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Fri, Jan. 29, 3:27 PM
- Several Apple suppliers are seeing major gains after iPhone power amplifier supplier Skyworks (SWKS +5.5%) and iPhone LCD driver IC supplier Synaptics (SYNA +10.6%) delivered their calendar Q4 reports yesterday afternoon - Skyworks beat estimates, while Synaptics (initially lower) missed on sales and beat on EPS.
- Both companies provided soft Q1 guidance (I, II) - Synaptics also suggested it's seeing weakness at multiple top smartphone OEMs . But with nearly every other iPhone supplier to have reported (not to mention Apple itself) having also guided light, shares are rallying nonetheless.
- Big gainers include mobile DRAM supplier Micron (MU +11.1%), microphone supplier Knowles (KN +11.2%), motion sensor supplier InvenSense (INVN +7.5%), audio codec chip supplier Cirrus Logic (CRUS +6.6%), NFC chip/motion co-processor supplier NXP (NXPI +5.9%), and RF chip suppliers/Skyworks rivals Qorvo (QRVO +6.8%) and Avago (AVGO +5.6%). The Nasdaq is up 1.8%.
- Micron could also be getting a lift from the market-pleasing reports delivered by hard drive giants Seagate and Western Digital, given Micron is exposed to many of the same end-markets as Seagate/Western.
Cirrus Logic is adding to the big Thursday gains seen after the company provided encouraging FY17 comments in its FQ3 earnings call. InvenSense has more than recovered the Thursday losses seen after the company provided soft FQ4 guidance and suggested it had lost share at Samsung.
- Possibly helping Synaptics out: When asked about M&A reports on the earnings call, CEO Rick Bergman didn't quite shoot them down. "[W]e're not going to comment on rumors or market speculation ... at the end of the day it is our job to maximize shareholder value so we'll listen to any great ideas that can do that and evaluate them appropriately."
Meanwhile, Bergman asserted Synaptics' TDDI (integrated touch controller/display driver) sales are due to ramp strongly thanks to numerous design wins at top LCD panel makers, and that its ClearForce pressure-response tech will be "a significant differentiator" for Synaptics' TDDI offerings.
Thu, Jan. 28, 6:17 PM
- Initially flat after hours yesterday after providing light FQ4 guidance in its FQ3 report, Cirrus Logic (NASDAQ:CRUS) surged above $32 today.
- Likely helping out: When asked on its earnings call (transcript) about FY17 (ends March '17) growth, Cirrus suggested it could be above 15% (consensus is at 14%). "If you look at our model in general, we think one of the things -- one of the characteristics of a successful company, one of the things we pay our people on in a lot of cases is tied to 15% revenue growth. So, if were excited about revenue growth and we expect it to be strong, then you can certainly imagine that our expectations are higher than that. But again, there's all sorts of moving parts that we don't get to control."
- Oppenheimer's Rick Schafer is pleased with the FY17 commentary and has upgraded to Outperform. “We believe this [15%+] growth supports material (+60%- plus) content gains in the upcoming IP7. In a flattish smartphone unit market, our math suggests CRUS has earnings power of $4+ in CY17.”
- Three weeks ago, Pac Crest upgraded to Overweight, while suggesting Cirrus could supply a smart codec IC for noise-cancelling earbuds that the firm thinks could ship with the iPhone 7, which is expected to ditch the 3.5mm headphone jack in favor of plugging in through a Lightning port.
- Schafer offers similar commentary today: ""We believe CRUS has secured a smart codec enabling active noise cancellation in AAPL's earbuds for the IP7. CRUS saw its content in the IP6s jump ~60% to $3.50 vs the IP6. We estimate the additional smart codec socket could raise CRUS' ASP by $2+ to ~$5.50 in the IP7."
