Today - Tuesday, June 2, 2015
- Though it beat FQ3 revenue estimates (while missing on EPS), Guidewire (NYSE:GWRE) forecasts FQ4 revenue of $119.3M-$123.3M, below a $123.6M consensus. A strong dollar is expected to have a $10M impact. EPS guidance of $0.23-$0.28 is in-line with a $0.25 consensus.
- Business performance: FQ3 license revenue +4% Y/Y to $33.3M; maintenance revenue +17% to $12.2M; services +1% to $40M. Rolling 4-quarter term license/maintenance revenue +26% to $208.9M. Guidewire expects 20% or greater FY16 (ends July '16) term license revenue growth.
- Financials: GAAP operating expenses +19% Y/Y to $54.2M - R&D spend totaled $24.6M, sales/marketing $18.8M, and G&A $10.9M. The deferred revenue balance rose 9% Y/Y to $63.8M. Guidewire ended FQ1 with $550M in cash/short-term investments, and no debt.
- GWRE -1% AH to $46.95.
- FQ3 results, PR
- Guess (NYSE:GES) reports North American retail store comps fell 3.8% in Q1.
- Segment revenue: Europe -14% to $137.4M, North America Retail -6% to $214.25M Asia -9% to $64.04M, North American Wholesale -13% to $37.28M, Licensing +1% to $25.87M.
- Operating margin by segment: Europe -2.7%, North America Retail -3.4%, Asia +7.2%, North American Wholesale 18.1%, Licensing 89.0%.
- Store count -30 Y/Y to 1,667.
- Guidance: Fossil expects full-year EPS of $0.80-$1.02 vs $0.75-$0.95 prior and $0.87 consensus.
- Previously: Guess beats by $0.09, misses on revenue
- GES -0.3% after hours.
- Violin Memory (NYSE:VMEM) has tumbled to $2.89 in AH trading after missing FQ1 estimates, and has made new 52-week lows along the way.
- CEO Kevin DeNuccio suggests FQ2 will be better: "Our first quarter results were unsatisfactory as we continued to experience the short-term effects of transitioning customers to our new Flash Storage Platform solutions ... We believe that this transitional headwind is now beginning to subside, and we are off to the strongest quarterly start to date with recognizable revenue already approaching 90% of our first quarter total."
- Business performance/financials: FQ1 product revenue -53% Y/Y to $6.8M; service revenue -12% to $5.3M. Gross margin (non-GAAP) fell to 48% from 50% in FQ4 and 52% a year ago. Operating expenses fell 17% Y/Y to $25.4M. Violin ended FQ1 with $131M in cash/short-term investments, and $124M in debt.
- Violin has been facing tough competition both from IT giants such as EMC, HP, and IBM, and from flash array upstarts such as Pure Storage. Formal FQ2 guidance will be provided on the CC, which starts at 5PM ET (webcast).
- FQ1 results, PR
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- In addition to missing Q1 estimates, ReneSola (NYSE:SOL) is guiding for Q2 revenue of $250M-$300M, well below a 2-analyst $387.9M consensus. A strategy shift towards focusing on solar project development relative to wafer/module sales appears to be at least partly responsible.
- Business details/financials: Q1 wafer/module shipments totaled 691.5MW, down -7.1% Q/Q and -2.6% Y/Y. Gross margin was 10.5% vs. Q4's 13.2% and Q1 2014's 10.6%, but is expected to rise to 16%-18% in Q2. Operating expenses fell 12.5% Y/Y to $46.2M. ReneSola ended Q1 with $228.1M in cash, $723M in bank borrowings, and $62.9M in convertible notes.
- The company currently holds 96.1MW of solar projects - 4 U.K. projects featuring 71MW of capacity, and 4 Eastern European projects featuring 25.1MW. Project opportunities are being "explored" in several developed markets.
- CEO Xianshou Li: "At the beginning of 2015, we began to scale back our global OEM capacity and focus more on our downstream project opportunities ... As we continue with this strategic transition into the downstream services and project area, we believe we will be better positioned to achieve long-term profitability."
- Q1 results, PR
- Ctrip (CTRP -8%) is off sharply following news archrival Qunar (QUNR +2.1%) rejected a buyout offer, and (with the help of fresh capital) plans to significantly up its sales/marketing spend.
- While forecasting strong Q2 sales, Qunar also expects its op. margin to fall to -90% to -100% from Q1's -43.4%, largely on account of "stepped up discretionary expenditures to acquire new mobile users through offline channels." As it is, Qunar's sales/marketing spend rose 150.7% Y/Y in Q1 to $52.9M (equal to 49% of revenue).
- Stifel has downgraded Ctrip to Hold in response. "We believe this is a competitive action that Ctrip will respond to." Last year, Ctrip and Qunar saw their margins hurt by aggressive mobile promotions.
- Medtronic (NYSE:MDT) fiscal Q4 results ($M): Revenues: 7,304 (+60.0%); Cardiac Rhythm & Heart Failure: 1,398 (+3.9%); Coronary & Structural Heart: 792 (+1.1%); Aortic & Peripheral Vascular: 406 (+69.2%); Cardiac & Vascular Group: 2,596 (+9.6%); Minimally Invasive Therapies Group: 2,387; Surgical Solutions: 1,293; Patient Monitoring & Recovery: 1,094; Spine: 743 (-5.5%); Neuromodulation: 518 (+1.0%); Surgical Technologies: 461 (+5.3%); Neurovascular: 132; Restorative Therapies: 1,854 (+6.7%); Diabetes Group: 467 (+1.5%).
- Net Income: -1 (-100.2%); EPS: 0.00 (-100.0%); CF Ops: 1,912 (+44.0%).
- Fiscal 2016 Guidance: Revenue growth: 4 - 6%; Non-GAAP EPS: $4.30 - 4.40.
- Fiscal Q1 Guidance: Non-GAAP EPS: $1.08 - 1.13.
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