Tue, May 24, 3:37 PM
- Xilinx (NASDAQ:XLNX) is up 5.9% this afternoon on heavy volume after a StreetInsider report saying the company has drawn a $15B takeover offer, but from a mystery suitor.
- The company has been considered the only large-cap chipmaker with the attributes of a good target, after Intel's purchase of Altera. Apple suppliers including Qualcomm (NASDAQ:QCOM) or Broadcom (NASDAQ:AVGO) are the most likely suitors for Xilinx.
- Xilinx used yesterday's analyst day to reiterate guidance for fiscal 2017 (sales growth of 4-8%, opex growth of 7-9%) and prompt strong bullishness from Pacific Crest. Analyst John Vinh sees the firm taking share in field-programmable gate arrays from Intel's Altera, which has faced delays and has "already lost at 20 nm and 14 nm."
- Xilinx is expecting $750M in incremental revenue over the next five years, a modest 6% in compound annual growth. "Of the $750 million, $500 million is expected to be from market expansion, while $250 million should be from PLD share gains. This would imply ~$3.25 in EPS, which at 20x suggests fair value of $65," Vinh writes.
- That $65 value would be 37% upside from today's (higher) price; Vinh has a price target of $55 (16% upside).
- William Blair's Anil Doradla thought the overall tone was good but "lacked conviction" and was light on comment about the company's key wireless/wireline segments. He's maintaining an Outperform rating.
Oct. 12, 2015, 9:29 AM
- Enterprise software firm PTC is buying Qualcomm's (NASDAQ:QCOM) Vuforia augmented reality technology unit, and acquiring the related developer ecosystem.
- Re/code reported in September Qualcomm is thinking of selling Vuforia, which provides developer tools and IP for creating apps supporting augmented reality (i.e. the melding of real-world and computer-generated material). Qualcomm has claimed Vuforia is supported by 175K+ developers and has been used by 20K+ apps.
- Update: While Qualcomm didn't announce the deal price, PTC states it's paying $65M for Vuforia. The company expects the purchase to close by year's end, and doesn't expect it to impact 2016 EPS.
Sep. 14, 2015, 2:18 PM
- Capsule Technologie (not a typo) provides a platform (known as SmartLinx) for connecting, integrating, and analyzing medical device data, as well as for sending time-sensitive clinical data and alerts, to 1,800+ hospitals in 38 countries. Qualcomm (QCOM -0.9%) has bought the company for an undisclosed sum.
- Qualcomm president Derek Aberle suggests there are synergies between Capsule's offerings and Qualcomm's connectivity chip business for embedded/IoT devices. "Qualcomm is focused on strengthening its position in specific Internet of Everything verticals, like healthcare. The acquisition of Capsule expands the breadth of our healthcare platform, enabling us to provide connectivity solutions for the entire care continuum and create one of the world's largest connected health ecosystems."
- The acquisition is being made by the healthcare-focused Qualcomm Life subsidiary, which launched in 2011 and offers a cloud-based medical device data integration solution called 2net. Earlier this year, Qualcomm announced a partnership with Novartis in which 2net will be used to collect medical device data produced during Novartis clinical trials.
Aug. 6, 2015, 9:53 AM
- Qualcomm (QCOM -0.5%), via its Atheros Wi-Fi/connectivity chip unit, is buying DSL modem/infrastructure IC and home gateway processor vendor Ikanos (NASDAQ:IKAN) for $2.75/share, or roughly $47M based on Ikanos' Q2 diluted share count. The price represents a 57% premium to Ikanos' Wednesday close. The deal is expected to close by year's end.
- Ikanos' products complement Qualcomm/Atheros home Wi-Fi and wireline networking offerings. Qualcomm: "The combination of Qualcomm Atheros' broad home gateway IP portfolio, including Wi-Fi, powerline, small cell, and Ethernet switch technologies, and Ikanos' advanced wired modem technology, is designed to create a complete solution for a wide range of home gateway products to better serve the carrier segment." Broadcom (NASDAQ:BRCM) and Marvell (NASDAQ:MRVL) are among the other companies competing in this space.
- Qualcomm CEO Steve Mollenkopf suggested last week his company would make new chip acquisitions.
Jul. 29, 2015, 1:27 PM
- "Qualcomm (QCOM +0.2%) is very likely to be some form of actor in the consolidation of the semiconductor industry," CEO Steve Mollenkopf tells Bloomberg. “The timing of which is always the debate.”
- The remarks come a week after Qualcomm said it would (following pressure to do so from Jana Partners) consider a breakup, along with other strategic options. There has been some speculation Qualcomm's chip unit (QCT) could merge with Intel (has been seeing heavy mobile division losses) following a spinoff; antitrust regulators would closely vet such a deal. Others have argued Qualcomm could by an RF chipmaker such as Skyworks or Qorvo, or (with the goal of expanding into the data center) acquire an ARM server CPU developer.
- Qualcomm hasn't exactly been averse to M&A in recent years. Noteworthy acquisitions since 2011 include Atheros (Wi-Fi chips), Wilocity (WiGig chips), and CSR (Bluetooth/Wi-Fi chips).
