Needham & Company Lowers Numbers on Standard Microsystems (SMSC); Macro Weakness Continues to Pose Challenges

Needham & Company maintains a 'Buy' on Standard Microsystems (NASDAQ: SMSC), price target lowered from $29 to $26.

Needham analyst says, "SMSC reported NovQ3 results below estimates and guided FebQ4 revenue to be materially lower and between $89-93M – 14% lower Q/Q at the midpoint. The Q3 weakness was primarily attributed to lower PC sales that were caused by reduced government spending. While revenue from Mobile PC (29% of Q3) and Industrial products (15%) declined sharply Q/Q, Automotive remained strong (up 4% Q/Q) with CE flattish, supplanted by strong performance from BridgeCo which contributed $11.6M to the top line. Outlook for Q4 had already been challenging in light of the macro weakness and became worse as SMSC guided Audio to decline significantly Q/Q on seasonality and even Automotive to be down Q/Q due to holiday shutdowns at OEMs. We reduced our FY12 revenue/EPS estimates from $432M/$1.50 to $413M/$0.85, and FY13 estimates from $462M/$1.90 to $440M/$1.80."

For an analyst ratings summary and ratings history on Standard Microsystems click here. For more ratings news on Standard Microsystems click here.

Shares of Standard Microsystems closed at $24.98 yesterday.

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