- Cirrus' FQ3 results, guidance/details
Thu, Jan. 28, 9:23 AM
- Gainers: NEOS +59%. DNR +17%. BCEI +16%. UA +16%. FB +14%. INO +13%. ATHX +12%. PBR +12%. WLL +11%. MRO +10%. [[PBR-A]] +10%. TRXC +9%. CHK +9%. MLNX +9%. LINE +9%. MT +9%. SDRL +8%. HOG +8%. ETE +8%. STO +8%. CRUS 7%. KMI 7%. BBL 6%. HCA 6%. MJN 6%. CJES 6%. PYPL 6%.
- Losers: NOW -22%. OSIS -22%. EBAY -11%. INVN -10%. URI -10%. INCY -9%. JNPR -10%. OAS -7%.
Wed, Jan. 27, 4:36 PM
- Cirrus Logic's (NASDAQ:CRUS) reported FQ3 sales of $347.9M were slightly above the guidance ($347M) provided in its Jan. 7 warning. However, a day after top client Apple issued light guidance, Cirrus is guiding for FQ4 revenue of $210M-$240M, below a $260.3M consensus.
- FQ3 GAAP gross margin was 47.4%, +100 bps Q/Q and +360 bps Y/Y, and above the midpoint of a 46%-48% guidance range. FQ4 GAAP GM guidance is at 47%-49%.
- Portable audio product sales - a huge % of them go to Apple and (to a lesser extent) Samsung - rose 22% Y/Y to $308.8M. Non-portable audio and other product sales fell 14% to $39.1M. Thanks to strong R&D spend (much of it directed towards smart codec R&D), GAAP operating expenses rose 17% Y/Y to $101M.
- CRUS -0.1% after hours to $27.99.
- Cirrus' FQ3 report, earnings release
Wed, Jan. 27, 8:18 AM
- Though expectations were low following warnings from Cirrus Logic, Qorvo, Analog Devices, and others, iPhone/iPad suppliers are down after Apple missed FQ1 (calendar Q4) revenue estimates (while beating on EPS), and offered soft FQ2 guidance - revenue of $50B-$53B vs. a $55.6B consensus and year-ago sales of $58B.
- FQ1 iPhone sales of 74.8M were close to Street expectations, but iPad and Mac shipments (16.1M and 5.3M, respectively) were below. On its earnings call, Apple mentioned forex swings and Chinese macro pressures are weighing on sales.
- Cirrus Logic (NASDAQ:CRUS), which reports this afternoon, is down 2% premarket. Qorvo (QRVO - reports Feb. 4) -2.7%, Skyworks (SWKS - reports tomorrow) -2%, Analog Devices (NASDAQ:ADI) -3%. Apple (NASDAQ:AAPL) itself is down 3.7%. Nasdaq futures are off 0.7%.
Fri, Jan. 22, 3:30 PM
- Plenty of tech names crushed over the first 20 days or so of January are sharply higher as the Nasdaq (up 2.4%) continues rebounding from Wednesday's intraday lows. Many still have sizable YTD losses.
- Big gainers among telecom equipment/component firms: Optical component vendors Oclaro (OCLR +9.5%) and NeoPhotonics (NPTN +6%), mobile infrastructure/services giant Ericsson (ERIC +6.2%), optical networking hardware vendor Infinera (INFN +5.2%), and microcap RF backhaul hardware firms DragonWave (DRWI +24.3%) and Ceragon (CRNT +10%). Ericsson underperformed yesterday following a pre-earnings Goldman downgrade.
- Among enterprise tech firms: Threat-prevention technology and services provider FireEye (FEYE +7.7%), big data software provider Hortonworks (HDP +16.1%), security software/services firm Rapid7 (RPD +9.1%), data governance software firm Varonis (VRNS +5.6%), and flash storage array vendor Violin Memory (VMEM +13.6%). FireEye fell slightly yesterday after making a Q4 pre-announcement and announcing a $200M+ acquisition. Hortonworks was crushed on Tuesday after a Q4 pre-announcement and stock offering shelf registration.
