Calls of Note Part 2

JP Morgan is trimming estimates on analog/mixed-signal companies on weaker than expected September quarter bookings. Elevated inventory levels, concerns over end demand and a lower-end mix have yielded lower orders, in their opinion. Firm now expects a below seasonal December quarter for the industry.

Computing and consumer markets are likely to suffer the most on an inventory correction while industrial markets should experience seasonal softness.

Firm expects International Rectifier (NYSE:IRF) to meet their and consensus 1Q07 estimates. Looking ahead to 2Q07 (Dec), firm is lowering their estimates from $358M/$0.56 to $348M/$0.52 compared to consensus estimates of $356M/$0.54. Driving their 2% Q/Q revenue growth estimate, which is below normal seasonality of 3-4%, is the delay in Sony's PS3 launch, cooling off in aerospace and defense, and auto slowdown.

Firm expects Maxim Integrated (NASDAQ:MXIM) to meet their 1Q estimates which is roughly in-line with street. Looking forward to 2Q07, they are trimming their estimates from $520M/$0.36 to $510M/$0.35 versus consensus of $514M/$0.35. Firm believes inventory and order mix mismatch will be corrected in 4Q barring unexpected cancellations, resulting in pushout of the missed Sept quarter sales to Dec quarter.

For Intersil (NASDAQ:ISIL) firm is trimming their 3Q estimates from $195M/$0.26 to $193M/$0.25. Looking ahead to 4Q, firm is again trimming estimates (inc. options) from $200M/$0.27 to $195M/$0.26 (EPS excluding options is $0.32) compared to consensus at $203M/$0.34. They are modeling a modest 1% sequential growth versus normal seasonality of 4-5% on seasonal strength in consumer, offset by inventory correction in optical, DSL, and displays.

Firm expects Linear Technology (NASDAQ:LLTC) to meet their and consensus 1Q07 estimates of $293M/$0.37 on seasonal strength in computing, offset by weakness in communication and seasonal softness in industrial. Looking forward to 2Q (Dec), they are trimming estimates from $305M/$0.39 to $295M/$0.37, virtually flat Q/Q compared to 4-5% seasonal growth. Consensus estimates are $303M/$0.38. Driving their estimates is their expectation of seasonal improvements in consumer and computing markets, offset by continued weakness in communication, and slightly lower GM at 78% on mix change.

Notablecalls: Yet another rock thrown at the semi space. Combined with lousy results from Micron, would not be surprised to see weakness in aforementioned companies and in broader semi space.