Market Pulse: Synaptics shares drop as Apple uses other vendor for nano
Thursday September 8, 8:07 am ET
By Tomi Kilgore
NEW YORK (MarketWatch) -- Shares of Synaptic Inc. fell 10% in pre-open trading after the company indicated Apple Computer was using another vendor for the new iPod nano's click wheel. Bear Stearns, which believes the other vendor is Cypress Semiconductor , reiterated its peer perform rating and left its estimates unchanged, however, as the loss of Apple business was anticipated. "Although Synaptic components are still included on the regular iPod, that business could be at risk given the transition by Apple away from Synaptics for the nano and the elimination of the iPod mini," said Bear Stearns analyst Andrew Neff. "While the stock could pull back after a recent run up on speculation that Synaptics was on the new iPods, we maintain our estimates, which already reflect Apple revenue going away by 2006." The stock was last down $1.90 at $16.45, after rising $2.05 over the prior 2 sessions. Cypress shares closed Wednesday up 24 cents at $16.48. |
