Seeking Alpha
  • Today - Wednesday, April 23, 2014

  • 7:11 AM
    • Celestica (CLS): Q1 EPS of $0.26 beats by $0.06.
    • Revenue of $1.31B (-4.4% Y/Y) misses by $50M.
    • Press Release
    | Comment!
  • 7:05 AM
    • Entegris (ENTG): Q1 EPS of $0.12 misses by $0.01.
    • Revenue of $165.8M (+0.4% Y/Y) misses by $5.9M.
    • Press Release
    | Comment!
  • 6:54 AM
    • EMC Corp (EMC): Q1 EPS of $0.35 in-line.
    • Revenue of $5.48B (+1.7% Y/Y) beats by $50M.
    • Press Release
    | Comment!
  • 6:05 AM
    • TE Connectivity (TEL): FQ2 EPS of $0.95 beats by $0.04.
    • Revenue of $3.43B (+5.2% Y/Y) misses by $20M.
    • Press Release
    | Comment!
  • 4:03 AM
    • ARM Holdings' (ARMH) Q1 net profit rose to £62.3M ($104.7M) from £51.9M a year earlier.
    • EPS increased to 4.4 pence from 3.7 pence.
    • Revenue climbed 10% to £186.7M ($305.2M).
    • Adjusted pretax profit rose 9% to £97.1M.
    • Processor licensing revenue +38% in dollar terms; underlying processor royalty revenue +8%.
    • 2.9B chips using ARM technology shipped, +11%.
    • ARM signed 26 processor licenses across multiple markets, including mobile computing, enterprise networking and chips for "Internet of Things" devices.
    • ARM's pipeline "remains healthy for Q2 and the rest of the year," the company said. It expects FY dollar revenues to be in line with market expectations, assuming the semiconductor industry improves in H2, as is generally anticipated. Consensus is for $1.31B.
    • Shares are -2% in London. (PR)
    | 1 Comment
  • 3:31 AM
    • Ericsson's (ERIC) Q1 EBIT rose to 2.6B Swedish kronor ($395M) from 2.1B a year earlier but missed consensus of 3.5B kronor.
    • Net profit almost doubled to 2.12B kronor from 1.21B kronor.
    • Operating income jumped 25% to 2.63B kronor.
    • Sales dropped to 47.5B kronor from 52.03B kronor and undershot forecasts of 50.8B kronor, hurt by two major North American projects peaking in H1 2013 and by reduced activity in Japan.
    • The gross margin increased to 36.5% from 32% and topped expectations of 34%.
    • North America sales -23% and North East Asia -19%, although there was growth in China, the Middle East and Latin America. Western Europe was flat.
    • Wins five-year project from Vodafone; terms undisclosed.
    • Shares slump 5.4% in Stockholm. (PR)
    | Comment!
  • Tuesday, April 22, 2014

  • 7:00 PM
    • iRobot (IRBT) expects Q2 revenue of $138M-$145M and EPS of $0.15-$0.25 ($0.20 midpoint) vs. a consensus of $143.8M and $0.23. Full-year guidance is for revenue of $560M-$570M and EPS of $1-$1.15 ($1.075 midpoint) vs. a consensus of $562.8M and $1.11.
    • Gross margin rose 150 bps Y/Y in Q1 to 45.3%. Opex rose 16% to $43.7M.
    • Home robot sales grew 17% Y/Y to $108M, and carried a 50.4% gross margin. Defense/security robot sales fell nearly 50% to $5.6M, and carried a 37.2% gross margin.
    • Q1 results, PR
    | Comment!
  • 6:47 PM
    • Juniper (JNPR) expects Q2 revenue of $1.2B-$1.23B and EPS of $0.36-$0.39 vs. a consensus of $1.21B and $0.36. Gross margin is expected to be in a range of 63.5%-64.5% vs. 63.7% a year ago.
    • Juniper's aggressive buybacks should boost Q2 EPS: The company delivered $900M worth of shares in Q1 for its $1.2B ASR, and has promised to buy back over $2B worth of shares by Q1 2015.
    • Product revenue +12% Y/Y in Q1 to $876M, service revenue +6% to $294.1M. Routing sales rose 7% to $549.8M (share gains against Cisco), and switch sales jumped 47% to $192M.
    • Security sales fell 2% to $134.2M, but that's a smaller decline than seen in recent quarters. Service provider revenue rose 10% to $782.7M, and enterprise revenue 12% to $387.4M.
    • JNPR -0.8% AH. Q1 results, PR.
    | Comment!
  • 6:15 PM
    • Though VMware (VMW)'s license revenue rose 15% Y/Y in Q1 to $561M (beating guidance of $545M-$555M), the company disclosed on its CC license and total bookings growth was less than 10%, with sub-10% bookings growth in all three major geographies. Total bookings had risen at a mid-teens clip in Q4.
    • Nonetheless, VMware is maintaining its prior forecasts for 2014 revenue of $5.94B-$6.1B (+14%-17%) and license revenue of $2.55B-$2.63B (+12%-16%). AirWatch is expected to contribute $100M.
    • Q2 revenue, which assumes a $22M contribution from AirWatch, is expected to grow 15%-18% Y/Y to $1.425B-$1.465B (consensus is at $1.44B). License revenue is expected to grow 14%-16% to $605M-$615M.
    • Some bright spots: End-user computing license bookings (PC virtualization, will include AirWatch going forward) rose 35%, and cloud management license bookings over 30%. Also, ~50% of VMware's costly enterprise license agreements (ELAs, 25% of bookings) included its far-reaching vCloud Suite.
