Jul. 27, 2015, 6:27 PM
- Not counting the cash/stock Audience (NASDAQ:ADNC) acquisition (closed on July 1), Knowles (NYSE:KN) expects Q3 revenue of $275M-$295M and EPS of $0.25-$0.33, in-line with a consensus of $290.7M and $0.28.
- Audience, meanwhile, is expected to have Q3 revenue of $10M (down from Q1's $18.5M) and EPS of -$0.18. As disclosed at the time of the acquisition announcement, Audience's sales have been hit hard by declining Samsung demand
- Discussing the Q2 numbers (revenue missed, EPS beat), Knowles states "weaker-than-expected shipments to a Korean OEM and anticipated softness at a major customer in connection with its transition to a new operating system offset the strength from other customers." The former is likely Samsung, and the latter Microsoft.
- On the other hand, Knowles saw "strong sequential sales growth at a North American OEM on continued microphone share gains as well as a rebound in growth from Chinese OEMs." The former is likely Apple.
- Financials: Gross margin was 27.3%, down from 29.2% a year ago but up from 24.6% in Q1 and contributing to the EPS beat. Operating expenses were 22.4% of revenue vs. 21.8% in Q1 and 21.6% a year ago.
- Shares have risen to $18.49 AH.
- Q2 results, PR
Jul. 1, 2015, 12:37 PM
- With 89.1% of Audience (NASDAQ:ADNC) shares tendered via Knowles' (KN -0.7%) cash/stock buyout offer for the company (ended at midnight on June 30), Knowles has completed its acquisition of the mobile voice processor developer.
- As previously announced, Knowles offered $2.51/share in cash + 0.13207 shares for each Audience share. Based on Knowles' current trading price, that spells a buyout price of $4.88/share.
Jun. 29, 2015, 8:41 AM
- Assuming Knowles' (NYSE:KN) buyout offer for Audience (NASDAQ:ADNC) expires at midnight on Tuesday, as is currently planned, the company is offering $2.51/share in cash + 0.13207 shares for each Audience share. Based on Knowles' Friday close, that's equal to $4.95/share, $0.05 above Audience's Friday close.
- Knowles and Audience both sold off in late April when the acquisition was first announced. It came in tandem with an Audience Q1 report in which the company forecast a major decline in Q2 revenue from top customer Samsung.
Apr. 30, 2015, 1:45 PM
- Both acoustic component maker Knowles (KN -6.5%) and voice processor developer Audience (ADNC -13.1%) have sold off following news Knowles is acquiring Audience for $85M net of cash, or $5/share.
- Knowles is paying $2.50/share in cash and issuing between .107-.138 shares for each Audience share, depending on its average trading price "during a specified period" prior to the deal's closing, which is expected in Q3. The purchase will be financed using existing cash and credit lines.
- The buyout price is 9% below Audience's Wednesday close of $5.49. The reason: Audience (just posted Q1 results) says it has seen "material declines in forecast demand over the last thirty days from our largest customer relative to management expectations for 2Q15." The customer is widely believed to be Samsung.
- Knowles argues the deal will allow it to "deliver end-to-end solutions for acoustics from microphones to signal processing to speakers," and thereby increase its dollar content for mobile design wins. The company also highlights Audience's patent portfolio, and forecasts the deal will yield $25M/year in cost synergies. It's expected to be accretive by Q4 2016.
Apr. 30, 2015, 12:45 PM
Apr. 30, 2015, 9:19 AM
Apr. 30, 2015, 8:46 AM
- Audience (NASDAQ:ADNC): Q1 EPS of -$0.46 in-line.
- Revenue of $18.45M (-48.7% Y/Y) beats by $0.4M.
Apr. 29, 2015, 5:35 PM
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Apr. 23, 2015, 12:20 PM
- While the Nasdaq is up 0.3%, chip stocks are selling off (SOXX -1.8%) after Texas Instruments, Xilinx, and Qualcomm all provided soft calendar Q2 guidance. TI and Xilinx also missed Q1 sales estimates, while Qualcomm beat.
