Zilog (ZILG), a fabless semiconductor company, at first glance would seem quite immune from happenings in the credit and housing markets. Last week, however, the company reported a significant revenue decline due to the slowdown in housing.

Yesterday, Zilog (Nasdaq: ZILG) announced quarterly results which continue to support our thesis that the company’s business has stabilized and that new growth initiatives could significantly increase the top and bottom-line in the coming year or two

In this post, we’ll look at a post-bankrupt semiconductor company that we think offers a compelling risk/reward profile for those who want some exposure to the rapidly growing Flash memory market.