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 Integrated Device Technology, (NASDAQ:IDTI) jumped 13% Tuesday, even after the company posted mixed quarterly results and soft forward revenue guidance.

So what: Quarterly revenue rose to $124.6 million, which translated to adjusted net income of $0.17 per diluted share. By contrast, analysts were looking for adjusted earnings of just $0.12 per share on higher sales of $127.36 million.

CEO Greg Waters explained while the revenue was inline with the company's guidance provided last quarter, a favorable product mix led to higher-than-expected adjusted gross margin at 62.4%.

Going forward, the company expects fiscal fourth quarter 2014 revenue to be in the range of $114 to $120 million. That's well below expectations for sales of $122.3 million, and thanks largely to the divestiture of its PC audio business.

Now what: At the same time, however, Waters insisted the transition of their business model is progressing faster than they had hoped, and by the end of the quarter "the impact of declining or discontinued product lines will be washed out of the income statement and the real growth drivers within IDT will be clearer and easier to model."

Considering the stock trading at a reasonable 18 times next year's estimated earnings -- or just 13 times when you back out the company's $438 million cash pile -- it's hard to blame investors for bidding up the stock today. If IDT can indeed resume profitable growth from here, the stock could prove a bargain for patient long-term investors.

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Steve Symington and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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