Monday, January 26, 2015
7:42 PM| Comment!
7:41 PM| Comment!
- TE Connectivity (NYSE:TEL) is "nearing a deal" to sell its telecom/networking equipment unit to CommScope (NASDAQ:COMM) for about $3B, the WSJ reports. A deal could be announced as soon as this week.
- The business in question, known as TE's network solutions unit, had FY14 (ended Sep. '14) sales of $2.9B (21% of TE's total revenue). For reference, CommScope's 2014 revenue consensus is only at $3.84B, and the company had a market cap of $4.06B as of today's close.
- TEL +6.1% AH to $67.00. COMM +6.4% to $23.00.
7:05 PM| Comment!
- Silicon Motion (NASDAQ:SIMO) expects Q1 revenue to be flat to down 5% Q/Q. That implies a range of $76.5M-$80.5M, mostly above a $76.9M consensus.
- For the whole of 2015, SIMO expects revenue to grow 15%-25%; consensus is for 21.1% growth.
- Q4 gross margin was 52.5%, down from 52.9% in Q3 but up from 48.8% a year ago. GM is expected to fall to 50%-52% in Q1, and be in a 49.5%-51.5% range for the whole of 2015 (down from 2014's 51.8%).
- Embedded storage IC sales rose 70% Y/Y in Q4, driven by eMMC and client SSD controller demand. eMMC now makes up 40% of total revenue. Micron is an SSD controller client, and three tier-1 PC OEMs are using SSDs featuring SIMO's controllers.
- Operating expenses rose 58% Y/Y to $21.4M. SIMO had $195.2M in cash/investments at quarter's end, and no debt.
- Shares are at $25.60 in AH trading.
- Q4 results, PR
- Microsoft (NASDAQ:MSFT) guides (.ppt) for its reporting units to collectively have FQ3 revenue of $20.6B-$21.4B, below a $23.8B total revenue consensus. Corporate/other revenue, which totaled $314M in FQ2, isn't included in the guidance. Forex is expected to hurt revenue growth by ~4%.
- Full-year operating expense guidance has been cut by $1B to $33.2B-$33.6B. Another $200M worth of restructuring charges are expected over the rest of FY15 (ends June '15), yielding total charges of $1.4B. FY15 tax rate guidance is at 22%-24%; the FQ2 tax rate was 25%.
- In its earnings slides (.ppt), Microsoft states its unearned revenue balance was $21.2B at the end of FQ2, +9% Y/Y but slightly below historical seasonality due to forex and the recognition of $300M worth of prior period deferrals. The contracted but not billed balance was above $24B.
- Office 365 consumer subs rose by 30% Q/Q to 9.2M, and first-party game revenue (boosted by the Mojang acquisition) rose 79%. Though Microsoft is in the midst of paring back its feature phone ops 39.7M non-Lumia phones were still sold (to go with 10.5M Lumias).
- $1.5B was spent on capex during the quarter. Capex is expected to rise Q/Q in FQ3 due to cloud investments. Excluding the Nokia deal, opex fell 8% Y/Y (+1% otherwise).
- MSFT -4.3% AH to $44.99. FQ2 results, details.
6:08 PM| 1 Comment
- As disclosed at the time of the split announcement, Meg Whitman will be the CEO of HP's (NYSE:HPQ) enterprise ops, and PC/printing EVP Dion Weisler the CEO of HP Inc.
- Current CFO Cathie Lesjak will be the CFO of HP Enterprise, and current CTO Martin Fink its CTO. The company won't have a COO.
- Jon Flaxman, currently the CFO of HP's PC and printing ops, will be HP Inc.'s COO. PC/printing CTO Shane Wall will be the company's CTO, inkjet & Web solutions SVP Stephen Nigro will be its printing chief, and personal systems GM Ron Coughlin will be its PC chief.
- A "selection process is ongoing" to find a CFO, general counsel, and chief marketing officer for HP Inc., and an HR chief for HP Enterprise.
- HP shook up its enterprise management in November to better prepare for the split.
- InterDigital's (NASDAQ:IDCC) Q4 report arrives before the open on Thursday, Feb. 19. CC at 10AM ET. CC at 10AM ET.
- The 2-analyst consensus is for revenue of $85.9M (-13.8% Y/Y), and EPS of $0.31. Shares +15% since InterDigital posted a Q4 beat on Oct. 30.
- Separately, the company has announced an ITC evidentiary hearing for its infringement case against Nokia and Microsoft has commenced. InterDigital is alleging infringement of two 3G W-CDMA patents, and seeking import bans on infringing hardware.
