Integrated Silicon Solution (NASDAQ:ISSI) Revenue Expected to Fall 10 Percent

The negative preannouncement by Integrated Silicon Solution (NASDAQ:ISSI) hasn't kept Auriga from maintaining their "Buy" rating on the company, even with revenue expected to drop by 10 percent quarter-over-quarter.

Auriga says, "We maintain our rating on ISSI and increase our price target despite its negative FQ111 (December) preannouncement on Friday before market open. Revenue is now expected to be down -10% q/q (-5% below prior guidance) as demand weakness in specialty DRAM products combines with an ongoing inventory correction. Our FY11 estimates were already well below consensus - we have long argued that the Street is too optimistic on the depth and duration of the ongoing cyclical revenue decline. However, our model suggests that ISSI will continue to generate cash across the cycle - with the stock trading below our year-end FY12 book value estimate, we're not sure that reduced EPS estimates will have much of an impact."

Auriga maintains a "Buy" rating on Integrated Silicon Solution, which closed Monday at $8.77, up $0.22, or 2.57 percent. They raised their price target on them from $9 to $10.