Piper Jaffray Cuts Integrated Device to Market Perform
Piper Jaffray downgraded Integrated Device Technologies (IDTI ) to market perform.
Analyst Richard Shannon says bookings have been soft due to excess inventory and a slowdown in the deployment of 3G wireless infrastructure in Japan. He says the biggest disappointment was reduced network service engine guidance. He says lower gross margins and sustained operation expenditures spending to support growth initiatives forces him to lower his estimates substantially.
Shannon cut the 48 cents fiscal 2005 (March) pro forma earnings per share estimate to 34 cents, and cut the 71 cents fiscal 2006 estimate to 48 cents. He cut the $433 million fiscal 2005 revenue estimate to $402 million, and cut the $509 million fiscal 2006 estimate to $451 million. He also cut the $15 target to $11.