Venture: 2Q10 results. Revenue was up marginally qoq, but down 23% yoy. Its segments - Test & Measurement, Retail Store and Industrial, and Networking and Communications - all grew in the double teens, with the drag mainly arising from deliberate paring down of the lower margin Printing & Imaging segment. Gross margins continued to trend up, due to higher value product mix, boosting PATMI +16% qoq, +28% yoy (excluding one-off)
Inventory was higher, probably due to component shortages. Expect cash cycle to improve once supply chain normalizes in 2H10. Customers continue to have positive outlook, but remain cautious in demand commitments. Mgt sees no risk of double bookings. Citi has Buy call with $10.90 target.
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