Tag - Psem

The Russell 2000 (NYSE:IWM) has opened strong on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) may improve its offer for Bear Stearns (NYSE:BSC).

At 10:09 a.m. ET, the small-cap index was up 12.12 points, or 1.78%, to 693.54. The Dow Jones Industrial Average (INDU) had advanced 168.52 points, or 1.36%, to 12,529.84.

Stocks small and large opened in the green on news that JPMorgan Chase & Co. may improve its offer for Bear Stearns to $10 a share from $2 a share in an attempt to appease Bear Stearns’ shareholders, many of whom are angry at the low price of the original offer.

An announcement on the future of the deal is expected today, according to news reports.

Pericom Semiconductor Corp. (Nasdaq:PSEM), supplier of integrated circuits and frequency control products, said this morning that its fiscal third-quarter revenue outlook is expected to be at the upper range of previously issued guidance and that it expects to experience positive business trends going forward despite a seasonally slower March quarter.

For detailed price information and recent news stories about Pericom Semiconductor, click PSEM.   

Pericom Semiconductor Corp. (Nasdaq: PSEM)
San Jose, CA
http://www.pericom.com

52-week low / high: $9.42/$19.50
Shares Outstanding: 25.92 million
Market Capitalization: $405.39 million

Successfully sousing itself in the semiconductor business has been a snap for Pericom Semiconductor Corp. (Nasdaq: PSEM).

The small cap makes integrated circuits and frequency control products that are used in everything from digital video for PCs to mobile devices that include cellular, GPS, digital media players, servers and PCs. It is the only manufacturer that addresses the computer expansion card market application need with multiple product functions.

The key to this company, however, is the strength found in its end market and customers. Pericom targets high-growth markets, serving communications, computer and consumer markets. Its top five end customers include Cisco Systems, Inc. (Nasdaq: CSCO), Dell Inc. (Nasdaq: DELL), Hewlett-Packard Company (NYSE: HPQ), Samsung and Garmin Ltd. (Nasdaq: GRMN).

The market for which Pericom sells into appears robust. Texas Instruments Incorporated (NYSE: TXN) and LG Electronics recently disclosed reports evidencing strength within the handset market. Laptop sales have been strong at HP and Dell. Additionally, if notebooks sales take off, that could also create sales growth opportunities for Pericom.

The Russell 2000 (NYSE: IWM) posted solid gains today, propelled by news of unexpectedly strong economic growth and a drop in the federal funds rate. The small-cap index added 11.87 points, or 1.45%, to 828.02. The Dow Jones Industrial Average (INDU) gained 137.54 points, or 1%, to 13,930.01.

On a year-to-date basis, the Russell 2000 has increased 5.16%, while the Dow has added 11.67% and the S&P 500 has gained 9.37%.

The U.S. Federal Reserve decided to lower the federal funds rate, the rate at which commercial banks make overnight loans to each other, to 4.50% from 4.75% in an effort to keep the economy growing.

The central bank lowered the federal funds rate to 4.5% and the discount rate to 5% in an effort to stimulate economic activity and keep the country from dipping into a recession. The move will make it cheaper for consumers and businesses to borrow money.

However, Fed policymakers signaled that Wednesday's cut may be all that is needed to deal with the economy's troubles.

“Today’s action, combined with the policy action taken in September, should help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and promote moderate growth over time,” the Federal Open Market Committee said in statement released at about 2:15 p.m. ET.

Stocks, which declined sharply minutes before the decision was announced, raced ahead to their highest levels during the session.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are in the green midway though the session on news of unexpectedly strong GDP growth. At 1:08 p.m. ET, the small-cap index had advanced 7.43 points, or 0.91%, to 823.58. The Dow Jones Industrial Average (INDU) had increased 68.12 points, or 0.49%, to 13,860.59.

The bulls are having a party with half the session left to go, as investors react to news of unexpectedly upbeat third-quarter economic numbers and await the U.S. Federal Reserve’s decision on interest rates.

Gross domestic product rose at a seasonally adjusted annual rate of 3.9% during the third quarter, the U.S. Commerce Department reported before the opening. That’s better than the forecasted increase of 3.2% and a sign that the economy is dealing well with the ongoing slump in the housing sector.

Breaking down the numbers shows that exports, consumer spending and business investment posted increases.

In other economic news, a report from business outsourcing solutions provider Automatic Data Processing, Inc. (NYSE: ADP) estimated that private employers added 106,000 jobs in October. That’s above the average for the previous three months and a sign that the labor market remains tight.

Pericom Semiconductor (Nasdaq: PSEM), First Consulting Group, Inc. (Nasdaq: FCGI) and Polypore International, Inc. (NYSE: PPO) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers:

Pericom Semiconductor Corp. (Nasdaq: PSEM), a worldwide supplier of high-speed integrated circuits and frequency control products, after Tuesday’s close reported robust results for its fiscal first quarter above the consensus on Wall Street, boosting shares.

For the three months ended Sept. 29, the San Jose, Calif.-based company recorded net income of $3.9 million, or $0.15 per diluted share, above the Street’s estimate of $0.12 per share. For the first quarter of 2007, the company earned net income of $1.6 million, or $0.06 per diluted share.

Net revenues grew 25% year-over-year to $38.5 million, from $30.8 million reported in the same period last year. Analysts were forecasting $34.05 million on average.

Gross margin was 36.4%, up from 33.8% in the first quarter last year.

The company attributed its results to strong demand for its products across the board, particularly within digital video, ultra mobility and PCI-Express servers/PCs applications.

Pericom Semiconductor said it expects revenues for the second fiscal quarter to be in the range of $39.3 million to $40.8 million.

Shares of Pericom Semiconductor (PSEM) rose 25.79%, or $3.03, to $14.79 at 11:28 a.m. ET. Shares of Pericom Semiconductor have been trading in the range of $9.14 to $12.94 for the past 52 weeks.

The Russell 2000 (NYSE: IWM) opened with modest gains this morning following news of stronger-than-expected economic growth in the third quarter.

At 10:29 a.m. ET, the small-cap index had added 1.70 points, or 0.21%, to 817.85. The Dow Jones Industrial Average (INDU) was up 51.46 points, or 0.37%, to 13,843.93.

Gross domestic product rose at a seasonally adjusted annual rate of 3.9% during the third quarter, the U.S. Commerce Department reported. That beats projections of an increase of 3.2%.

The increase of 3.9% represents the economy’s strongest performance since the first three months of 2006, when GDP added 4.8%. Helping the economy grow more than expected and overcome the drag from the ailing housing sector were a rise in exports, an increase in consumer spending and business investment.

In other economic news, a report from business outsourcing solutions provider Automatic Data Processing, Inc. (NYSE: ADP) estimated that private employers added 106,000 jobs in October.

Elsewhere, the U.S. Federal Reserve continues its two-day policy meeting, with a decision on the target interest rate expected to be announced at 2:10 p.m. ET. The Fed is expected to either cut the federal funds rate 0.25% or leave it unchanged. That’s higher than average private-sector employment growth during the last three months.