Seeking Alpha
  • Today - Wednesday, August 27, 2014

  • 4:52 PM
    • Violin Memory's (NYSE:VMEM) product revenue totaled $14.2M in FQ2, +11% Q/Q but -40% Y/Y. Service revenue (driven by past deals) was $4.4M, -18% Q/Q and +52% Y/Y. The company continues facing tough flash storage array competition from the likes of EMC, IBM, H-P, and Pure Storage.
    • Gross margin rose to 55% from 52% in FQ1 and 42% a year ago. GAAP sales/marketing spend -19% Y/Y to $15.1M; R&D spend -31% to $13M; G&A +27% to $5.2M. Job cuts and the recent sale of Violin's PCIe server flash module business helped lower costs.
    • Violin is reiterating FY15 (ends Jan. '15) gross margin guidance of 52%-56%. Opex guidance has been narrowed to $118M-$122M from $115M-$125M.
    • FQ2 results, PR
    | Comment!
  • 4:34 PM
    • Along with its Q2 results, Sungy Mobile (NASDAQ:GOMO) announces CFO Winston Li has resigned for "personal reasons." A search has begun for a replacement.
    • Q3 guidance is for revenue of RMB90M-RMB95M ($14.7M-$15.5M), below an $18.3M consensus.
    • Mobile app revenue +43.5% Y/Y to $8.5M; mobile reading services -28% to $2.9M; mobile portal marketing services +8% to $2.3M; everything else +205% to $2.4M.
    • Gross margin fell 400 bps Y/Y to 65.9%, thanks partly to a mix shift away from mobile reading. Opex +96.6% to $9.9M (far above rev. growth of 25..2%).
    • Cumulative GO app downloads rose by 35M Q/Q to 436M. Average GO monthly active users (MAUs) totaled 96M, up from 81M a year ago but down from 100M in Q1. Paid GO downloads were flat Q/Q and Y/Y at 500K.
    • Sungy says it plans to spend more on marketing to grow "brand awareness and user engagement." The company insists it's making "tremendous strides in the analysis of user behavior, on-going customization and localization," and plans to continue diversifying its app portfolio.
    • Q2 results, PR
    | Comment!
  • 4:32 PM
    • Concurrent Computer Corporation (NASDAQ:CCUR): FQ4 GAAP EPS of $1.71.
    • Revenue of $17.9M (+20.1% Y/Y).
    • Press Release
    | Comment!
  • 4:22 PM
    • Sungy Mobile (NASDAQ:GOMO): Q2 EPS of $0.09 misses by $0.05.
    • Revenue of $16.13M misses by $0.57M.
    • Shares -23% AH.
    • Press Release
    | Comment!
  • 4:16 PM
    • Workday (NYSE:WDAY) expects FQ3 revenue of $200M-$205M, above a $195.6M consensus. FY15 (ends Jan. '15) revenue guidance is at $760M-$770M, up from a prior $730M-$750M and above a $748.7M consensus.
    • The unearned revenue balance rose 4% Q/Q and 48% Y/Y in FQ2 to $481.5M; Y/Y growth was at 54% in FQ1. Free cash flow was -$37.4M, thanks in part to capex of $28.4M.
    • Sales/marketing spend +68% Y/Y to $70.9M; R&D +60% to $59.9M; G&A +42% to $14.6M. The figures compare with revenue growth of 74%.
    • Subscription revenue rose 77% Y/Y to $143.7M, and professional services 63% to $43.1M.
    • FQ2 results, PR
    | 1 Comment
  • 4:12 PM
    • Exa (NASDAQ:EXA): Q2 EPS of -$0.05 misses by $0.02.
    • Revenue of $14.84M (+16.9% Y/Y) beats by $0.36M.
    • Press Release
    | Comment!
  • 4:08 PM
    • Violin Memory (NYSE:VMEM): Q2 EPS of -$0.21 beats by $0.02.
    • Revenue of $18.59M (-29.8% Y/Y) misses by $0.47M.
    • Press Release
    | Comment!
  • 4:06 PM
    • Workday (NYSE:WDAY): Q2 EPS of -$0.11 beats by $0.03.
