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Microchip (MCHP) Enhances GPS Protection With New Update

Microchip MCHP recently rolled out a major update for its BlueSky GNSS Firewall offering to deliver a higher degree of protection to systems dependent on Global Positioning System (GPS) signal reception.

Markedly, BlueSky GNSS Firewall Software Release 2.0 identifies jamming and spoofing attempts to protect GPS signal reception and enhances recovery to prevent signal disruption by performing real-time analysis.

The new update features advanced threshold settings for Global Navigation Satellite System (GNSS) observables like satellites-in-view, position dispersion, carrier-to-noise, phase time deviation and radio frequency (RF) power level, which makes it easier to deploy and manage GPS systems.

The BlueSky GNSS Firewall Software Release 2.0 is installed on the BlueSky GNSS Firewall device and will be provided as part of a subscription service. Moreover, critical infrastructure operators can connect to Microchip's TimePictra management software to monitor and analyze GNSS signals globally.

Owing to the rapidly evolving nature of GPS vulnerabilities, Microchip’s new offering is likely to witness solid traction among key industry players. This, in turn, will drive the company’s top line in the days ahead and instill investors’ confidence in the stock.

Notably, shares of Microchip have declined 0.6% in the year-to-date period compared with the industry’s fall of 0.7%.

Microchip Technology Incorporated Price and Consensus

Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated Price and Consensus

Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote

Growing Demand for GPS Security Holds Promise

GPS technology is being utilized across critical industries like power utilities, mobile networks, financial service and transportation to ensure the smooth functioning of operations.

Moreover, higher deployment of GPS technology in smartphones, networking devices, IoT devices and connected vehicles is driving growth. The shift toward digital services like online food delivery, online retailing and cab services is expected to boost adoption of the technology.

Due to the global COVID-19 outbreak, tech companies, governments, and international agencies have all launched location mapping and contact tracing apps that utilize GPS technology to trace the spread of the pandemic. Per Grand View Research data, the GPS market is expected to reach $146.4 billion by 2025 at a CAGR of 18.4% between 2018 and 2025.

However, the growing usage of GPS has led to an increase in the number of vulnerabilities. Organizations need to constantly defend themselves against ever-evolving GNSS disruptions to avoid interruption of services. This has bolstered the demand for solutions that ensure GPS security and prevent devices connected to the network from spoofing attacks.

Due to these factors, we believe that the new offering to strengthen GPS security holds promise. Moreover, Microchips’ robust portfolio of GPS services that also include offerings like TimeProvider 4100 Precise Timing Grandmaster, SyncServer 600/650 timing and frequency instrument and miniature atomic clock (MAC) are likely to witness robust adoption in the upcoming quarters.

Furthermore, Microchip’s strong focus on consistent innovation of GPS signal reception security technologies has well positioned the company to capitalize on the emerging growth trend in the GPS market.

Zacks Rank & Other Stocks to Consider

Currently, Microchip carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader computer and technology sector are Fortinet, Inc. FTNT, Dropbox, Inc. DBX and Fastly, Inc. FSLY, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Fortinet, Dropbox and Fastly is pegged at 14%, 32.5% and 25%, respectively.

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