Zeev's Turnips Patch-No Politics (ZEEV)

[nancy2]

ISSI warned and INTC downgraded

Integrated Silicon (ISSI 10.40 -0.65): Schwab Soundview comments that ISSI negatively preannounced its June quarter last night, citing lumpy wafer availability from SMIC for 16- and 64-meg DRAM parts and an overall consumer market slowdown in June. Co states the shortfall is in-line with their comments last week, when they reduced estimates to below consensus levels; however, it is at a greater magnitude than they had previously expected. Firm believes the bulk of the miss is a result of demand, not supply. Firm views last night's estimate correction as more a speed bump rather than an indication of a downcycle and is lowering estimates (revs to $58 mln from 62 mln, EPS remains at $0.15) and trimming price target to $23 from $24 accordingly