    • Revenue of $186.78M (+73.7% Y/Y) beats by $9.47M.
    • Shares +2.69% AH.
    • Press Release
    | Comment!
  • 4:05 PM
    • 21Vianet Group (NASDAQ:VNET): Q2 EPS of $0.05 misses by $0.05.
    • Revenue of $106.7M
    • Press Release
    | Comment!
  • 3:53 PM
    • JPMorgan has upgraded China Telecom (CHA +2.2%) to Overweight.
    • Shares have spiked to new 52-week highs in response. Expectations of lower phone subsidy spend (following a government mandate) have provided a lift over the last two months.
    | Comment!
  • 2:45 PM
    • With the Hittite Microwave acquisition having closed near the end of FQ3, Analog Devices (ADI -2.2%) is guiding for FQ4 revenue of $790M-$820M and EPS of $0.66-$0.70. The consensus (doesn't fully take the acquisition into account) is for revenue of $761.2M and EPS of $0.67.
    • FQ3 gross margin was 66.5%, +40 bps Q/Q and +200 bps Y/Y, but slightly below guidance of 66.6%. GM is expected to fall to 66.2% in FQ4.
    • Not counting the Hittite deal and related expenses, opex was 34% of revenue vs. 34.3% in FQ2 and 33.6% a year ago. $57.4M was spent on buybacks.
    • Industrial revenue +12% Y/Y to $350.6M; automotive +8% to $130M; consumer -19% to $80.9M; telecom +19% to $166.3M. Industrial and telecom respectively received $2.3M and $3.1M boosts from Hittite.
    • Jefferies (Buy) calls ADI's FQ3 numbers (excluding Hittite) and FQ4 guidance (including Hittite) in-line with Street expectations, and says it remains a fan of the chipmaker's cash-return efforts and strong auto/industrial/telecom exposure. But it's also slightly lowering its FY14 and FY15 EPS estimates.
    • FQ3 results, PR
    | Comment!
  • 2:19 PM
    • JD.com (JD +2.6%) has made new highs after Alibaba reported a 45% Y/Y increase in Q2 revenue and GMV, and a 111% Q/Q increase in mobile revenue.
    • Shares have gradually rallied since JD posted a Q2 beat on Aug. 15. They're now up 73% from May's $19 IPO price.
    | 1 Comment
  • 1:59 PM
     
    • Top P2P lending platform LendingClub has filed for a $500M IPO. No symbol has been proposed yet. The underwriters are Goldman, Morgan Stanley, Citi, Stifel, BMO, Allen & Co., William Blair, and Wells Fargo. (prospectus)
    • LendingClub had 1H14 revenue of $87.3M (+135% Y/Y), and a net loss of $16.5M. Sales/marketing spend totaled $39.8M, and origination/servicing costs $15.7M.
    • 1H14 loan originations totaled $1.8B (+125% Y/Y), with contribution margin coming in at 41.8% (+70 bps Y/Y). The company had $2.33B in loans on its balance sheet as of June 30.
    • LendingClub was valued at $3.75B in a funding round that took place earlier this year. The FT has reported the company is aiming for a ~$5B IPO valuation.
    | 3 Comments
  • 1:44 PM
    • Stifel has launched coverage on Axcelis (ACLS +5.8%) with a Buy and $3 target.
    • The launch comes 7 weeks after the chip equipment maker announced (along with a Q2 warning) it has hired Blackstone to evaluate "financing and strategic alternatives."
    | Comment!
  • 1:38 PM
    • In addition to showing off the iPhone 6, Apple (AAPL +1.2%) will "unveil a new wearable" on Sep. 9, re/code's John Paczkowski reports.
    • Paczkowski, who originally reported of a Sep. 9 iPhone event date and has a decent track record, doesn't use the term "iWatch" in his report. He does state Apple's wearable will "make good use" of its recently-announced HealthKit and HomeKit platforms.
