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  • 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.
  • SanDisk Earnings Preview: Enterprise Solid State Drives, New Technology In Focus
    Tue, Jul. 15 SNDK Comment!

    Summary

    • SanDisk Corporation is scheduled to announce its second quarter earnings on July 16.
    • SanDisk has given a revenue guidance range of $1.5 billion-1.62 billion for the current quarter.
    • SanDisk recently announced its intention to acquire flash storage solutions provider Fusion-io for $1.1 billion, which could be completed by the end of the third quarter.
    • The acquisition could help the company outperform its revenue guidance of $6.4 billion-$6.8 billion for the full year.
  • Seagate Earnings Preview: Acquisitions And Enterprise Storage In Focus
    Tue, Jul. 15 STX Comment!

    Summary

    • Seagate Technology is scheduled to announce its Q4 FY 2014 earnings on July 17.
    • Its Q4 revenues could be 6% lower than the year-ago quarter. However, the company expects demand to pick up in the latter half of the calendar year.
    • Seagate completed the acquisition of Xyratex in March this year, with the latter likely to contribute about $100 million to Seagate’s top line in Q4 FY 2014.
  • AMD: Higher Professional Graphics Share, Increasing Semi-Custom Revenue And New APU Lineup To Drive Growth
    Mon, Jul. 14 AMD 28 Comments

    Summary

    • Renewed demand in its traditional PC segment and growth opportunities in new markets helped AMD return to profitability and positive cash flow in Q3 2013.
    • The company's focus on alternate growth markets has helped offset, to some extent, the continuing decline in PC shipments.
    • With a renewed wafer supply agreement and re-profiling of its near-term debt, AMD feels confident about accomplishing its financial goals for 2014 and beyond.
  • Cisco Betting On Acquisitions To Drive Collaboration Business
    Fri, Jul. 11 CSCO Comment!

    Summary

    • Cisco recently announced the acquisition of collaboration services start-up Assemblage for an undisclosed amount.
    • The new acquisition comes within six months of Cisco’s buyout of Collaborate.com and reflects the company’s aim of capturing the emerging market of cloud-based enterprise collaboration services within the contours.
    • We have a $27 price estimate for Cisco, which is roughly in line with the current market price.
  • Improving PC Demand And Growth In New Markets To Help Intel Retain Its Growth Momentum In Q2'14
    Fri, Jul. 11 INTC 5 Comments

    Summary

    • Q1 2014 marked a strong start for Intel as it saw a 1.5% year-over-year increase in revenue and reported fully-diluted earnings per share of $0.38.
    • A stabilizing PC market, strong growth in data centers and an expanding footprint in the Internet-of-Things market were Intel’s key growth drivers in Q1 2014.
    • Our current price of $27 for Intel is at an approximate 15% discount to the current market price.
  • Johnson & Johnson Earnings Preview: Pharma Buisness To Remain Strong
    Fri, Jul. 11 JNJ 2 Comments

    Summary

    • We expect no significant change in the intensity of the main trends driving the company's business.
    • While the company's consumer and medical devices & diagnostics operations have practically flattened out, the surge in the sale of its drugs catering to immunology, oncology and infectious diseases will keep investors interested.
    • Our price estimate for Johnson & Johnson stands at $96, implying a discount of about 10% to the market price.
  • Yingli Green Energy's Price Estimate Revised To $3.75 On Cost And Market Concerns
    Thu, Jul. 10 YGE 5 Comments

    Summary

    • During Q1 2014, Yingli's core panel manufacturing costs declined by around 12% year-over-year to around $0.52 per watt.
    • However, things were less encouraging on a sequential basis, as both non-silicon and silicon based manufacturing costs remained flat at around $0.42 per watt and $0.10 per watt, respectively.
    • We believe that the company may not be able to sustain the rate of cost reductions that it has been able to achieve in the past.
  • Why Qualcomm Remains The No.1 Player In Cellular Baseband
    Thu, Jul. 10 QCOM 10 Comments

