Integrated Device Technology Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Integrated Device Technology (NAS: IDTI) have plunged today by as much as 12% after the semiconductor specialist reported third-quarter results yesterday.

So what: Revenue came in right on target with expectations of $120 million, while the earnings per share of $0.06 topped the $0.04 estimate by a couple pennies. CEO Ted Tewksbury chalked up the healthy bottom line to "tightly managing operating expenses."

Now what: Despite weakness within consumer and communications offerings, IDT saw healthy booking trends for its server-related products. What may be weighing on investors today is that on a GAAP basis, the company actually swung to a net loss of $0.01 from continuing operations. Red ink aside, Canaccord Genuity has come out and reiterated its buy rating and $8 price target on the shares, citing server memory interface and wireless infrastructure in the coming quarters.

Interested in more info on Integrated Device Technology? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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