    • The Nikkei previously reported the iWatch will have a flexible OLED display and initial production of 3M-5M units/month. The WSJ has reported of multiple models, sapphire cover glass, and "more than 10 sensors to track and monitor health and fitness data."
    | 25 Comments
  • 1:12 PM
    • With its Q2 results disclosed, Alibaba (Pending:BABA) is expected to provide an IPO price range "as soon as Tuesday," the NYT reports.
    • After setting a price range, Alibaba will reportedly kick off a 2-week roadshow (covering both Asia and the U.S.) ahead of an IPO the company hopes will take place during the week of Sep. 15.
    • Sources caution the Chinese e-commerce giant's plans could still change. The NYT previously reported Alibaba was planning an IPO "sometime after Labor Day." At one point, the company was rumored to be eying an early-August IPO.
    • Yahoo (YHOO +0.7%) continues to trade modestly higher.
    | 4 Comments
  • 12:52 PM
    • Ahead of Finisar's (FNSR -3.9%) Sep. 4 FQ1 report, MKM's Michael Genovese has respectively cut his revenue and EPS estimates for the quarter by $3M and $0.01, albeit while reiterating a Buy.
    • Genovese predicts "soft 2HCY14 carrier capex and the mix shift to low margin Chinese sales is likely to result in fairly anemic Telecom revenue growth and limited [gross margin] expansion in the near term." But he's still upbeat about Finisar's datacom sales (boosted by Web data center buildouts), and thinks telecom sales "should improve in 2HCY15 as the 100G Metro market positively inflects."
    • Likewise, RBC's Mark Sue is reiterating an Outperform, but offering cautious remarks. "Inventories are creeping upward, inventory lead-times are decreasing and there’s concern that current soft-pricing may continue or spread to higher speed products."
    • Sue thinks Chinese competition is affecting pricing for "low-mid speed components," and suggests Finisar should slash capex and launch a buyback. Shares plunged in June due to light FQ1 EPS guidance that stemmed from margin pressure.
    • A slew of other firms with strong telecom capex exposure are also trading lower. JDSU -1.8%. INFN -1.6%. CYNI -2.4%. AFOP -1.5%. CAVM -1.4%. ZHNE -1.6%. Juniper and multiple component vendors have already reported seeing soft near-term capex trends.
    • For component vendors, a decent amount of bad news has been priced in since April.
    | 1 Comment
  • 12:16 PM
    • Youku (YOKU +2.8%) CEO Victor Koo tells Bloomberg his company is working on a platform that will allow it to "recognize clothing, furniture and other products in a video, and deliver pop-up ads with links to buy the items on an Alibaba store." He compares the ads to the floating text ads that often appear in YouTube videos.
    • Alibaba bought a 16.5% stake in Youku this spring. At the time, Koo promised the Chinese e-commerce giant will help Youku "build an immersive cultural entertainment platform that integrates online and offline entertainment." Alibaba, for its part, said the deal would "bring new products and services to Alibaba's customers."
    • Youku sold off last week after missing Q2 estimates and issuing light Q3 guidance. The deferral of revenue from a mobile carrier (pending the renewal of a service agreement) played a role.
    | Comment!
  • 11:52 AM
    • Credit Suisse has started STMicroelectronics (STM -1%) at Underperform, and European chip peer Infineon (OTCPK:IFNNF +0.7%) at Outperform.
    • Bernstein downgraded STM to Underperform a month ago, predicting 2015 revenue growth will be 300 bps below consensus. Shares go for only 0.9x 2015E sales.
    • Infineon has rallied since announcing last week it's buying International Rectifier for $3B.
    | 1 Comment
  • 11:33 AM
    • Macquarie's Kevin Smithen has upgraded Level 3 (LVLT +3.5%) to Outperform, and set a $51 target. Merger partner TW Telecom (TWTC +2.7%) is following Level 3 higher.
    • After talking with management, Smithen thinks Level 3 "has set conservative cost-savings targets" for the merger - the company previously forecast $240M/year in savings. He also considers TW easier to integrate than past acquisitions such as Global Crossing, given its lack of international assets and the fact the company isn't a roll-up of various properties.
    • He admits there's still "a decent risk" of an integration misstep, but also believes "the risk of not owning [Level 3] if the company executes well is too great."
    | Comment!
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