    Summary

    • Owing to its strong and diverse client base and a very powerful 4G LTE portfolio, Qualcomm continues to dominate the global cellular baseband market.
    • Our price estimate of $73.86 for Qualcomm is at an approximate 10% discount to the current market price.
    • In this article, we discuss what makes Qualcomm the leading player in the cellular baseband market and factors that can limit its growth in the future.
  • New Extended Version Of Creative Cloud To Bolster Adobe's CC Subscriber Base
    Thu, Jul. 10 ADBE 2 Comments

    Summary

    • Adobe has recently discontinued the sale of Creative Suite 6, and now is solely focusing on licensing Creative Cloud (CC).
    • CC is a subscription service that requires a user to pay a fixed monthly fee along with free upgrades to its latest version.
    • The company reported faster-than-expected adoption of subscription licenses for its Creative Cloud (CC) business, as more of its clients chose to subscribe to it.
    • Currently we estimate that the company is well underway to add over 3.4 million subscribers in 2014, and on track to add 10.8 million subscribers by the end of 2020.
  • Amazon's Dispute With Hachette Group Will Have Negligible Impact On Its Business
    Wed, Jul. 9 AMZN 11 Comments

    Summary

    • Amazon recently made a clever move to garner authors' sympathy in order to protect its control over the e-books business. It proposed to Hachette Book Group that the book authors can keep 100% of the revenues generated from e-book sales while the two companies reach a common ground as they re-negotiate their expired e-book contract.
    • Hachette Book Group has rejected the proposal.
    • In case of any fall out, Amazon will come out with an upper hand as Hachette’s e-books constitute a very small portion of its overall business.
  • Helion Network Offering To Boost Hewlett-Packard's Revenues
    Wed, Jul. 9 HPQ Comment!

    Summary

    • As Hewlett-Packard (HPQ) continues to transform its business, its stress on cloud computing is on the rise.
    • Recently, the company has also announced the launch of HP Helion Network, a global open network designed to provide customers with an unparalleled portfolio of services and the ability to create a secure hybrid IT environment that addresses local and global requirements.
    • HP Helion incorporates existing HP cloud offerings, new OpenStack technology–based products, and professional and support services under a unified portfolio.
    • In this article, we will explore this product and how it can boost HP’s revenues.
  • Competition For Pandora Increases As Google Buys Music Streaming App Songza
    Tue, Jul. 8 P 11 Comments

    Summary

    • Although Songza in itself wasn’t a big threat for Pandora, its integration with Google is a concern for the Internet radio provider.
    • While Pandora offers music using its Music Genome algorithms, Songza is a music curation app that leverages the knowledge of its music experts instead of computers to generate a playlist for its users.
    • Songza’s chief executive believes that the app’s technology can also be used for providing targeted ads and relevant recommendations, an area on which Google already focuses.
  • Applied & Tokyo Electorn Give A New Name And Logo To Their Merged Entity
    Tue, Jul. 8 AMAT Comment!

    Summary

    • With a new name, mission and vision, Applied and Tokyo Electron intend to move quickly and begin to create value as soon as the merger closes.
    • Applied Materials is the world’s largest maker of semiconductor equipment by sales, followed by ASML Holding NV and Tokyo Electron.
    • Rising mobile shipments, growing NAND demand, the pending technology transitions and a recovering DRAM market are key factors driving demand for semiconductor equipment.
  • Will Cree Acquire Philips' Soon-To-Be Spun-Off LED Business?
    Tue, Jul. 8 CREE 10 Comments

