What: Shares of Integrated Device Technology (NASDAQ:IDTI) plunged nearly 29% Tuesday after the mixed-signal solutions company released solid fiscal third-quarter 2016 results.

So what: Quarterly revenue rose 17.5% year over year to $177.6 million, including $3.4 million attributable to last quarter's acquisition of Zentrum Mikroelektronik Dresden AG (ZMDI), primarily driven this time by strong demand for in IDT's communications infrastructure products. That resulted in a 34.9% increase in adjusted net income to $52.2 million, and 40% growth in adjusted earnings per share to $0.35.

Analysts, on average, were expecting roughly the same adjusted earnings per share on slightly lower revenue of $175.4 million.

However, the market was much less impressed by ITD's guidance provided during the subsequent conference call. Specifically for the fiscal fourth quarter, IDT anticipates revenue of $187 million, plus or minus $5 million, representing 18% growth over the same year-ago period. That includes expectations for seasonal declines of 8.5% in communications and 4.5% in computing, a 38% increase in the consumer end market driven by wireless power customer product ramps and the new mobile sensing business, and roughly $14 million in revenue from the new automotive and industrial segment. 

But even so, analysts' consensus estimates predicted significantly higher fiscal Q4 revenue of $196.7 million. 

Now what: That's not to say the guidance shortfall justifies the gravity of today's drop. To the contrary, Integrated Device Technology is still growing both revenue and earnings at a healthy clip and trades at a reasonable 20.4 times trailing-12-month earnings and just 11 times next year's estimates. Of course, I also won't be surprised if analysts ratchet down those estimates as they digest their overly optimistic stance on the most recent quarter. But even then, it's not hard to argue ITDI could represent a fantastic bargain for patient, long-term investors willing to take advantage of today's pullback.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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 has a disclosure policy.