    • VMware's unearned revenue balance totaled $4.17B at the end of Q1, up 20% Y/Y. $169M was spent on buybacks.
    • Parent EMC, which reports tomorrow morning, is following VMware lower.
    • Q1 results, PR, CC slides
    | 1 Comment
  • 5:13 PM
    • XOOM expects Q2 revenue of $38M-$40M and EPS of $0.02-$0.06, in-line with a consensus of $39.4M and $0.05. But full-year guidance is for revenue of $157M-$162M and EPS of $0.15-$0.22, above a consensus of $156.9M and $0.09.
    • With shares having fallen hard since Xoom provided soft guidance in its Q4 report, investors are quite happy to see those numbers.
    • Gross sending volume +49% Y/Y in Q1 to $1.6B. Transactions +42% to 2.9M, active customers +34% to 1.13M, new customers +7% to 117.1K.
    • Gross margin rose 420 bps Y/Y to 73.3%. Opex rose 56% to $25.8M.
    • Q1 results, PR
    | Comment!
  • 4:58 PM
    | Comment!
  • 4:57 PM
    • Zhone Technologies (ZHNE): Q1 EPS of $0.01.
    • Revenue of $28.6M misses by $0.65M.
    • Press Release
    | Comment!
  • 4:56 PM
    • Lemelson Capital says it has bought 368.4K Kulicke & Soffa (KLIC +6.6%) shares over the last 14 months (less than a 1% stake), and calls on the chip equipment maker to launch a major buyback program.
    • Lemelson notes Kulicke has $556M in cash/equivalents (some of it offshore), and averaged $131M in annual free cash flow from 2010-2013. The firm estimates a $250M buyback at $12/share would boost EPS by 38%.
    • Barron's called Kulicke "a company that looks ripe for an activist investor" last October, given its huge cash balance and lack of a dividend or buyback plan. Kulicke has argued in the past it needs to keep its cash in case M&A opportunities emerged.
    • Share are up another 1.2% AH.
    | Comment!
  • 4:46 PM
    • In addition to beating FQ2 estimates, Skyworks (SWKS) is guiding for FQ3 revenue of $535M and EPS of $0.73, well above a consensus of $488.2M and $0.63.
    • Gross margin rose 250 bps Y/Y to 44.7%. While revenue rose 13% Y/Y, opex only grew 2% to $109.8M. 2M shares were repurchased.
    • Rival RF Micro (RFMD) is up in sympathy ahead of its April 29 FQ4 report. Others that might get a lift: TQNT, AVGO, ANAD.
    • FQ2 results, PR
  • 4:37 PM
    • Unisys Corporation (UIS): Q1 EPS of -$0.74.
    • Revenue of $762M (-5.9% Y/Y) misses by $64.13M.
    • Shares -1.3%.
    • Press Release
    | Comment!
  • 4:33 PM
    • CREE's FQ4 revenue guidance ($430M-$460M) features a midpoint that's above a $435.1M consensus. But its EPS guidance ($0.38-$0.44) is largely below a $0.44 consensus.
    • FQ3 gross margin was 37.8%, -40 bps Q/Q and -100 bps Y/Y, and below guidance of 38.5%. Cree expects a ~37.5% GM in FQ4.
    • LED product sales +3% Y/Y to $201.1M, lighting products (lower GM) +35% to $176.7M, power/RF products +21% to $27.5M. Opex +8% Y/Y to $119.6M.
    • FQ3 results, PR
    | 1 Comment
  • 4:22 PM
    • Harmonic Inc. (HLIT): EPS of $0.03 in-line.
    • Revenue of $108M (+6.2% Y/Y) misses by $3.8M.
    • Press Release
    | Comment!
  • 4:22 PM
    • AT&T (T) had 625K postpaid net adds in Q1 (313K via branded tablets), up from 566K in Q4. Connected device net adds totaled 693K; prepaid and reseller net losses respectively totaled 50K and 206K.
    • However, wireless service revenue rose just 2.2% Y/Y, down from 4.8% in Q4 (did price cuts play a role?). Meanwhile, wireless op. margin only rose 30 bps to 28.3% after growing 690 bps in Q4.
    • Churn was at 1.39% vs. 1.43% in Q4 and 1.38% a year ago. Smartphones now account for 78% of AT&T's postpaid base, up from 77% in Q4 and 72% a year ago. AT&T's Next upgrade program saw 2.9M sign-ups. That contributed to a 52% Y/Y increase in equipment sales (pressured margins).
    • Total wireless subs +8% Y/Y to 116M. Postpaid subs +4% to 73.3M.
    • Wireline revenue fell 0.4% Y/Y vs. 1.4% in Q4; op. margin fell 110 bps to 10%. 634K and 201K U-verse Internet and TV subs were added vs. 630K and 194K in Q4. Total U-verse revenue rose 29% Y/Y.
    • Wireline voice connections -11% Y/Y to 27.7M, broadband connections nearly flat at 16.5M, video connections +19% to 5.7M.
    • $1.2B was spent on buybacks, down from $1.9B in Q4. AT&T is reiterating full-year capex and free cash flow guidance of $21B and $11B, respectively.
    • Q1 results, PR
  • 4:21 PM
    • Sanmina Corp (SANM): FQ2 EPS of $0.44 beats by $0.05.
    • Revenue of $1.48B (+3.5% Y/Y) beats by $20M.
    • Shares +6.9%.
    • Press Release
    | Comment!
  • 4:21 PM
    • Super Micro Computer (SMCI): FQ3 EPS of $0.37 beats by $0.10.
    • Revenue of $373.8M (+34.4% Y/Y) beats by $38.61M.
    • Press Release
    | 1 Comment
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