These Technology Stocks Have High Debt Relative to Cash

The following five companies in the Technology sector have high debt-to-equity levels.  Note that this list excludes all companies whose market capitalization is less than $500 million.

  1. Linear Technology Corporation (NASDAQ:LLTC):  The shares have traded in a 52-week range of $26.25 to $36.14 and most recently traded at $34.84 per share.  It has $780.94 million in total debt and a total debt to equity ratio of 198.06.  It carried $810.5 million in cash on its balance sheet, has a current ratio of 7.25, and a book value per share of $1.71.  Its market capitalization is $8.08 billion.  About the company: Linear Technology Corporation designs, manufactures, and markets a line of linear integrated circuits.  The Company’s products include high performance amplifiers, comparators, voltage references, monolithic filters, linear regulators, DC-DC converters, battery chargers, data converters, communications interface circuits, and RF signal conditioning circuits.
  2. Ciena Corporation (NASDAQ:CIEN):  The shares have traded in a 52-week range of $11.86 to $29.24 and most recently traded at $27.86 per share.  The company holds total debt of $1.44 billion and has a total debt to equity ratio of 1,516.52.  It holds $625.82 million in cash, has a current ratio of 2.99, and a book value per share of $1.00.  Its market capitalization is $2.65 billion.  About the company: Ciena Corporation develops and markets communications network platforms and software, and offers professional services.  The Company’s broadband access, data and optical networking platforms, software tools, and global network services support worldwide telecom and cable/MSO services providers, and enterprise and government networks.
  3. Aeroflex Holding Corp. (NYSE:ARX):  The shares have traded in a 52-week range of $12.60 to $20.36 and most recently traded at $19 per share.  The company has total debt of $697.3 million and a total debt to equity ratio of 178.29.  Its current ratio is 2.99 and its book value per share is $4.61.  Its market capitalization is $1.61 billion.  About the company: Aeroflex Holding Corporation designs and manufactures radio frequency and microwave integrated circuits.  The circuits are used in the production of wireless communications equipment for the space, avionics, defense, commercial wireless communications, medical and other markets.
  4. NXP Semiconductors NV (NASDAQ:NXPI):  The stock has traded in a 52-week range of $10.23 to $35.32 and most recently traded at $28.86.  Its total debt is $4.63 billion and its total debt to equity ratio is 336.46.  Tje company has $879 million in cash, a current ratio of 1.28, and a book value per share of $4.52.  Its market capitalization is $7.24 billion.  About the company:  NXP Semiconductors NV operates as a global semiconductor company.  The Company designs semiconductors and software for mobile communications, consumer electronics, security applications, in-car entertainment, and networking.  Kaslion’s offers its products to the automotive, identification, wireless infrastructure, lighting, mobile, and computing applications.
  5. SAVVIS Inc. (NASDAQ:SVVS):  The stock has traded in a 52-week range of $14.47 to $39.36 and most recently traded at $39.21 per share.  It has $763.76 million in total debt and a total debt to equity ratio of 385.48.  It has $121.58 million in cash, a current ratio of 1.42, and a book value per share of $3.57.  Its market capitalization is $2.23 billion.  About the company: SAVVIS, Inc. offers global information technology services.  The Company offers hosting, network, and application services.  SAVVIS’s products allow a company to scale its information technology infrastructure up or down as needed.

5 Technology Stocks With Extremely Low P/E Ratios>>

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance and publicly available SEC filings.  All data are assumed to be accurate.

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