Integrated Silicon Shares Plunged: What You Need to Know

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 (Nasdaq: ISSI  ) fell as far as 20.5% below last night's closing price in intraday trading.

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.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.


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