Seeking Alpha
  • Today - Friday, October 24, 2014

  • 12:56 AM
    • "Can you tell us or remind us what financial measures are important to you guys ... it's a little hard to see any of them making positive progress," asked Wolfe Research's Aram Rubinson during Amazon's (NASDAQ:AMZN) Q3 CC (transcript), just one of several pointed questions offered.
    • Bernstein's Carlos Kirjner asked about weak international margins - international op. loss rose to $224M from $28M a year ago - and why international's growth (14%) has fallen far behind North America's (25%). CFO Tom Szkutak (again) chalked up Amazon's losses to growth investments, and gave little detail about growth other than to state it "has been softer across a number of geographies."
    • BGC's Colin Gillis asked why North American media growth (+5%) was the lowest in years. Szkutak mentioned Amazon is seeing a demand shift from textbook purchases to rentals (could be a positive for CHGG), and that heavy discounting last year made for tough comps.
    • Total media revenue rose 4% to $5.2B vs. 10% in Q2, and total electronics/general merchandise revenue 26% to $14B vs. 27% in Q2. North American "Other" revenue (mostly AWS) rose 40% to $1.34B, and returned to positive Q/Q growth (15%) following huge price cuts earlier in 2014.
    • Other details: 1) $170M in charges were taken, largely related to the slumping Fire Phone. 2) Paid unit growth was 21% vs. 23% in Q2, and 3rd-party sellers made up 42% of units vs. 41%. 3) Gross margin rose 120 bps Y/Y to 28.9%. 4) Fulfillment, tech/content and marketing spend respectively rose to 12.4%, 10.8%, and 4.7% of revenue from 11.5%, 9.2%, and 3.9% a year ago.
    • Shares finished AH trading down 10.7%, making new 52-week lows along the way. Not factoring post-earnings estimate revisions, they now trade for 1.2x 2015E sales.
    • Q3 results, guidance/details, PR
  • Thursday, October 23, 2014

  • 9:25 PM
    • In addition to missing FQ1 revenue estimates (while slightly beating on EPS), Maxim (NASDAQ:MXIM) is guiding for FQ2 revenue of $540M-$580M and EPS of $0.26-$0.32, below a consensus of $606.5M and $0.38.
    • The analog/mixed-signal chipmaker blames its FQ1 sales miss on "weakness in smartphone revenue," and adds a continued smartphone chip slump is "the catalyst for our decision to lower operating spending and reduce our manufacturing cost structure."
    • Leading customer Samsung's recent troubles almost certainly have much to do with Maxim's top-line challenges. Synaptics, which also depends heavily on Samsung, posted a top and bottom-line FQ1 miss this afternoon.
    • Maxim closed AH trading less than a dollar away from its 52-week low of $25.28.
    • FQ1 results, PR
    | 1 Comment
  • 8:50 PM
    • Though it beat Q3 estimates, Altera (NASDAQ:ALTR) is guiding for Q4 revenue to be down 2%-6% Q/Q. That implies a range of $469.6M-$489.6M ($479.6M midpoint) vs. a $485.7M consensus.
    • Q3 gross margin was 66.8%, down from 67% in Q2 and 68.3% a year ago. Q4 GM guidance is at 66%-67%.
    • With the help of strong orders from 4G mobile infrastructure clients (particularly from China), telecom/wireless chip sales (45% of revenue) rose 23% Y/Y in Q3. Industrial automation, military & auto +3%; networking, computer, and storage -5%; everything else +18%. FPGAs were 85% of revenue, up from 82% a year ago.
    • GAAP opex +9% Y/Y to $192.3M. $144.2M was spent on buybacks.
    • Shares had rallied after Xilinx posted an FQ2 beat a week ago.
    • Q3 results, PR
    | Comment!
  • 7:24 PM
    • Cerner (NASDAQ:CERN) expects Q4 revenue of $880M-$915M and EPS of $0.46-$0.47 vs. a consensus of $904.6M and $0.47. New business bookings are expected to total $1.15B-$1.25B.
    • Q3 bookings +19% Y/Y to $1.1B, at the high end of a $1B-$1.1B guidance range. Backlog +21% to $10.16B.
    • Systems revenue +11% to $224.3M. Support/maintenance/services revenue +17% to $593.1M. Reimbursed travel +36% to $22.7M.
    • Gross margin -30 bps Y/Y to 83.3%. GAAP opex +17% to $511.9M.
    • Q3 results, PR
    | 1 Comment
  • 7:04 PM
    • Microsoft (NASDAQ:MSFT) guides on its FQ1 CC for FQ2 revenue of $25.4B-$26.5B, below a $27.9B consensus. But the company has shown quite the knack for guiding conservatively in recent quarters; FQ1 revenue ($23.2B) was soundly above the guidance provided in July ($21.2B-$22.3B).
    • The company notes Devices & Consumer Licensing revenue (-9% Y/Y in FQ1) is being affected by the loss of revenue from Nokia; Nokia revenue totaled $650M in FQ2 last year.
