Fri, Nov. 6, 4:47 PM
- The Philadelphia Semi Index (SOXX +2.6%) rallied after Nvidia (NVDA +13.9%) beat estimates and provided strong guidance (gaming GPUs led the way), Skyworks (SWKS +7.1%) offered good calendar Q4 guidance and RF chip peer Qorvo (QRVO +23.2%) posted better-than-feared results and guidance. The Nasdaq rose just 0.4%.
- Also: Analog/Ethernet chipmaker Microsemi (MSCC +4.9%) beat calendar Q3 revenue estimates and offered solid Q4 guidance: Revenue of $325M-$329M and EPS of $0.70-$0.74 vs. a consensus of $323.5M and $0.72.
- Big gainers today included specialty foundry/Skyworks supplier TowerJazz (TSEM +6%), smart TV/home automation chipmaker Sigma Designs (SIGM +16.6%), telecom/networking IC provider InPhi (IPHI +6.7%), touch controller/LCD driver supplier Synaptics (SYNA +6.1%), FPGA maker Lattice Semi (LSCC +6.6%), network processor vendor Cavium (CAVM +5.6%), DSP core IP provider CEVA (CEVA +7.2%), and analog/mixed-signal chipmakers MagnaChip (MX +4.6%) and Semtech (SMTC +5.4%).
- On its earnings call (transcript), Qorvo mentioned Chinese smartphone demand (a recent headwind) is "seeing a bit of a rebound," and that the launch of 5-mode and 6-mode Chinese 4G phones is boosting RF chip content. Qorvo also thinks Chinese base station activity (an issue for many telecom chip/component firms) bottomed in Q3, but cautions a mobile infrastructure recovery is expected to be gradual.
- Microsemi stated on its call (transcript) broadband gateway chip sales were a Q3 strong point, that telecom infrastructure began to improve, and that defense/aerospace sales are expected to rebound in 2016. Industrial demand remained soft in Q3.
- MKM's Ian Ing has upgraded Nvidia to Buy, calling shares "expensive and worth it." Ing: "We see a sustainable growth trajectory, given [Nvidia's] positioning to lead in significant paradigm changes favoring more valuable semiconductor solutions: automotive evolving from driver assist to autonomous driving, gaming transitioning to virtual reality and professional or social E-sports, and cloud computing increasingly using GPU accelerators for machine learning."
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
- Last week: Chip stocks sell off after NXP, STMicro, others issue soft guidance
Thu, Oct. 29, 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
Thu, Sep. 10, 11:19 AM
- Sigma Designs (NASDAQ:SIGM) has tumbled below $9.50 in spite of beating FQ2 estimates and guiding on its earnings call (transcript) for FQ3 revenue of $60M-$63M, above a $58.8M consensus. With shares up 44% YTD going into earnings, expectations were somewhat high.
- One possible area of concern: Sigma forecasts sales of its Z-Wave home automation chips/modules (sold to security service providers and to a lesser extent telecom carriers) will drop Q/Q due to an inventory adjustment, after growing strongly for several quarters. However, sales are expected "pick up again quite dramatically" in FQ4.
- Also: 1) Days sales outstanding (DSO) rose by 9 days Q/Q to 60. Sigma states customers are requesting extended payments terms. 2) The company expects a mix shift towards smart TV SoC sales will lead to gross margin (non-GAAP) remaining in the 48%-50% range in the near-term: FQ2 GM was 50.5%, down 330 bps Q/Q and 320 bps Y/Y, but in-line with guidance of 49%-52%. FQ3 GM guidance is at 48%-51%.
- Smart TV chip sales rose 146% Y/Y, and made up 42% of FQ2 revenue. IoT (Z-Wave) sales rose 97%, and were 22% of revenue. Media connectivity chips fell 21%, and were 24% of revenue. Set-top chips made up 11% of revenue, and license/other 1%.
- FQ2 results, PR
Wed, Sep. 9, 4:08 PM
Tue, Sep. 8, 5:35 PM
Tue, Sep. 8, 3:25 PM
- The Philadelphia Semi Index (SOXX +3.9%) has risen to its highest levels since mid-August on a day the Nasdaq is posting a 2.3% gain.
