Integrated Device Technology Shares Plunged: What You Need to Know
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.
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