Today - Friday, July 31, 2015
- Rivaling Google's Project Loon, Facebook (NASDAQ:FB) has completed building its first full-scale drone called the Aquila, which has the wingspan of a Boeing 737 and will beam Internet down to remote parts of the world.
- The plane will hover between 60,000 feet and 90,000 feet, above the altitude of commercial airplanes, and will be able to fly for 90 days at a time.
- Related: Sri Lanka signs up as first Project Loon partner (Jul. 30 2015)
Thursday, July 30, 2015
- Telefonica (NYSE:TEF) shares had a lackluster performance today in U.S. trading, -0.3% on heavier-than-average volume, after posting second-quarter sales that beat analyst estimates and raising guidance on revenue growth for the remainder of the year.
- Profits doubled to €3.7B (just over $4B) on revenues of €11.88B ($13B). Revenue stabilized in Spain in May and June, for the first time since December 2009, and will return to growth, the company said. Telefonica Brasil (NYSE:VIV), meanwhile, showed revenue growth acceleration and the German business is showing benefits from the e-Plus integration, with 12.5% organic OIBDA growth.
- The company sees revenue growth for the full year at greater than 9.5%, up from a 7% previous estimate. New dates for incorporating GVT (in Brazil) and DTS (in Spain) are adding 1.8 percentage points to growth estimates.
- However, the incorporations mean full-year OIBDA margin will likely dip by 1.2 percentage points, it said, greater than the 1 point previously forecast.
- Press Release
- Globalstar's (NYSEMKT:GSAT) devices used for tracking shipments and assets are vulnerable to having transmissions intercepted, or replaced with false data, according to a security researcher who says he's decoded the data in transit.
- Colby Moore of Synack Inc. plans to present his findings at the Black Hat conference in Las Vegas next week. Unlike Globalstar's satellite phone transmissions, the device-tracking data isn't encrypted, and its origin can be spoofed -- and systems like the one Globalstar uses "are kind of fundamentally broken from the get-go," Moore tells Reuters.
- It's an architectural issue that Moore says will be hard -- or impossible -- to patch. Major oil and gas companies are among the customers for the tracking/monitoring systems.
- Globalstar shares are down 22.6% YTD, but have picked up 1% over the past month.
- The WSJ and Re/code report Google (GOOG, GOOGL) is quietly distributing a new version of Google Glass to various enterprise partners ahead of a full launch later this year. Re/code adds the device's price is expected to be "well below" the $1,500 charged for the Explorer Edition of Glass.
- The WSJ states the product is being pitched "exclusively to businesses," and that a new consumer version of Glass is still "at least a year away." The paper suggests this decision was made by Nest CEO/former iPod chief Tony Fadell, who began overseeing Glass several months ago and (perhaps owing to his Apple pedigree) "prefers to keep products under wraps until they are ready for consumer use."
- As previously indicated by 9to5 Google, the enterprise Glass model is foldable, contain a larger display, and have a more rugged/industrial design than the Explorer Edition. The WSJ notes the enterprise model does away with the Explorer Edition's wire-like frame in favor of a button-and-hinge system that lets it attach to a variety of glasses.
- Related tickers: HIMX
- Apple (NASDAQ:AAPL) plans to unveil a next-gen Apple TV set-top in September "at the same event at which it typically unveils its new iPhones," reports BuzzFeed's John Paczkowski. He previously reported Apple planned to show off the device in June at WWDC, but (along with others) later stated the launch had been postponed to fix lingering issues.
- Apple's much-rumored Web TV service reportedly isn't expected to be announced at the same time. Re/code's Peter Kafka reported in June the service might launch in late 2015, or in 2016, as negotiations with TV channel owners continue.
- As previously indicated, the next Apple TV is said to run on an A8 CPU, provide a storage upgrade, support the App Store and Siri, and come with a developer SDK. Paczkowski also states it will have a "refreshed and slimmer chassis," and a remote with touchpad input.
- The current-gen Apple TV (launched in 2012) saw its price cut by $30 earlier this year to $69. 25M+ Apple TV units have been sold over the product's lifetime.
