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  • Cloud Migration, Salesforce1 Could Help Sustain Salesforce.com's Impressive Topline Growth Trajectory
    Yesterday, 5:10 PM CRM Comment!

    Summary

    • Interestingly, the company provided a breakdown of sales by product offering for the quarter.
    • Revenues from subscriptions to its Service Cloud and Marketing Cloud stood at about $319 million and $122 million, respectively, during Q2 2015.
    • The Salesforce1 platform generated revenues of approximately $182 million during Q2'15.
  • How The Cisco-NetApp FlexPod Impacts EMC And VMware
    Tue, Aug. 19 CSCO, NTAP, EMC 1 Comment

    Summary

    • Cisco recently announced that the joint sales of FlexPod had crossed $3 billion since its introduction four years ago.
    • Among the large players in the integrated infrastructure market, EMC was third behind FlexPod.
    • However EMC's growth in the segment was the highest among the leaders, which helped the storage giant gain significant share.
  • Intel's Acquisition Of LSI's Networking Business To Boost Its Presence In IoT
    Fri, Aug. 15 INTC 15 Comments

    Summary

    • IoT includes all the other computing devices apart from PCs, tablets and smartphones.
    • Intel is driving significant innovation in this area as its invests, both to extend its architecture into the very low power space and to acquire IP and capabilities.
    • Our price estimate of $33 for Intel is just a bit below the current market price.
  • A Look At The Key Challenges For BlackBerry's Software Business
    Thu, Aug. 14 GOOG, GOOGL, AAPL 248 Comments

    Summary

    • The company has been counting on the loyalty of its large yet declining user base of government institutions and corporations.
    • The company's transformation into a profitable software and services player isn't going to be an easy task.
    • Its software and services revenues fell by around 29% year-over-year during the previous quarter and competition in the MDM and security space is heating up.
  • China Mobile Earnings Preview: Subscriber Adds, Operating Costs And VAT In Focus
    Wed, Aug. 13 CHL 3 Comments

    Summary

    • In the upcoming earnings release, we expect the company’s revenue growth to sustain its momentum backed by aggressive expansion in the 3G and 4G market.
    • A recent report in the Chinese media suggested that the carrier is likely to trim its total subsidy costs by RMB 10 billion this year, owing to profitability concerns.
    • The rise in operating expenses, in addition to the recent introduction of Value Added Tax in the telecom industry, is likely to weigh on China Mobile’s net profit in the second quarter as well.
  • Nvidia Unveils The Architectural Details For Project Denver
    Tue, Aug. 12 NVDA 5 Comments

    Summary

    • Nvidia unveiled the architectural details of its first custom-designed CPU, code-named Project Denver.
    • Nvidia believes the chip will rival some mainstream PC-class CPUs at significantly reduced power consumption.
    • Our price estimate of $18.83 for Nvidia is in line with the current market price.
  • Applied Materials Earnings Preview: Rising Display, Semiconductor Demand To Drive Growth
    Tue, Aug. 12 AMAT 1 Comment

    Summary

    • Applied Materials believes that its growth momentum will continue throughout 2014, backed by stronger investment from its semiconductor and display customers.
    • The company expects to complete its merger with Tokyo Electron in the second half of the year.
    • Applied remains focused on creating a strong pipeline of new, highly differentiated products to enable future inflections in logic, memory and display.
  • Nvidia's Q2'15 Earnings Growth Driven By PC Gaming, Data Center And Tegra Processors
    Fri, Aug. 8 NVDA 5 Comments

    Summary

    • Nvidia posted strong growth in Q2 2015.
    • At $1.1 billion, revenues increased 13% year on year, in line with company guidance.
    • Our price estimate of $18.43 for Nvidia is only marginally higher than the current price estimate. We are in the process of updating our valuation for the company.
  • Microsoft's Nokia Can Boost Its Revenues In The Future
    Thu, Aug. 7 MSFT 9 Comments

    Summary

    • Microsoft acquired Nokia for $7.2 billion last year.
    • While the company expected this acquisition to expedite its entry into the smartphone industry, the short-term effects of this merger can be seen in its latest Q4 results.
    • In Q4, the Nokia devices and services (NDS) division contributed $1.99 billion to revenues, however, it negatively impacted operating income as it reported a loss of $692 million.
  • TI Announces Its Leadership In Advanced Driver Assistance Systems
    Wed, Aug. 6 TXN Comment!