- Decliners include Avago (AVGO -3.7%), Qorvo (QRVO -2.5%), Freescale (FSL -3%), STMicroelectronics (STM -3.6%), Atmel (ATML -2.3%), PMC-Sierra (PMCS -2.5%), Fairchild (FCS -2.2%), Cypress (CY -2.1%), Audience (ADNC -6.6%), IDT (IDTI -4.5%), Vishay (VSH -2.9%), AppliedMicro (AMCC -2.3%), and Cavium (CAVM -4.4%). NXP, ON Semi, Linear, Microchip, and Maxim remain lower after falling AH yesterday.
- With the decliners including many microcontroller, analog/mixed-signal, and telecom equipment chipmakers, TI (TXN -7.3%) might be the biggest culprit: The analog/DSP giant blamed soft telecom equipment and consumer electronics demand for its numbers, with particular weakness in mobile infrastructure (a 2014 strong point) and PCs; auto and industrial demand was healthier.
- On its CC (transcript), TI attributed the mobile weakness to delayed carrier capacity upgrades. This morning, mobile infrastructure giant Ericsson posted a Q1 miss blamed in part on weak North American 4G spending.
- Likewise, Xilinx (XLNX -1.3%), which has strong 4G infrastructure exposure, stated on its CC (transcript) wireless sales were weaker than expected due to "continued softness in North America and a weakening in China LTE business." Wired infrastructure sales were in-line, and other markets outperformed.
- Qualcomm largely blamed its guidance on the iPhone 6's share gains and a loss of chip share at Samsung, rather than industry demand issues. Altera, Freescale, Maxim, Microsemi, and Synaptics report after the close.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
- 8 days ago: Chip stocks rally following Intel/Linear's earnings
Apr. 16, 2015, 12:08 PM
- Beaten-down Audience (ADNC +9.7%) has blasted off over the last two days after Samsung announced early demand for the Galaxy S6 (for which Audience is believed to be supplying a voice processor) is "much higher" than expected, and that it expects to eventually sell 70M+ S6 and S6 Edge units. Today's volume (217K shares) has already topped a 3-month daily average of 165K.
- The gains come ahead of Audience's April 30 Q1 report. The company had $59M in cash (equal to 42% of its current market cap) as of Dec. 31, and no debt. More than a few small-cap chip industry peers have been acquired (I, II, III).
Apr. 15, 2015, 2:19 PM
- Chip stocks are turning in a good day as Intel's Q1 report - it featured a revenue miss, in-line EPS, light Q2 guidance, solid margin and server CPU figures, and a capex budget cut - goes over well with a market that had low expectations following a March warning.
- Also: Analog/mixed-signal chipmaker Linear Technology is higher after beating FQ3 estimates, offering slightly soft guidance, and reporting healthy bookings
- After selling off in late March amid concerns about TSMC remarks and forex pressures, the Philadelphia Semi Index (SOXX +1.7%) is again within $4 of a high of $99.57. The Nasdaq is up 0.8%.
- Linear peers Texas Instruments (TXN +3.2%), Analog Devices (ADI +2.3%), Fairchild (FCS +3.4%), MagnaChip (MX +3.9%), Power Integrations (POWI +3.7%), InPhi (IPHI +4.2%), and ON Semi (ONNN +4%) are among today's standouts.
- Other gainers include Cree (CREE +3.9%), Audience (ADNC +8.5%), QuickLogic (QUIK +5.2%), Cavium (CAVM +3.1%), and reported Intel buyout target Altera (ALTR +2.4%). Audience (believed to supply a voice processor for the Galaxy S6) could be getting a lift from Samsung remarks about stronger-than-expected Galaxy S6 sales.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Apr. 6, 2015, 3:15 PM
- Today's notable tech gainers include German 3D printer maker Voxeljet (VJET +5.6%), Chinese online real estate firm SouFun (SFUN +5.3%), software outsourcing firm EPAM Systems (EPAM +8.4%), voice processor developer Audience (ADNC +6.3%), smart TV/home automation chipmaker Sigma Designs (SIGM +4.9%), #2 Chinese online travel firm Qunar (QUNR +6.7%), and international e-commerce services firm Borderfree (BRDR +7.2%). The Nasdaq is up 0.7%.
