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ZTE selects IDT RapidIO and more +4
09:21 03-Oct-16
News agencies are reporting
that ZTE has selected RapidIO 10xN solutions from Integrated
Device Technology for its wireless base stations. While IDT
always has a long list of innovations and developments, which
recently includes a collaboration
with IBM, and distributed
power architecture win with MSI, I find this announcement
particularly noteworthy. The reason is that this is the same
family of solutions that was dropped by Huawei, as annuounced with
the last earnings report. Though Huawei leads, carrier
communications make up more than half of ZTE's business, and it
has moved up to third,
from fourth
in global market share in the first half of this year. This
announcement goes a long way towards alleviating concerns that
RapidIO problems would become more widespread for IDT.
IDTI has seen a very nice 20%+ bounce since the opportunity I
identified in conjunction with the last earnings report at the
beginning of August. The next one is due in about 3 weeks, and
the stock has been quite volatile surrounding earnings. Though new
memory solutions could be a big revenue driver going
forward, I'm not inclined to take chances on the stock at this
price point in the current market, even though I continue to like
the business long-term.