    Summary

    • Earlier this week, the world’s largest lighting producer Philips announced its plan to spin-off its Lumileds LED lighting unit and automotive lighting segment into a separate company by early 2015.
    • Philips believes that after significantly improving the performance of Lumileds over the last few years, and establishing strong intellectual property, the business can further grow, attract more customers and increase scale as a standalone company by increasing sales to customers who currently view Philips as a rival.
    • Though the move intensifies competition for Cree (CREE), the news led to a marginal upsurge in its stock price (~5% increase) backed by rumors that Philips could try and merge the spun-off unit with Cree.
  • What's Driving Sirius XM's Average Revenue Per User?
    Mon, Jul. 7 SIRI 20 Comments

    Summary

    • Sirius XM's (SIRI) average annual revenue per customer for satellite radio subscription is derived from total earned subscriber revenue and net advertising revenue, divided by the daily weighed average number of subscriptions for the period.
    • From $103 in 2007, the company’s average revenue per user (ARPU) declined to $83 in 2008 primarily due to the Sirius and XM merger, which resulted in 100% rise in subscriber base, but just 81% growth in revenues.
    • Change in mix of discounted OEM promotional subscriptions, subscription win-back programs, second subscribers and a decline in net advertising revenue per subscriber were also responsible for this decline.
  • About 10% Upside If Twitter Fills The Monetization Gap Between Itself And Facebook
    Mon, Jul. 7 TWTR 11 Comments

    Summary

    • Twitter (TWTR) is doing well in terms of growing its monetization, thanks to impressive ROI (return on investment) that advertisers are getting on its platform.
    • Twitter has been investing significantly in marketing, and has already developed rapport with major brands and advertisers.
    • However, when compared to Facebook, Twitter still lags significantly in terms of monetization efficiency.
    • If it can match Facebook, our price estimate can go up by 10%.
  • Johnson & Johnson's Growth Avenues
    Thu, Jul. 3 JNJ 2 Comments

    Summary

    • J&J's drug sales have registered a phenomenal growth in recent quarters with consumer segment doing better due to improvements in supply chain and manufacturing.
    • Oncology, or cancer therapeutics, is one of the key growth segments for J&J and for the pharmaceutical industry in general.
    • However, uncertain currency fluctuations, generic competition and pricing pressure in medical devices industry remain the primary risks.
  • Bristol-Myers Squibb May Be Fast-Tracking Its Promising Cancer Drug
    Thu, Jul. 3 BMY 10 Comments

    Summary

    • Bristol-Myers Squibb appears to be fast-tracking the development of its breakthrough immuno-oncology drug, Nivolumab.
    • The Phase 3 clinical trials were earlier expected to run into the second half of 2015.
    • However, with the recent release of promising data and the early termination of the first batch of Phase 3 trials, the drug may hit the market sooner than expected.
  • Broadcom Aims To Be An Early Entrant In The Booming Wearable Technology Market
    Wed, Jul. 2 BRCM 2 Comments

    Summary

    • Last month, Broadcom (BRCM) announced its intention to exit the cellular baseband business on account of the intense competition in the market.
    • Broadcom intends to instead increase its focus and competitiveness in the broadband, infrastructure and connectivity businesses.
    • In this article, we discuss the growth opportunities in the wearable technology space (part of IoT), and recent steps taken by Broadcom to leverage the growth potential in the market.
  • HP Improves Its Cloud Offering With SAP-HANA SaaS
    Wed, Jul. 2 HPQ 1 Comment

    Summary

    • Technology giant, Hewlett-Packard (HPQ), has been restructuring its business to boost profitability and focus on new verticals that offer better growth opportunity.
    • As part of this strategy, the company is continuously expanding its portfolio of cloud services.
    • If HP can capture 5% of the expected $44 billion PaaS market, the revenue for this division can be significantly higher.
  • Security Concerns Put IBM / Lenovo x86 Server Deal In Limbo
    Tue, Jul. 1 IBM, LNVGY 4 Comments

