http://www.nyquistcapital.com/2005/11/03/did-pmc-sierra-overpay/ More Signal. Less Noise. Thu, 02 Apr 2009 12:29:57 -0700 http://wordpress.org/?v=2.9.1 hourly 1 http://www.nyquistcapital.com/2005/11/03/did-pmc-sierra-overpay/#comment-3 Vitesse Investment Thesis at Nyquist Capital Mon, 16 Oct 2006 18:44:56 +0000 http://nyquistcapital.com/?p=2#comment-3 [...] Storage - The most attractive unit for prospective M&A. Generates $60M a year with 50% margins. PMC-Sierra paid 3.8x revenue for the storage semiconductor unit  of Avago in Fall ‘05. Vitesse has products poised for a more significant product ramp than the ones acquired from Avago. An identical valuation of the Vitesse unit is conservative. Valuation $225M. [...] [...] Storage – The most attractive unit for prospective M&A. Generates $60M a year with 50% margins. PMC-Sierra paid 3.8x revenue for the storage semiconductor unit  of Avago in Fall ‘05. Vitesse has products poised for a more significant product ramp than the ones acquired from Avago. An identical valuation of the Vitesse unit is conservative. Valuation $225M. [...]

]]> http://www.nyquistcapital.com/2005/11/03/did-pmc-sierra-overpay/#comment-2 Nyquist Capital - Thoughts on PMC-Sierra Tue, 21 Mar 2006 16:34:25 +0000 http://nyquistcapital.com/?p=2#comment-2 [...] I admired PMC-Sierra while working at Vitesse Semiconductor (VTSS). PMC has an excellent system/architecture based approach to design which sometimes worked in Telecom but is ideally suited to more commodity and standardized markets like storage. The first post I wrote for this blog was on PMC’s acquisition of Avago’s (Agilent component spinoff) storage semiconductor business. While the acquisition looked cheap from a financial perspective, I predicted it would create strategic and pricing challenges going forward. [...] [...] I admired PMC-Sierra while working at Vitesse Semiconductor (VTSS). PMC has an excellent system/architecture based approach to design which sometimes worked in Telecom but is ideally suited to more commodity and standardized markets like storage. The first post I wrote for this blog was on PMC’s acquisition of Avago’s (Agilent component spinoff) storage semiconductor business. While the acquisition looked cheap from a financial perspective, I predicted it would create strategic and pricing challenges going forward. [...]

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