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Wed, Jan. 27, 10:24 AM
- Along with its Q4 results, Q1 guidance, and restructuring plans, STMicroelectronics (STM +4%) says it's cutting 1,400 jobs - 430 in France through a voluntary departure plan, 670 in Asia, and 120 in the U.S. The company expects $170M/year in savings and $170M in restructuring costs.
- Along with the job cuts, STMicro says it's discontinuing "the development of new platforms and standard products" for its set-top and home gateway IC lines. 600 employees will be redployed from the company's set-top chip ops to "support principally ST's growth ambitions in digital automotive and microcontrollers."
- STMicro: "The slower than expected market adoption of leading-edge products and increasing competition on low-end [set-top] boxes, combined with the required high level of R&D investment, has led this business to generate significant losses in the course of the last years." Broadcom (BRCM -0.1%), which is due to officially be acquired by Avago (AVGO -3.1%) on Feb. 1, has been STMicro's top rival in the set-top/home gateway IC space, and stands to benefit from STMicro's move.
- The French government has responded to the news by stating STMicro needs a new strategy. Spokesman Stephane Le Foll: "We want a new strategy put in place to allow this company to create value and recover."
- STMicro continues trading higher post-earnings. Avago is joining other iPhone/iPad suppliers in selling off following Apple's earnings/guidance. the Nasdaq is down 1.2%.
Thu, Jan. 7, 4:22 PM
- Qorvo and Cirrus Logic have both issued calendar Q4 warnings after the bell, and indicated calendar Q1 sales will also be soft. The warnings come in the wake of reports indicating Apple has cut iPhone production and component orders.
- Fellow iPhone suppliers are selling off in response. Skyworks (NASDAQ:SWKS) -4% after hours. Avago (NASDAQ:AVGO) -4.3%. NXP (NASDAQ:NXPI) -1.6%. InvenSense (NYSE:INVN) -2.5%. Broadcom (BRCM - set to be acquired by Avago) -1.3%. Synaptics (NASDAQ:SYNA) -1.7%. Jabil (NYSE:JBL) -0.7%.
- Many of the aforementioned names had already seen steep losses in regular trading, as the Nasdaq fell 3% amid a broad market selloff.
Wed, Jan. 6, 5:52 PM
- Amazon's (NASDAQ:AMZN) Annapurna Labs chip unit, acquired a year ago for a reported $350M, has unveiled (amid CES) a set of 32-bit and 64-bit ARM-based (NASDAQ:ARMH) processors for home gateways, Wi-Fi routers, and NAS storage appliances, along with related subsystems.
- The chips, to be sold under the Alpine label, target a low-end networking/storage processor market in which Marvell (NASDAQ:MRVL), Cavium (NASDAQ:CAVM), Intel (NASDAQ:INTC), and Broadcom (NASDAQ:BRCM) are notable players. Annapurna suggests the Alpine line will be differentiated in part by offering superior general-purpose computing power, thus allowing it to support more higher-level services. It also promises Alpine will support 4K video streaming 10G Ethernet and PCIe Gen3 connectivity, low power consumption, and enterprise-class reliability.
- Asus and Netgear plan to use Alpine. To date, Amazon has been tight-lipped about its plans for Annapurna. There has been speculation the Israeli chipmaker will develop low-power ARM server CPUs that will go into AWS' data centers. For now, AWS continues relying on Intel's x86 server CPUs.
- Earlier: AWS cuts cloud computing prices; Rackspace sells off
Dec. 3, 2015, 9:15 AM
Dec. 2, 2015, 5:40 PM
Dec. 2, 2015, 5:02 PM
- Avago (NASDAQ:AVGO) has jumped to $142.24 after hours after beating FQ4 EPS estimates, posting in-line revenue, and issuing FQ1 sales guidance that was below consensus but better than feared in light of soft guidance from other chipmakers and reports of Apple component order cuts. Merger partner Broadcom (NASDAQ:BRCM) has risen to $57.47.
- Financials: Lifting FQ4 EPS: Gross margin (non-GAAP) was 62%, up from 61% in FQ3 and 58% a year ago, and above a guidance midpoint of 60.5%. FQ1 GM guidance is at 61% (+/- 1%). Operating expenses rose 12% Y/Y to $338M, slightly topping guidance of $336M. Avago ended FQ4 with $1.82B in cash, and $3.9B in debt.
- Top-line performance: Wireless communications chip sales (37% of revenue, driven in FQ4 by iPhone orders) rose 10% Q/Q and 8% Y/Y. Enterprise storage (LSI/Emulex, 35% of revenue) rose 9% Q/Q and 38% Y/Y; the Emulex purchase boosted Y/Y growth. Wired infrastructure (optical components, 20% of revenue) rose 2% Q/Q and 7% Y/Y. Industrial/other (8% of revenue, hurt by inventory correction) fell 10% Q/Q and 7% Y/Y.