    Summary

    • Last week, Texas Instruments announced that it has shipped more than 15 million Advanced Driver Assistance Systems System-on-Chip devices so far.
    • The automotive segment is a large market and is going through a transition to more compute-intensive electronics systems.
    • Specialty Analytics expects the market for ADAS to be worth around $15 billion by 2016, with a CAGR of 23%.
  • Nvidia Earnings Preview: PC Gaming, Professional GPUs And Tegra To Drive Growth
    Tue, Aug. 5 NVDA Comment!

    Summary

    • The company regained its growth momentum in fiscal Q1 2015, reporting 16% and 75% (annual) improvement in Q1 2014 revenue and net income, respectively.
    • The company remains focused on addressing the top 30% of the market, vertical segments within a broader computing market where visual computing matters the most.
    • this focus has helped it outpace the PC market, where it has always had significant exposure.
  • AMD-ARM Sever Chips And New APU Lineup Lift AMD's Stock Price
    Mon, Aug. 4 ARMH, AMD 53 Comments

    Summary

    • Product launches toward the end of last month has led to a marginal increase (5%) in AMD's stock price in the last few days.
    • AMD is set to derive 50% of its revenues from high-growth markets, including semi-custom and ultra-low power processors, professional graphics processors and processors for dense server and embedded solutions.
    • The collaboration with ARM makes AMD the only processor provider to bridge the x86 and 64-bit ARM ecosystems.
  • SunPower Q2 Earnings: Key Takeaways
    Fri, Aug. 1 SPWR Comment!

    Summary

    • SunPower published its Q2 2014 earnings on July 31, posting a set of numbers that were lower on a year-over-year basis.
    • While the Holdco strategy could reduce the company's revenues, earnings and liquidity in the near term, it could eventually allow for better margins and drive higher shareholder returns over the long run.
    • Here is a look at some of the trends that influenced the company's earnings for the quarter and what to expect going ahead.
  • Twitter's Earnings Were Strong But The Market Price Is Still Steep
    Thu, Jul. 31 TWTR 6 Comments

    Summary

    • Twitter reported an uptick in its monthly active user additions and strong advertising revenue growth.
    • Even though EBITDA margins are still thin, there was a significant year-over-year improvement.
    • However, we continue to believe that Twitter's stock is overpriced.
  • Priceline: Solid Top-Line Growth This Quarter But Margins May Contract
    Wed, Jul. 30 EXPE, PCLN 11 Comments

    Summary

    • Priceline is set to release its results for Q2 FY2014 on Friday, August 1.
    • Despite the continuous decline since 2007, Priceline’s margins are healthier than that of its closest competitor, Expedia.
    • Priceline’s stellar growth in recent years has come primarily from its expansion initiatives in international markets.
  • Should You Be Worried About Amazon's Losses?
    Wed, Jul. 30 EBAY, AMZN 20 Comments

    Summary

    • The company reported losses and the growth in its web services business slowed down compared to what it was in the first quarter.
    • If we look closely, Amazon's losses in the second quarter were driven by increased investments that led to higher depreciation expense.
    • Overall, we feel that second-quarter losses shouldn't be a cause of alarm for investors.
  • Qualcomm Lowers Its Licensing Outlook For Fiscal 2014
    Sun, Jul. 27 QCOM 12 Comments

    Summary

    • Qualcomm, a leading developer of Code Division Multiple Access (CDMA) mobile device technology, reported its Q3 2014 earnings on July 23.
    • The company reported revenues of $6.8 billion, experiencing 9% year-over-year and 7% quarter-to-quarter growth, which is a slight improvement from Q1 2014 but still way below the historical growth rate of over 20%.
    • Despite a healthy 3G/4G device demand environment, Qualcomm has lowered its financial guidance for its QTL segment for fiscal 2014.
  • Security Solutions, Cisco ACE Replacements And The New Pricing Model Drive F5′s Growth In Q3'14
    Sun, Jul. 27 FFIV Comment!