    • Total Windows OEM revenue fell 2% Y/Y in FQ1, as price cuts offset unit growth. "Windows Phone revenue" (driven by Android royalties) fell 46%, something attributed in part to a "higher mix of low-royalty devices;" Microsoft is in the midst of a royalty dispute with high-end Android leader Samsung.
    • 9.3M Lumia phones were sold (up slightly Y/Y), aided by strong European and low-end demand. With feature phone sales falling quickly, phone hardware revenue is expected to drop to $2B-$2.2B in FQ2 from FQ1's better-than-expected $2.6B.
    • Search ad revenue rose 23% Y/Y; Microsoft pegs Bing's U.S. search share at 19.4% (+140 bps Y/Y).
    • Full-year opex guidance is unchanged at $34.2B-$34.6B. Due to the Nokia deal, opex was up 13% Y/Y in FQ1 to $7.9B. That growth rate should drop in the coming quarters, and possibly turn negative.
    • MSFT +2.6% AH. FQ1 results, details, guidance (.ppt), CC slides (.ppt)
  • 6:25 PM
    • Though it posted in-line Q3 revenue and beat EPS estimates, Freescale (NYSE:FSL) is guiding for Q4 revenue of $1.075B-$1.125B, below a $1.18B consensus. In addition, gross margin is expected to drop 75-100 bps from a Q3 level of 46.3%.
    • Freescale was among the names clocked earlier this month by fellow microcontroller vendor Microchip's warning.
    • Q3 results, PR
    | Comment!
  • 6:18 PM
    • Though its results and guidance beat expectations, Pandora (NYSE:P) reports it had 76.5M active listeners at the end of Q3, barely above the 76.4M it had at the end of Q2 and up only 5.2% Y/Y. Questions about the impact of competition are bound to come up.
    • Listener hours totaled 4.99B, -1% Q/Q and +25% Y/Y; Y/Y growth benefited from the presence of a 40-hour free mobile listening cap during part of Q3 2013. Pandora's share of U.S. radio listening rose to 9.06% in September from 8.9% in June and 7.77% a year ago.
    • Total Q3 ad revenue per thousand ad-supported listener hours (RPM) rose to $44.35 from $40.11 in Q2 and $39.68 a year ago. PC ad RPM +10% Y/Y to $64.13; mobile ad RPM +16% to $40.82.
    • The RPM gains helped ad revenue rise 44% to $194.3M. Subscription/other revenue rose 25% to $45.3M. GAAP opex rose 48% to $114.8M, and content acquisition costs (driven by royalties) 33% to $111.3M.
    • P -6.1% AH. Q3 results, PR
  • 5:58 PM
    • NetSuite (NYSE:N) guides on its Q3 CC for Q4 revenue of $154M-$156M and EPS of $0.08-$0.10 vs. a consensus of $152.3M and $0.10.
    • The cloud ERP/HR/e-commerce software vendor expects 2015 revenue of $715M-$725M, above a $706.8M consensus.
    • Q3 results, PR
    | Comment!
  • 5:51 PM
    • Along with its Q3 results, Informatica (NASDAQ:INFA) announces CFO Earl Fry is being moved over to the role of chief customer office and EVP, operations strategy. He'll now lead Informatica's customer support and professional services teams, and (in the company's words) "play an instrumental role in helping scale the business for the next growth phase."
    • Replacing Fry as CFO is Michael Berry, whose resume includes stints as the CFO of fellow enterprise software vendors SolarWinds, IO, and i2 Technologies. Fry had already announced plans to step down as CFO by year's end.
    • Informatica has guided on its Q3 CC for Q4 revenue of $290M-$305M and EPS of $0.49-$0.54 vs. a consensus of $299.6M and $0.52. Expectations were fairly low following soft numbers from Oracle, IBM, SAP, and VMware.
    • INFA +2% AH. Q3 results, PR.
    | Comment!
  • 5:30 PM
    • With a big Q3 beat in tow, The Rubicon Project (NYSE:RUBI) now expects 2014 revenue of $122M-$123M and EPS of -$0.06 to -$0.03, above a consensus of $118.8M and -$0.35.
    • Take rate on gross ad sales rose to 19.1% from 18.4% in Q2 and 17.1% a year ago. Ad sales related to real-time bidding (RTB) rose 75% Y/Y for the second quarter in a row.
    • Rubicon also blasted off following its Q2 beat. However, shares had largely given back those gains as of today's close.
    • Q3 results, PR
    | Comment!
  • 5:21 PM
    • Synaptics (NASDAQ:SYNA) expects FQ2 revenue of $415M-$450M vs. a consensus of $435.80M
    • SYNA -7.9% AH.
    • FQ1 results, PR
    | Comment!
  • 5:19 PM
    • CyberOptics (NASDAQ:CYBE): Q3 EPS of -$0.07
    • Revenue of $11.7M (+34.5% Y/Y)
    • Press Release
    | Comment!