- Avago's results/guidance, PR
Nov. 17, 2015, 5:46 PM
- Broadcom (NASDAQ:BRCM) declares $0.14/share quarterly dividend, in line with previous.
- Forward yield 1.07%
- Payable Dec. 14; for shareholders of record Nov. 30; ex-div Nov. 25.
Nov. 10, 2015, 6:21 PM
- As expected, both Avago (NASDAQ:AVGO) and Broadcom (NASDAQ:BRCM) shareholders have approved the companies' planned merger. Avago states over 99% of shareholder votes were cast in favor of the deal. (PRs: Avago, Broadcom)
- The deal is expected to close in late 2015 or early 2016, following (expected) regulatory approvals; EU regulators are reportedly set to sign off. As previously announced, Broadcom shareholders can elect to receive either $54.50/share in cash or 0.4378 shares (current value of $52.47), with half the total payout in cash and half in stock.
- Avago fell 5.3% and Broadcom fell 3.3% in regular trading following a Credit Suisse report stating Apple has cut iPhone component orders by up to 10%.
Nov. 3, 2015, 6:19 AM
- EU antitrust regulators are set to unconditionally approve Avago Technologies' (NASDAQ:AVGO) proposed $37B takeover of Broadcom (NASDAQ:BRCM), according to Reuters.
- The acquisition is one in a series of global semiconductor deals this year, with consolidation driven by demand for cheaper chips and new products to power Internet-connected devices.
Oct. 26, 2015, 4:08 PM
- Broadcom (NASDAQ:BRCM): Q3 EPS of $0.77 beats by $0.03.
- Revenue of $2.19B (-3.2% Y/Y) beats by $50M.
- No guidance provided in earnings release.
- Shares +1.8% after hours.
Oct. 26, 2015, 10:52 AM
- Apple suppliers Qualcomm (QCOM -2.9%), Cirrus Logic (CRUS -10.1%), Skyworks (SWKS -5.1%), Qorvo (QRVO -5%), Avago (AVGO -4.2%), Broadcom (BRCM -2.3%), NXP (NXPI -3.5%), InvenSense (INVN -2.1%), Synaptics (SYNA -4.4%), and Analog Devices (ADI -2.7%) are selling off after iPhone/iPad power management IC supplier Dialog Semi (down 18.8% in Frankfurt) reported 18% Y/Y Q3 revenue growth and guided for annual Q4 growth to be in a range of -1% to +6%. Both the Q3 sales and Q4 guidance missed consensus estimates.
- NXP merger partner Freescale (FSL -2.9%) is also lower. As is Atmel (ATML -8.1%), which is set to merge with Dialog in a cash/stock deal. Atmel was originally due to receive over half its payout in Dialog shares, whose value has fallen considerably since the deal was announced in mid-September.
- Broadcom, set to merge with Avago, reports after the bell. Apple reports tomorrow, and Cirrus, NXP, and InvenSense on Wednesday. With the help of improving demand and ongoing M&A, chip stocks had bounced strongly from their August/September lows in recent weeks.
Oct. 25, 2015, 5:35 PM
Oct. 6, 2015, 12:57 PM
- Skyworks (NASDAQ:SWKS) has tumbled towards $75 after announcing it's buying storage and telecom IC vendor PMC-Sierra (NASDAQ:PMCS) for $2B in cash on hand. (PR)
- Fellow RF chipmaker Avago (AVGO -6.7%), which (thanks to the LSI acquisition) competes against PMC-Sierra in the storage controller market, is also off, as is merger partner Broadcom (BRCM -3.2%), which competes against PMC to an extent in the telecom IC and network processor markets. RF peer Qorvo (QRVO -3.3%) is also getting hit. The Nasdaq is down 1.2%.
- Possibly hurting the group: Skyworks has used the PMC deal to announce it expects FQ4 (calendar Q3) revenue of $880M and EPS of $1.52. That's slightly above prior guidance of $875M and $1.51 and a consensus of $876M and $1.51, but expectations have been high following a long string of beat-and-raise quarters.
- The PMC acquisition expands Skyworks' reach to a slew of non-RF chip markets and enterprise/telecom infrastructure end-markets. It's expected to yield $75M in cost synergies within 12 months of closing (expected in 1H16), and subsequently boost Skyworks' annual EPS by $0.75. Assuming that target is hit, Skyworks is paying 14x forward EPS.
