IDTI - an IC Play on Growth Markets Message Board

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Technology Stocks : IDTI - an IC Play on Growth Markets

IDTI 48.99

0.0%

Mar 29 5:00 PM EST

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To: Return to Sender who wrote (11451)	12/3/2002 5:43:49 PM
From: Rob S.	Read Replies (2) of 11555

SANTA CLARA, Calif., Dec 3 (Reuters) - Integrated Device Technology Inc. (NasdaqNM:IDTI - News), on Tuesday warned it sees a bigger third-quarter loss on smaller revenue, citing softness across its business segments and inventory adjustments from its customers. ADVERTISEMENT IDT, a maker of microchips for high-speed communications and networking devices, said it expects third-quarter revenue to be down 12 percent to 14 percent from the $92.3 million reported in its second quarter. The company had earlier projected revenue to be down 5 percent to 7 percent. ----- Semiconductor end market remain anemic because telecommunications end equipment sales remain in a slump and PC/IT sales are not nearly picking up the slack. A downward revision in expected auto sales helps to dampen the picture further - perhaps the consumer driven sales is running on empty as the effect of zero interest rate loans has played out. IDTI and other chip companies that concentrate on such areas as storage, networking, and telecommunications equipment OEM sales remain under severe price pressure. Overall IC sales have recovered a modest 1.8% growth according to recent figures. That belies the fact that companies are shipping more parts at lower ASPs. because most cost reduction measures have already been taken, there is little that can be done at this point except "grin and bear it" waiting for whatever recovery will come to the important telecomm sector towards the latter part of next year. Most likely, investors will once more be required to check their enthusiasm with the reality that a significant turn has not yet occurred and until it does, the bulk of the semi industry will remain a buyers market. This is a good market to buy on pull backs to support levels and sell or sell calls against positions on run ups to resistance levels. Just when investors start to think it safe to poke their heads above water the market is likely to pound them back to the waterline.

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