Needham & Company Maintains a 'Hold' on MEMSIC Inc. (MEMS); Strong Gross Margins, But Q2 Mixed
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Price: $4.07 --0%
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
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Needham & Company maintains a 'Hold' on MEMSIC Inc. (NASDAQ: MEMS).
Analyst, Vernon Essi, Jr, said, "MEMS reported mixed Q2 results highlighted by strong GM and provided a Q3 guide that, while below consensus, was relatively flat Q/Q and not a harbinger of revenue slippage post the mobile handset issues in Q2. Recall that MEMS gained compass design wins with Samsung that ramped in Q1 to just over 40% of revenue only to drop to 25% in Q2. Management appears to have learned from this episode and instead of seeking pyrrhic victories in mobile they are more focused on solid partnerships with customers that can offer reasonable GM content. This is highlighted in Q2 with digital still camera ramps in the Japanese markets for MEMS highly accurate accelerometer solution. This diversity should continue and investment in the business at the OPEX level is expected but still looks to be lower than our prior forecasts."
"We lowered our 2012 revenue/EPS from $70M/($0.01) to $64M/($0.01) and our 2013E revenue/EPS from $85M/$0.05 to $74M/$0.00."
For an analyst ratings summary and ratings history on MEMSIC Inc. click here. For more ratings news on MEMSIC Inc. click here.
Shares of MEMSIC Inc. closed at $2.21 yesterday, with a 52 week range of $1.97-$5.44.
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Analyst, Vernon Essi, Jr, said, "MEMS reported mixed Q2 results highlighted by strong GM and provided a Q3 guide that, while below consensus, was relatively flat Q/Q and not a harbinger of revenue slippage post the mobile handset issues in Q2. Recall that MEMS gained compass design wins with Samsung that ramped in Q1 to just over 40% of revenue only to drop to 25% in Q2. Management appears to have learned from this episode and instead of seeking pyrrhic victories in mobile they are more focused on solid partnerships with customers that can offer reasonable GM content. This is highlighted in Q2 with digital still camera ramps in the Japanese markets for MEMS highly accurate accelerometer solution. This diversity should continue and investment in the business at the OPEX level is expected but still looks to be lower than our prior forecasts."
"We lowered our 2012 revenue/EPS from $70M/($0.01) to $64M/($0.01) and our 2013E revenue/EPS from $85M/$0.05 to $74M/$0.00."
For an analyst ratings summary and ratings history on MEMSIC Inc. click here. For more ratings news on MEMSIC Inc. click here.
Shares of MEMSIC Inc. closed at $2.21 yesterday, with a 52 week range of $1.97-$5.44.
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