Seeking Alpha
  • Thursday, August 21, 2014

  • 7:02 PM
    • Deep Nishar, LinkedIn's (NYSE:LNKD) SVP of products/user experience and a 6-year company vet, is leaving.
    • In a statement, LinkedIn states CEO Jeff Weiner will be "indefinitely" taking over Nishar's responsibilities. The company also observes its user base has grown by over 10x to 313M since Nishar came on board.
    • Nonetheless, LinkedIn has struggled in recent years to boost its historically low engagement rates (relative to other social networking platforms), in spite of a series of product changes meant to address the issue. The company's Q2 numbers suggest it's starting to make some headway.
    | Comment!
  • 6:48 PM
    • Thanks partly to an accounting policy change that will result in PC product revenue being recognized over time rather than entirely up-front, Intuit (NASDAQ:INTU) expects FY15 (ends July '15) revenue of $4.275B-$4.375B and EPS of $2.45-$2.50, well below a consensus of $4.85B and $3.97.
    • Adjusted revenue, which takes the policy change into account, is expected to be in a range of $4.75B-$4.85B.
    • Small business revenue +12% Y/Y in FQ4, with QuickBooks Online subs growing 40% Y/Y to 683K (60K added in the quarter). Consumer tax revenue +22%; ProTax +16%.
    • Costs/expenses +13% Y/Y to $787M. $152.5M was spent on buybacks.
    • FY17 targets: Revenue of $5.8B, EPS of $5, and 2M QuickBooks Online subs.
    • FQ4 results, PR
    | Comment!
  • 6:22 PM
    • Ixia (NASDAQ:XXIA) has named Bethany Mayer, previously in charge of H-P's network functions virtualization (NFV) product line, its new CEO.
    • Mayer's resume also includes a stint as the GM of H-P's networking unit, and marketing roles at Cisco and Apple. Ixia has been without a permanent CEO since Vic Alston resigned last October for misstating his credentials. Chairman Errol Ginsberg has been serving as interim CEO since.
    | 1 Comment
  • 6:12 PM
    • Tony Navarra, head of Globalstar's (NYSEMKT:GSAT) space operations and a 20-year company vet, is retiring. He'll remain a consultant for one year following his retirement.
    • Navarra's duties will be divided between Globalstar's satellite operations and satellite engineering chiefs, each of whom will report to CEO Jay Monroe.
    | 1 Comment
  • 5:22 PM
    • Brocade (NASDAQ:BRCD) guides in its earnings slides (.pdf) for FQ4 revenue of $550M-$570M and EPS of $0.21-$0.23, in-line with a consensus of $561.3M and $0.22.
    • In spite of the Fibre Channel struggles seen by adapter card/embedded switch vendors Emulex and QLogic, Brocade's SAN product revenue (60% of total) rose 1% Q/Q and 4% Y/Y in FQ3 to $325M. SAN switch and director sales respectively rose 9% and 5% Y/Y, offsetting an adjusted 11% drop in server product (adapter/embedded switch) sales.
    • IP networking revenue rose 9% Q/Q and fell 1% Y/Y to $133M; the Y/Y drop is better than FQ2's 9%. Router weakness, product strategy changes, and the sale of Brocade's adapter card business to QLogic offset switch growth.
    • SAN products are expected to be down 1%-2% Q/Q in FQ4, and IP networking up 6%-15%. Geopolitical issues and transitions at OEM partners (i.e. IBM) are expected to weigh on SAN revenue, while high-density router launches and federal seasonality are expected to boost IP networking.
    • Gross margin rose 50 bps Q/Q and 160 bps Y/Y to 67.2%, beating guidance of 65.5%-66.5%. FQ4 GM guidance is at 66%-67%. $112M was spent on buybacks. EMC/IBM/Hitachi made up 48% of revenue vs. 47% a year ago.
