), an original equipment manufacturer (OEM) of a broad range of
high-reliability and analog/mixed signal integrated circuits,
announced that it launched radio frequency (RF) transistors for
high-power air traffic control (ATC), secondary surveillance radio
The SSR is a unique application found in aircraft. A
radar-fitted aircraft can send messages to air traffic controllers
through the SSR system. The device is very helpful for air traffic
controllers as it enables very easy identification, tracking and
measuring of the distance and location of any airplane whenever
required. It therefore has the potential to fight or ward off
For the past five decades, Microsemi has grown as a developer of
new and innovative products for the aerospace and military
segments. The product portfolio comprises a wide range of
high-performance, high-reliability RF and power components, analog
and RF ICs, standard and customizable system-on-chip solutions and
mixed-signal and radiation-tolerant FPGAs.
Research and consultancy firm RNCOS expects the global aerospace
segment to grow at a compound annual growth rate (CAGR) of 2.5%
from 2012 to 2015, reaching $460.0 billion by 2015. The increasing
adoption of electronics in the segment is therefore likely to be a
positive for suppliers such as Microsemi as well as its peers
Lattice Semiconductor Corp.
and QuickLogic Corp.
However, according to MarketResearch.com, the budget allocated
for U.S. defense spending was $705.6 billion in 2011, representing
a five-year CAGR of 6.4%. However, it is anticipated to decline at
a compound annual rate of change (CARC) of -3.9% between 2011 and
2016. Thus, spending is expected to go down to $578.3 billion by
Microsemi's revenue in the third quarter of fiscal 2012 was
$259.2 million, up 4.0% sequentially and 19.6% year over year. The
defense & security market generated 28.0% of sales, increasing
2.0% sequentially; and aerospace generated 21.0% of revenue,
increasing 5.0% sequentially. The defense, aerospace and medical
markets largely use Microsemi's high-reliability chips, while the
other markets use its analog/mixed signal products.
Although the defense budget is shrinking, Microsemi may be
expected to gain from its new product launches targeting secondary
surveillance radar search and tracking applications.
Currently, Microsemi Corporation has a Zacks #3 Rank, implying a
short-term 'Hold' rating.
ALTERA CORP (ALTR): Free Stock Analysis Report
LATTICE SEMICON (LSCC): Free Stock Analysis
MICROSEMI CORP (MSCC): Free Stock Analysis
QUICKLOGIC CORP (QUIK): Free Stock Analysis
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