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M/A-COM Technology (MTSI) |
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
M/A-COM Technology (NASDAQ:MTSI) is a designer and manufacturer of analog semiconductor solutions for wireless and wireline applications using the radiofrequency, microwave, and millimeterwave spectra. M/A-COM has offices in North America, Europe, Asia, and Australia with a headquarters in Lowell, Massachusetts.[1]
Business Overview
For the 9 months ending in June, 2012, M/A-COM reported a total revenue of $227M resulting in a net loss of $18M. For the same period in 2011, total revenue was $231M resulting in a net loss of $41M. Sales costs are the largest component of operating expenses, followed by research and development.[2]
New Updates
The company's initial public offering of stock on the NASDAQ occurred on March 14, 2012. The company offered 6M shares each for $19. This was above the initial price range of $17-$19. The deal raised a total of approximately $106.4M. The lead mangers of the deal were Barclays, JP Morgan, and Jefferies.[3]
Trends & Forces
A Few Major Customers
Sales to a limited number of clients account for the majority of total revenues. In 2011, sales to the top 10 customers accounted for 61% of total revenue, and sales to the top two clients accounted for more than 20% of total revenue. The population of top clients from year to year changes, but the distribution of total revenue remains skewed. This is expected due to the systemic nature of M/A-COM's electronics solutions, but makes the company vulnerable to sudden large changes in revenue stream.[4]
Decreasing Prices
The price of a new semiconductor technology will typically decrease as production cost decreases and production volume increases. Thus, M/A-COM technologies frequently decrease in price after 6-18 months on the market. M/A-COM seeks to address this risk exposure through continuing research and development to produce higher-value products. However, M/A-COM is unable to guarantee the regular success of research and development at maintaining revenues.[5]
- ↑ M/A-COM 10-Q June 2012 "Financial Statements" pg 1-2
- ↑ M/A-COM 10-Q June 2012 "Description of Business" pg 6-8
- ↑ Renaissance Capital - IPO Home "M/A-COM Technology prices upsized IPO at $19, high end of the range" 14 March 2012
- ↑ M/A-COM 10-Q June 2012 "Risk Factors" pg 30
- ↑ M/A-COM 10-Q June 2012 "Risk Factors" pg 29
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