Credit Suisse First Boston cut its estimates on Micrel (MCRL )
Analyst Michael Masdea says Micrel cited weakness from computing, networking and North American distributors. Masdea thinks Micrel saw weakness throughout the quarter, with September weakness being a surprise as the third quarter is typically back-end loaded. He reiterates his underperform rating.
While Masdea says Micrel remains a strong analog chip maker, he says its increased exposure to commercial markets and competition in power management could continue to weigh on the company. He thinks a lack of pricing power will weigh more heavily on Micrel than its high-end competitors. Masdea widened his $0.01 2002 loss estimate to a $0.09 loss, and cut the $0.06 2003 earnings per share estimate to an $0.05 loss.