- Likely helping out: Microchip (MCHP +8.4%), still often seen as an industry bellwether (though its commentary accompanying last fall's warning sparked criticism), has adjusted its FQ2 (calendar Q3) revenue and EPS guidance to $545M-$563M ($554M midpoint) and $0.60-$0.66 from a prior $$532M-$569M ($550.5M midpoint) and $0.58-$0.66. The outlook comes after many chipmakers (Microchip included) offered below-consensus calendar Q3 guidance amid an inventory correction, weak PC demand, and slowing Chinese smartphone growth.
- Microchip's core ops are said to be tracking in-line with prior expectations, and recently-acquired Micrel's above expectations. The 8.6M shares issued in the Micrel deal have been repurchased.
- Also: Various Taiwanese chipmakers and supply chain firms have reported August sales. Chip packaging/testing firms ASE (ASX +5.9%) and Siliconware (SPIL +4.1%) respectively reported sales were up 5.8% and 5.7% M/M, and up 9.5% and down 4.2% Y/Y.
- Big gainers include Microchip peers NXP (NXPI +6.8%), Freescale (FSL +5.8%), Silicon Labs (SLAB +4.4%), and Cypress (CY +4.4%). Others include Avago (AVGO +5.8%), Xilinx (XLNX +5.7%), Cavium (CAVM +5.5%), Analog Devices (ADI +6.3%), Synaptics (SYNA +5.4%), Linear (LLTC +4.6%), Cirrus Logic (CRUS +4.7%), IDT (IDTI +4.6%), Sigma Designs (SIGM +4.9%), and chip equipment maker Axcelis (ACLS +8%).
- SanDisk, ON Semi, and Silicon Motion are benefiting from upgrades/bullish coverage. Apple holds its iPhone event at 1PM ET tomorrow.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Wed, Jun. 10, 6:56 PM
- Sigma Designs (NASDAQ:SIGM) rose 14.2% in regular trading after beating FQ1 estimates on the back of 49% Y/Y revenue growth, and issuing strong guidance on its CC (transcript). The smart TV/home automation chipmaker expects FQ2 revenue of $54M-$57M, above a $53.7M consensus.
- CFO Elias Nader stated Sigma's smart TV chip sales (38% of revenue) rose by $15.4M Y/Y in FQ1 to $21.5M, and its IoT sales (22% of revenue, includes Z-Wave home automation chips/modules) by $6.3M to $12.5M. Set-top chip sales rose by $900K to $6.5M; media connectivity chip sales fell by $1M to $15.1M; and license/other revenue fell by $2.6M to $300K.
- Smart TV and IoT sales are expected to rise Q/Q in FQ2. Set-top sales are expected to be flat, and media connectivity sales down slightly.
- FQ1 results, PR
Tue, Jun. 9, 4:08 PM
Mon, Jun. 8, 5:35 PM
Thu, Apr. 2, 6:12 PM
- In addition to beating FQ4 estimates, Sigma Designs (NASDAQ:SIGM) guided on its CC (transcript) for FQ1 revenue of $52M-$55M, above a $49.8M consensus. However, with Sigma having gone into earnings near their 52-week high, expectations were elevated. Shares fell to $7.92 in regular trading today. AH, they're down 0.5% to $7.88.
- One possible area of concern: Sigma is guiding for an FQ1 gross margin of 48%-51% vs. FQ4's 50.8%, which (though near the high end of guidance) was down from FQ3's 51.4% and the year-ago period's 61.1%. When asked about margins, Sigma suggested product mix changes were to blame.
- The Z-Wave wireless home automation chip/module business remains a strong point: Z-Wave sales were up 50% Y/Y over the whole of FY14, and Sigma states there were 35M Z-Wave-enabled devices in existence at the end of calendar 2014. Samsung and LG recently gave their support for the platform.
- BWS Financial's Hamed Khorsand (Buy) hiked his Sigma target by $2 to $11. "The growth in Z-Wave is accelerating with service providers making the push and the consumer being more educated on the technology. Z-Wave now seems poised to serve as the growth catalyst we have been writing about for the last several quarters."
- FQ4 results, PR
Wed, Apr. 1, 4:18 PM
Tue, Mar. 31, 5:35 PM
Dec. 10, 2014, 4:27 PM
Dec. 9, 2014, 5:35 PM
Sep. 10, 2014, 4:18 PM
Sep. 9, 2014, 5:35 PM
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