- Notable decliners include FPGA maker Altera (ALTR -4.5%), optical component vendor NeoPhotonics (NPTN -11%), big data/analytics software provider Hortonworks (HDP -4%), and online family care marketplace Care.com (CRCM -4.4%).
- EPAM has joined other Russia-exposed names in rallying, as oil prices and the ruble both move higher. Sigma is reversing Thursday's post-earnings losses. Qunar has surged to new highs yet again, and is now up 58% since its March 16 Q4 report.
- Altera is returning some of the huge March 27 gains it saw on reports of Intel buyout talks. NeoPhotonics, a recent high-flyer, is down 15% over the last 2 trading days; on Friday, the company filed an 8-K making customary exec. compensation disclosures.
- Previously covered: GoPro, Sony, Geospace, SanDisk, Voltari, VMware, Resonant, 500.com
Mar. 25, 2015, 12:03 PM
- Chip stocks are particularly hard-hit (SOXX -3.6%) on a rough day for tech. The Nasdaq is down 1.3%, and the S&P 0.7%. Going into today, good earnings reports and ongoing M&A activity had led the Philadelphia Semi Index to rise 10% from its Jan. 30 close; the index remains up nearly 2x from its fall 2012 lows.
- AMD (AMD -7.2%) is a major decliner following a UBS downgrade. AMD rival/GPU giant Nvidia (NVDA -5.2%) and memory giant Micron (MU -3.7%) are also selling off, as are merger partners NXP (NXPI -3.8%) and Freescale (FSL -3.4%), RF chipmakers Avago (AVGO -5.2%), Skyworks (SWKS -5.3%), and Qorvo (QRVO -7.1%), LED/RF chipmaker Cree (CREE -4.1%), and high-flying video processor developer Ambarella (AMBA -4.3%).
- Other decliners include telecom chipmakers/ARM server CPU vendors Cavium (CAVM -4.8%) and AppliedMicro (AMCC -4.4%), microcontroller vendors Atmel (ATML -3.5%), Cypress (CY -5.5%), and STMicroelectronics (STM -3.5%), voice processor developer Audience (ADNC -3.7%), analog/mixed-signal chipmakers Linear (LLTC -3.7%), Maxim (MXIM -3%), and Intersil (ISIL -3.5%), FPGA maker Lattice (LSCC -3.9%), and mixed-signal/wireless charging IC developer IDT (IDTI -5.4%).
- Chip equipment, IP, and foundry providers are also underperforming. Big decliners include ARM (ARMH -4.4%), KLA-Tencor (KLAC -4.2%), Lam Research (LRCX -5.4%), ASML (ASML -4.1%), TowerJazz (TSEM -4.3%), Mattson (MTSN -4.5%), Ultratech (UTEK -4.7%), and Tessera (TSRA -6.1%). ASML has been downgraded to Hold by Banco Santander.
- TSMC (TSM -4.6%) is among the decliners in spite of a Digitimes report stating the foundry giant's sales are expected to rise 0%-5% Q/Q in Q2 - consensus is for a 2% drop - with strong Apple A8 CPU orders offsetting soft Qualcomm Snapdragon 810 orders.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Mar. 2, 2015, 1:41 PM
- The Philadelphia Semi Index (SOXX +2.4%) has rallied to new highs after NXP announced it's buying microcontroller, network processor, and RF amplifier supplier Freescale for $16.7B after factoring net cash/debt, the biggest deal yet in the chip industry's ongoing consolidation wave. The Nasdaq is up 0.5%.
- Microcontroller makers are among today's big gainers - NXP/Freescale assert they'll be the world's biggest supplier of general-purpose microcontrollers. Standouts include Atmel (ATML +6%) and STMicroelectronics (STM +3.4%), as well as Cypress (CY +3.1%) and merger partner Spansion (CODE +3.2%).
- Other notable gainers include InvenSense (INVN +3.4%), Ambarella (AMBA +6.3%), Audience (ADNC +5.5%), Cirrus Logic (CRUS +3.7%), Cavium (CAVM +4.2%), ON Semi (ONNN +3.5%), Silicon Motion (SIMO +3.5%), InPhi (IPHI +3.8%), and TowerJazz (TSEM +5.5%).
