Standard Microsystems Corporation (NASDAQ: SMSC) is engaged in the design and sale of integrated circuits that incorporate digital or analog signal processing technologies. The company offers flash memory card readers, physical layer transceivers, Ethernet controllers, network multimedia co-processors, as well as communications products for wireless base stations, copiers, building automation, robotics, gaming machines, and industrial applications. The firm has long-term cross-licensing agreements with International Business Machines Corp. (NYSE: IBM) and Intel Corporation (NASDAQ: INTC).

The company surprised the Street last month, when it reported third quarter (Q3) earnings per share (EPS) of 53 cents and revenues of $104.7 million. Analysts had been looking for 53 cents and $100.2 million. Management also guided Q4 EPS to 46-49 cents (48 cent consensus) and Q4 revenues to $94-$97 million ($95.60M consensus). Needham subsequently upgraded the stock to "strong buy" and declared a price target of $46. SMSC shares popped on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

The continuing challenge of the integrated circuit maker is to keep its products affordable while supporting a constantly evolving set of industry standards. There is a firm in Hauppauge, New York with a reputation for reliability on both sides of that equation.

Standard Microsystems Corporation (NASDAQ: SMSC) is engaged in the design and sale of integrated circuits that incorporate digital or analog signal processing technologies. The company offers flash memory card readers, physical layer transceivers, Ethernet controllers, network multimedia co-processors, as well as communications products for wireless base stations, copiers, building automation, robotics, gaming machines, and industrial applications. Customers include Alcatel-Lucent (NYSE: ALU), DaimlerChrysler (NYSE: DCX), Dell (NASDAQ: DELL), Hewlett-Packard (NYSE: HPQ) and Sony (NYSE: SNE). Standard Microsystems has long-term cross-licensing agreements with IBM (NYSE: IBM) and Intel (NASDAQ: INTC).

The company surprised the Street last week, when it reported Q1 EPS of 29 cents and revenues of $81.5 million. Analysts had been expecting 25 cents and $81.0 million. Management also guided Q2 EPS to 37-40 cents (39 cent consensus) and Q2 revenues to $88-$90 million ($89.93 million consensus).