    Summary

    • News has emerged that the latest deal between IBM and Lenovo is in limbo following the U.S. government's security concerns over IBM's x86 servers.
    • The servers are extensively used in the country's communications networks and in data centers that support the Pentagon's computer networks.
    • IBM and Lenovo faced a similar situation in 2005 when Lenovo bought IBM's personal computer business.
  • Is Lexmark's Revised Bid For ReadSoft Justified?
    Tue, Jul. 1 LXK 3 Comments

    Summary

    • The company had to raise its offer to 43 Swedish kronor ($6.46) a share from its May offer of 40.50 kronor due to competitive bidding from Hyland Software U.K. Ltd. on June 18.
    • ReadSoft not only adds account payable process automation to Perceptive's portfolio, but also increases its reach to the rapidly expanding document business process solutions footprint in EMEA.
    • We believe that ReadSoft's shareholders will most likely accept Lexmark's offer.
  • First Solar: Funding For The Luz Del Norte Project Was Approved
    Tue, Jul. 1 FSLR 3 Comments

    Summary

    • The 141 megawatt project would be Latin America's largest photovoltaic solar power plant and will be the first of several projects that First Solar has in its development pipeline in the region.
    • The Chilean government intends to beef up the country's renewables capacity so that it accounts for about 20% of total generated power by 2025.
    • Given the strong energy demand and economic rationale, we believe that Chile could be an important growth market for solar companies in the long run.
  • Salesforce Ventures Into Patient Relationship Management With Royal Philips Alliance
    Mon, Jun. 30 CRM 2 Comments

    Summary

    • The 'New Industries Strategy' is designed to help businesses derive greater value from their customer relationship management suites by deploying specific Salesforce CRM solutions.
    • During the announcement, the company announced that it expects significant demand for such customized solutions from six industry groups globally.
    • Recently, Salesforce announced a strategic alliance with Dutch-based technology solutions company, Royal Philips, to deliver an open, cloud-based healthcare platform.
  • Applied Inches Closer To Merging With Tokyo Electron
    Mon, Jun. 30 AMAT Comment!

    Summary

    • Applied Materials’ stockholders approved its merger with Tokyo Electron, earlier this week.
    • Applied expects the transaction to close in the second half of the year, subject to customary conditions, including regulatory reviews in various countries.
    • With an estimated value of $29 billion, the combined entity aims to become a global innovator in semiconductor and display manufacturing technology.
  • Can Amazon's Management Portal For vCenter Halt VMware's Growth?
    Mon, Jun. 30 AMZN Comment!
  • Yahoo Collates Technology From Acquisitions To Strengthen Its Offering
    Mon, Jun. 30 YHOO Comment!

    Summary

    • Yahoo! (YHOO) is increasingly launching new products to boost its floundering online ads business.
    • In order to increase user count, Yahoo started offering customized content to individuals based on their search history and sharing patterns on social media.
    • If the number of unique visitors to Yahoo properties reached 1 billion per year, as a result of product launches and improved content, this would increase our price estimate by 5%.
  • Nvidia Refocuses Its Plan To Target Servers, Instead Of Promoting Its GPUs In ARM Servers
    Fri, Jun. 27 NVDA 3 Comments

    Summary

    • Three years after officially launching its server Project Denver, Nvidia is downplaying its plan to develop its own 64-bit ARM-based CPU processor for servers.
    • ARM processors can help cut down on power consumption as they are known for their low power processors.
    • AMD believes that ARM CPUs have the potential to account for 20% of the server market by 2016 or 2017.
  • What If Legacy Pharmaceutical And Consumer Business Keeps Falling For Merck?
    Fri, Jun. 27 MRK 14 Comments

    Summary

    • Merck's legacy products are facing declining revenues due to competitive pressure from generics.
    • To offset weakness in its legacy products and some other drugs, Merck is banking on its R&D pipeline.
    • Merck recently announced a definitive agreement to acquire Idenix at $24.50 a share for cash, offering a hefty premium of about 240% over last Friday's (i.e. June 6th) closing price.