- Among chip industry firms: RF chipmaker Skyworks (SWKS +6%), audio codec developer Cirrus Logic (CRUS +7.3%), smart TV/home automation chipmaker Sigma Designs (SIGM +6.5%), FPGA/sensor hub maker QuickLogic (QUIK +9.2%), and chip equipment firms Axcelis (ACLS +4.9%) and Aixtron (AIXG +4.9%). Major Cirrus/Skyworks client Apple reports on Tuesday afternoon.
- Also up big: 3D printer maker 3D Systems (DDD +7.1%), Russian search leader Yandex (YNDX +7.5%), mortgage origination software firm Ellie Mae (ELLI +6.4%), Chinese solar firm Yingli (YGE +11.4%), and SMB Web services provider Wix.com (WIX +5.3%).
- Previously covered: Rosetta Stone, Live Ventures, HP Enterprise, Mitel, Mobileye, Qorvo, SunPower, SolarCity
Thu, Jan. 14, 4:00 PM
- Cirrus Logic (CRUS +6.6%) and Multi-Fineline (MFLX +15.6%), each of which get a giant portion of their sales from Apple, were among the tech standouts on a day the Nasdaq rose 2%. Possibly helping: TSMC (up 6.6%), which manufacturers chips for Apple and a slew of iPhone suppliers (including Cirrus), posted a Q4 EPS beat and offered in-line Q1 guidance that was better than feared.
- TSMC also suggested Chinese smartphone demand (weak for much of 2015) is starting to improve. The report comes six days after Cirrus (aided by a Pac Crest upgrade and hopes of headphone smart codec design wins) rallied following an FQ3 warning that followed reports of iPhone-related order cuts. Cirrus' FQ3 report arrives on Jan. 27, the day after Apple reports.
- Multi-Fineline fell sharply yesterday after cutting its Q4 revenue guidance and forecasting a ~30% Q/Q Q1 sales drop. The circuit board maker's Q4 report is due on Feb. 4.
Fri, Jan. 8, 9:41 AM
- Down sharply in after hours trading yesterday following an FQ3/FQ4 warning, Cirrus Logic (NASDAQ:CRUS) has staged a reversal today, as markets decide the bad news was priced in following a 5-week selloff fueled in part by reports of iPhone sales weakness and order cuts.
- Helping out: Pac Crest's John Vinh has upgraded to Overweight, arguing Cirrus' selloff is a buying opportunity and stating CES meetings with headphone OEMs lead him to believe the company has an earbud headphone opportunity with the iPhone 7, which is rumored to ditch the standard 3.5mm headphone jack in favor of plugging in with a Lightning port.
- Vinh notes he saw several headphones at CES that sported Lightning connectors, and that OEMs asserted the use of a digital connector improved sound quality and gave them the ability to embed a smart codec IC (such as Cirrus') in the headphone. "In our view, Apple needs a compelling feature upgrade, which noise-canceling earbuds would provide." He sees an incremental $2 content opportunity for Cirrus with the iPhone 7.
Thu, Jan. 7, 4:14 PM
- Qorvo (NASDAQ:QRVO) now expects FQ3 revenue of $620M, well below prior guidance of $720M-$730M and a $723.7M consensus. The RF chipmaker blames "weaker than forecasted customer demand in the Company's Mobile Products segment."
- Revenue is expected to be flat Q/Q in FQ4. Consensus is at $641.9M. "Above-market revenue growth" is forecast for calendar 2016. FQ3 results are due on Feb. 4.
- Cirrus Logic (NASDAQ:CRUS) now expects FQ3 revenue of $347M, below prior guidance of $370M-$400M and a $386M consensus. Cirrus: "Our preliminary revenue results reflect weaker than anticipated demand for certain portable audio products. This weakness escalated over the last few weeks of December and is expected to continue to significantly impact our revenue in the March quarter."
- The audio codec developer still expects "meaningful" FY16 (ends March '16) revenue growth, and expects several new product launches to drive strong FY17 growth. FQ3 results arrive on Jan. 27.
