Wed, Jan. 21, 5:31 PM
- On top of missing FQ3 revenue estimates (while beating slightly on EPS), Xilinx (NASDAQ:XLNX) is guiding for FQ4 revenue to be down 2%-6% Q/Q. That implies a range of $557.9M-$581.6M, well below a $635.4M consensus.
- The FPGA vendor blames its FQ3 revenue miss on weak broadcast and telecom market sales. Many chipmakers and optical component vendors have seen telecom-related sells pressured by soft industry capex.
- Gross margin was 69.7%, -220 bps Q/Q but +50 bps Y/Y and above guidance of 69%. That contributed to the EPS beat, as did $175M worth of buybacks. GAAP opex rose 10% Y/Y to $223.9M, exceeding revenue growth of 1%.
- Segment performance: Telecom & data center revenue (41% of total) -7% Y/Y. Industrial, aerospace, & defense (43% of revenue) +18%. Broadcast, consumer, and automotive (14% of revenue) -9%. Everything else (2% of revenue) -39%. 28nm chip sales rose nearly 20% Q/Q.
- Altera (NASDAQ:ALTR) is following Xilinx lower. Its Q4 report arrives tomorrow afternoon.
- FQ3 results, PR
Tue, Jan. 20, 6:28 PM
Wed, Jan. 14, 12:24 PM
- JPMorgan has downgraded FPGA archrivals Altera (ALTR -3.4%) and Xilinx (XLNX -1.3%), as well as chip IP licensing firm Rambus (RMBS -2.4%), to Neutral. Xilinx has also been downgraded to Sector Perform by Pac Crest.
- Xilinx reports on Jan. 21, and Altera on Jan. 22. Given history, Rambus' calendar Q4 report should also arrive this month.
Dec. 30, 2014, 6:05 PM
- French carrier Iliad's (OTC:ILIAF) Online.net unit plans to launch a cloud infrastructure service next month that runs on servers featuring ARM-based (NASDAQ:ARMH) CPUs supplied by Marvell (NASDAQ:MRVL). Making good on ARM's promise of high densities, 18 servers - each sporting one quad-core CPU - can fit onto a blade, and 16 blades can fit within a chassis.
- Though it's no Google or Amazon, Iliad provides a useful reference win for ARM server CPU vendors as they try to take share from Intel (NASDAQ:INTC), whose Xeon CPUs claim the lion's share of the server market, including most Web/cloud data center deployments.
- Canaccord has forecast ARM server CPUs, still in their infancy, will grab a 20% share by 2018. Hyperscale data centers and application-specific server appliances are seen as areas where ARM-based solutions could stand out.
- Intel is looking to head off the ARM threat both by developing low-power Atom server CPUs, maintaining a manufacturing process edge, and (notably) providing a variety of custom CPUs to Internet giants such as Amazon, Google, Facebook, and eBay; the latest offerings are packaged with Altera (NASDAQ:ALTR) FPGAs to provide on-the-fly programmability.
- Nonetheless, Facebook's Open Compute Project supports both ARM and x86 CPUs, and Google has been reported to be thinking of building its own ARM chip. An Amazon VP recently stated ARM vendors aren't keeping pace with Intel. But Amazon might simply be opting to create its own ARM designs, given it has hired several key engineers from defunct ARM vendor Calxeda.
- Cavium (NASDAQ:CAVM) and AppliedMicro (NASDAQ:AMCC) are often viewed as ARM server CPU plays. AMD, Qualcomm, and Texas Instruments are also competing in this space.
Dec. 19, 2014, 9:26 AM
- BofA/Merrill has respectively downgraded analog/mixed-signal chipmakers Maxim (NASDAQ:MXIM) and Linear (NASDAQ:LLTC) to Underperform and Neutral, and FPGA vendor Xilinx (NASDAQ:XLNX) to Underperform. In addition, Goldman has cut Maxim to Neutral.
- Maxim, Linear, and Xilinx have all underperformed the broader chip industry this year. Maxim has seen its mobile sales hit hard by Samsung's woes; Xilinx has been pressured by soft telecom capex.
- Yesterday afternoon, Xilinx announced its 20nm mid-range Kintex FPGAs had entered mass-production, and claimed they were the first FPGAs to do so, thereby beating Altera (NASDAQ:ALTR) to the punch.
- While Xilinx plans to sell both mid-range and high-end 20nm FPGAs, Altera only plans to offer mid-range 20nm parts, and focus its high-end efforts on Intel's cutting-edge 14nm process. Intel/Altera demoed 14nm test chips in April.
- MXIM -2.2% premarket. LLTC -0.8%. XLNX -0.8%.
- Update: BofA has also downgraded Altera to Neutral, and Atmel to Underperform.
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
Oct. 23, 2014, 8:50 PM
- Though it beat Q3 estimates, Altera (NASDAQ:ALTR) is guiding for Q4 revenue to be down 2%-6% Q/Q. That implies a range of $469.6M-$489.6M ($479.6M midpoint) vs. a $485.7M consensus.
- Q3 gross margin was 66.8%, down from 67% in Q2 and 68.3% a year ago. Q4 GM guidance is at 66%-67%.
- With the help of strong orders from 4G mobile infrastructure clients (particularly from China), telecom/wireless chip sales (45% of revenue) rose 23% Y/Y in Q3. Industrial automation, military & auto +3%; networking, computer, and storage -5%; everything else +18%. FPGAs were 85% of revenue, up from 82% a year ago.
