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Trident Micro Pressured in Asia
Trident Microsystems, Inc. (TRID - Analyst Report) is a leader in integrated circuits for Digital Television. While its products are used in all kinds of displays, LCD television is its most important growth market as LCD televisions take share from plasma in the market for larger screens as well as traditional CRT television sets of all sizes.
Trident has secured important design wins with a number of leading manufacturers of LCD televisions, including Sony (SNE - Analyst Report), and Sharp. The company reported fourth quarter results. Revenue was in line with our expectations. However, GAAP operating expenses were much higher than expected.
Trident has lost ground to its Asian competitors in the LCD TV market. The LCD TV market continues to grow but the poor economic environment and the normal price declines has reduced the near term growth rate in revenue to less than 5% per year. At this rate most companies in this industry will not be profitable until late 2009. Given the uncertainties of Trident’s near term revenue stream and its high level of operating expenses in the near term we are dropping our recommendation to a Hold with a price target of $3.00.
Read the full analyst report on TRID
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| Market Summary | Jul 31, 2010 13:20 pm ET |
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