NEW YORK (TheStreet) -- Shares of Integrated Device Technology (IDTI) were gaining 12.2% to $26.45 on Tuesday after the mixed-signal semiconductor solutions maker beat analysts' estimates for earnings in the second quarter of fiscal 2016.
On Monday, IDT reported earnings of 35 cents a share for the fiscal second quarter, above analysts' estimates of 31 cents a share for the quarter. Revenue grew 23.6% year over year to $169.5 million for the quarter, above analysts' estimates of $168.5 million.
CEO Greg Waters said the strong revenue growth was "driven by a strong rebound in sales of our communications products, continued market leadership in memory interface, as well as solid contributions from our wireless charging business."
The semiconductor company also announced that its board of directors increased its share buyback plan by $300 million, adding to the $231 million remaining in its repurchase plan as of the end of September.
Separately, IDT announced it will acquire the privately held Zentrum Mikroelektronik Dresden AG for $310 million. The ZMDI acquisition will give IDT a "highly regarded Automotive & Industrial business," the company said.
TheStreet Ratings team rates INTEGRATED DEVICE TECH INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate INTEGRATED DEVICE TECH INC (IDTI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: IDTI