By William Trent, CFA of Stock Market Beat
When Texas Instruments missed their earnings target we noted they were the latest in a string of semiconductor manufacturers serving the wireless food chain to miss. We also offered up a list of other potential candidates for a comeuppance, on the basis of serving wireless end markets and having a high P/E multiple.
Lattice Semiconductor is the latest to fulfill the prophesy.
Lattice Semiconductor (LSCC) today announced its business update for the fourth quarter of 2006.The updated guidance is as follows:
– The Company now expects fourth quarter revenue to be 2% – 4% lower than the third quarter of 2006 due to weaker than anticipated turns business in the fourth quarter, particularly from the Company’s major communications customers. This is a revision of previous guidance of 0% to up 4% sequentially.
– Total operating expenses are now expected to be in the range of $35 -$36 million, including an estimated $1.1 million of stock-based compensation. This is a revision of previous guidance of $36 million.
While Lattice didn’t make our list of names to watch out for, it certainly fit the criteria.
The author may hold a position in the securities discussed. The author’s current holdings are as follows: Long: FedEx (FDX) put options; Intuit (INTU) put options; Nasdaq 100 (QQQQ) put options; Bookham (BKHM; Ballard Power (BLDP); Syntax Brillian (BRLC); CMGI (CMGI); Genentech (DNA); Ion Media Networks (ION); Lion’s Gate (LGF); Three Five Systems (TFS); Adobe Systems (ADBE) call options; IShares Japan (EWJ); StreetTracks Gold (GLD); Starbucks (SBUX); U.S. Oil Fund (USO); Plantronics (PLT) call options; Short: Ceradyne (CRDN) put options; Lion’s Gate (LGF) call options; Dell (DELL) put options; Plantronics (PLT) put options
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