Seeking Alpha
  • 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
    | 5 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!
  • 4:36 PM
    • Hittite Microwave Corporation (HITT): Q1 EPS of $0.52 misses by $0.01.
    • Revenue of $70.6M (+4.3% Y/Y) beats by $2.1M.
    • Press Release
    | Comment!
DJIA (DIA) S&P 500 (SPY)