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%)

Gorilla Pick

Too many competitors