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: Analog chip maker Integrated Device Technology
So what: First fiscal quarter non-GAAP EPS of $0.12 was in line with the consensus estimate but down 14% year over year. GAAP EPS of $0.05 fell from $0.06 in the year-earlier quarter. Revenue of $151.5 declined 4% year over year and fell short of the consensus expectation of $153.5.
Now what: Management noted that the quarter's results "were within our guidance range as strong demand from our computing end market was offset by weaker-than-expected demand from customers in our communications and consumer end markets." Although gross margins increased for the fifth consecutive quarter, the weak revenue broke a four-quarter run of year-over-year revenue increases. This suggests that investor expectations seem to have gotten ahead of themselves.
Interested in more info on Integrated Device Technology? Add it to your watchlist by clicking here.
