Integrated Device Technology Third Quarter Earnings Sneak Peek

Integrated Device Technology, Inc. (NASDAQ:IDTI) will unveil its latest earnings on Monday, January 28, 2013. Integrated Device Technology designs, develops, manufactures and markets a broad range of low-power, high-performance mixed signal semiconductor solutions for the advanced communications, computing and consumer industries.

Integrated Device Technology, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 2 cents per share, a decline of 33.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 7 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 2 cents during the last month. Analysts are projecting profit to rise by 42.9% compared to last year’s 16 cents.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at profit of 7 cents a share versus the estimate of net income of 5 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, the company swung to a loss of $73,000 (0 cents a share) from a profit of $47.1 million (32 cents) a year earlier, but beat analyst expectations. Revenue fell 3.6% to $133.4 million from $138.3 million.

Analyst Ratings: There are mostly holds on the stock with three of five analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.09 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 5.42 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.2% to $84.7 million while assets decreased 2.2% to $430.9 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 21.7% in the third quarter of the last fiscal year, 19.1% in fourth quarter of the last fiscal year and 14.1% in the first quarter and then fell again in the second quarter.

Wall St. Revenue Expectations: Analysts are projecting a decline of 0.9% in revenue from the year-earlier quarter to $118.9 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)