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IDT 1Q19 report +2

17:00 30-Jul-18

The IDT conference call is ongoing, but I think we've already got everything that's important. 

• 2Q19 revenue guidance of $233+/-5M beats by $3M
  

The automotive segment lagged, as expected, but a sharp rebound was specifically cited in guidance and that is expected to be sustained.  Highlights of the otherwise across the board growth were:

• Memory: importantly, the business is CPU agnostic.  Management also stated that it is working more directly with major cloud providers.  The next generation of memory solutions is shaping up to be the most significant in over a decade.
• Communications: 5G field trials and early deployments are underway.  In keeping with my CenturyLink commentary, production volumes are now expected to ramp mid-next year.
• Wireless Power: IDT is gaining customers outside smart phone makers, which are stickier and higher margin.

Operationally, this is another stand out quarter.  IDT's consistent innovation has already driven margins up to management's projected ranges, and it expects that trend to continue.  Even so, I don't think there's enough here to expand my base valuation the impressive price appreciation that we've already seen over the past year or two.  So far, the market seems to agree.  I will keep a lookout for better entry points.

Integrated Device Technology has reported its results for its first fiscal quarter of 2019:

• EPS of 44 cents beats by a penny
• on $228.5M in revenue, which beats by$1.5M

Management also says it expects improving margins, on continued diversified growth.  So far this looks like the good report that I was expecting, but not something that should move the stock higher in a big way.

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