) and Allied Electronics have entered into a distribution
agreement in a bid to offer a varied portfolio of
Texas-based Allied Electronics is a distributor of electronic
components and electromechanical products and has a presence in
50 locations across the U.S. and Canada. It originally started in
1928 as the distribution division for the radio parts of Columbia
Radio Corporation. In 1999, Allied Electronics was acquired by
British company Electrocomponents, which is a distributor of
electronics and maintenance products. Currently, Allied
Electronics has 110,000 products in its catalogue with support
from 300 suppliers.
On the other hand, ON Semi's product portfolio consists of
energy-efficient power and signal management, logic, discrete and
custom solutions and it serves a broad base of end-user markets,
including automotive, communications, computing, consumer,
medical, industrial, smart grid and military/aerospace.
The collaboration will benefit both as they will be able to
offer unique energy-efficient solutions for various electronic
applications used in various end markets thus meeting end users'
ON Semi reported revenues of $661.0 million in the first
quarter of fiscal 2013, down 2.8% sequentially and 11.2% year
over year. Reported revenues were within management's guidance
range of $645.0-$685.0 million.
On a pro forma basis, ON Semi reported a net income of $44.7
million or a 6.8% net income margin, compared with $37.0 million
or 5.4% in the previous quarter and $57.5 million or 7.7% in the
ON Semi carries a Zacks Rank #2 (Buy). Other semiconductor
stocks that are equally worth considering include
Magnachip Semiconductor Corp.
Lam Research Corp.
), all carrying a Zacks Rank #2 (Buy).
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MAGNACHIP SEMI (MX): Free Stock Analysis
ON SEMICON CORP (ONNN): Free Stock Analysis
STMICROELECTRON (STM): Free Stock Analysis
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