    • FQ3 results, PR (.pdf)
    | 1 Comment
  • 4:58 PM
    • In addition to beating Q2 revenue estimates (while missing on EPS), Qunar (NASDAQ:QUNR) is guiding for 90%-95% Y/Y Q3 revenue growth; the consensus is for revenue to grow 83% to $72M.
    • Mobile revenue rose 511.8% Y/Y in Q2 to $22.9M (35.5% of revenue), fueling the revenue beat. Flight revenue +143.3% to $45M; hotel revenue +79.5% to $11.5M. Flight ticket volume +66.1%, and revenue/ticket +46.4%. Hotel room night volume +105.2%, but revenue per room night -12.5%.
    • Gross margin fell to 73.6% from 78.1% in Q1 and 78.2% a year ago (hurt EPS). Qunar notes higher payment-processing fees pressured its gross profit.
    • Spending was heavy: R&D spend +181.6% Y/Y to $29.3M, sales/marketing +212.4% to $34.7M, product sourcing spend +416.1% to $10.9M, G&A spend +432.9% to $18M. Online marketing spend +120.5% Q/Q to $23.8M.
    • If history is any guide, Ctrip (NASDAQ:CTRP) and/or eLong (NASDAQ:LONG) could follow Qunar higher.
    • Q2 results, PR
    | Comment!
  • 4:38 PM
    • Though Marvell (NASDAQ:MRVL) posted in-line FQ2 revenue and beat EPS estimates, it's guiding for FQ3 revenue of $960M-$1B and EPS of $0.29 (+/- $0.02), below a consensus of $1.01B and $0.32. No explanation is provided in the earnings release for the outlook.
    • FQ2 gross margin was 50.6%, +180 bps Q/Q and -140 bps Y/Y, and near the high end of a 49%-51% guidance range (drove the EPS beat). FQ3 GM guidance is also at 49%-51%.
    • GAAP opex fell 2% Y/Y to $363.4M (compares with a slight revenue increase), with R&D spend nearly flat at $294.8M. No buybacks were carried out.
    • FQ2 results, PR
    | 1 Comment
  • 4:30 PM
    • ScanSource (NASDAQ:SCSC): FQ4 EPS of $0.60 beats by $0.01.
    • Revenue of $758.1M (+6.4% Y/Y) beats by $18.07M.
    • Shares +1.88% AH.
    • Press Release
    | Comment!
  • 4:29 PM
    • Brocade Communications Systems (NASDAQ:BRCD): FQ3 EPS of $0.23 beats by $0.04.
    • Revenue of $545.46M (+1.7% Y/Y) beats by $10.75M.
    • Press Release
    | Comment!
  • 4:26 PM
    • Lantronix (NASDAQ:LTRX): FQ4 EPS of $0.01 beats by $0.03.
    • Revenue of $11.1M (-0.3% Y/Y) misses by $0.35M.
    • Press Release
    | Comment!
  • 4:19 PM
    • Salesforce (NYSE:CRM) expects FQ3 revenue of $1.365B-$1.37B and EPS of $0.12-$0.13 vs. a consensus of $1.37B and $0.13. FY15 (ends Jan. '15) guidance is for revenue of $5.34B-$5.37B and EPS of $0.50-$0.52 vs. a consensus of $5.34B and $0.51.
    • The deferred revenue balance rose 31% Y/Y in FQ2 to $2.35B, a slight slowdown from FQ1's 34% growth. The unbilled deferred revenue balance grew 32% to $5B, after growing 33% in FQ1.
    • GAAP sales/marketing spend rose to 51% of revenue from 50% a year ago, and R&D spend to 16% from 15%. G&A spend fell to 13% from 16%. Free cash flow more than doubled Y/Y to $174.3M, and was well above net income of $85.7M.
    • Americas revenue (71% of total) +39% Y/Y, Europe (19% of total) +42%, Asia-Pac (10% of total) +25%.
    • Sales Cloud (core CRM software) revenue totaled $610.1M, Service Cloud (customer support software) $318.7M, Salesforce1 (cloud app platform) $181.4M, and ExactTarget (cloud marketing software) $122.4M.
