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IDT 4Q17 results +2

17:13 01-May-17

IDT's guidance for fiscal 1Q18 is for $195M in revenue +/- $5M.  This  includes $15M from GigPeak and is slightly below consensus excluding that figure.  The only minor surprise in the call is the mention of new custom memory interface product for a large cloud provider, which should debut towards the end of the year.  The rest of the segment results that I highlight below are mostly expected and well-understood.

• Automotive: grew 13%, due in part to cross-selling, expected to grow 20% as interested continues to grow in designing in wireless charging.
• Datacenter: grew 5%, should pick up due to Skylake.  An analyst questioned why the company does not project some advance sales as others have.  Management believes itself to be uniquely well-positioned and I would trust this management over others.
• Communications: declined 16%, more than the seasonal norm, due to Chinese a customer's RF inventory build surround trade restriction fears.  That adjustment should be complete this quarter.

Overall, the customer base is diversifying.  There was a fair amount of focus on Apple, wireless power and IDT's decision to ignore that business prospect.  Readers who followed me through InvenSense's history will understand why I think that's a good decision.  When Apple does introduce wireless charging there could be some copycat business, which is not included in guidance.  Again though, all of this is well-understood by IDTI's largely institutional investor base.  To be honest, I haven't seen a truly good opportunity in the stock since late last year.  That's not to say it won't run higher.  I see fair value around $27 as we move toward next year, but that's not enough upside for me to take any action right now.

The conference call is ongoing, but I think that is likely to be the extent of the important information.

Integrated Device Technology has reported results for its fiscal fourth quarter of 2017:

• EPS of 35 cents, beats by a penny
  
• on revenue of $175.7M, which beats by $700K
  

Management highlights strong sales in wireless power, memory interface, and automotive sensor products, as anticipated.  We'll see how guidance looks in the conference call, which starts soon.

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