Integrated Device Technology Earnings: Here’s Why Investors are Bidding Down Shares

Integrated Device Technology, Inc. (NASDAQ:IDTI) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.69%.

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Integrated Device Technology, Inc. Earnings Cheat Sheet

Results: Net income increased to $6.2 million (4 cents per diluted share) in the quarter versus a net loss of $6.19 million in the year-earlier quarter.

Revenue: Decreased 4.07% to $115.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Integrated Device Technology, Inc. reported adjusted net income of 4 cents per share. By that measure, the company met the mean analyst estimate of $0.04. It missed the average revenue estimate of $119.04 million.

Quoting Management: “Although visibility into near term demand is limited, design win activity remains strong and we expect top line growth from new product categories to accelerate in the second half of this calendar year, led by wireless power and enterprise flash controllers…

…In addition, we believe that improvement in our core business and continued operating expense reductions will enable us to achieve significant operating margin expansion in fiscal year 2014.”

Key Stats:

Revenue decreased 13.72% from $133.4 million in the previous quarter. Net income increased to $6.2 million in the quarter versus a net loss of $70,000 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.07 to a profit $0.05. For the current year, the average estimate has moved down from a profit of $0.29 to a profit of $0.25 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)