- Both Qorvo and Cirrus are iPhone suppliers, with Cirrus getting well over half its revenue from Apple (NASDAQ:AAPL). The warnings follow multiple reports indicating Apple has cut iPhone-related orders. Cirrus has dropped to $24.52 after hours.
- Update (5:14PM ET): Qorvo is down 10.2% after resuming trading. Many other Apple suppliers are also lower.
Tue, Jan. 5, 12:32 PM
- Citing several parts suppliers, Japan's Nikkei reports Apple (AAPL -2.1%) is "expected to reduce output of the iPhone 6s and 6s Plus by around 30% in the January-March quarter compared with its original plans."
- The paper adds Apple initially told component suppliers to keep production even with that seen for the iPhone 6/6+ a year ago, but has seen 6S/6S+ inventories pile up "at retailers in markets ranging from China and Japan to Europe and the U.S."
- In December, Apple sold off after long-time bull Morgan Stanley forecast (in response to checks) iPhone unit sales will drop 6% in FY16 (ends in September), and added to its losses after Dialog Semi (gets over half its sales from Apple) issued a Q4 warning. In November, Credit Suisse reported of component order cuts.
- Apple is trading near $103 following the Nikkei's report. Suppliers Cirrus Logic (CRUS -4.6%), Skyworks (SWKS -5.2%), Qorvo (QRVO -4.8%), Avago (AVGO -1.9%), and InvenSense (INVN -2.7%) are also under pressure.
- Update: Morgan Stanley reacts to the Nikkei's report by noting a 30% production cut is more than the ~20% it was modeling. (source: Notable Calls)
Dec. 15, 2015, 11:24 AM
- InvenSense (INVN -5.2%) and Cirrus Logic (CRUS -4.7%) have been hit hard after U.K. power management chipmaker Dialog Semi, which gets over half its sales from Apple, cut its Q4 revenue guidance to $390M-$400M from $430M-$460M.
- The revision comes less than two months after Dialog plunged (and took Apple and its suppliers lower with it) in response to a Q3 miss and weak Q4 guidance. It also comes a day after Apple and various suppliers slumped in the wake of Morgan Stanley iPhone estimate cuts.
- Cirrus received 63% of its calendar Q3 revenue from Apple, and 18% from Samsung. InvenSense received 34% from Apple and 19% from Samsung.
Dec. 11, 2015, 3:21 PM
- A long list of tech firms are off sharply as the Nasdaq and S&P respectively drop 2% and 2.2% ahead of an expected Fed rate hike.
- The casualty list includes threat-prevention hardware/software provider FireEye (FEYE -6.2%), machine data analytics software vendor Splunk (SPLK -7.1%), driver-assistance system vendor Mobileye (MBLY -6.3%), supercomputer makers Cray (CRAY -7.6%) and Silicon Graphics (SGI -7%), audio codec chipmaker Cirrus Logic (CRUS -5.3%), and local services marketplace Angie's List (ANGI -6.3%).
- Others include cloud HR/financials software provider Workday (WDAY -5.6%). enterprise social networking software firm Jive Software (JIVE -5.9%), cloud telematics software provider FleetMatics (FLTX -5.2%), mobile accessory maker Zagg (ZAGG -7.5%), network visibility/monitoring hardware provider Gigamon (GIMO -5.8%), smart grid networking hardware/software provider Silver Spring (SSNI -8.9%), and online travel deals provider Travelzoo (TZOO -6%).
Nov. 10, 2015, 8:32 AM| Nov. 10, 2015, 8:32 AM | 16 Comments
Oct. 29, 2015, 12:29 PM
- Down on Monday following Dialog Semi's Q3 report and up yesterday in the wake of Apple's results/guidance, chip stocks are selling off again (SOXX -2.5%) after leading microcontroller vendor NXP (NXPI -18.2%) posted mixed Q3 results and (more importantly) guided for Q4 revenue to be down by a "low to upper-teens" % Q/Q. The Nasdaq is down 0.3%.