- Update (1:04PM ET): BofA/Merrill is defending Skyworks and Avago, arguing forward P/Es of less than 10 make shares very cheap.
- Update 2 (5:01PM ET): The group staged a comeback in afternoon trading. Skyworks closed down 1.4%, Avago 3.4%, Qorvo 1.1%, and Broadcom 1.6%. The Nasdaq closed down 0.7%.
Sep. 29, 2015, 6:52 PM
- Bloomberg reports Aquantia, a top provider of transceivers (PHYs) for running 10G Ethernet over copper wire (10GBASE-T), is planning to go public.
- Aquantia was founded in 2004 and has raised over $200M since. Its chips are used within enterprise and cloud data centers - the latter market has seen rapid growth - enterprise campus networks, and mobile infrastructure networks.
- Broadcom (NASDAQ:BRCM) is a major rival; Aquantia claimed last year it had 70% of the 10GBASE-T transceiver market. Adoption of more powerful 25G and 40G links (typically run over optical cables) has been picking up in cloud data centers, with 100G adoption expected to pick up going forward.
- With high R&D costs and tough competition from bigger rivals restricting VC funding, chip IPO activity remains at a small fraction of Dot.com bubble levels. Meanwhile, publicly-traded chipmakers continue merging at a brisk pace.
Sep. 28, 2015, 7:03 PM
- iFixit's teardown of the 4.7" iPhone 6S turned up two Skyworks (NASDAQ:SWKS) power amplifier modules, much like last year's teardown of the iPhone 6+. However, its teardown of the 5.5" iPhone 6S+ also uncovered a cellular/GPS receive low noise amplifier (LNA) and filter module.
- B. Riley's Craig Ellis thinks the teardowns point to dollar content improvements relative to the 6/6+. "[T]he 'power amplifier module’s (green) baseband-like size (orange) and larger footprint versus similar functional parts from AVGO (blue) /QRVO (yellow) suggest it packs multiple PA’s, filters and switches – we believe it alone is multiple dollars in content ... We believe the [receive module] win is for just the Plus so it’s a modest negative; it’s one of two devices but it’s an integrated component we believe worth over a dollar in content. Lastly, we believe SWKS retains [Wi-Fi power amplifier] parts in both devices channel count goes from one to two, doubling content."
- Meanwhile, Chipworks' 6S teardown turned up two Avago (NASDAQ:AVGO) power amplifier modules, even with the iPhone 6. Craig-Hallum thinks the company is getting $6.75 per 6S unit, up from $6.50 with the iPhone 6. Avago merger partner Broadcom (NASDAQ:BRCM) is still believed to be supplying a Wi-Fi/Bluetooth combo chip (housed inside a Wi-Fi module).
- Chipworks also found four Texas Instruments (NASDAQ:TXN) chips - a charger IC, a power management IC, a display driver, and an unidentified part labeled 6BB27. Last year's iFixit teardowns uncovered a TI touch transmitter IC.
Sep. 15, 2015, 7:23 PM
- Looking to better cater to growing use of 25G and 100G Ethernet links within data centers (particularly among cloud service providers and others with high-end performance needs), Arista (NYSE:ANET) has rolled out the 7060CX-32S, a top-of-rack (i.e. "leaf") switch that can deliver 10, 25, 40, 50, and 100G links on 32 ports while consuming a modest 1RU of rack space.
- Other new Arista switches include the 7260CX-64, which provides 64 100G links in a 2RU chassis, and the 7320CX-32C, modular switches supporting 32 100G ports that can be combined to form 256-port systems. 25G links are increasingly being used to connect servers with top-of-rack switches, while 40G and 100G links are being adopted to aggregate traffic to and from servers.
- The hardware relies on Broadcom's (NASDAQ:BRCM) StrataXGS Tomahawk switching chip, which delivers up to 3.2Tbps of switching capacity. Cisco and Dell have also announced Tomahawk-based switches. Mellanox is looking to challenge Broadcom with its 6.4Tbps Spectrum switching chips (used in 10-100G-capable Mellanox switches), while Cavium is going after the market with its 3.2Tbps Xpliant chips.
- Also: Arista has added new high-availability features for its EOS OS (powers the company's switches). The features enable software upgrades and port speed changes to occur without any effect on uptime or service quality.
- Arista remains down 19% from last Tuesday's close, thanks to reports the ITC staff has concluded the company infringes 3 Cisco patents. RBC and SunTrust have defended Arista, with the former arguing Arista might be able to come up with a workaround for Cisco's IP.
Broadcom Corp is provider of semiconductors for wired and wireless communications. It provides a portfolio of SoCs that seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments.
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