) to sell from hold.
Analyst Timothy Arcuri says the company's results are in-line with its negative pre-release on Feb. 2. He believes the cyclical inflection point is here as product orders have troughed and are on the rise, and new product architecture and restructuring are fueling gross margin.
However, the company continues to announce customer wins but has few orders to show for it and the liquidity crunch looms. While he remains bullish on the group and structural impediments at the company, the continued lack of share gains and looming liquidity issues more than offset order trough and better margins from new product ramp.
He cuts his $6.75 target to $5.