Needham & Company Reiterates a 'Buy' on Power Integrations (POWI); Quarter Uneventful; GM Recovery Pushed out to Year-End

Needham & Company reiterates a 'Buy' on Power Integrations (NASDAQ: POWI), PT $45.

Needham analyst says, "POWI reported Q1 results above expectations and guided Q2 results in line. The guidance would have been higher but management indicated that there was some headwind in Q2 expected in Japan, which is only about 6% of revenue. Nonetheless there were no supply chain shortages despite the closure of a fab in Japan due to electricity concerns. However, with channel inventory and backlog coverage moving towards historical norms we expect 2H 2011 to demonstrate an uptick in revenue accompanied with improved GM performance as current cost improvements impact Q4. End market highlights were limited to better than expected strength in POWI's high power products and an inventory build in LED incandescent light bulbs which dampened revenue growth in that category. We lowered our 2011 revenue/EPS from $330M/$2.05 to $327M/$1.95, and left our 2012 revenue/EPS unchanged at $359M/$2.35."

For more ratings news on Power Integrations click here and for the rating history of Power Integrations click here.

Shares of Power Integrations closed at $40.81 yesterday.

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