- With the Mobile World Congress as a backdrop, InvenSense has unveiled a 6-axis SoC that pairs a gyroscope and acceleromoter with a motion processor and related software/algorithms; the company claims 25%-50% better power consumption than rival solutions. It has also launched a software library meant to "provide sensor-assisted positioning in places where GNSS alone cannot provide desired accuracy."
- Cavium has announced its OCTEON Fusion-M processor line for mobile base stations. The chips support up to 16 custom CPU cores running at 2GHz., and are declared by Cavium to enable "Smart Radio Heads" that can adapt to network conditions. They begin sampling in Q3.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
- Previously: Chip product launches: ARMH, EZCH, BRCM, NXPI, XLNX, IDTI
Feb. 27, 2015, 2:59 PM
- Today's notable tech gainers include IP licensing firm VirnetX (VHC +8.1%), ultracapacitor maker Maxwell (MXWL +4.7%), local services marketplace Angie's List (ANGI +5.9%), voice processor developer Audience (ADNC +5.4%), Ethernet/Wi-Fi hardware maker Extreme Networks (EXTR +3.5%), Chinese polysilicon vendor Daqo (DQ +8.3%), Chinese mobile game published Sky-mobi (MOBI +9.8%), professional video hardware/software maker Avid (AVID +5.2%), and optical component vendors NeoPhotonics (NPTN +11%) and Oclaro (OCLR +5.2%).
- Notable decliners include cloud HR/financials software leader Workday (WDAY -3.5%), cloud IT service desk software leader ServiceNow (NOW -3.7%), industrial laser maker IPG Photonics (IPGP -3.1%), FPGA/mobile sensor hub maker QuickLogic (QUIK -4.5%), and NAND controller/4G transceiver vendor Silicon Motion (SIMO -4%). The Nasdaq is down 0.5%.
- Initially up post-earnings, Workday is now down 9% since beating FQ4 revenue estimates and offering in-line FY16 revenue guidance on Wednesday afternoon. Heavily-shorted VirnetX is up 33% since announcing on Feb. 18 the USPTO had denied five Apple patent review petitions. Maxwell (also heavily shorted) is up 17% since an insider buy was disclosed a week ago. Sky-mobi is up 20% since Rosenblatt Securities provided bullish coverage yesterday.
- Previously covered: Chinese Web/mobile stocks, SanDisk, Autobytel, DigitalGlobe, GoPro, Immersion, MoSys, Resonant, Infoblox, Aruba, UniPixel, Autodesk, Universal Display, TubeMogul, Nimble Storage
Feb. 9, 2015, 2:55 PM
- Today's notable tech gainers include 3D printer maker ExOne (XONE +6%), data center switch vendor Arista (ANET +4.2%), solar microinverter maker Enphase (ENPH +6.1%), ID theft-protection services firm LifeLock (LOCK +6.8%), voice processor developer Audience (ADNC +10.3%), contract manufacturer Multi-Finline (MFLX +10.2%), and cloud file-sharing platform/recent IPO Box (BOX +9.1%).
- Notable decliners include flash storage array vendor Violin Memory (VMEM -5.6%), ultracapacitor maker Maxwell (MXWL -6.3%), SMB Web services provider Wix.com (WIX -4.8%), salvage auction site Liquidity Services (LQDT -5.4%), and carrier billing software/cloud services provider Synchronoss (SNCR -5.6%). The Nasdaq is down 0.3%.
- LifeLock reports earnings tomorrow afternoon. Audience is four days removed from beating Q3 estimates and offering in-line guidance. Arista is reversing its Friday's losses, and Box is adding to the Friday gains that came after a positive Jim Cramer mention.
- Synchronoss is adding to the losses seen last week after the company offered cautious 2015 cloud revenue guidance to go with a Q4 beat, and Maxwell to the losses seen due to the soft Q1/2015 guidance provided with a Q4 beat. Liquidity is giving back some of last week's huge post-earnings gains. Wix reports on Wednesday morning.
- Earlier: GoPro, Yelp see more post-earnings pain
- Earlier: Chinese solar stocks rally