- Update: Some other Qualcomm news of interest: Mollenkopf discloses he bought 15,815 shares yesterday at $63.31, and CFO George S. Davis discloses he bought 8,100 shares yesterday at $62.34.
Jul. 24, 2015, 4:07 AM
- With the possibility of a Qualcomm (NASDAQ:QCOM) split afloat, an interesting piece of analysis has surfaced on Wall Street, pointing towards Intel (NASDAQ:INTC) as the best possible beau if the firm decides to break itself up.
- "The chip deal to end all chip deals," said Cowen analyst Timothy Arcuri.
- Other suitors for Qualcomm's chip business, valued at $30B-$40B, could include a consortium backed by the Chinese government and Samsung Electronics (OTC:SSNLF).
May 29, 2015, 1:19 PM
- The planned merger of Broadcom (a major Qualcomm Wi-Fi/Bluetooth chip rival) and Avago (to some extent a Qualcomm rival in the RF chip market) will give phone suppliers more leverage against Qualcomm (QCOM -0.1%), predicts IDC's Mario Morales.
- For his part, Drexel Hamilton's Richard Whittington thinks the pairing of Avago and Broadcom's server/networking product lines could impact Qualcomm's server CPU ambitions.
- Of note: Neither Broadcom nor Avago competes in Qualcomm's core mobile baseband/app processor market; Broadcom shuttered its baseband ops last year to investor approval. Broadcom does plan to compete in the ARM server CPU market ... but so do several other firms.
- Broadcom/Avago has also fueled speculation Qualcomm could respond with an acquisition of its own, and perhaps even try to trump Avago's Broadcom bid. If one was made, Broadcom and Qualcomm's joint Wi-Fi/Bluetooth combo chip share could draw antitrust scrutiny.
- Shortly before Broadcom/Avago reports broke, Pac Crest speculated Qualcomm could bid for video processor vendor Ambarella. Last year, Qualcomm spent $2.5B to buy Bluetooth/audio chipmaker CSR.
Nov. 21, 2014, 5:47 PM
- Qualcomm (NASDAQ:QCOM) has sold its Taiwanese Mirasol display plant to TSMC (NYSE:TSM) for $85M, per a TSMC regulatory filing.
- Taiwanese media previously reported Qualcomm was set to sell the plant, which it once planned to invest up to $975M in, and that TSMC wanted to use it to expands its chip assembly/testing ops.
- Meanwhile, the sell-side has been busy debating Qualcomm's analyst day guidance and commentary, with much of the attention on focused on the company's China remarks. Cowen's Tim Arcuri is somewhat encouraged. "The company provided no new substantive regulatory (NDRC/FTC/EU) updates, but seemed to strike a more definitive tone about ultimately collecting royalties on 'substantially all LTE devices.'"
- That, in turn, makes Arcuri think the most likely outcome for the China dispute is "some combination of a fine, potential changes in the royalty rate structure for all of [Qualcomm's] licensees operating in China, and/or increased investment in the local China semiconductor supply chain."
- Bernstein's Stacy Rasgon is less positive. "We do not believe the near-term regulatory issues (particularly China) are truly the primary issue anymore ... The bigger issue being how the rise of China, at scale, is changing the overarching market dynamics that Qualcomm plays."
Nov. 10, 2014, 3:55 PM
- Taiwan's Economic Daily News reports Qualcomm (QCOM +0.1%) is set to sell a plant in Longtan, Taiwan to top foundry partner TSMC (TSM +2%) for "several billion [Taiwanese] dollars." One U.S. dollar is equal to 30.59 Taiwanese dollars.
- Back in 2011, Qualcomm announced plans to invest up to $975M to build a plant in Longtan to manufacture Mirasol color e-ink displays. But the following year, the company declared it was ending Mirasol production due to manufacturing challenges. TSMC reportedly wants to use the plant to expand its chip packaging/testing ops.
- Separately, TSMC has reported its October sales: With the help of strong Apple A8 CPU orders, revenue rose 7.9% M/M and 55.9% Y/Y to NT$80.74B ($2.64B). The company previously forecast total Q4 sales of NT$217B-$220B, good for 4%-5% Q/Q growth.
Jul. 2, 2014, 6:51 PM
- Israel's Wilocity is a top developer of chips/firmware for the nascent WiGig (802.11ad) standard, which (using 60GHz. spectrum) can deliver speeds of up to 7Gbps to devices within 10m of each other, and thus act as a USB/HDMI replacement. (PR)
- No acquisition price has been given. The Marker reported in May Qualcomm (QCOM) is in talks to buy Wilocity for ~$300M.
- Qualcomm's Atheros unit has been working with Wilocity since 2011 to develop tri-band Wi-Fi/WiGig offerings for the PC market. Going forward, Qualcomm plans to develop mobile/networking tri-band platforms, and offer a reference design that pairs one with its Snapdragon 810 processor (next-gen flagship, due in commercial hardware in 1H15).
