We believe communications customers are ordering again and capacity utilization is likely to increase ahead of healthy clocks [PC clock chips, he means] and PC audio demand for late calendar Q2. Taken together, we see better units and gross margins in coming quarters and believe investors should buy IDTI shares on weakness.
In one element of the call that does not entirely jive with some other things we’ve written lately, Burleson has an optimistic take on the outlook for PC component demand. “While PCs have recently lagged other areas of the semiconductor supply chain demand, we believe this trend is likely to reverse in calendar Q2, in according to checks with foundries and assembly and test,” he writes.
His estimates are unchanged; he sees EPS of $1.04 a share in the March 2007 fiscal year, and 98 cents in fiscal 2008.
Integrated Device shares Friday were up 53 cents at $16.41.
IDTI 1-yr chart