- Also: 1) NXP rival and fellow European chipmaker STMicroelectronics (STM -5.8%) slightly missed Q3 revenue estimates and has guided for Q4 revenue to be down 6% (+/- 3.5%) Q/Q. 2) Network processor vendor Cavium (CAVM -5%) issued light Q4 guidance, while blaming a distribution model change at its biggest data center customer. 3) Microcontroller maker Atmel (ATML -2.4%, set to be acquired by Dialog) missed Q3 revenue estimates and guided for Q4 revenue of $266M-$286M, below a $296.1M consensus.
- On the bright side, Apple-dependent Cirrus Logic (CRUS -5.7%) beat FQ2 EPS estimates (revenue was in-line) and provided solid FQ3 guidance, and fellow Apple/Samsung supplier InvenSense (INVN +14.3%) beat FQ2 estimates and issued in-line FQ3 guidance. Cirrus is nonetheless selling off; the earnings call (transcript) was generally upbeat, with management talking up FY16/FY17 growth opportunities related to smart codec and boosted amplifier sales.
- NXP merger partner Freescale (FSL -15.4%) is naturally seeing big losses. Other decliners include RF chipmakers Skyworks (SWKS -3.1%), Avago (AVGO -6%), and Qorvo (QRVO -2.6%), analog/mixed-signal chipmakers Texas Instruments (TXN -3%), ON Semi (ON -5.9%), MagnaChip (MX -6.8%), Fairchild (FCS -4.3%), Maxim (MXIM -3.1%), and IDT (IDTI -5.2%), and smart TV SoC vendor/STMicro rival Sigma Designs (SIGM -3.2%).
- Like NXP, Cirrus, and InvenSense, Skyworks, Avago, Qorvo, TI, and Fairchild are Apple suppliers. Fairchild and Maxim have recently benefited from M&A reports (I, II).
- Both NXP and STMicro reported seeing conditions deteriorate as Q3 progressed. NXP added lower-than-expected chip sell-through led to higher channel inventories, and STMicro stated "lower consumer spending in China is impacting the dynamics of the distribution channel in the region and the industry more globally, particularly in automotive." NXP has added 20M shares to its buyback in an attempt to soften the blow.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Oct. 28, 2015, 4:37 PM
- In addition to beating FQ2 EPS estimates (while posting in-line revenue), Cirrus Logic (NASDAQ:CRUS) is guiding for FQ3 revenue of $370M-$400M vs. a $374M consensus.
- $200M has been added to Cirrus' buyback, raising its available funds to $232.5M. That's good for repurchasing 11% of shares at current levels.
- FQ2 GAAP gross margin was 46.4%, -50 bps Q/Q and -140 bps Y/Y, but within a 45%-47% guidance range. FQ3 GM guidance is at 46%-48%. Thanks to R&D investments and the Wolfson acquisition, operating expenses (non-GAAP) rose 41% Y/Y to $80.9M.
- Shares have risen to $33.01 after hours. They rose 7.7% in regular trading in response to Apple's earnings/guidance.
- FQ2 results, PR
Oct. 27, 2015, 7:48 PM
- Apple beat estimates with the help of ASP/margin strength and 99% Greater China growth, reported 48M iPhone sales (consensus was around 48.5M), and guided for FQ1 revenue of $75.5B-$77.5B vs. a $77.1B consensus. The numbers are good enough for chip suppliers hammered yesterday thanks to Dialog Semi's Q3 report to move higher.
- Cirrus Logic (NASDAQ:CRUS) is up 2% after hours ahead of tomorrow afternoon's FQ2 report. Skyworks (NASDAQ:SWKS) is up 1.7%, Avago (NASDAQ:AVGO) is up 2%, InvenSense (INVN - reports tomorrow) is up 2.2%, NXP (NXPI - reports tomorrow) is up 1.3%, and Qorvo (NASDAQ:QRVO) is up 1%.
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