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Our mission: Bringing practical business and technical intelligence to today's structured cabling professionals

For more than 30 years, Cabling Installation & Maintenance has provided useful, practical information to professionals responsible for the specification, design, installation and management of structured cabling systems serving enterprise, data center and other environments. These professionals are challenged to stay informed of constantly evolving standards, system-design and installation approaches, product and system capabilities, technologies, as well as applications that rely on high-performance structured cabling systems. Our editors synthesize these complex issues into multiple information products. This portfolio of information products provides concrete detail that improves the efficiency of day-to-day operations, and equips cabling professionals with the perspective that enables strategic planning for networks’ optimum long-term performance.

Throughout our annual magazine, weekly email newsletters and 24/7/365 website, Cabling Installation & Maintenance digs into the essential topics our audience focuses on.

  • Design, Installation and Testing: We explain the bottom-up design of cabling systems, from case histories of actual projects to solutions for specific problems or aspects of the design process. We also look at specific installations using a case-history approach to highlight challenging problems, solutions and unique features. Additionally, we examine evolving test-and-measurement technologies and techniques designed to address the standards-governed and practical-use performance requirements of cabling systems.
  • Technology: We evaluate product innovations and technology trends as they impact a particular product class through interviews with manufacturers, installers and users, as well as contributed articles from subject-matter experts.
  • Data Center: Cabling Installation & Maintenance takes an in-depth look at design and installation workmanship issues as well as the unique technology being deployed specifically for data centers.
  • Physical Security: Focusing on the areas in which security and IT—and the infrastructure for both—interlock and overlap, we pay specific attention to Internet Protocol’s influence over the development of security applications.
  • Standards: Tracking the activities of North American and international standards-making organizations, we provide updates on specifications that are in-progress, looking forward to how they will affect cabling-system design and installation. We also produce articles explaining the practical aspects of designing and installing cabling systems in accordance with the specifications of established standards.

Cabling Installation & Maintenance is published by Endeavor Business Media, a division of EndeavorB2B.

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Macro Headwinds Send Microchip Technology Stock to the Buy Zone

August 6, 2024, Paraguay. In this photo illustration, the Microchip Technology Inc. logo is displayed on a smartphone screen — Stock Editorial Photography

Microchip Technology Incorporated (NASDAQ: MCHP) has the power to withstand its headwinds in 2024 and sustain the uptrend in its share price. The uptrend, begun in 20216, has increased the stock’s value by 300%, including the 2024 price correction, and another 300% upside is coming for those prepared to wait. Not only are the company’s mixed-signal semiconductor products critical to technology, but a rebound in demand is coming in 2025 that will be the beginning of a multi-year upcycle. 

2024’s headwinds include a massive inventory correction resulting from COVID-related supply chain issues that will soon pass. OEMs overstocked many components in 2022 and 2023, trying to front-run supply chain issues.

2025’s tailwinds will include normalized demand patterns from OEMs, falling interest rates, and improving demand across consumer end-markets as interest rates fall. End markets range from automotive to mobile, personal computing, the IoT, and every industry that relies on uninterrupted communication between components and devices. 

Microchip Technology Sustains Financial Health Despite Headwinds

Microchip Technology's FQ2 2025 revenue is slightly better than expected compared to the consensus reported by MarketBeat, but not good. It is down 48.4% yearly to $1.16 billion, a nearly decade-low. The decline is due to sluggishness in most end markets, with automotive singled out by management as the weakest link. Strengths were seen in the data center business, which is expected to drive growth in 2025 but is insufficient to offset the broader weaknesses. 

The margin news is also mixed, coming in better than expected despite a significant decline compared to last year. The critical detail is that the net income of $250 is insufficient to generate positive cash flow for the quarter but sufficient to sustain the company’s financial health until the business rebound begins.  That’s a critical detail because the company has maintained solid cash flow growth throughout market cycles and a robust capital return. 

The guidance isn’t favorable, with Q3 results expected below the analysts' consensus, but the business bottom may be near. Management noted “green shoots” in prior quarters' reports and said they are advancing, if unevenly, including increased expedited orders, which point to improving end-market demand. With the FOMC on track to cut its base rate to 4% or lower by mid-year 2025 and end-market inventory normalization well underway, the bottom for business may indeed be in. A rebound could begin in early 2025 and gain momentum as the year progresses. Analysts forecast a 20% revenue and 70% earnings rebound in 2025. 

Microchip Technology's Strong Balance Sheet Sustains Distribution Growth

Microchip Technology faces headwinds in 2024 but remains strong enough to sustain and grow its capital return, increasing the dividend distribution by 3.6% for Q3. The increase is down from prior years, slowing along with the business, but expected to sustain in 2025, keeping the stock on track for inclusion in the Dividend Aristocrats later this decade. 

Due to the stock price correction this year, the dividend yield is at the high end of the historical range, running near 2.5%, but there is a red flag. The payout in 2024 is more than earnings, which raises the question of sustainability. If business does not improve, a dividend cut is likely. Until then, the balance sheet remains in fortress condition with long-term debt less than 1x equity and 0.28x assets. 

The Technical Outlook: MCH Stock Returns to Trend

The price action in MCHP stock corrected more than 20% from the 2024 peaks as the pandemic-driven bubble burst. Now, with inventory normalization underway and the stock price corrected from the COVID bubble, the stock price aligns with long-term trends where support is likely strong. The trend line has produced numerous rebounds since 2016, each resulting in new highs for the stock. A move to new highs is worth 40% in upside, not counting the dividend and share repurchases, which also support the stock’s price. 

Microchip Technologies MCHP stock chart

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