Seeking Alpha
  • Today - Friday, April 25, 2014

  • 3:21 AM
    • Nokia (NOK) will reportedly name its Indian-born networks boss, Rajeev Suri, as its next CEO on Tuesday and outline what its strategy will be following the sale of its handset business to Microsoft, which could close today.
    • Suri has been considered the leading candidate to become Nokia's CEO after bringing profitability to Nokia Solutions & Networks (NSN) with a major overhaul.
    • Nokia could also announce on Tuesday how much it plans to pay out to shareholders with the cash that it's receiving from Microsoft.
    | Comment!
  • Thursday, April 24, 2014

  • 10:40 PM
    • After initially trading higher following its Q1 revenue beat, Amazon (AMZN) finished AH trading up just 0.3%. A possible factor: CFO Tom Szuktak shared on the CC Amazon's Y/Y paid unit growth fell to 23% in Q1 from 25% in Q4 and 29% in Q3. Slowing unit growth "remains a yellow flag since [the metric] is a better proxy than revenues for the overall velocity of the business," says Baird's Colin Sebastian.
    • While paid unit growth slowed, "Other" North American revenue, a segment dominated by Amazon Web Services, saw revenue growth accelerate to 60% from 52% in Q4. For now, the segment only accounts for 6% of revenue.
    • Thanks to AWS and 28% EGM growth, North American sales growth (+26%) was roughly even with Q4. International sales growth picked up to 18% from 13%, with 27% EGM growth offsetting 4% media growth.
    • AWS and 3rd-party fulfillment growth helped gross margin rise 230 bps Y/Y to 28.8%. But fulfillment spend rose to 11.7% of revenue from 11.1% a year ago, tech/content spend (boosted by video licensing and AWS capex) to 10% from 8.6%, and marketing to 4.4% from 3.9%.
    • Meanwhile, the WSJ reports Amazon is quietly testing its own delivery network (trucks and all) in San Francisco, L.A., and NYC. It's probably not a coincidence all three markets are ones in which the AmazonFresh same-delivery has launched, or is expected to.
    • Q1 results, guidance/details, PR
    | 6 Comments
  • 7:04 PM
    • Freescale (FSL) has hired Dan Durn, formerly the CFO of #2 chip foundry Globalfoundries, to be its new CFO, starting in June. Durn will replace Alan Campbell, who announced plans to retire in January.
    • The chipmaker has guided in its Q1 report for Q2 revenue of $1.14B-$1.2B, above a $1.13B consensus. Gross margin is expected to rise 50-75 bps from a Q1 level of 44.8%.
    • FSL -1.7% AH in spite of the guidance and a Q1 beat. Shares went into earnings trading within a hair's breadth of their 52-week high of $26.
    • Q1 results, PR
    | Comment!
  • 6:48 PM
    • Along with its Q1 results, Itron (ITRI) announces CFO Steven Helmbrecht is leaving at year's end. A search will commence for a replacement.
    • Helmbrecht, 50, has been Itron's CFO since 2005.
    • Itron also announces it has won a deal to provide Mitsubishi Electric with smart grid software for a 10M-unit smart meter deployment with Japan's 3rd-largest utility.
    | Comment!
  • 6:35 PM
    • Marketo (MKTO) expects Q2 revenue of $33M-$34M and EPS of -$0.30 to -$0.32 vs. a consensus of $32.3M and -$0.29. Full-year guidance is for revenue of $138M-$141M and EPS of -$1.00 to -$1.06, above a consensus of $134.6M and -$1.12. The company's deferred revenue balance rose 10% Q/Q and 86% Y/Y in Q1 to $45.6M. Shares +9.5% AH. (Q1 results, PR)
    • HomeAway (AWAY) expects Q2 revenue of $109M-$111M (above a $108.2M consensus) and adjusted EBITDA of $28M-$29M. 2014 guidance is for revenue of $435M-$442.5M (above a $433.7M consensus) and adjusted EBITDA of $117M-$122.5M. Shares -1.9% AH. (Q1 results, PR)
    • KLA-Tencor (KLAC) guides on its CC for FQ4 revenue of $700M-$760M and EPS of $0.75-$0.95, below a consensus of $832.5M and $1.16. The company blames delays among clients in ramping production of chips featuring 3D transistors, and (like Lam Research) notes 3D NAND production is being pushed out. Shares -5.1% AH. (FQ3 results, PR)
    | Comment!