- Yesterday: Qualcomm buys CSR's Israeli imaging IP unit
Jul. 1, 2014, 2:40 PM
- Qualcomm (QCOM +0.7%) is buying U.K. chipmaker CSR's (CSRE -0.6%) Israeli ops. TheMarker reports the purchase price is $45M.
- The purchase provides Qualcomm with imaging IP and engineering talent. The company states the deal will help it "continue successfully developing cameras so that smartphones will provide the same quality as a digital camera."
- Qualcomm doesn't compete in the image sensor market, but it has integrated a decent amount of image-processing IP into its Snapdragon processors. Its flagship Snapdragon 805 can handle 55MP images with the help of dual image signal processors (ISPs).
- Last week, Qualcomm announced it has bought power amplifier vendor Black Sand.
Jun. 25, 2014, 6:22 PM
- Black Sand Technologies, based out of Austin, was founded in '05 and has raised $28.2M in funding over its history.
- Notably, the product page on Black Sand's site only shows 3G amplifiers, and the most recent PR on its news page is from 2012. All signs suggest Qualcomm (QCOM) is buying the company to strengthen its power amplifier IP and/or engineering talent, as it encroaches on the turf of established vendors such as Skyworks (SWKS), TriQuint (TQNT), RF Micro (RFMD), and Avago (AVGO) with system-level solutions.
- Qualcomm, estimated to have 64% of the 2013 baseband processor market, made a dramatic entry into the amplifier market last year by announcing an RF front end solution (amplifiers included) that promised superior 3G/4G multi-band support and (via technologies such as envelope tracking) power efficiency. Skyworks, TriQuint, and RF Micro all tumbled following the announcement.
Jun. 2, 2014, 12:23 PM
- After opening up 13% on news it's weighing a sale or wind-down of its baseband chip unit, Broadcom (BRCM) has pared its gains a bit.
- One concern: Broadcom might little to nothing in a sale, given the baseband unit has been hemorrhaging cash and (as recently noted by CLSA) companies not named Qualcomm (QCOM +0.3%) or MediaTek have had a rough time turning a profit in the R&D-intensive business.
- Broadcom is only 9 months removed from paying $164M for Renesas' 4G baseband unit. Since then, the company has reportedly scored 4G design wins, but has also warned of top-line pressures caused by 3G weakness.
- Goldman notes Broadcom had only 4% of the 2013 baseband market (per Gartner), a tiny fraction of Qualcomm's 62%, and is set to lose share in 2014. The firm estimates Qualcomm gets a $0.02 EPS benefit for each percentage point it gains.
- Goldman adds Broadcom has noted its low-end/mid-range combo chip sales could be pressured as more functionality gets integrated with baseband ICs; the company had 39% of the 2013 mobile connectivity market to Qualcomm's 20%. Likewise, Wells Fargo sees a baseband exit hurting Broadcom's combo chip position.
- Texas Instruments, Freescale, and ST-Ericsson each wound up shutting down their baseband ops rather than selling them.
May 12, 2014, 7:55 AM
- TheMarker reports Quallcomm (QCOM) is in talks to buy Israeli chipmaker Wilocity for ~$300M. Wilocity is said to have given a notice of sale to employees.
- Wilocity, founded in 2007 by ex-Intel employees, develops chips and related firmware for the nascent WiGig (802.11ad) standard, which aims to act as an HDMI/USB alternative by enabling transfer speeds of up to 7Gbps between devices within 10 meters of each other (a much shorter range than Wi-Fi).
- The purchase would complement Qualcomm's Atheros Wi-Fi chip unit, which already has a partnership with Wilocity and has been grabbing share from Broadcom (BRCM) in the mid-range Wi-Fi/Bluetooth combo chip market - future combo chips with integrated WiGig seem likely.
- Broadcom, which still controls the high-end combo chip space, also backs WiGig, as do Intel, Marvell, and Nvidia.
May 1, 2014, 4:13 AM
- Qualcomm (QCOM) has agreed to turn its location-awareness business into a separate company called Gimbal and sell a majority holding to a group of investors that includes AEG.
- Financial details of the deal weren't provided.
- Gimbal's technology enables retailers and sports venues to track the specific location of customers on their premises and send targeted ad messages. (PR)
Feb. 24, 2014, 9:21 AM
- Skyworks (SWKS) is up 3.2% premarket, Qualcomm (QCOM) is up 1%, and Anadigics (ANAD) is up 3.7% following news RF component vendors TriQuint and RF Micro are merging. The merging companies themselves are up sharply.
- RF Micro/TriQuint, which comes on the heels of Avago/LSI, appears to be fueling hopes of additional consolidation in the RF component space. There might also be expectations rivals will be able to take share, as common customers such as Apple and Samsung try to stay diversified.
- Though Qualcomm's chip unit is best known for its baseband and app processors, it also has a large and growing RF component business, one Qualcomm hopes to expand via its innovative/ambitious RF front end platform.
QUALCOMM, Inc. engages in the development, design, manufacture, and marketing of digital telecommunications products and services. It operates through three segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives. The Qualcomm CDMA Technologies... More
Industry: Communication Equipment
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