PMC - Sierra, Inc. (PMCS) - NASDAQ
  • Mon, Jan. 11, 9:35 AM
    • Microsemi (NASDAQ:MSCC) now expects FQ1 revenue to to be near the high end of a $325M-$329M guidance range; consensus is at $326.2M. FQ1 results are due on the afternoon of Jan. 28.
    • The company adds it has obtained (through a $450M debt offering and credit facility commitments) the financing needed to close its $2.5B cash/stock purchase of PMC-Sierra (NASDAQ:PMCS), and has also seen the end of a U.S. antitrust waiting period. Closing is expected on Friday.
    • Microsemi reiterates its goal of achieving $100M/year in deal synergies, with $75M achieved in the first full quarter of combined operations. As previously announced, Microsemi is paying $9.22 in cash and issuing 0.0771 shares for each PMC-Sierra share.
    | Mon, Jan. 11, 9:35 AM | 2 Comments
  • Oct. 26, 2015, 4:15 PM
    • PMC - Sierra (NASDAQ:PMCS): Q3 EPS of $0.13 beats by $0.02.
    • Revenue of $133.57M (-1.4% Y/Y) beats by $4.95M.
    • Shares +1.03%.
    | Oct. 26, 2015, 4:15 PM
  • Oct. 25, 2015, 5:35 PM
    | Oct. 25, 2015, 5:35 PM | 2 Comments
  • 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%.
    | Oct. 6, 2015, 12:57 PM | 9 Comments
  • Jul. 24, 2015, 3:07 PM
    • In addition to missing Q2 estimates, PMC-Sierra (NASDAQ:PMCS) guided on its earnings call (transcript) for Q3 revenue of $126M-$136M and EPS of $0.11-$0.12, below a consensus of $142.5M and $0.13.
    • The company blames its top-line pressures on weak chip sales to carrier and storage market clients. Telecom capex has been pressured for some time, and various storage industry firms have reported seeing weak sales (cloud storage appears to be playing a role).
    • On the bright side, PMC expects the storage industry's migration from 6-gig to 12-gig serial-attached SCSI (SAS) to drive over 10 points of share gains over the next 12-18 months, and for OTN switching adoption to boost telecom chip sales.
    • In tandem with the numbers, PMCS has announced it's cutting 200 jobs (14% of its workforce) as part of an effort to lower spending by 14%. The cost cuts are expected to yield $40M/year in savings.
    • Shares are less than $0.25 away from a 52-week low of $6.52.
    • Q2 results, PR
    | Jul. 24, 2015, 3:07 PM
  • Jul. 23, 2015, 4:22 PM
    • PMC - Sierra (NASDAQ:PMCS): Q2 EPS of $0.09 misses by $0.02.
    • Revenue of $124.77M (-1.6% Y/Y) misses by $8.46M.
    | Jul. 23, 2015, 4:22 PM
  • Jul. 23, 2015, 2:56 PM
    • Application delivery controller/security hardware vendor F5 (FFIV +6.9%) beat FQ3 estimates on the back of strong software sales, and provided above-consensus FQ4 EPS guidance (revenue was in-line). With growing 100G long-haul optical deployments serving as a tailwind, optical networking hardware vendor Infinera (INFN +9.6%) beat Q2 estimates and provided strong Q3 guidance.
    • Also: Optical component vendor Alliance Fiber (AFOP +16%) beat estimates and offered healthy guidance. Strong datacom component demand from cloud service providers was cited.
    • A slew of telecom/networking equipment, component, and chip vendors are higher on a day the Nasdaq is down 0.4%. The list includes Infinera rival Ciena (CIEN +1.6%), F5 rival Radware (RDWR +3.3%), and Alliance Fiber peer NeoPhotonics (NPTN +4.7%). Others include Ciena acquisition target Cyan (CYNI +1.8%) and chipmakers Cavium (CAVM +3.6%), PMC-Sierra (PMCS +3%), EZchip (EZCH +2.8%), and InPhi (IPHI +3.7%).
    • Broader gains for chip stocks - the Philadelphia Semi Index is up 1.7% after selling off hard yesterday - are likely helping the chipmakers. Cisco, meanwhile, is up 2.2% after striking a deal to sell its share-losing set-top unit to Technicolor.
    • During F5's earnings call, new CEO Manny Rivelo stated F5 now leads the virtual (software-based) ADC market, which has sometimes been seen as a major long-term threat to its ADC hardware business, and noted the company saw a 20% Y/Y increase in its deferred revenue balance (driven by services/subscription growth) to $743M. He also disclosed sales chief Dave Feringa is stepping down on Oct. 1; his successor will be named shortly.
