Pacific Crest cut its estimates on Integrated Circuit Systems (ICST).
Analyst Michael McConnell says the company cited weak enterprise networking customer demand, in line with comments from peers.He says communications companies are in the midst of an inventory correction that should take one or two quarters. The company's customers include Cisco, Juniper, Ciena, Lucent, and Nortel.
He sees revenue from Integrated Circuit's communications segment declining 11% sequentially, vs. his prior estimate of 2% growth, with military sales falling 13% sequentially. He cut the $1.19 fiscal 2005 (June) EPS estimate to $1.11, and cut the $1.38 fiscal 2006 estimate to $1.15. He cut the $26 target to $23, and says the attractive valuation sets a solid floor for the stock.