Zacks_Analysts' Blog : Linear Bulks Up with WSN Provider - Analyst Blog

Linear Technology Corp. (LLTC">LLTC) has acquired Dust Networks, Inc., a leading provider of low-power wireless sensor network (WSN) technology. Terms of the transaction were not disclosed.  Linear stated that the acquisition will not have any impact on its financial results in the short term.

Dust Networks provides ultra low-power, highly reliable systems to industrial automation vendors. Dust products provide flexible wireless networking capabilities required for industrial monitoring and control to meet specific application needs. The customer base for Dust products range from the world's largest industrial process automation and control providers, such as GE and Emerson, to companies such as Vigilent and Streetline Networks.

Linear specializes in high-performance analog integrated circuits (ICs), while Dust Networks specializes in the low-power radio and software technology used in sensor networks. The acquisition will complement Linear’s energy harvesting and power management product line.

Since both companies have complementary products, Linear’s product line would be considerably broader after the acquisition. The merger will extend Linear’s product portfolio to pivotal expansion areas in industrial process control, information merger and energy harvesting.

The deal will also enable Linear to offer a complete high performance wireless sensor networking solution. Moreover, it will expand Linear’s customer base and drive penetration within existing customer accounts.

Linear is a leading manufacturer of analog and mixed signal semiconductors. The company’s first-quarter earnings and revenue were down a respective 31.3% and 8.0% sequentially. However, the weak results were due to the macroeconomic slowdown, and not company specific reasons like order cancellations or push-outs.

Competition from Texas Instruments (TXN">TXN), Maxim (MXIM">MXIM) and Analog Devices (ADI">ADI) remains as strong as ever.

Currently, Linear has a Zacks #3 Rank, implying a short-term Hold recommendation.