Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of microcap chip designer Integrated Silicon Solution
So what: Last night's fourth-quarter report disappointed analysts and investors both in terms of reported results and forward guidance. Incoming orders for the company's admittedly low-end memory products started slowing down in the middle of the quarter, and the swoon below "seasonal norms" has continued into the first quarter of fiscal 2011.
Now what: On the upside, management expects the slow business to be temporary, with a return to normal seasonality by the middle of 2011. This echoes sentiments heard from several other chip designers over the past couple of weeks and seems like a reasonable assumption. In the meantime, don't cry too much for Integrated Silicon's shareholders: The stock has gained 130% over the past year even after today's hit.
Interested in more info on Integrated Silicon Solution? Add it to your watchlist by clicking here.