Needham & Company Reiterates a 'Hold' on Pulse Electronics (PULS); Wireless Growth Offset by Soft Network & Power

Needham & Company reiterates a 'Hold' on Pulse Electronics (NYSE: PULS).

Analyst, Sean K.F. Hannan, said, "PULS continues the process of laying the groundwork for a potential turn-around in 2012, which now presents more hurdles. On the positive side, costs continue to come out of the model and should create a platform for healthy leverage as new handset customers ramp (and presumably inefficiencies are addressed). However, headwinds of slower broader demand in Power (dn 23% q/q from 3Q) and Network may provide an untimely offset. Furthermore, now management is having to sell additional “non-strategic” products after breaking covenants and to de-lever the balance sheet and avoid potential share dilution. Consequently, until a tangible positive outlook materializes that would support a more favorable forecast, we reiterate our rating."

FY12 EPS estimate cut from $0.25 to $0.14.

For an analyst ratings summary and ratings history on Pulse Electronics click here. For more ratings news on Pulse Electronics click here.

Shares of Pulse Electronics closed at $2.75 yesterday.

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