PMC-Sierra, Inc. (PMCS) recently entered into a partnership with Memblaze Technology Co. Ltd, a provider of flash storage solutions in a bid to offer high-performance PBlaze4 solid-state drive (SSDs) for hyperscale data centers.
Per the agreement, the new Memblaze PBlaze4 products that are next-generation PCI Express flash accelerators will be powered by PMC's Flashtec NVM Express controllers. SSDs powered by PMC’s Flashtec NVMe controllers provide the highest performance, power and dependability. Therefore, Memblaze PBlaze4 products will offer ultra-low latency and lowest CPU load in the industry.
Memblaze is a producer of high-end storage accelerators and has witnessed great success in China since 2010. The strategic partnership will enable PMC to pursue flash opportunities in China's data centers and hyperscale deployments.
PMC-Sierra is engaged in design, development, marketing and support of semiconductor solutions by integrating mixed-signal, software and systems expertise in North America, Europe and Asia. It is also a provider of corporate storage system solutions for networked and server storage applications.
The company reported a decent third-quarter 2014. While adjusted earnings of 9 cents per share beat the Zacks Consensus Estimate by a couple of cents, reported revenues of $135.5 were up 6.9% sequentially and 5.5% from the year-ago period and higher than the consensus mark of $134.0 million.
The increase in revenues was driven by broad-based strength in the company’s storage products, which generated 72% of third-quarter revenues.
Over the long term, PMC-Sierra is well positioned to grow and gain market share in server/storage and the latest alliance will fuel its growth prospects.
Currently, PMC-Sierra has a Zacks Rank #3 (Hold). Other stocks that have been performing well and are worth a look include Nitto Denko Corp. (NDEKY) sporting a Zacks Rank #1 (Strong Buy) and NeoPhotonics Corp. (NPTN) and TriQuint Semiconductor (TQNT) both holding a Zacks Rank #2 (Buy).
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