- GAAP opex +9% Y/Y to $192.3M. $144.2M was spent on buybacks.
- Shares had rallied after Xilinx posted an FQ2 beat a week ago.
- Q3 results, PR
Oct. 23, 2014, 4:21 PM
Oct. 22, 2014, 5:35 PM
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Oct. 16, 2014, 4:42 PM
- Xilinx (NASDAQ:XLNX) expects FQ3 revenue to be flat to up 4% Q/Q. While the midpoint of the implied range ($604.3M-$628.5M) is below a $623.1M consensus, expectations were low following Microchip's warning (Cypress can relate).
- Telecom & data center revenue (hurt by weak wireline telecom capex) -19% Q/Q and -4% Y/Y in FQ2. But industrial, aerospace, & defense +28% Q/Q and +8% Y/Y. Broadcast, consumer, & auto -5% Q/Q and -6% Y/Y. Everything else -4% Q/Q and +12% Y/Y.
- Gross margin was 71.9%, +280 bps Q/Q and above guidance of 70%. Xilinx expects GM to fall to ~69% in FQ3.
- $200M was spent on buybacks, providing a lift to EPS. R&D spend +11% Y/Y to $138.4M; SG&A -3% to $93.9M.
- Archrival Altera (NASDAQ:ALTR) is following Xilinx higher. Its Q3 report arrives on Oct. 23.
- FQ2 results, PR
Jul. 24, 2014, 6:30 PM
- Altera (NASDAQ:ALTR) expects Q3 revenue to be down 2% to up 2% Q/Q. That's nearly even at the midpoint with a consensus for revenue to be up fractionally to $491.7M.
- Archrival Xilinx issued softer Sep. quarter guidance earlier this week; Altera fell in sympathy.
- Telecom & wireless revenue +28% Y/Y in Q2, industrial/military/automotive +14%, networking/computer/storage -6%, other revenue +16%. Altera says its saw its high-end 28nm FPGAs delivered "very good" performance; Xilinx's numbers had triggered fears of 28nm share loss to Altera.
- Gross margin fell 90 bps Q/Q and -100 bps Y/Y to 67%. Q3 gross margin guidance is at 67% (+/- 0.5%).
- Q2 results, PR
Jul. 24, 2014, 5:38 PM
Jul. 24, 2014, 4:24 PM
Jul. 23, 2014, 5:35 PM
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Jul. 23, 2014, 12:25 PM
- Among the year's best tech performers, chip stocks are selling off (SOXX -1.8%) on an up day for the Nasdaq following weak numbers from FPGA giant Xilinx (XLNX -14.5%).
- Xilinx missed FQ1 revenue estimates by over $18M, and also guided for FQ2 revenue to be well below consensus. The company blamed the FQ1 shortfall on soft defense and wireless sales. BMO and BofA/Merrill have downgraded Xilinx; the former thinks Xilinx's 28nm share might be peaking.
- Xilinx stated on its CC (transcript) the wireless weakness was mostly due to soft 28nm chip sales to Chinese 4G base station vendors; Chinese 4G rollouts have long been viewed as a catalyst for both Xilinx and Altera (ALTR -4.7%). Aerospace/defense sales were hurt by program timing issues.
- Meanwhile, switch/router vendor Juniper offered light Q3 guidance to go with a Q2 beat. The company noted on its CC (transcript) "market dynamics" for U.S. carriers, including M&A activity, are affecting project rollouts.
- Also: Analog/mixed-signal IC vendor Linear (LLTC -4.1%) is selling off in spite of beating FQ4 estimates and guiding in-line (8%-11% Y/Y FQ1 rev. growth vs. 9.1% consensus).
- Notable decliners: FSL -5.3%. IDTI -6.4%. EZCH -3.3%. PMCS -4.3%. LSCC -6.8%. CAVM -4.7%. SMTC -4.1%. ATML -3.2%. TQNT -3.1%. RFMD -2.9%. IRF -2.9%.
- Qualcomm, NXP, TriQuint, and Cirrus Logic report after the bell.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Jul. 22, 2014, 5:13 PM
- In addition to missing FQ1 revenue estimates by $18.8M, Xilinx (NASDAQ:XLNX) is guiding for FQ2 revenue to be flat to down 4% Q/Q. The consensus is for revenue $644.5M, 5% above FQ1 levels.
- Xilinx attributes the FQ1 weakness to soft sales to defense and wireless clients.
- Industrial, aerospace, & defense sales (31% of revenue) -9% Q/Q and -11% Y/Y, telecom & data center (50% of revenue) +1% Q/Q and +20% Y/Y, broadcast, consumer, & automotive (16% of revenue) +5% Q/Q and +3% Y/Y, everything else (3% of revenue) +39% Q/Q and +11% Y/Y.
- Gross margin +150 bps Q/Q to 69.1%, and above guidance of 68.1%. Xilinx expects an FQ2 GM of 70%. $100M was spent on buybacks.
- Altera (NASDAQ:ALTR) is following Xilinx lower.
- FQ1 results, PR
ALTR vs. ETF Alternatives
Altera Corpdesigns and sells programmable logic devices, HardCopy application-specific integrated circuit devices, power system-on-chip devices, pre-defined design building blocks known as intellectual property cores, and associated development tools.
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