Wednesday, January 5, 2011

Monolithic Power Systems (NASDAQ:MPWR) EPS Estimates Lowered by Needham

Needham & Company continues to like the growth prospects of Monolithic Power Systems (NASDAQ:MPWR), but lowered their EPS estimates going forward on rising expenses.

Needham said, "We have interfaced with CFO Rao multiple times since she joined MPWR in early 2009 and are confident she will have no problem fulfilling the CFO role and interfacing with investors. We are using this publishing opportunity, however unrelated, to reduce our high street estimates more towards consensus. We remain upbeat on MPWR's growth opportunity through 2012 and will maintain estimates at the higher end of the consensus range. We reduced our Q4 EPS from $.17 to $0.15 on slightly higher expenses as well as our 2011 revenue/EPS from $229M/$1.10 to $217M/$0.95 and our 2012 revenue/EPS from $248M/$1.25 to $242M/$1.20."

Needham & Company maintains a "Buy" rating on Monolithic Power Systems, which closed Tuesday at $15.77, down $1.12, or 6.63 percent. They have a price target of $20 on them.

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