That suggests margin compression, which the Street never likes. But the real issue was the second quarter guidance: the company sees revenue of $30.5 million to $32.5 million and EPS of 13-15 cents; the Street had been at $36.9 million and 18 cents. The company said it has been seeing worse-than-expected price erosion.
Li Tang, an analyst at Pacific Crest, this morning downgraded the stock to Sector Perform form Market Perform, due to “severe ASP degradation.”
ACTS dropped more than 10% Friday.