  • 6:09 PM
    • Microsoft (MSFT) guides on its CC for FQ4 revenue of $20.4B-$21B, slightly below a $21.04B consensus. The company's FQ3 guidance proved conservative, and investors are assuming as much for its FQ4 outlook.
    • The revenue outlook for individual reporting groups: devices & consumer licensing $4.1B-$4.3B, D&C hardware $1.3B-$1.5B, D&C other $1.9B, commercial licensing $11B-$11.2B, commercial other $2.1B.
    • Xbox channel inventory drawdown is expected to impact D&C hardware, and a lower impact from Win. 7 upgrades caused by the end of XP support will affect D&C licensing. Commercial other is expected to see ~10% Q/Q growth on the back of cloud services (Office 365, Azure) demand.
    • Opex is expected to grow 4% Y/Y to $8.4B-$8.6B after adjusting for an EU fine. Capex is expected to total $1.5B (cloud investments), and unearned revenue to grow in line with seasonality. A tax rate of 18%-20% is forecast.
    • Microsoft's unearned revenue balance rose 14% Y/Y in FQ3 to $19.5B, topping guidance and exceeding FQ2's 12% clip. Bookings rose 6%, down from FQ2's 12%. The company's contracted but not billed balance closed above $22B (up over $1B Y/Y).
    • MSFT +2.7% AH. FQ3 results, details, earnings slides (.ppt), guidance (.ppt), prepared remarks (.doc)
    | 3 Comments
  • 5:51 PM
    • Premiere Global Services, Inc. (PGI): Q1 EPS of $0.22 beats by $0.03.
    • Revenue of $143.2M (+10.6% Y/Y) beats by $2.72M.
    • Press Release
    | Comment!
  • 5:34 PM
    | Comment!
  • 5:29 PM
    • Altera (ALTR) expects FQ2 revenue to grow 2%-6% from an FQ1 level of $461.1M. That implies a range of $470M-$488.8M, above a $461.3M consensus.
    • The FPGA maker suggests stronger-than-expected sales related to Chinese 4G deployments contributed to its FQ1 beat. Telecom & wireless revenue (45% of sales) grew 14% Q/Q and 23% Y/Y, and Asia-Pac revenue 6% Q/Q and 24% Y/Y.
    • Those numbers offset weakness in networking, computer, & storage (-20% Q/Q and -7% Y/Y), as well as the Americas (-17% Q/Q and -13% Y/Y). Other areas of strength included industrial, military, and automotive (+13% Y/Y, 22% of revenue), EMEA (+11%), and Japan (+18%).
    • Shares +4% AH. Rival Xilinx (XLNX), which often moves in tandem with Altera, is up just 0.5% after falling 9.1% in regular trading due to its light FQ1 guidance. Altera fell only 0.6% in regular trading after initially showing steeper losses.
    • Altera is expected to see 13.7% Y/Y June quarter revenue growth at its guidance midpoint, and Xilinx 10.5% growth.
    • FQ1 results, PR
    | Comment!