- MicroStrategy's (NASDAQ:MSTR) product license/subscription services revenue fell an eye-popping 31% Y/Y in Q4 to $148.9M; that's a major reversal from Q3's 8% growth. Product support revenue (driven by past deals) rose 3% to $74.6M, and other services revenue fell 3% to $33.5M.
- Thanks to the business intelligence software vendor's recent restructuring, opex fell 27% Y/Y to $84.1M, allowing EPS to trounce estimates in spite of a big revenue miss. $3.2M worth of restructuring charges are included in the opex figure.
- MicroStrategy ended Q4 with $345.5M in cash/short-term investments. Gross deferred revenue and advance payments totaled $223.7M, up $800K Y/Y.
- Shares are down to $157.00 in AH trading.
- Q4 results, PR
- Share gains helped Texas Instruments' (NASDAQ:TXN) Q4 analog revenue rise 14% Y/Y to $2.1B (65% of total revenue); the division's op. profit rose 47% to $822M. Sales rose across all analog product lines, with power management ICs a strong point.
- Embedded processing revenue (DSPs, OMAP, microcontrollers, connectivity) rose 11% to $670M, with op. profit rising 178% to $114M. Everything else (DLPs, ASICs, calculators, royalties) fell 14% to $476M due to wireless and ASIC declines, but with op. profit rising 93% to $164M.
- Q1 guidance is for revenue of $3.07B-$3.33B and EPS of $0.57-$0.67, in-line with a consensus of $3.19B and $0.63.
- Q4 gross margin was 58%, -40 bps Q/Q but +380 bps Y/Y. Notably, R&D spend fell 10% Y/Y to $311M, and SG&A spend 7% to $429M.
- Free cash flow rose 18% in 2014 to $3.5B (27% of revenue and above net income of $2.8B). $698M was spent on buybacks in Q4, and $2.8B over the whole of 2014.
- TXN -0.2% AH to $54.95. Q4 results, PR.
4:55 PM| Comment!
- Microsoft's (NASDAQ:MSFT) Window OEM Pro and non-Pro revenue both fell 13% Y/Y in FQ2. The Pro slowdown is blamed on slowing business PC sales, academic discounts, and "mix returning to pre-Windows XP end of support levels." The non-Pro decline is due to unit growth coming from cheaper hardware that Microsoft is providing discounted license fees for. Commercial Windows volume license revenue rose 3%.
- Total Commercial revenue rose 5% Y/Y in FQ2 to $13.3B, helping drive the revenue beat. Devices & Consumer revenue (lifted by the Nokia deal) rose 8% to $12.9B. Commercial reporting segments accounted for over 2/3 of FQ2 gross profit of $16.3B.
- Segment performance: Commercial licensing revenue -2% Y/Y to $10.7B (hurt by the cloud shift). Commercial other +46% to $2.6B (boosted by cloud growth). Device/consumer licensing -25% to $4.2B (Windows and Android royalty declines). Computing/gaming hardware -11% to $4B (Xbox One launched a year ago). Phone hardware revenue was $2.3B, above guidance of $2B-$2.2B but down from FQ1's $2.6B (feature phone decline).
- Highlights: 1) Commercial cloud revenue (Office 365, Azure, Dynamics online) +114% Y/Y, and now on a $5.5B/year run rate 2) 10.5M Lumias and 6.6M Xboxes were sold. Surface revenue +24% to $1.1B. 3) Server products/services +9%, with double-digit SQL Server and System Center growth. 4) Search ad revenue +23%; Bing's U.S. share is at 19.7% (per comScore).
- With Nokia boosting spending levels in spite of last year's job cuts, R&D spend rose 6% to $2.9B, and sales/marketing 7% to $4.3B. G&A, however, fell 8% to $1.1B.
- $2.1B was spent on buybacks. Microsoft plans to complete its existing $40B buyback program (launched in Sep. 2013) by the end of 2016.
- Microsoft is at $45.59 in AH trading. Guidance will be provided on the CC.
- FQ2 results, PR
- Rambus (NASDAQ:RMBS) expects Q1 revenue of $70M-$75M and 2015 revenue of $300M-$315M, below consensus estimates of $76.8M and $319.1M.
- The memory/security IP developer is launching a 20M-share buyback program that replaces an existing program with 5.2M shares remaining. Rambus has 117.6M shares outstanding, and $300M in cash/marketable securities to finance buybacks with.
- Q4 royalty revenue -8% Y/Y to $64.1M. Contract/other revenue more than doubled to $7.9M. Operating costs/expenses fell 19% to $54.5M.
- Shares have fallen to $9.83 in AH trading.
- Q4 results, PR
4:12 PM| Comment!
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