efficient structures such as
the smart grid. Global energy consumption is expected to reach
20-trillion kilowatt-hours in 2012 and to grow another 10 trillion
hours by 2035. Business market researcher marketsandmarkets.com
states that the global smart grid market is expected to reach $80.6
billion from $22.8 billion at a CAGR of 28.7% from 2011 to
Thus, this is a good time for Maxim to build capabilities in the
space that could help it tap this immense growth opportunity.
Maxim's product portfolio also boasts other smart-meter SoCs like
Newport, Metrology SoCs, G3-PLC powerline modem, Secure
microcontroller, Power-management controller, 24-bit sigma-delta
ADC and the latest being Zeus.
Maxim is facing competition from other analog makers such as
Linear Technology Corp.
and Texas Instruments Inc.
) among others.
In the fourth quarter of 2012 (the last-reported quarter), Maxim
posted revenue of $605.0 million, up 5.9% sequentially, down 3.4%
year over year and within management's guidance range of
$590.0-620.0 million. Revenue was down across all end-markets in
the last quarter.
Currently, Maxim Integrated Products Inc. has a Zacks #3 Rank,
implying a short-term 'Hold' rating.
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