Needham Trims Microsemi Outlook

Analyst Paul Brandeis says he's concerned about weak demand in the military and other end markets

Needham cut estimates on Microsemi (MSCC ).

Analyst Paul Brandeis says the company attributed lowered guidance to weakness in several end-markets. He says $1 million of the revenue shortfall stems from the sale of the company's low frequency RF transistor business in the mid quarter. Brandeis says he's concerned about the uncertainty in the timing of the company's overall gross margin ramp, continued end-market weakness, and slower than anticipated growth of the key military market. He cut the $0.46 fiscal 2002 (Sept.) earnings per share estimate to $0.33, and cut the $0.68 fiscal 2003 to $0.34. He notes, at current levels, the company is trading in excess of 20 times his $0.41 calendar 2003 EPS estimate.

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