    Summary

    • F5 Networks reported another quarter of strong sales in Q3 2014 driven by rising customer adoption of its new product portfolio, the ‘Good, Better, Best’ pricing model, and the growing sales momentum of F5′s security and service provider business.
    • The solid revenue growth and profitability in Q3 2014 was driven by strong uptake of F5′s expanding array of systems and application services.
    • The company claims to have experienced a very strong increase in its business pipeline in Q3 which it believes will translate into growth in the current quarter as well as fiscal 2015.
  • Nvidia Eyes The Android Gaming Market With Its Shield Tablet
    Sun, Jul. 27 NVDA 6 Comments

    Summary

    • After much speculation, Nvidia launched its new mobile gaming device (Shield Tablet) along with a wireless controller on July 22.
    • Moreover, a follow-on 64-bit ARM-based processor is in development and code-named “Denver”.
    • We believe that Tegra processors revenue will cross $1 billion over our review period.
  • SDN, Hybrid Clouds And AirWatch Help VMware Post Strong Q2 Results
    Sun, Jul. 27 VMW Comment!

    Summary

    • VMware announced its Q2 2014 earnings on July 22, reporting a year-over-year (y-o-y) increase in product license revenues (+16%) and services revenues (+18%).
    • The company expects its Q3 net revenues to be 17% higher than the prior year quarter at $1.47 billion, while license revenues are expected to be around $640 million, 13% higher than the year-ago period.
    • VMware expects its margins in the September quarter to remain similar to Q2 levels.
  • Apple's Q3: iPhone Does Well Across Price Points; Mac Defies Shrinking PC Market
    Sun, Jul. 27 AAPL 28 Comments

    Summary

    • Apple announced its fiscal Q3 2014 results on July 22, reporting a reasonably strong set of numbers that beat market expectation on earnings, although revenues were slightly lower than anticipated.
    • For this quarter, Apple shipped about 35 million iPhones, representing a 12.7% jump over the same quarter a year ago.
    • The Mac saw particularly strong sales through the last quarter, with shipments growing by around 18% year-over-year to around 4.4 million units, despite the shrinking PC market.
  • Emerging Storage, VMware And Pivotal Drive EMC's Q2 Earnings
    Sun, Jul. 27 EMC 2 Comments

    Summary

    • EMC announced its second quarter earnings on July 23, reporting a 5% year-on-year growth in net revenues to $5.9 billion.
    • Much of the growth was driven by VMware (+17%), Pivotal (+28%) and RSA Security (7%) while core information storage revenues remained nearly flat at $4 billion.
    • EMC's market share in external storage systems declined from 30.2% in Q1 2013 to 29.1% in the first quarter of 2014, according to a recent report by IDC.
  • Here's Why Enterprise SSD Is An Important Business For Micron
    Sun, Jul. 27 MU 6 Comments

    Summary

    • Strong market demand and solid operational execution helped Micron Technology report another quarter of strong growth in fiscal Q3 2014.
    • While Micron expects the client SSD market to drive a lot of volume for it, it believes that the enterprise Flash SSD segment offers greater opportunity for growth.
    • Micron is aggressively working on developing its 16 nm TLC roadmap in an effort to drive overall NAND cost competitiveness.
  • Strength In Infrastructure, Broadband And Connectivity Solutions Will Drive Broadcom's Future Growth
    Fri, Jul. 25 BRCM 2 Comments

    Summary

    • Last month, Broadcom announced its decision to exit the cellular baseband business on account of intense competition in the market.
    • The company intends to instead increase its focus and competitiveness in the broadband, infrastructure and connectivity businesses.
    • Broadcom performed well in all the three segments in Q2 2014 and expects to see strong growth from these markets in the future as well.
  • Qualcomm's Earnings Preview: Stronger Growth In The Second Half Of FY 2014
    Mon, Jul. 21 QCOM 1 Comment

