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A Few Reasons to Consider Peregrine for the Long Run

January 16, 2015 | About:

Peregrine Semiconductor (PSMI) recently released not-so-impressive results for the second quarter. The company posted a decline in revenue, but the company had been a decline. Peregrine is worried about its declining performance, and it is putting its best efforts to regain lost ground. However, strong growth in LTE smartphones across the globe can trigger Peregrine’s success. The company is also expecting its sales to improve as it is seeing strong design wins and momentum across the sales channel.

Why Peregrine can improve

Peregrine is counting on the transitions in the smartphone world, similar to the transition in the wireless technology in the past. As people are continually transforming towards the usage of LTE smartphones, with the growth in LTE platform, Peregrine is seeing growing complexity of RF requirement for 4G phones. Further with the decline in the price points, Peregrine is expecting some impressive shift in the OEMs.

There are certain challenges that Peregrine might face with LTE platform. But the positively growing mobile business, on the back of positive industry trends seems to be helping Peregrine in future. In addition, the company is also several design wins across major OEM. The company is expecting these trends to continue for some more time as many growing carriers are planning to launch LTE advanced carrier aggregation networks and are looking to more frequency bands.

Moving on, the company is seeing lot of opportunities in China where this LTE platform roll out is in early stages and is expected to further grow as the growing traction indicates. As a result of this, Peregrine is seeing very strong growth in design activity from OEM customers in China. Moreover, with this Peregrine is also seeing long term gains from these situations. The sales is also expected to ramp up and the company is seeing lot of exports in the future. Peregrine is so confident of its strong position in this market because it is now including itself in number of reference design with its leading cultural module partner.

Key products

Peregrine expects UltraCMOS 10 to be key growth driver for the company in future. UltraCMOS is seeing impressive adoption in the market and as a result the company has also ramped up its volume production. Peregrine is pleased to see positive impact of this on its gross margins. With its strong performance in the market Peregrine is expecting a better market position in future.

Broadband market is also a potential market for Peregrine. The most fascinating fact in this is that it has recently won a multimillion dollar lifetime revenue design win with some of the major provider of cable TV set-top box in support of the roll out of DOCSIS 3.1 equipment.


Now moving on to the fundamentals, the company doesn’t have a trailing and the forward P/E as it is struggling with its financial performance and is putting efforts to be on track again. Even in the long term, the company’s earnings are moving with a CAGR of just 2.40% which is lower than the industry average of 19.25%. The company is now making impressive moves in the market. with the growing LTE platform and new products in the market Peregrine is expected to perform better in the near term so I would like to suggest the investors to definitely include Peregrine Semiconductor in their portfolio.

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