  • 5:16 PM
    • The FT's Ed Hammond reports RealPage (NASDAQ:RP) has been approached by potential buyers.
    • Shares haven't yet moved AH, but that could change soon.
    | Comment!
  • 5:10 PM
    • QLIK expects Q4 revenue of $176M-$181M and EPS of $0.26-$0.30, below a consensus of $183.9M and $0.34.
    • Q3 license revenue (drives future services revenue) +24% Y/Y to $67.5M, a marked improvement from Q2's +11% and Q1's +2%.
    • Americas revenue rose 27% to $52.3M, European revenue 21% to $63.2M, and Rest of World revenue 48% to $15.9M.
    • Q3 results, PR
    | Comment!
  • 5:01 PM
    • Along with its Q3 results, Maxwell (NASDAQ:MXWL) has announced it's partnering with Corning (NYSE:GLW) to develop new ultracapacitor technologies.
    • The companies declare "Maxwell's expertise in ultracapacitor cell design, manufacturing processes and market-leading capacitive energy storage product designs" will be paired with  "Corning's expertise in high-performance materials, analytical capabilities and technology innovations." They aim to address tech challenges related to "energy density, lifetime, operating environment, form factor and cost."
    • MXWL +14.9% AH thanks to the partnership, its Q3 beat, and its Q4 guidance: The company expects revenue to be up "as much as" 20%-25% Q/Q. That implies a range of $49.9M-$52M, well above a $44.4M consensus. Strong demand from the Chinese hybrid bus and wind energy markets are contributing to the growth.
  • 4:48 PM
    • Premiere Global Services (NYSE:PGI): Q3 EPS of $0.22 beats by $0.01.
    • Revenue of $140.38M (+7.4% Y/Y) in-line.
    • Press Release
    | Comment!
  • 4:43 PM
    • Juniper (NYSE:JNPR) expects Q4 revenue of $1.02B-$1.08B and EPS of $0.28-$0.32, below a consensus of $1.18B and $0.41. Gross margin is expected to be in a range of 63.5%-64.5%.
    • Product revenue -10% Y/Y in Q3 to $810M, service revenue +11% to $317M.
    • Routing sales fell 12% to $533M, switch sales rose 5% to $155M and security sales declined 16% to 121M.
    • The board authorizes an increase in the share repurchase authorization by $1.1 billion.
    • JNPR -4.6% AH.
    • Q3 results, PR
  • 4:40 PM
    • In a leveraged recap, KLA-Tencor (NASDAQ:KLAC) plans to pay a $16.50/share special dividend (total value of $2.75B) by year's end. The company has also added $250M to its buyback, on top of the $1B authorization announced in July.
    • The special dividend will be largely financed by raising $2.5B in debt. KLA also expects to obtain a credit facility.
    • KLA: "The Board of Directors took a number of factors into account, including the substantial net cash on KLA-Tencor's balance sheet, the likely effects of increased leverage on the Company's ability to pursue its strategic initiatives, and the Company's ability to generate cash flows to service the Company's increased debt and fund operations and investments designed to grow the business and serve customer needs."
    • FQ1 results, PR
  • 4:30 PM
    • Microsoft's (NASDAQ:MSFT) Commercial revenue rose 10% Y/Y in FQ1 to $12.28B, nearly even with FQ4's 11% growth. Server products/services +13%; Office commercial products +5%; commercial cloud (Azure, Office 365, Dynamics cloud apps) +128%.
    • Windows Server, SQL Server, and System Center each grew by double digits, and Lync, SharePoint, and Exchange collectively saw double-digit growth. Windows volume licensing +10%.
    • Devices & Consumer revenue (boosted by the Nokia deal) +47% to $10.96B. Phone hardware revenue totaled $2.6B, down from $3.9B a year ago but above guidance of $1.9B-$2.3B. 2.4M Xboxes were sold (+102% thanks to the Xbox One launch), and Office Home/Personal subs rose by ~1.4M Q/Q to 7M+.  Surface revenue totaled $908M.
    • One soft spot: Dollar-wise, a 9% drop in D&C Licensing revenue to $4.09B more than offset a 16% increase in D&C Other revenue (inc. Web and cloud services) to $1.81B. OEM non-Pro Windows revenue fell 1%, though Windows consumer unit growth was positive.
    • Commercial Licensing made up 61% of Microsoft's gross profit, and Commercial Other (inc. cloud services) 5%. D&C Licensing accounted for 26%, and D&C Other just 2%.
    • $2.9B was spent on buybacks. The unearned revenue balance rose 11% Y/Y to $22.5B.
    • MSFT +2.8% AH. FQ1 results, PR.
  • 4:24 PM
    • Covisint (NASDAQ:COVS): FQ2 EPS of -$0.13 misses by $0.09.
    • Revenue of $21.73M (-11.4% Y/Y) beats by $0.53M.
    • Press Release
    | Comment!
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