- Previously: Apple reportedly shelved plans to launch a TV set
- On top of missing Q2 estimates, Broadcom (NASDAQ:BRCM) has guided for Q3 revenue of $2.135B (+/- $75M), below a $2.24B consensus. But with many other chipmakers having already issued soft Q3 outlooks, and Broadcom's shares now effectively linked to Avago's, the numbers are being taken in stride.
- Q2 gross margin was 56.6%, +220 bps Q/Q and +170 bps Y/Y, and above a guidance midpoint of 56%. Q3 is expected to drop to 55.3% (+/- 75 bps) in Q3. R&D spend fell 15% Y/Y to $538M thanks to Broadcom's baseband modem exit, while SG&A spend rose 3% to $188M. $128M was spent on buybacks.
- Separately, the WSJ reports the IRS has declined to promise the stock portion of Avago's (NASDAQ:AVGO) pending $37B deal to merge with Broadcom will be a tax-free transaction for Broadcom shareholders. However, if Avago ($35B market cap) remains larger than Broadcom ($31B market cap), the stock portion will be tax-free. Either way, Broadcom shareholders will owe taxes on the deal's $17B cash payout.
- Should the stock portion of the deal be taxable, Avago plans to offer Broadcom investors tax-deferring units instead of stock. That would let investors decide when to make tax payments.
- BRCM +0.6% AH. AVGO -0.9%.
- Broadcom's Q2 results, PR
- On top of beating Q2 estimates, Ellie Mae (NYSE:ELLI) is guiding for Q3 revenue of $61M-$62M and EPS of $0.31-$0.34 (above a consensus of $57M and $0.27), and full-year revenue of $237.5M-$238.5M and EPS of $1.27-$1.32 (above a consensus of $226.9M and $1.14).
- Active users of Ellie Mae's Encompass mortgage origination software rose 28% Y/Y in Q2 to 127K; active users of the SaaS version of Encompass rose 47% to 106K. Revenue per average active Encompass user rose 28% to $526.
- CEO Jonathan Corr: "With a healthy pick up in the purchase market, our customers continued to grow their businesses and close more loans during the quarter ... Our highly differentiated approach to meeting lenders needs for loan quality, regulatory compliance and operating efficiency has resulted in growth that outpaced the overall mortgage origination market as we continued to capture market share."
- Shares have risen to $73.97 AH.
- Q2 results, PR
- "We had a strong second quarter, highlighted by several key customer wins and our new installation at the King Abdullah University of Science and Technology in Saudi Arabia," says CEO Peter Ungaro in CRAY's Q2 report. "With recent wins at the Bureau of Meteorology in Australia and the Texas Advanced Computing Center, our momentum of new awards has continued and we're well positioned to deliver strong growth for the year."
- The supercomputer maker still expects full-year revenue (back-end loaded) of $715M (consensus is at $716.1M). However, operating expense guidance has been cut by $15M to $180M, and gross margin guidance to 30%-33% from 35%. Q3 revenue guidance of $140M is below a $195.7M - together with the Q2 beat, that suggests one or more deals previously expected to close in Q3 were pulled into Q2.
- Shares have jumped to $28.50 AH.
- Q2 results, PR
- Along with its Q2 results, Blucora (NASDAQ:BCOR) announces its Infospace search unit has struck a 3-year deal with Microsoft to show Bing search results and ad content on Infospace PC and mobile properties. Terms are undisclosed.
- The Bing deal is overshadowing soft Q3 guidance: Revenue of $82.5M-$90.3M and EPS of -$0.06 to -$0.14 vs. a consensus of $92.7M and -$0.03.
- Blucora's search/content revenue, still pressured by the 2014 restructuring of its Google search distribution deal, fell 35% Y/Y in Q2 to $52.1M. Tax preparation revenue rose 17% to $30.9M, and e-commerce revenue (Monoprice) rose 2% to $35.9M.
- Shares have risen to $16.00 AH.
