What is PMC-Sierra Financial Strength?
PMC-Sierra has the Financial Strength Rank of 0.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
PMC-Sierra has no long-term debt (1).
PMC-Sierra's debt to revenue ratio for the quarter that ended in Sep. 2015 was 0.06.
As of today, PMC-Sierra's Altman Z-Score is 0.00.
(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Competitive Comparison of PMC-Sierra's Financial Strength
For the Semiconductors subindustry, PMC-Sierra's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PMC-Sierra's Financial Strength Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, PMC-Sierra's Financial Strength distribution charts can be found below:
* The bar in red indicates where PMC-Sierra's Financial Strength falls into.
PMC-Sierra Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
PMC-Sierra's Interest Expense for the
months ended in Sep. 2015 was $0.0 Mil. Its Operating Income for the
months ended in Sep. 2015 was $11.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was $0.0 Mil.
PMC-Sierra's Interest Coverage for the quarter that ended in Sep. 2015 is
| PMC-Sierra had no long-term debt (1). |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
PMC-Sierra's Debt to Revenue Ratio for the quarter that ended in Sep. 2015 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
PMC-Sierra has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PMC-Sierra (PMC-Sierra) Business Description
Traded in Other Exchanges
N/A
Address
PMC-Sierra Inc was incorporated in the state of California in 1983 and reincorporated in the state of Delaware in 1997. The Company is a semiconductor and and software solution provider transforming networks that connect, move and store digital content. It designs, develops, markets and supports semiconductor solutions by integrating its mixed-signal, software and systems expertise through a network of offices in North America, Europe and Asia. The Company has approximately 700 different semiconductor devices that are sold to equipment and design manufacturers, who in turn supply their equipment principally to service providers, carriers and enterprises globally. The Company provides semiconductor solutions for its customers by leveraging its intellectual property, design expertise and systems knowledge across a range of applications and industry protocols. The Company derives its net revenues from the following operating segments: Communication Products, Enterprise Storage Products, Microprocessor Products, and Broadband Wireless Products. The Company operates in one reportable segment-semiconductor solutions for communications network infrastructure. Its semiconductor devices enable networking equipment primarily in the following three end market segments: Storage, Optical and Mobile networks. The Storage market segment is made up of enterprise storage equipment manufacturers and covers two broad areas: server storage, and stand-alone external storage systems. The Optical market segment refers to infrastructure suppliers of transport and access networks that use optical transport protocol and/or physical optical medium. The Mobile market segment is mainly infrastructure equipment suppliers, including base station and backhaul equipment, supporting the wireless transmission of content from and to mobile hand devices. The Company faces competition at the customer design stage when its customers are determining which semiconductor components to use in its equipment designs. The Company competes against peer-group semiconductor companies that engage in the communications and storage semiconductor business. These companies include the following: Altera Corp., Applied Micro Circuits Corp.; Broadcom Corp.; Cortina Systems, Inc.; Emulex Corp.; Exar Corp.; Infineon Technologies AG; Intel Corp.; Texas Instrument Inc; LSI Corp.; Maxim Integrated Products, Inc.; Marvell Technology Group Ltd.; Mindspeed Technologies, Inc.; QLogic Corp.; Vitesse Semiconductor; and Xilinx, Inc. The Company has a total of 597 U.S. and 80 foreign patents for circuit designs and other innovations used in the design and architecture of its products. In addition, it has 95 patent applications pending in the U.S. Patent and Trademark office. The Company's business is subject to or may be impacted by various environmental protection and social responsibility legal and customer requirements.
Executives
| Alinka Flaminia |
officer: VP, General Counsel Corp. Sec. |
3975 FREEDOM CIRCLE, SANTA CLARA CA 95054 |
| David M Fein |
officer: VP of Worldwide Sales |
1380 BORDEAUX DRIVE, SUNNYVALE CA 94089 |
| William Kurtz |
director |
NOVELLUS SYSTEMS, INC., 4000 NORTH FIRST STREET, SAN JOSE CA 95134 |
| Richard Belluzzo |
director |
C/O QUANTUM CORP, 501 SYCAORE DR, MILPITAS CA 95035 |
| Gregory S Lang |
director, officer: President and CEO |
C/O INTEGRATED DEVICE TECHNOLOGY, INC., 6024 SILVER CREEK VALLEY ROAD, SAN JOSE CA 95138 |
| Michael Farese |
director |
6290 SEQUENCE DRIVE, SAN DIEGO CA 92121 |
| Michael Klayko |
director |
|
| Richard N Nottenburg |
director |
1303 EAST ALGONQUIN ROAD, SCHAUMBURG IL 60196 |
| Jonathan Judge |
director |
895 EMERSON STREET, PALO ALTO CA 94301 |
| Ralph V Whitworth |
10 percent owner |
RELATIONAL INVESTORS LLC, 12400 HIGH BLUFF DRIVE, SUITE 600, SAN DIEGO CA 92130 |
| Relational Investors Llc |
10 percent owner |
12400 HIGH BLUFF DRIVE, SUITE 600, SAN DIEGO CA 92130 |
| Kirt P Karros |
director, 10 percent owner |
12400 HIGH BLUFF DR. SUITE 600, SAN DIEGO CA 92130 |
| James Diller |
other: Former Director |
1001 MURPHY RANCH ROAD, MILPITAS CA 95035 |
| Michael W Zellner |
other: Former VP Finance |
C/O CYAN, INC., 1383 N. MCDOWELL BLVD., SUITE 300, PETALUMA CA 94954 |
| Frank Marshall |
other: Former Director |
3975 FREEDOM CIRCLE, C/O PMC SIERRA INC, SANTA CLARA CA 95054 |
PMC-Sierra (PMC-Sierra) Headlines
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