China's investigation of Qualcomm (QCOM +0.9%) is nearing an end and about to enter the "punishment phase," says analyst Stacy Rasgon, basing his view on "news flow" over the past few days.
The result, he says, is likely to lead to changes in the company's business practices, noting among the charges is Qualcomm's charging of royalties based on the value of the device itself. The changes, then, might see Qualcomm matching its royalty rate to the value of the chips instead.
These sorts of resolutions take time, reminds, Rasgon, in which Qualcomm would have to submit proposals, and then Beijing would vet them, getting input from OEMs. He reiterates his Market Perform rating.
"Tableau's (DATA +2.6%) valuation relative to its potential revenue growth [is] compelling," says analyst Phil Winslow, upgrading to Outperform and lifting the price target to $100 from $87.50. Trading at an enterprise value to revenue ratio of 10.2x, Tableau isn't cheap, concedes Winslow, but is only just above its historical average.
Tableau, says Winslow, should be able to expand the market for business intelligence tools to small and medium enterprises, as well as grow within the enterprise customer base. He's also sees potential in international sales as Tableau gets just 23% of revenue from outside North America vs. the industry grabbing 53% of revenue overseas.
It doesn't take much to move Digital Ally (DGLY +8%), and the release of a Justice Department report titled, "Implementing a Body-Worn Camera Program" appears to be doing the job today.
"Body-worn cameras can help improve the high-quality public service expected of police officers and promote the perceived legitimacy and sense of procedural justice that communities have about their police departments."
Also higher, but somewhat calmer is Taser International (TASR +0.8%).
Telecom Italia (TI -1.2%) is evaluating a potential acquisition of Brazilian carrier Oi (OIBR +11.8%) through its Tim Participacoes (TSU -2.1%) unit to challenge Telefonica (TEF +0.9%) in Latin America's largest phone market, Bloomberg reports.
In a deal, Tim, Brazil's second largest mobile phone company, would gain Oi’s fixed-line network to sell broadband services after losing out to Spain's Telefonica in a bid to merge with another local landline provider, GVT.
Affirming part of a lower court ruling in favor of VirnetX's (VHC -46.4%) patent claims against Apple, a federal appeals court reverses the decision on two of the claims and vacates the jury's award of $368M in damages, returning the case to the lower court for further proceedings.
The Board intends to consider a wide range of possibilities and Barclays has been retained to assist.
The announcement comes as the company - citing less seasonal strength than expected in the DBS and ODU businesses - cuts Q3 guidance, now forecasting revenue of $43M, and a non-GAAP loss of about $0.15 per share.
Meanwhile, China Mobile (NYSE:CHL) Chairman Xi Guohua tells reporters he doesn't know when the new iPhones will be available, and his company will focus on selling cheaper phones which don't require subsidies. "The direction of our development is to completely focus on the mass market,” says Xi. “We have 4G devices selling for ¥1K. I believe, subsidy or no subsidy, discount or no discount, the common person will be able to appreciate this.”
China Mobile fell the most in two years in Hong Kong acton overnight, down 3.9%. Apple is lower by 1.1% premarket.
The planned merger with Omnicom, which was abandoned in May after executives clashed over how to run the combined entity, had been seen as Levy’s legacy after hinting in recent years he was looking to retire.
Publicis says it is also appointing a new expanded management team to steer the company as it increases digital operations.
Although a sale price as high as ~C$300M ($270M) had been rumored earlier, Reuters reports that VimpelCom (NASDAQ:VIP) and Egypt's Global Telecom will sell their stake in wireless carrier Wind Canada to Globalive Capital for C$135M ($122M).
The proceeds of the sale will go to Vimpelcom, in repayment of part of the debt owed to the company.
Microsoft (NASDAQ:MSFT) will give a sneak peek into Windows 9 at a Sept. 30 event in San Francisco.
People familiar with the company's plans say Microsoft will restore corporate user's confidence in the new version of Windows, after alienating some of the "office-worker" segment with the introduction of Windows 8.
Corporate buyers say the operating system did not integrate well into the typical office setup.
French carrier Orange (NYSE:ORAN) is offering to acquire Spanish broadband provider Jazztel (OTCPK:JAZTF) for ~€3.4B ($4.4B), or €13/share for a premium of 22% over the stock’s close Friday in Madrid.
Buying Jazztel would give Orange ~1.5M broadband subscribers to help bolster offers of combined broadband, TV and wireless packages; Jazztel's revenue has grown in every quarter since 2008, and this year sales may reach €1.2B, quadrupling from 2007.
Chairman Leopoldo Fernandez Pujals is Jazztel’s biggest shareholder with a ~15% stake.
VimpelCom (NASDAQ:VIP) is close to selling its stake in Canadian wireless carrier Wind Mobile Canada to Toronto-based Globalive Wireless Management for ~C$300M ($270M), with an announcement expected as soon as tomorrow, according to various reports.
A deal would cap VIP's struggle to exit the Canadian market following a lengthy regulatory spat over Canada's foreign investment rules.
A sale also would boost the Canadian government’s effort to create a fourth national wireless carrier to help foster competition and reduce mobile phone rates; the three biggest carriers, Rogers Communications (NYSE:RCI), BCE and Telus (NYSE:TU), together control 90% of the market.
Actua (NASDAQ:ACTA) agrees to acquire FolioDynamix, a cloud-based wealth management technology platform, for $199M.
ACTA says FolioDynamix brings a current net revenue run rate of $30M-plus, with positive earnings and cash flow; the company grew by more than 40% in 2013, and ACTA expects the growth rate to continue in 2014.