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Mobix Labs secures distribution deal with Arrow Electronics

Published 06/05/2024, 15:36
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IRVINE, Calif. - Mobix Labs, Inc. (NASDAQ:MOBX), a semiconductor company known for its connectivity solutions, has entered into a global distribution agreement with Arrow Electronics (NYSE:ARW), a provider of technology products and services. The partnership, announced today, will see Arrow focusing on distributing Mobix Labs’ Electromagnetic Interference (EMI) Filtering products, particularly targeting the defense and aerospace markets.

The collaboration is poised to enhance Mobix Labs' market presence by leveraging Arrow's extensive distribution network and deep-rooted industry relationships, especially within the defense and aerospace sectors. According to Phil Sansone, Vice President of Sales at Mobix Labs, the partnership with Arrow, a FORTUNE 109 company, is indicative of Mobix Labs' capacity to deliver products on a global scale.

Mobix Labs' EMI Filtering solutions are designed to remove signal interference in electronic systems and are compliant with stringent industry standards including AS9100 and MIL-810/DO-160. These products are also in alignment with the Arms Export Control Act and the International Traffic in Arms Regulations, making them suitable for military and aerospace applications where high reliability is crucial.

The company has recently started supplying EMI filtered connector parts for use in the U.S. Navy's Tomahawk Cruise Missile and the U.S. Army's M-1 Abrams Tank program. Additionally, Mobix Labs provides components for the guidance system of the U.S. Army's Javelin Missile System.

CEO of Mobix Labs, Fabian Battaglia, emphasized the importance of the defense and aerospace sectors in the company's growth strategy and expressed confidence that the Arrow partnership will bolster their competitive position in these industries.

Arrow Electronics, with a workforce exceeding 20,000 employees globally, offers a wide range of products to support technology development, from components to enterprise computing solutions, facilitating a quicker transition from design to market.

Based in California, Mobix Labs operates as a fabless semiconductor company, offering a range of products including mmWave 5G, C-Band wireless solutions, and connectivity and filtering products for communication systems used in aerospace, military, and high-reliability markets.

The information for this article is based on a press release statement from Mobix Labs.

InvestingPro Insights

In light of Mobix Labs' recent distribution agreement with Arrow Electronics, the company's financial health and market performance offer additional context. According to InvestingPro data, Mobix Labs holds a market capitalization of approximately $77.8 million, which is indicative of its size within the semiconductor industry. However, the company's revenue for the last twelve months as of Q1 2024 stands at $0.83 million, reflecting a substantial decline of 68.25% from the previous period. This downturn in revenue growth is a critical metric for investors considering the company's future revenue potential in light of the new partnership.

Furthermore, Mobix Labs' price-to-book (P/B) ratio is currently at 17.82, suggesting that the stock is trading at a high valuation in terms of its net asset value. This could be a point of consideration for investors who are evaluating the company's stock against its intrinsic value. Despite these challenges, the company has recently seen a strong return over the last month, with a 55.96% increase in its stock price, which may signal growing investor confidence or a positive market reaction to the company's strategic initiatives.

InvestingPro Tips highlight that Mobix Labs is not paying a dividend to shareholders, which could influence the investment decisions of income-focused investors. Additionally, the company is trading at a high revenue valuation multiple, which could be of interest to those analyzing the stock's price relative to its sales. For investors seeking a more comprehensive analysis, there are 14 additional InvestingPro Tips available for Mobix Labs on the InvestingPro platform. Use coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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