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: Analog chip maker Integrated Device Technology (NAS: IDTI) dropped 11% in intraday trading today after reporting disappointing revenue.
So what: First fiscal quarter non-GAAP EPS of $0.12 was in line with the consensus estimate but down 14% year over year. GAAP EPS of $0.05 fell from $0.06 in the year-earlier quarter. Revenue of $151.5 declined 4% year over year and fell short of the consensus expectation of $153.5.
Now what: Management noted that the quarter's results "were within our guidance range as strong demand from our computing end market was offset by weaker-than-expected demand from customers in our communications and consumer end markets." Although gross margins increased for the fifth consecutive quarter, the weak revenue broke a four-quarter run of year-over-year revenue increases. This suggests that investor expectations seem to have gotten ahead of themselves.
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