  • 5:10 PM
    • Cirrus Logic (CRUS) expects FQ1 revenue of $135M-$155M, largely above a $135.5M consensus. Gross margin is expected to be in a range of 47%-49% after coming in at 49% (at the high end of a 47%-49% range) in FQ4. Shares +3.3% AH after rising 7.3% in regular trading thanks to Apple. (FQ4 results, PR)
    • Synaptics (SYNA) expects FQ4 revenue of $275M-$295M, well above a $231.3M consensus. Mobile revenue rose 44% Y/Y in FQ3, and the company's fingerprint ID ops (i.e. Validity Sensors) have become accretive ahead of plan.Shares +10.5% AH. (FQ2 results, PR)
    • CalAmp (CAMP) expects FQ1 revenue of $56M-$60M and EPS of $0.17-$0.21, below a consensus of $64.3M and $0.23. The company notes revenue from a key solar OEM client is expected to fall by $3M Q/Q. Shares -9.9% AH. (FQ4 results, PR)
    | Comment!
  • 4:51 PM
    • PCTEL, Inc. (PCTI): Q1 EPS of $0.05 misses by $0.02.
    • Revenue of $23.7M (-5.5% Y/Y) misses by $1.03M.
    • Press Release
    | Comment!
  • 4:50 PM
    • Baidu (BIDU) expects Q2 revenue of RMB11.82B-RMB-12.11B ($1.901B-$1.948B), above a consensus of RMB11.55B.
    • Revenue growth accelerated to 59.1% in Q1 from 50.4% in Q4. Online ad customers fell 1.1% Q/Q to 446K after falling 2.8% in Q4, but revenue per ad customer remained steady Q/Q and rose 44.1% Y/Y to RMB20.9K ($3,362).
    • As promised, Baidu continues to invest aggressively: SG&A spend soared 136.9% Y/Y to $323.2M, thanks in large to mobile promotional efforts. R&D spend rose 57.5% to $205.4M.
    • Traffic acquisition costs rose to 12.4% of revenue from 12.3% in Q4 and 10.2% a year ago. Content costs (fueled by online video licensing) rose to 4.1% of revenue from 3.8% in Q4 and 1.6% a year ago.
    • Up in sympathy: SINA +1.6%. SOHU +1%. QIHU +2.6%. YY +1.1%. WB +1.5%. YOKU +1.7%.
    • Q1 results, PR
    | 2 Comments
  • 4:47 PM
    • Micrel, Incorporated (MCRL): Q1 EPS of $0.07 beats by $0.01.
    • Revenue of $59.9M (+0.3% Y/Y) misses by $0.8M.
    • Press Release
    | Comment!
  • 4:47 PM
    • Monolithic Power Systems, Inc. (MPWR): FQ4 EPS of $0.39 beats by $0.13.
    • Revenue of $60.1M (+16.8% Y/Y) in-line.
    • Press Release
    | Comment!
  • 4:43 PM
    • Internap Network Services Corporation (INAP): Q1 EPS of -$0.14 misses by $0.07.
    • Revenue of $81.96M (+17.6% Y/Y) misses by $1.07M.
    • Press Release
    | Comment!
  • 4:42 PM
    • Microsemi Corporation (MSCC): FQ2 EPS of $0.51 in-line.
    • Revenue of $287M (+22.0% Y/Y) beats by $0.8M.
    • Shares -1.6%.
    • Press Release
    | Comment!
  • 4:40 PM
    • Mattson Technology, Inc. (MTSN): Q1 EPS of $0.04 in-line.
    • Revenue of $43.2M (+113.4% Y/Y) beats by $0.2M.
    • Press Release
    | Comment!
  • 4:38 PM
    • Alliance Fiber Optic Products, Inc. (AFOP): Q1 EPS of $0.35 beats by $0.03.
    • Revenue of $24.88M (+104.8% Y/Y) beats by $0.23M.
    • Press Release
    | Comment!
  • 4:38 PM
    • Barracuda Networks, Inc (CUDA): FQ4 EPS of $0.06 beats by $0.05.
    • Revenue of $60.33M (+15.0% Y/Y) beats by $0.66M.
    • Press Release
    | Comment!
  • 4:37 PM
    • Baidu, Inc. (BIDU): Q1 EPS of $1.24 beats by $0.21.
    • Revenue of $1.52B
    • Shares +7.4%.
    • Press Release
    | Comment!
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