Why Integrated Device Technology Shares Fell Apart
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 fallen apart today, down by as much as 15%, after the company announced earnings along with an acquisition.
So what: Fourth-quarter revenue came in at $119.1 million, with earnings per share of $0.05, both of which topped forecasts. CEO Ted Tewksbury said the results showed improving trends within the communications and enterprise markets, and that IDT is focusing on 4G LTE wireless infrastructure as one of its growth areas.
Now what: In addition to the earnings, IDT said it intends to acquire PLX Technology (NAS: PLXT) in a cash and stock deal worth roughly $330 million. The offer values PLX at approximately $7 per share, a whopping 76% premium relative to its previous close of $3.98. Looks like shareholders are a tad skeptical of today's announcements.
Interested in more info on Integrated Device Technology? Add it to your watchlist byclicking here.
At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days