Aug. 23, 2013, 5:16 PM
- Jefferies' Ross MacMillan, who upgraded VMware (VMW +2.7%) to Buy today, thinks the company can post 16% 2014 license revenue growth, above a consensus of 11%.
- Like many other VMware bulls, MacMillan talks up the company's efforts to diversify beyond its core server virtualization market, where growth is slowing and competition (led by Microsoft's Hyper-V, which is bundled with Windows Server) has been intensifying.
- He observes 35% of Q2 license bookings involved something other than standalone vSphere virtualization licenses, up from 25% in Q2 2012. The vCloud Suite's momentum has much to do with that.
- MacMillan has raised his PT to $105, or 17.5x 2014E unlevered free cash flow + an estimated $13/share in cash at the end of 2013.
- Nomura and Raymond James upgraded VMware last month following its Q2 beat and better-than-expected guidance.
Aug. 23, 2013, 10:19 AM
- Pandora (P -12.8%) has been downgraded by Raymond James (Neutral) and Stifel (Hold) following its FQ2 beat, mixed guidance, and decision to remove its mobile listening cap.
- VMware (VMW +2.7%) has been upgraded to Buy by Jefferies. The company's annual VMworld conference starts on Sunday.
- CenturyLink (CTL +1.2%) has been upgraded to Neutral by Nomura.
- Renren (RENN +6.8%) has been upgraded to Hold by Jefferies following the sale of its Nuomi group-buying site to Baidu. The firm downgraded Renren only a week ago.
- First Solar (FSLR +1%) and Trina Solar (TSL +2.7%) have been upgraded to Market Perform by Raymond James. RJ downgraded First Solar in April.
- Autodesk (ADSK +12.6%) has been upgraded to Buy by B. Riley. Shares are surging after initially falling in AH trading in response to the light FQ3 guidance accompanying Autodesk's FQ2 beat.
- Jiayuan.com (DATE -3.4%) has been cut to Market Perform by Oppenheimer two day after posting Q2 results.
- SunEdison (SUNE -0.4%) has been upgraded to Buy by Needham a day after announcing plans to spin off its semiconductor wafer ops through an IPO.
Aug. 9, 2013, 5:00 PM
- Another executive departure for VMware (VMW): Matt Eccleston, the chief architect for the company's Horizon View PC virtualization software, has left for cloud storage kingpin Dropbox.
- GigaOm observes Eccleston is a 13-year vet and "well-regarded in the virtualization circles." News of his departure comes shortly after VMware named ex-SAP mobile exec Sanjay Poonen the head of its end-user computing unit (covers PC virtualization and mobile software).
- VMware has seen many top execs jump ship over the last two years. Recent defectors have left for Rackspace, Red Hat, and Salesforce.
Aug. 7, 2013, 4:30 PM| Aug. 7, 2013, 4:30 PM
Jul. 24, 2013, 12:45 PM
Jul. 24, 2013, 9:16 AM
Jul. 24, 2013, 1:09 AM
VMware (VMW) finished +12% AH following its Q2 beat and in-line guidance. License revenue only +2.6% Y/Y in Q2, but Q3 growth is seen totaling 9%-13%, and 2013 license growth 6%-10%. Service revenue +18% Y/Y, and the unearned revenue balance +$110M Q/Q to $3.6B. VMware mentioned on its CC Asia-Pac bookings grew 40%+ Y/Y, Americas ~20%, and Europe at a "mid-teens" rate, if one excludes the Pivotal spinoff and divestitures. 35% of license bookings involved products other than standalone vSphere (indicates solid vCloud Suite uptake); 37% of bookings involved ELAs vs. 29% in Q1; and end-user computing (PC virtualization, mobile software) license bookings rose at a mid-teens rate. EMC +4.3%.| Jul. 24, 2013, 1:09 AM | 1 Comment
Jul. 23, 2013, 5:30 PM
Jul. 23, 2013, 4:04 PM
Jul. 23, 2013, 12:10 AM
Jul. 22, 2013, 5:35 PM
Jul. 12, 2013, 9:12 AMVMware (VMW) -1.4% thanks to a downgrade to Equal Weight from Evercore's Kirk Materne, who becomes the latest in a parade of analysts to voice concerns about growth and competition. Materne, who is lowering his PT to $75 from $85, thinks VMware's long-term competitive position related to Amazon Web Services, Windows Azure, and OpenStack remains uncertain. Craig-Hallum cut estimates earlier this week for similar reasons. Q2 results are due on July 23; shares -25% YTD. | Jul. 12, 2013, 9:12 AM
Jul. 10, 2013, 6:30 PM
EMC/VMware (EMC, VMW) roundup: 1) EMC has refreshed its Data Domain and Avamar deduplication products. New mid-range Data Domain systems are said to offer major performance/capacity improvements over existing hardware, and Avamar has been updated to better support Data Domain and virtualization environments. RBC recently reported Amazon's S3 service is pressuring Data Domain. 2) FBN (Outperform) says its end-of-Q2 storage channel checks were better than expected. EMC's Q2 results are due on July 24. 3) Craig-Hallum has cut its VMware estimates. Echoing others on the Street, CH thinks license growth is pressured by market saturation and competition from Amazon, Microsoft's Hyper-V, Cisco's Intelligent Automation and Cloupia, and OpenStack.| Jul. 10, 2013, 6:30 PM
Jul. 8, 2013, 11:10 AM
Rackspace (RAX) hires Rick Jackson, until recently VMware's (VMW) chief marketing officer, to be its new CMO. No word on the status of Suaad Sait, who (for now) is still listed as Rackspace's CMO on its site; Rackspace has been investing heavily to market/promote its OpenStack cloud infrastructure offerings. Jackson stepped down as VMware's CMO in March, and subsequently left the company. Marketing exec Robin Matlock is serving as interim CMO while the company searches for a successor. In the last two years, VMware has also seen its CFO, CTO, and other key execs depart, as the company contends with a CEO change, a restructuring, and the Pivotal spinoff. Update: Another defection: Scott Musson, formerly VMware's director of global alliances, is now Red Hat's (RHT) VP of global alliances.| Jul. 8, 2013, 11:10 AM | 1 Comment
Jul. 3, 2013, 4:10 PM
Some downbeat EMC reports: 1) A source tells The Register EMC's strategy for object storage is "confusing, flawed, and inefficient … and causing internal fireworks." In addition to its Centera and Atmos lines, EMC's growing Isilon scale-out NAS storage family supports object storage, as does its new ViPR platform for managing EMC and non-EMC hardware/services. 2) RBC reports a software update for EMC's mid-range VNX line has been delayed, and that the company's Data Domain deduplication hardware business (has been growing fast) is "facing incremental headwind" from Amazon's (AMZN) S3 storage service. 3) Network World reports VMware (VMW) sales exec Mike Clayville has left to become Amazon's enterprise cloud sales chief, making him the latest in a line of execs to depart (previous).| Jul. 3, 2013, 4:10 PM | 2 Comments
Jul. 1, 2013, 2:50 PM
Acacia (ACTG +5.2%) outperforms after acquiring 4 fresh sets of patent portfolios (I, II, III, IV), and announcing licensing deals (I, II, III) with VMware (VMW) and 2 other companies. The patent purchases are related to consumer electronics content security, printing tech, and high-speed circuit interconnect and display control. The non-printing patents were acquired from an unnamed "major semiconductor technology company." The VMware deal resolves an existing infringement suit.| Jul. 1, 2013, 2:50 PM