Trident Micro Gets Speared
Stocks: (TRID)(PXLW)(GNSS)
Trident Microsystems, with it stock already in a slid, fell another 14% today on news that it got subpoenas over options grants. The company makes digital chips for televisions. Wall Street is also concerned that sales of the LCD products that Trident supplies may be slowing.
Trident now sits at $17, down from a 52-week high of $31.49. The company's market cap is now below $1 billion.
While the question of whether any of the companies involved in the options scandal will have to restate earnings, there will probably not be a cash consequence to such an action. And, Trident has been doing remarkably well.
For the fiscal ending June 30, 2005, revenue rose to $69 million from $52.6 million the year before. The last four quarters have all shown sequential increases from $20.1 million in the June 05 quarter to $33.2 million in the September 05 quarter to $46 million in the December quarter to $44.7 million in the March 2006 quarter.
Operating income has also grown and was $8.6 million for the March 2006 period, an impressive margin. Trident is also sitting on almost $100 million in cash with no debt.
Trident's stock was recently downgraded by two Wall Street firms, which has helped push the stock lower.
Two of Trident's competitors, Genesis Microchip and Pixelworks, have done poorly recently, but the bug has not spread to Trident.
With the stock down by almost 50%, the price is starting to get attractive.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in companies he writes about.
Trident Microsystems, with it stock already in a slid, fell another 14% today on news that it got subpoenas over options grants. The company makes digital chips for televisions. Wall Street is also concerned that sales of the LCD products that Trident supplies may be slowing.
Trident now sits at $17, down from a 52-week high of $31.49. The company's market cap is now below $1 billion.
While the question of whether any of the companies involved in the options scandal will have to restate earnings, there will probably not be a cash consequence to such an action. And, Trident has been doing remarkably well.
For the fiscal ending June 30, 2005, revenue rose to $69 million from $52.6 million the year before. The last four quarters have all shown sequential increases from $20.1 million in the June 05 quarter to $33.2 million in the September 05 quarter to $46 million in the December quarter to $44.7 million in the March 2006 quarter.
Operating income has also grown and was $8.6 million for the March 2006 period, an impressive margin. Trident is also sitting on almost $100 million in cash with no debt.
Trident's stock was recently downgraded by two Wall Street firms, which has helped push the stock lower.
Two of Trident's competitors, Genesis Microchip and Pixelworks, have done poorly recently, but the bug has not spread to Trident.
With the stock down by almost 50%, the price is starting to get attractive.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in companies he writes about.
posted by douglas mcintyre at 11:14 AM
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