    • CRM -0.8% AH. FQ2 results, PR
    | 5 Comments
  • 4:13 PM
    • MICROS Systems (NASDAQ:MCRS): Q2 EPS of $0.84 beats by $0.13.
    • Revenue of $396.14M (+20.6% Y/Y) beats by $35.42M.
    • Press Release
    | Comment!
  • 4:12 PM
    • Mentor Graphics (NASDAQ:MENT): Q2 EPS of $0.23 beats by $0.08.
    • Revenue of $260.23M (+2.8% Y/Y) beats by $6.68M.
    • Shares -0.93% AH.
    • Press Release
    | Comment!
  • 4:11 PM
    • Intuit (NASDAQ:INTU): FQ4 EPS of -$0.01 misses by $0.08.
    • Revenue of $714M (+12.6% Y/Y) beats by $14.51M.
    • Shares -2.58% AH.
    • Press Release
    | Comment!
  • 4:08 PM
    • Marvell Technology Group (NASDAQ:MRVL): Q2 EPS of $0.34 beats by $0.06.
    • Revenue of $961.54M (+19.1% Y/Y) in-line.
    • Shares -1.03% AH.
    • Press Release
    | Comment!
  • 4:07 PM
    • salesforce.com (NYSE:CRM): Q2 EPS of $0.13 beats by $0.01.
    • Revenue of $1.32B (+37.9% Y/Y) beats by $30M.
    • Shares +2.6% AH.
    • Press Release
    | 7 Comments
  • 3:59 PM
    • Optical component vendors JDS Uniphase (JDSU +4.3%), Finisar (FNSR +3.4%), Oplink (OPLK +3.2%), Oclaro (OCLR +3.6%), and Alliance Fiber (AFOP +2.5%) have all rallied on a quiet day of trading, and so has client Ciena (CIEN +2.7%). No news has hit the wires to explain the gains.
    • JDS, Oclaro, and Alliance Fiber all sold off in recent weeks (I, II, III) after providing disappointing guidance in their calendar Q2 reports. JDS (like Juniper following its Q2 report) observed soft North American wireline capex is pressuring industry sales.
    | Comment!
  • 3:36 PM
    • B.O.S. Better Online (NASDAQ:BOSC): Q2 EPS of -$0.06
    • Revenue of $6.89M (+3.6% Y/Y)
    • Press Release
    | Comment!
  • 2:56 PM
    • DuPont ([[DD] +0.4%) says it has filed a patent infringement lawsuit against SunEdison (SUNE -0.3%) and its NVT affiliate, alleging infringement of its patented tellurium paste technology.
    • DuPont says that by sourcing and using photovoltaic cells and solar modules containing Samsung SDI front-side metallization paste, SUNE is infringing on DD's patent.
    | Comment!
  • 2:36 PM
    • Five months after striking its first major ad agency deal, Instagram (FB -0.2%) is offering advertisers the kind of analytics and campaign-management tools they're accustomed to having for campaigns on Facebook proper (or for that matter, Google or Twitter).
    • A performance-tracking dashboard includes tabs for creating/previewing ads, tracking ad impressions/reach, and monitoring user engagement. Facebook has been taking a go-it-slow approach to monetizing Instagram's 200M+ users, even as many top brands gain huge followings on the photo/video-sharing platform.
    • Separately, Facebook has launched analytics tools for its App Links platform, which allows links within apps (including ones found in Facebook ads) to open other apps. The tools, provided by Facebook's Parse app tool unit, allow developers to track clicks and return visits, among other things.
    • Facebook mentioned in July App Links, adopted by the likes of Spotify, Hulu, and Vimeo, has enabled 1B+ links. Product manager Vijay Shankar notes their ability to improve mobile ad quality, which in turn can improve click rates/pricing. "Ads on mobile [have] a lot of catching up to do, and I think this can help with that."
    | 3 Comments
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