Integrated Device Technology (NSDQ: IDTI) is a sweet green beacon in a sea of red today. The purveyor of communications and industrial semiconductor chips reported revenue and earnings for its fiscal fourth quarter that were better than expected.

Revenue grew 20% to $189 million, $2 million higher than forecasts. Earnings of $.36 were a few cents higher than estimates. Most importantly management was unquestionably bullish about prospects for recently acquired ZMDI. Cross-selling of Integrated chips into automotive customers is off to a very strong start and customer response has been overwhelmingly positive.

Infotainment and wireless charging applications in automobiles should drive robust growth for these chips and helps diversify Integrated’s revenue away from communications customers whose orders can be lumpy.

Guidance for the June quarter is for $.36, up 16% and higher than $.34 estimates. We think estimates for only mid-single-digit earnings growth in 2016 and 2017 are too conservative. We reiterate our $45 target.