Oct. 31, 2014, 11:31 AM
- Three weeks after providing a calendar Q3 warning that triggered a massive chip stock rout, Microchip (MCHP +7.3%) has provided Q4 guidance that's in-line with lowered estimates. The microcontroller vendor, which has often seen trends emerge ahead of peers, also said it saw most of its inventory correction in Q3, and expects Q4 sales to be just "slightly below typical seasonal levels."
- Chip stocks are up strongly (SOXX +4%) on a day the Nasdaq is up 1.4%. Since Microchip's warning, a slew of analog chipmakers and microcontroller firms (e.g. Atmel, Freescale, STMicro, Intersil, Linear) have offered light Q4 guidance, and other firms have reported seeing high-end Android weakness (e.g. Synaptics, Cirrus Logic, Amkor).
- On the other hand, several mobile chipmakers (Skyworks, RF Micro, TriQuint, Silicon Motion), some of which have decent iPhone exposure, have provided strong results and/or guidance. Other chipmakers, such as Broadcom, Texas Instruments, and Xilinx, have rallied after delivering in-line guidance.
- Susquehanna's Chris Caso: "By now, we think it’s clear that the weakness MCHP saw in September is not company specific ... The question now is if the full extent of the weakness has been dialed into estimates. If it has, then this would be among the shortest and mildest downturns in many years."
- Notable gainers: SNDK +3.9%. MU +4.1%. AMAT +3.9%. TXN +4.7%. NXPI +3.9%. NVDA +3.5%. MXIM +4.7%. LLTC +5.1%. FCS +9.6%. FSL +8.8%. ADI +6.5%. TQNT +6.8%. RFMD +6.5%. ATML +5.9%. AVGO +5.1%. MRVL +4.7%. AMCC +8.9%. BRCM +3.6%. TSM +4.4%. ARMH +3.3%.
- Intel (INTC +3.5%) has recovered most of the losses it saw yesterday due to Intesil's (ISIL +3.3%) results and guidance, and related comments about a PC chip inventory correction.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Oct. 29, 2014, 7:14 PM
- In addition to trouncing FQ2 estimates, RF Micro (NASDAQ:RFMD) has guided for FQ3 revenue of $385M and EPS of $0.33, above a consensus of $357M and $0.28.
- Nonetheless, shares are down 0.8% AH, after rising 9% in regular trading due to TriQuint's (NASDAQ:TQNT) results and guidance. Strong iPhone-related sales and rising 4G phone shipments (they carry higher RF chip content) appear to be giving a lift to both companies ahead of their merger. TriQuint is down 1% after rising 9.6% in regular trading.
- Gross margin rose to 48% in FQ2 from 47.1% in FQ1 and 36.2% a year ago. GAAP costs/expenses fell 5% Y/Y to $287.4M.
- FQ2 results, PR
Oct. 29, 2014, 4:02 PM
Oct. 29, 2014, 9:15 AM
Oct. 28, 2014, 5:48 PM
Oct. 28, 2014, 4:28 PM
- TriQuint (NASDAQ:TQNT) expects Q4 revenue of $330M-$340M and EPS of $0.40-$0.45, well above a consensus of $313.9M and $0.35.
- The company adds it's "fully booked to the midpoint of revenue guidance." Strong iPhone-related orders are likely helping.
- Q3 gross margin was 46.6%, up from 41.7% in Q2 and 38% a year ago; a GM of 46%-48% is expected in Q4. Opex rose 9% Y/Y to $74.7M.
- Merger partner RF Micro (NASDAQ:RFMD) is following TriQuint higher ahead of tomorrow's FQ2 report.
Oct. 28, 2014, 4:05 PM
Oct. 20, 2014, 5:21 PM
- iPhone suppliers are trading higher after Apple beat FQ4 estimates and issued FQ1 guidance that was mostly above consensus. FQ4 iPhone sales of 39.3M were better than expected, and iPad sales of 12.3M worse than expected.
- Cirrus Logic (NASDAQ:CRUS) +1.4% AH. Avago (NASDAQ:AVGO) +1.2%. Skyworks (NASDAQ:SWKS) +1.2%. RF Micro (NASDAQ:RFMD) +2.4%. NXP (NASDAQ:NXPI) +2%.
Oct. 14, 2014, 9:33 AM
- Skyworks (NASDAQ:SWKS) expects FQ4 (Sep. quarter) revenue of $718M and EPS of $1.08, above a consensus of $679.5M and $1.01. Full FQ4 results arrive on Nov. 6.
- The RF component maker also hiked its FQ3 guidance in June. Strong iPhone 6-related demand may have contributed to the latest hike, given recent reports.
- Peers are also up strongly amid a higher open for equities: RFMD +5.5%. TQNT +5.3%. AVGO +3%. Like other chip stocks, the group sold off on Friday following Microchip's warning.
Oct. 14, 2014, 9:15 AM
Oct. 10, 2014, 9:59 AM
- Microchip's (MCHP -12.5%) calendar Q3 warning, which was accompanied by a declaration that it believes "another industry correction has begun and that this correction will be seen more broadly across the industry in the near future," is taking a heavy toll on chip stocks (SOXX -5.5%).
