Thu, Jan. 22, 4:57 PM
- Altera (NASDAQ:ALTR) expects Q1 revenue to be flat to down 4% Q/Q. That implies a range of $460.7M-$479.9M, below a $486.3M consensus.
- Networking, computer, & storage revenue (16% of total) was a weak spot in Q4, falling 3% Q/Q and 11% Y/Y. Telecom & wireless revenue (42% of total, hurt by soft wireline capex, boosted by the Chinese 4G buildout) was down 11% Q/Q but up 10% Y/Y. Industrial automation, military, and automotive was up 2% Q/Q and 7% Y/Y.
- $151.5M was spent on buybacks, helping EPS beat estimates in spite of a revenue miss. Also helping: GAAP opex fell 1% Y/Y to $190.8M, thanks to a 4% drop in R&D spend to $107.3M. Gross margin fell 180 bps Q/Q and 330 bps Y/Y to 65%, and is expected to be around 65% in Q1.
- The company is "entering the advanced stages of design" for its high-end Stratix 10 FPGAs, which will be made using Intel's cutting-edge 14nm FinFET manufacturing process.
- Altera has fallen to $33.54 in AH trading. Shares rose 1.3% in regular trading, after opening lower in response to Xilinx's numbers.
- Q4 results, PR
Thu, Jan. 22, 4:21 PM
Wed, Jan. 21, 5:35 PM
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
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, 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
Apr. 24, 2014, 5:29 PM
- Altera (ALTR) expects FQ2 revenue to grow 2%-6% from an FQ1 level of $461.1M. That implies a range of $470M-$488.8M, above a $461.3M consensus.
- The FPGA maker suggests stronger-than-expected sales related to Chinese 4G deployments contributed to its FQ1 beat. Telecom & wireless revenue (45% of sales) grew 14% Q/Q and 23% Y/Y, and Asia-Pac revenue 6% Q/Q and 24% Y/Y.
- Those numbers offset weakness in networking, computer, & storage (-20% Q/Q and -7% Y/Y), as well as the Americas (-17% Q/Q and -13% Y/Y). Other areas of strength included industrial, military, and automotive (+13% Y/Y, 22% of revenue), EMEA (+11%), and Japan (+18%).
- Shares +4% AH. Rival Xilinx (XLNX), which often moves in tandem with Altera, is up just 0.5% after falling 9.1% in regular trading due to its light FQ1 guidance. Altera fell only 0.6% in regular trading after initially showing steeper losses.
- Altera is expected to see 13.7% Y/Y June quarter revenue growth at its guidance midpoint, and Xilinx 10.5% growth.
- FQ1 results, PR
ALTR vs. ETF Alternatives
Altera Corp designs, manufactures and markets high-performance, high-density programmable logic devices, HardCopy ASIC devices, pre-defined design building blocks, cores and associated development tools.
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