Maxim Integrated Products Inc.’s (MXIM) first quarter earnings beat consensus estimates by a penny. Revenue was over the high-end of management’s guidance range of $415-445 million, or a sequential increase of 5-13%. Revenue Revenue of $449.2 million was up 13.9% sequentially and down 10.4% year over year. The sequential strength in demand was reflective of the rebound in the semiconductor sector and follows stronger results reported by other chip companies, such as Linear Technology (LLTC), Intel Corp. (INTC), Advanced Micro Devices (AMD) and Texas Instruments (TXN). Revenue by End Market The computing market generated 25% of revenue, up 13.9% sequentially and down 20% year over year. Revenue benefited from sequential strength in the server, financial terminals and notebook segments. The consumer market generated 33% of revenue, up 17.4% sequentially and 5.6% year over year. ...

Supertex Inc. (SUPX) recently reported revenues of $15.9 million in its fiscal second quarter, down 32% year over year but up 17% sequentially.  The sequential increase in revenues was driven by growth in LED driver products for lighting and backlighting, medical electronics products, and electroluminescent (EL) driver products. Orders for LED and EL driver products surged after Labor Day. The company had to rush these orders through its wafer fab and expedite them through backend assembly and test in order to meet customer demand schedules. Demand for medical ultrasound products is also beginning to rebound, as sales grew 17% sequentially.

Management added that its major customer has increased its LED TV sales estimates for 2009 and 2010 while other customers are also ramping up. Sales of LED driver products for general lighting applications have also increased. In anticipation of new cell phone launches, shipments of EL inverter products ramped

...

Intersil Corp. (ISIL) recently raised its revenue expectations for the third quarter from $123-132 million to $145-148 million. The increase was driven by stronger demand in the consumer and computing markets.

The announcement does not come as much of a surprise since management of other companies in the sector, such as Maxim Integrated Products Inc. (MXIM) and Linear Technology Corp. (LLTC), had given prior indications. We were thus able to gather that channel inventories had been lowered significantly during the fourth quarter of 2008 and the first quarter of 2009. This basically meant that sales were likely to track consumption going forward.

We also note that Intersil has a well-diversified business, where the first half of the year is typically driven by the industrial and communications markets, while the second half is driven by computing and consumer.

The computing market will benefit from channel

...

For Immediate Release

Chicago, IL – March 24, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Maxim Integrated Products, Inc. (MXIM), American International Group, Inc. (AIG), Lions Gate Entertainment (LGF), Aventine Renewable Energy Holdings, Inc. (AVR) and Cirrus Logic, Inc. (CRUS).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Monday's Analyst Blog:

Maxim Won't Chase Growth

Maxim Integrated Products, Inc. (MXIM) has had one of the most efficient business models in the technology sector, offering 65-70% gross margins in 4 consecutive fiscal years.

A few quarters

...

Maxim Doesn't Chase Growth for Growth's SakeMaxim Integrated Products, Inc. (MXIM) has had one of the most efficient business models in the technology sector, offering 65-70% gross margins in 4 consecutive fiscal years.A few quarters ago, management decided to revise the corporate strategy, which had been focused on pursuing high-margin business, thus limiting expansion into high-growth markets. The company has now entered several high-volume markets such as the digital camera and display markets. Since these markets allow less attractive gross margins, management has reduced its targeted gross margin to the 63-65% range.Management has outlined several cost reduction initiatives that are expected to offset some of the negative impact of the lower gross margin. The first is the more strategic use of R&D dollars.Accordingly, R&D expense is being moved from the low-margin RF transceiver, and the deployment of funds for further ...

Maxim Integrated Products Inc. (MXIM) is an OEM [original equipment manufacturer] of semiconductor analog and mixed signal ICs [integrated chips]. September quarter revenue was inline with the consensus, although the EPS missed by a penny. Forward guidance is for a revenue decline of 12-18%. Management has announced a significant reduction in the capex for 2009, in response to the broad macro weakness.We are reiterating our Buy rating on MXIM shares, given the diversity in the company's markets, healthy product pipeline, strong cash generating capabilities and cheap valuation. MXIM shares are currently trading at an 11.0x multiple of our 2009 EPS estimate (P/E). We reiterate our six-month target price of $20.00, which corresponds to a 18.7x P/E multiple.Sejuti Banerjea contributed to the report. Read the full analyst report on MXIM "MXIM" Free Stock Analysis: Buy? Sell? ...

With the extreme market volatility that has been taking place lately, investors are looking toward high yield stocks, so they have income coming in while waiting for their stocks to appreciate. In addition, investors prefer companies with no debt for additional safety. Combine those two features together, and look for the stocks with low PE ratios and low PEG ratios and you get the following list.United Online, Inc. (UNTD) is an Internet and media services companies which owns the NetZero and Juno brands. The stock has a PE of 10 , a PEG ratio of 0.86 , and pays a yield of 9.84%.Williams Pipeline Partners L.P. (WMZ) is a natural gas transportation and storage company. The stock has a PE of 2 , a PEG ratio of 0.24 , and pays a yield of 9.29%.Pioneer Southwest Energy Partners L.P. (PSE) owns oil and gas ...