- Intel (INTC -4.2%) and many other chipmakers have joined the several firms that sold off AH yesterday in going in the same direction as Microchip: MU -5.8%. FSL -8.5%. BRCM -3.6%. SWKS -7.5%. RFMD -6.2%. XLNX -4.9%. MXIM -5%. AMBA -5.5%. IDTI -6.7%. CAVM -7.4%. AVGO -10.2%. SMTC -4.3%. SYNA -4.1%. POWI -6.9%.
- Chip equipment makers are also getting hit: AMAT -3.5%. KLAC -3.3%. LRCX -2.3%. UTEK -2.5%. KLIC -2%.
- As Microchip noted in yesterday's warning, the company's very diversified customer base, together with its recognition of distributor revenue on a customer sell-through basis rather than a distributor sell-in basis, often allow it to see industry changes before peers.
- The microcontroller vendor added its warning was driven by a September decline in sales to Chinese clients, and observed it has typically "returned to sequential revenue growth after two quarters" during past downturns.
- Chip stocks have had a good run over the last 12 months, aided by healthy mobile demand and the industry's consolidation wave.
Sep. 26, 2014, 5:37 PM
Sep. 24, 2014, 1:40 PM
- Predicting the companies will benefit from a "golden age" for RF components (echoes of recent analyst notes), MKM's Ian Ing has launched coverage on Skyworks (SWKS +2.9%) and RF Micro (RFMD +2.5%) with Buy ratings. His targets are respectively $68 and $15. TriQuint (TQNT +2.7%) is following RF Micro higher.
- Ing expects Skyworks' Panasonic RF filter JV to provide both technology and gross margin benefits, and thinks the company can achieve $5/year in EPS earlier than expected; the FY15 (ends Sep. '15) EPS consensus is currently at $3.93.
- Regarding RF Micro, he likes the company's post-merger revenue synergies with TriQuint, and also its Chinese 4G exposure. "The main risk we see is RFMD's ability to balance post-merger synergies with supply requirements in serving steep OEM ramps."
- Skyworks is making new post-Dot.com bubble highs. RF Micro and TriQuint aren't far removed from post-bubble highs of $12.98 and $21.48.
Sep. 19, 2014, 9:36 AM
- iFixit's teardown of the iPhone 6 Plus turned up five Qualcomm (NASDAQ:QCOM) chips, up from the three found in last year's teardown of the 5S and nearly matching the six found in certain Galaxy S5 teardowns.
- In addition to the expected Cat-4 LTE baseband modem, a Qualcomm power management IC, RF transceiver, receive-only chip (needed to enable LTE carrier aggregation), and envelope-tracking IC (relatively new, improves battery life) were found in the 6 Plus.
- In-line with rumors and the company's hints, an InvenSense (NYSE:INVN) motion sensor - specifically, a 6-axis gyroscope/accelerometer - was found. That suggests InvenSense has displaced STMicroelectronics (NYSE:STM) as the iPhone's motion sensor supplier.
- Two Skyworks (NASDAQ:SWKS) power amplifier modules are found, including a low-band LTE part. Avago (NASDAQ:AVGO) has both a high-band amplifier module, and an integrated ultra high-band amplifier/FBAR filter module. TriQuint (NASDAQ:TQNT) can claim a 3G amplifier module, and merger partner RF Micro (NASDAQ:RFMD) an antenna switch module.
- Broadcom (NASDAQ:BRCM) appears to remain the iPhone's combo chip supplier (courtesy of a module from partner Murata), and also supplies a touch controller IC. Chipworks thinks Broadcom also has the Wi-Fi slot for the Apple Watch.
- As expected, NXP (NASDAQ:NXPI) is supplying an NFC module and the M8 motion co-processsor, and Cirrus Logic (NASDAQ:CRUS) the audio codec IC. Texas Instruments (NASDAQ:TXN) is providing a touch transmitter IC.
- Moving in response: INVN +1.9%. AVGO +1.5%. STM -3.9%.
Sep. 18, 2014, 6:56 PM
- Once their merger officially closes, RF Micro (NASDAQ:RFMD) and TriQuint (NASDAQ:TQNT) will be known as Qorvo, and trade under the symbol QRVO.
- The companies (or their marketing departments) claim the new name "conveys the combined company's ability to deliver the core technologies and innovation that will enable customers to launch their next-generation designs even faster."
- RF Micro and TriQuint shareholders have already approved the all-stock merger, which will result in each investor base owning about half of the post-merger company.
Sep. 3, 2014, 12:16 PM
- Apple suppliers Cirrus Logic (CRUS -3%), GT Advanced (GTAT -5%), Skyworks (SWKS -2.3%), TriQuint (TQNT -2.6%), and RF Micro (RFMD -2.8%) are following Apple lower after Pac Crest recommended investors start taking profits on the tech giant ahead of its Sep. 9 event. Expected iPhone 6 motion sensor supplier InvenSense (INVN -3.3%) is also off.
- GT was hit recently by two downgrades, partly offset by a bullish coverage launch. InvenSense, Skyworks, TriQuint, and RF Micro have all rallied strongly over the last 3 months.
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