- Q2 results, PR
- Along with its Q2 results, Maxwell (NASDAQ:MXWL) has announced a "long-term strategic partnership agreement" with Chinese railcar maker CRRC-SRI to "examine multi-year collaboration activities between the two companies to jointly develop new application-specific, next-generation capacitive energy storage solutions" for the Chinese rail market.
- Maxwell: "Rail transportation applications are an excellent match for ultracapacitors ... Our partnership with CRRC-SRI represents an excellent opportunity for us to generate meaningful revenue in a three-to-five-year horizon through the co-development of application-specific technology and products..."
- Meanwhile, making good on a demand from activist Vertex Capital, Maxwell has launched a restructuring that will reduce headcount and could lead it to divest its microelectronics business. $2.2M in cash expenses are forecast.
- Ultracapacitor sales fell 31% Y/Y in Q2 to $23.4M; high-voltage capacitor and microelectronics sales rose 18% to $14.3M. Not counting $2.3M in restructuring charges, GAAP operating expenses fell by $800K Y/Y to $16.1M. Unlike in prior quarters, Maxwell hasn't provided sales guidance within its Q2 report.
- Shares have jumped to $4.60 AH.
- Q2 results, PR
- With a Q2 beat in tow, Immersion (NASDAQ:IMMR) is narrowing its full-year revenue guidance range to $58M-$60M from $56M-$60M (consensus is at $58.6M). Net income guidance is still at $4M-$8M.
- Financials: Royalty/license revenue rose 37% Y/Y in Q2 to $15.9M; development, services, and other revenue totaled $284K. GAAP costs/expenses rose 20% Y/Y to $14M. Immersion ended Q2 with $71.6M in cash, and no debt. The deferred revenue balance is at $23.5M.
- Immersion has jumped to $12.55 AH.
- Q2 results, PR
- Up big at first in response to its Q2 beat and above-consensus sales guidance, LinkedIn (NYSE:LNKD) is now down 1% AH.
- Talent Solutions (62% of revenue) revenue rose 38% Y/Y in Q2 to $443M. However, sales within the core Hiring (jobs) segment rose 32% to $425.8M - as previously disclosed, a salesforce reorg has weighed on near-term sales. $17.6M in revenue was contributed by the Learning & Development segment, the product of the mid-May closing of the Lynda.com acquisition. Hiring accounts rose by over 2K Q/Q to over 37K.
- Marketing Solutions (ads, 20% of revenue) grew 32% to $142M, with Sponsored Updates ads accounting for 45% of revenue. Sponsored Updates revenue more than doubled, with 80% coming from mobile. On the other hand, display ad sales (under pressure at a number of companies) fell 30%. Premium subscription revenue (18% of revenue) rose 22% to $128M.
- GAAP costs/expenses rose 40% Y/Y to $792.9M. Thanks to forex and soft EMEA ad sales, international fell to 38% of revenue from 40% a year ago. Cumulative members rose by 16M Q/Q to 380M. Unique visiting members were flat Q/Q and up 16% Y/Y to 97M/month. Page views rose 37% Y/Y, with mobile accounting for 52% of traffic.
- Q2 results, PR
- Update (7:44PM ET): LinkedIn is now down 4.6% AH.
- Digital Realty Trust (NYSE:DLR) is back to flat after-hours trading following a Q2 earnings report where it beat expectations with revenues that grew nearly 5% Y/Y and 3% sequentially.
- Adjusted EBITDA of $243.4M rose 4% Y/Y (and 2% sequentially) but missed an expected $244M.
- New leases are expected to bring $37.3M in annualized GAAP rent: $31.1M in North America, $2.1M in Europe, $4.1M in Asia Pacific.
- The company bumped its full-year core FFO outlook to $5.05-$5.15/share, up from $5.03-$5.13. It also raised its outlook on core FFO/share in constant currency, to $5.20-$5.30 from $5.18-$5.28.
- It expects a $1.89B purchase of Telx to close later this year. It expects to fund part of that with $686M of net proceeds from a 10.5M-share secondary offering.
- Conference call to come at 5:30 p.m. ET.
- Press Release
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