    • On Infinera's call, CEO Tom Fallon mentioned the company has now invoiced 12 customers for its new Cloud Xpress data center interconnect platform, up from 7 three months ago. For now, long-haul optical still makes up over 90% of revenue - Cloud Xpress growth, the pending launch of a metro aggregation product, and (provided it's approved) the Transmode acquisition should change that. 3 customers accounted for over 10% of Q2 revenue.
    | Jul. 23, 2015, 2:56 PM
  • Jul. 22, 2015, 5:35 PM
  • Apr. 27, 2015, 4:08 PM
    • PMC - Sierra (NASDAQ:PMCS): Q1 EPS of $0.10 beats by $0.01.
    • Revenue of $133.07M (+5.2% Y/Y) misses by $0.25M.
    | Apr. 27, 2015, 4:08 PM
  • Apr. 26, 2015, 5:35 PM
    | Apr. 26, 2015, 5:35 PM | 18 Comments
  • Apr. 24, 2015, 2:03 PM
    • Though the Nasdaq is up 0.7% thanks to market-pleasing earnings from Google, Microsoft, and Amazon, chip stocks (SOXX -2.1%) are adding to their Thursday losses after Freescale, Altera, Microsemi, and Maxim joined the ranks of chipmakers offering soft Q2 guidance; Texas Instruments, Xilinx, and Qualcomm did so on Wednesday afternoon.
    • NXP (NXPI -4.3%), set to merge with Freescale in a cash/stock deal, is selling off ahead of its April 29 Q1 report. RF chipmakers Skyworks (SWKS -3.8%), Qorvo (QRVO -4.4%), and Avago (AVGO -5.2%) are also seeing steep declines.
    • Other decliners include a slew of telecom/networking, microcontroller, and analog/mixed-signal chipmakers. The group includes Marvell (MRVL -3%), ON Semi (ON -6.9%), Atmel (ATML -3.3%), Cypress (CY -4%), Lattice (LSCC -3.9%), Semtech (SMTC -6.9%), Cavium (CAVM -6%), PMC-Sierra (PMCS -2.9%), InPhi (IPHI -3.8%), and Silicon Labs (SLAB -2.9%). Chip packaging/testing firm Amkor (AMKR -5.7%) is also off; its Q1 report arrives on Monday.
    • As was the case with TI and Xilinx, soft telecom equipment chip demand was often blamed by those guiding light yesterday afternoon. Freescale (FSL -3.5%) stated it expects network processor division sales to be down Q/Q and RF (base station power amplifier) division sales to be flat. Microcontroller, automotive, and analog and sensor division sales are expected to rise.
    • Altera (ALTR -3.3%) stated its "telecom and wireless business, and particularly our wireless business globally looks to be quite weak in [Q2], while the rest for our business will in aggregate be flat to slightly up." Regarding its Q1 miss, the company notes "Industrial, test, compute and storage, and to a lesser extent military, fell short of our forecast" (share loss to Xilinx?).
    • Maxim reports seeing "broad-based softness in communications infrastructure demand" and soft industrial bookings to go with healthier mobile/auto demand. The Galaxy S6 appears to be giving a lift to Maxim's mobile sales.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Apr. 24, 2015, 2:03 PM | 1 Comment
  • Jan. 29, 2015, 4:21 PM
    • PMC - Sierra (NASDAQ:PMCS): Q4 EPS of $0.11 in-line.
    • Revenue of $136.85M (+8.5% Y/Y) beats by $1.58M.
    | Jan. 29, 2015, 4:21 PM
  • Jan. 28, 2015, 5:35 PM
  • Nov. 26, 2014, 2:52 PM
    • Chip stocks are outperforming after Analog Devices (ADI +5.2%) beat FQ4 estimates and offered in-line FQ1 guidance. The Philadelphia Semi Index (SOXX +1.9%) has made new highs.
    • Notable gainers include many analog/mixed-signal and telecom IC firms: TXN +3%. LLTC +2.7%. SMTC +3.1%. ISIL +3.3%. SWKS +3.7%. AVGO +2.9%. OVTI +3.2%. FSL +3.1%. EZCH +2.5%. XLNX +2.3%. ALTR +2.1%. MX +4.3%. PMCS +2.7%. BRCM +2%.
    • On its CC (transcript), ADI noted its telecom equipment chip sales are holding up well in spite of weak capex, aided by the fact its dollar content for 4G base stations is "at least 20% to 30% better" than for 3G base stations. The company also mentioned its lead times were stable in FQ4.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Nov. 26, 2014, 2:52 PM | 3 Comments
  • Oct. 27, 2014, 4:24 PM
    • PMC - Sierra (NASDAQ:PMCS): Q3 EPS of $0.11 beats by $0.01.
    • Revenue of $135.46M (+5.1% Y/Y) beats by $1.78M.
    | Oct. 27, 2014, 4:24 PM
Company Description
PMC-Sierra Inc designs, develops, markets and supports semiconductor, embedded software, and board level solutions by integrating its mixed-signal, software and systems expertise through a network of offices in North America, Europe and Asia.
Sector: Technology
Industry: Semiconductor - Integrated Circuits
Country: United States