Sign in Subscribe
Telecommunications equipment industry

PMC-Sierra Inc. Leverages High-End Semiconductors for Telecom and Optical Networking Gear

Strategic Insights

— 1 min read

PMC-Sierra, a fabless semiconductor company, has established itself as a leader in the development of high-end semiconductors for telecom and optical networking gear. As a key player in the industry, PMC-Sierra's products are utilized by prominent companies such as Alcatel, Cisco Systems, Fujitsu, Hewlett-Packard, Lucent, and NEC. The company's semiconductors are essential for various protocols, including Ethernet, voice over Internet protocol (VoIP), and asynchronous transfer mode (ATM), with PMC-Sierra boasting itself as the top ATM chip maker in the world.

PMC-Sierra's success can be attributed to its collaboration with Asian foundries, such as Chartered Semiconductor and Taiwan Semiconductor, for the production of its chips. Additionally, the company has won awards for its high-quality management practices, further solidifying its position in the industry.

The company's shares experienced a 8% increase following the filing of Restated Reports From Prior Periods to Correct Option Accounting, demonstrating the significance of accurate financial reporting and the company's commitment to transparency.

Key Takeaways:

  • PMC-Sierra Inc., a maker of semiconductors used in broadband communications and storage, filed its second-quarter Form 10-Q and restated financial reports to correct accounting errors related to stock option grants.
  • The company outsourced the production of its chips to Asian foundries such as Chartered Semiconductor and Taiwan Semiconductor.
  • PMC-Sierra's semiconductors are utilized by prominent companies such as Alcatel, Cisco Systems (14% of sales), Fujitsu, Hewlett-Packard, Lucent, and NEC.
  • The company's products handle various protocols, including Ethernet, voice over Internet protocol (VoIP), and asynchronous transfer mode (ATM), for which PMC-Sierra is considered the top ATM chip maker in the world.
  • PMC-Sierra has won awards for its high-quality management practices.
  • The company's shares experienced a 8% increase following the filing of Restated Reports From Prior Periods to Correct Option Accounting.

Statistics:

  • The company's shares experienced a 8% increase.
  • PMC-Sierra's products account for 14% of sales for Cisco Systems.
  • PMC-Sierra is considered the top ATM chip maker in the world.
  • The company filed its second-quarter Form 10-Q.

Sources:

  • M2 PressWIRE-17 August 2006-bellwetherreport.com: Bellwether Report.com is Looking at PMC-Sierra Inc.
  • (Bellwether) is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter.

Read more