PMC-Sierra Inc (NASDAQ:PMCS): Strong Product Pipeline with Opportunities


Dallas, Texas 09/19/2013 (Financialstrend) –Engaged in design, development, marketing and support services for semiconductor solutions, PMC-Sierra Inc (NASDAQ:PMCS) provides its services for storage, optical, and mobile communications network infrastructure in domestic and international markets including America, Asia and Europe. The company sells its products directly as well as through its distribution partners to service providers, carriers, and enterprises. PMC-Sierra Inc (NASDAQ:PMCS) has market capitalization of $1.35 billion. The stock of the company is currently trading around $6.5 with 52-week price ranging between $4.63 and $7.14. The stock has almost traded flat during trailing twelve month period with less than 4% gains.

The company is the only provider of complete 12 Gb/s SAS architecture in the industry. This architecture is configured to deliver optimized performance and density needed for cloud computing, content delivery networks and critical database applications with less space, components and power. Recently PMC-Sierra Inc (NASDAQ:PMCS) announced launch of Series 8 – 12 Gb/s SAS RAID Adapter family. Vice President of Server Storage Solutions at the company, Jared Peters mentioned that the company is now addressing all the key characteristics of 12 Gb/s SAS connectivity with the launch of Series 8 RAID adapters which would enable faster data delivery and access.

Given to its competitive product lines in data storage, optical and mobile markets and strong pipeline of new products, PMC-Sierra Inc (NASDAQ:PMCS) is poised for turnaround. Capitalizing on critical data and cloud computing growth as well as optical network upgrades and mobile data explosion its new products are expect to enter market pretty soon, starting revenue generation from as early as 2H13 to 1H14. These launches will boost the company’s growth rates starting FY14 given the company’s estimated total addressable market, fall in research and development expenditure which accounts for 40% of sales and company’s past performance.

However, despite the sound fundamentals, the stock has not witnessed any positive buying given the pressure from FY12 net earnings loss.