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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.
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