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Power Integrations, Intel Corp. and Trimble Navigation

April 29, 2009 | Comments: 0
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POWI | INTC | TRMB
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For Immediate Release

Chicago, IL - April 29, 2009 - Zacks.com announces the latest Industry Outlook. Today’s outlook from Zacks Equity Research analyst Ken Nagy discusses the Semiconductor sector. Highlighted stocks include: Power Integrations, Inc. (POWI - Analyst Report), Intel Corp. (INTC - Analyst Report) and Trimble Navigation (TRMB - Snapshot Report).

Here is the latest on the Semiconductor sector:

Older technologies deliver power inefficiently, often consuming two or three times the amount of power needed by the end product and wasting substantial amounts of energy. Firms that provide solutions to so-called "energy vampires" will outperform. Our favorite name in this arena is Power Integrations, Inc. (POWI - Analyst Report).

Intel Corp.’s (INTC - Analyst Report) "Netbooks" are expected to attract first-time buyers in developing economies, while in developed economies, their pricing and portability are expected to help second- and third-unit sales per household. Although they are unlikely to be as efficient as some of the latest chips for desktops and servers, there is a longer-term potential for adoption in consumer electronic devices, embedded applications and thin clients.

Since the chip is specially designed for the portable market, the design excludes some features that lower the manufacturing cost. This is expected to help maintain margins even as volumes ramp up. Management stated that the Atom processor would generate margins in the 58% range. Given the enormous prospects, revenues are being broken out separately.

Trimble Navigation (TRMB - Snapshot Report) is an OEM of GPS-based products and control systems. December quarter results were short of consensus and management expectations, although they were in-line with management’s preannouncement. Forward guidance is for a 6-18% sequential increase in Q1.

International markets will be the key to growth in 2009, as the negative impact of the recession on E&C is likely to be even more pronounced. We expect further declines in the share price as investors react to management conservatism, and the weakening market overall.

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Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release. 

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. 

Contact:Mark VickeryWeb Content Editor312-265-9380Visit: www.zacks.com


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Market Summary Nov 24, 2009 05:54 am ET
DJIA 10450.95  132.79 1.29%
NASD 2176.01  0.00 0.00%
S&P 500 1106.24  14.86 1.36%
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