Trident Micro Remains a Hold

Trident Microsystems Inc.'s (TRID - Analyst Report) Q1 2009 results were above our expectations. However, flat panel TV inventory continues to build. The expected surge in buying for the Olympics did not materialize. We do not expect a strong Xmas selling season at retail.

The company's top-line growth is further expected to be negatively affected by the change in production strategy by its top customers, Sony (SNE - Analyst Report) and Samsung, who have decided to move production in-house. This will impact Trident's 2009 revenue forecast significantly.

Cash per share is $3.78, and operations are cash flow neutral to positive. Our target price remains at $3.00, as does our Hold recommendation on the shares of Trident Microsystems.

Read the full analyst report on TRID

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