Auriga Cuts Estimates for PMC-Sierra Following Disappointing Guidance

According to a research report released today, Auriga is slicing its estimates for PMC-Sierra

as the company's 1Q12 guidance fell short of estimates. “A weak guidance was partially offset by a strong 1.2+ Book-to-Bill, a large decline in legacy overhang and a commitment to reduce opex in 2H12 to 1H11 levels. However even as order trends improve, we remain cautious on overall carrier capex trends for 2012. We substantially reduce our estimates and remain on the sidelines until we see a stronger acceleration in growth momentum and/or a more compelling valuation,” Auriga commented in the report. Auriga maintains its Hold rating and $6.50 PT on PMC-Sierra, which closed yesterday at $6.47.