"Integrated Devices is well positioned to withstand the downturn. It has over $300 million in cash and no debt on the balance sheet. Although profits may be slipping, the company is still profitable, unlike many other technology companies this year. The company has a strong global presence, with over 70% of revenue coming from outside the U.S. Integrated Devices will be able to put its cash to work in the current weak stock market in the form of either acquisitions or stock buybacks."

Integrated Device Technology (IDTI) was downgraded from Buy to Neutral at Cowen and Company. VP & CFO Clyde Hosien recently announced his resignation only 2 months after Ted Tewksbury was appointed president. It is necessary to gain a better understanding of these significant changes before purchasing additional IDTI shares.

IDT recently announced that its Board of Directors has approved a $100 million expansion of the previously authorized share repurchase program to a total of $500 million, of which approximately $140 million remains available for share repurchases.

The maker of semiconductors and modules also recently announced a higher-than-expected profit in the fourth quarter, and analysts cheered its prospects.

For the quarter ended March 30, the company earned $17.1 million, or 10 cents per share, compared with a loss of $3.4 million, or 2 cents per share, in the year-ago period. IDT said its results were hurt by $24.7 million of acquisition-related charges and $8.2 million of stock-based compensation expenses.

Oppenheimer & Co. analyst Allan Mishan called the results better than expected, and was cheered by the company's gross margin improvement, which he called a pleasant surprise.

The stock trades for 11x cash flow.

Integrated Device Technologies recently announced a $200 million dollar buyback.

Integrated Device Technology, Inc. (IDT) develops, manufactures, and markets mixed-signal semiconductor solutions for the communications, computing, and consumer industries.

The stock has a forward PE of 13x.

IDTI raises buyback by $200 million bringing to $400 million. Lang to resign as CEO and President.

Integrated Device Technology, Inc. (IDT) designs, develops, manufactures and markets a range of semiconductor solutions for the advanced communications and computing industries.

tech play

Shares Held 11,667,653-- 1.87% of Portfolio

long-term holding bought when tech was kind

Integrated Device Technology shares have been under pressure due to a soft market for semiconductors, but Hutheesing says the company separates itself from the pack by developing specialized products needed by communications companies. "As third-generation wireless networks are deployed this year, demand for its products will increase," he says. Cisco Systems makes up 85% of Integrated's computer networking sales. But Hutheesing says demand for Cisco products is up, which for the time being means Integrated's sales should grow nicely.

IDTI
7 out of 9. Average return per trade of 2.4% the two unsuccessful trades were September 2002 (down 30%) and May 2006 (down 5.5%). The most successful trade was July 2006 (up 26%)

Too many competitors