    Summary

    • QCOM expects the second half of the year to be substantially better than the first, as LTE sales ramp up in China and cost-cutting efforts show their full impact.
    • The company's top-line growth is being restricted by possible saturation at the high end of the smartphone market and a growing mix of emerging market sales.
    • Qualcomm is more vulnerable to near-term fluctuations in smartphone demand in China.
  • Growth In Broadband And Infrastructure To Offset Decline In Broadcom's Wireless Revenue In Q2 2014
    Mon, Jul. 21 BRCM 1 Comment

    Summary

    • We believe Broadcom performed well in a seasonally down quarter.
    • The company expects its wireless business to decline in Q2 2014, but anticipates revenue to increase by 3%.
    • The stock price increased by approximately 20% after the company declared its intent to exit the cellular baseband market.
  • Hybrid Clouds, Mobility Management And SDN Key For VMware's Q2 Results
    Mon, Jul. 21 VMW 1 Comment

    Summary

    • The company has given revenue guidance of about $1.45 billion for the quarter, which is more than a 15% increase over the prior year quarter.
    • The company expects to generate close to $6 billion in revenues for the full year.
    • With a healthy customer response to VMware's new product offerings and the growing services department, we expect the company to meet its guidance.
  • Microsoft Earnings Preview: Focus On Revenue Growth From Hardware And Cloud Services
    Sun, Jul. 20 MSFT 14 Comments

    Summary

    • Microsoft is set to announce its Q4 FY 2014 earnings on July 22 amid news that it's planning to cut as many as 18,000 jobs next year.
    • For the quarter, we expect it to report growth in its hardware sales and cloud services as it has taken a host of steps such as launching Office for iPad suite to bolster revenues.
    • In this earnings announcement, we will continue to pay close attention to the numbers of licenses of Windows sold in both desktop and mobile verticals.
  • Texas Instruments To Retain Its Growth Momentum In Q2 2014
    Sun, Jul. 20 TXN Comment!

    Summary

    • Texas Instruments, which designs and manufactures semiconductors, will report its Q2 2014 earnings on July 21.
    • TI expects to retain its growth momentum in Q2 2014 and forecast revenue in the range of $3.14-$3.40 billion, which translates into annual growth between 3% to 12%.
    • Our price estimate of $40 for TI is at an approximate 20% discount to the current market price.
  • AMD's Restructuring Initiatives Translate Into Strong Growth In 1H 2014
    Fri, Jul. 18 AMD 38 Comments

    Summary

    • Microprocessor and graphic processors manufacturer AMD announced its Q2 2014 earnings on July 17.
    • Owing to its restructuring efforts, the company returned to profitability in Q3 2013, and Q3 2014 marks its fourth consecutive quarter of positive non-GAAP net income.
    • AMD has diligently managed its expenses and lowered its cost structure, in turn significantly reducing its operating expenses, which has helped it increase its investment in innovations that will fuel future growth.
  • IBM Deal Could Help Apple Become An Integral Part Of Enterprise Computing Infrastructure
    Wed, Jul. 16 AAPL, IBM 28 Comments

    Summary

    • The companies are working together to further their enterprise mobility initiatives by bringing IBM's cloud computing, big data and analytics capabilities to Apple's iPhone and iPad devices.
    • IBM will develop industry-specific apps and solutions for iOS devices, optimize its cloud services for the iOS platform and help with marketing Apple devices to enterprises.
    • While Apple has been successfully increasing its presence in the enterprise space, the deal with IBM will give the company a more well-targeted push.
  • Intel Reports A Strong Quarter Backed By Improving PC Demand And Data Center Growth
    Wed, Jul. 16 INTC 4 Comments

    Summary

    • Intel reported a strong Q2 2014, with 8% annual growth in revenue ($13.8 billion).
    • Results were helped by improving PC sales, strong growth in data center products and increasing Internet-of-Things (IoT) revenue.
    • Net income ($2.8 billion) and earnings per share ($0.55) for the quarter were up 40% and 41% annually, respectively.