The story behind the Bluetooth product pushout into 1H05 sounds reasonable, but it is nevertheless leading to a large (~20%) revenue drop from Q3 to Q4. The market is not going to like this. IMHO they also sounded a bit nervous when answering analyst questions about the pushout, making me think the delay might not be 100% benign. They also mentioned some OEM weakness possibly due to inventory reduction at a major US retailer. This is not going to add anything good to tomorrow either.
In short, I think this is a good company. I have held their stock for 7 years with no regrets. It does look like the business may be having some hickups. We may see 15-16 near-term.
Its still down almost $3. I think the drop is over done: they still have more than $10/share in cash and full year earnings should be more than $0.90. So $19/share is only 10x earnings plus cash - a steal for a profitable, cash rich, leading edge tech company.
Also, although they may have sounded a bit nervous on the call, it seems the company still has confidence because "in the first weeks of July 2004 we repurchased 210,000 shares of our common stock for a total amount of $4,920,000 at an average price of $23.43 per share." (From their press release.)