Jun. 3, 2014, 6:31 PM
- Though Anadigics (ANAD +7.6%) hasn't turned a profit since 2010, the chipmaker's cost-cutting and mix-optimization efforts leave it in a good position to reach EBITDA break-even in Q3 or Q4, thinks SA author Stock Doctor.
- The author estimates EBITDA break-even now requires ~$33M/quarter in revenue, down from ~$50M/quarter in 2010. Wi-Fi front end IC and/or power amplifier design wins with the likes of Samsung, Huawei, ZTE, and Coolpad are expected to provide a lift.
- Stock Doctor adds Anadigics' 0.67 P/S ratio is a fraction of that of peers such as RF Micro, TriQuint, and Skyworks, and thinks a $14M cash balance and $11M credit line mean liquidity isn't a concern.
- Previous: Anadigics rallies after announcing Wi-Fi PA, design wins
May. 22, 2014, 1:13 PM
- Anadigics' (ANAD +4.7%) new AWL5910 Wi-Fi power amplifier runs on the 5GHz. band (one of the two main Wi-Fi bands), and supports the relatively new 802.11ac standard. It's optimized for networking gear and living room devices rather than phones/tablets.
- Anadigics boasts the PA "delivers an industry-leading combination of linearity, efficiency and gain, while minimizing external component requirements." It has been "adopted for use in multiple high-performance connectivity solutions which are expected to ramp in the upcoming quarter."
- Shares are rallying on an up day for the Nasdaq. They've had a rough 2014 thanks to disappointing earnings news.
May. 6, 2014, 3:52 PM
- Digitimes reports Samsung (SSNLF) "putting in weaker-than-expected handset component orders to the supply chain" amid toughening competition, particularly in China. The site adds Samsung, which last month launched its latest flagship (the Galaxy S5), is mostly expected to cut orders for cheaper smartphones.
- The report comes a few days after InvenSense (INVN -2.8%) offered a soft June quarter outlook, while estimating Samsung will return to accounting for a mid-30s % of revenue after making up 47% of March quarter sales.
- Strategy Analytics estimates Samsung saw its smartphone share fall 120 bps Y/Y to 31.2% in Q1 (89M shipments out of 285M), following many quarters of steady share gains. Strategy also estimates Lenovo (LNVGY) grew its share to 4.7% from 3.9%, and that Huawei's share was steady at 3.9%.
- Other Chinese OEMs, including Xiaomi, ZTE, and Coolpad, have also been seeing healthy shipment growth amid an industry mix shift towards cheaper phones aimed at emerging markets. Xiaomi (also a major InvenSense client) is looking to roughly double its shipments in 2014 to 40M.
- Other suppliers with heavy Samsung exposure: OLED, MXIM, SYNA, ANAD.
Apr. 30, 2014, 4:04 PM
Apr. 29, 2014, 5:35 PM
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Apr. 22, 2014, 4:46 PM
- In addition to beating FQ2 estimates, Skyworks (SWKS) is guiding for FQ3 revenue of $535M and EPS of $0.73, well above a consensus of $488.2M and $0.63.
- Gross margin rose 250 bps Y/Y to 44.7%. While revenue rose 13% Y/Y, opex only grew 2% to $109.8M. 2M shares were repurchased.
- Rival RF Micro (RFMD) is up in sympathy ahead of its April 29 FQ4 report. Others that might get a lift: TQNT, AVGO, ANAD.
- FQ2 results, PR
Apr. 2, 2014, 9:17 AM
Mar. 31, 2014, 6:52 PM
- An early teardown (translation) of Samsung's (SSNLF) Galaxy S5 has turned up the same 6-axis InvenSense (INVN) motion sensor found in the Note 3. The InvenSense part displaces the STMicroelectronics (STM) motion sensor found in the S4.
- Multiple Maxim (MXIM) power ICs were also uncovered. Though Barclays thinks Maxim lost the gesture IC slot it had in the S4 to rival AMS, it nonetheless thinks its dollar content grew ~10% (previous).
- An NXP (NXPI) NFC controller/secure element displaced the Broadcom (BRCM) NFC chip that went into the S4; Barclays estimates the design win will be worth $50M-$60M to NXP, assuming average content of $1. Broadcom is still expected to get $4/unit for supplying the S5's Wi-Fi/Bluetooth combo chip.
- Synaptics (SYNA) is believed to have the S5's touch controller slot and (though not revealed in the teardown) its fingerprint/swipe sensor slot. The company's S4 touch controller win delivered a windfall.
- Though a Skyworks (SWKS) power amplifier module and discrete amplifier were found, and a Wi-Fi filter is believed to be present, Barclays thinks Skyworks' content share likely fell, thanks to the absence of Wi-Fi switch/LNA content. It also thinks the total value of the S5's Wi-Fi RF content is lower due to Broadcom's use of internal power amplifiers (possibly a negative for S4 supplier ANAD).
- Separately, DisplayMate calls the S5's OLED display "the best-performing smartphone display we have ever tested," after doing an in-depth analysis. The display's color accuracy, brightness, ambient lighting performance, and power efficiency all receive high marks. OLED materials/tech supplier Universal Display (OLED) will be happy to hear that.
Mar. 17, 2014, 2:32 PM
- China Mobile's decision (officially announced on Friday) to require all 4G phones sold by the company as of May 31 to support five air interfaces should bolster Qualcomm's (QCOM +3.4%) 4G baseband chip sales and Chinese royalty collections, thinks Goldman's Simona Jankowski.
- Jankowski observes Qualcomm "has the most mature and broad portfolio" of 5-mode mobile SoCs, and that the company could have an easier time collecting royalties from Chinese OEMs on sales of phones supporting the globally-adopted 4G FDD-LTE and 3G W-CDMA standards. Qualcomm has had trouble collecting on sales of phones supporting China Mobile's 3G TD-SCDMA standard (but not W-CDMA).
- She also points out China Mobile is hoping to sell 100M 4G phones this year, after having launched commercial 4G services in late 2013. The Chinese government's antitrust probe remains an overhang, though as Jankowski notes, that's tied to royalty rates rather than Qualcomm's right to collect.
- Previous: Qualcomm could benefit from China Mobile 5-mode requirement
- Update: SA commenter Philip Marlowe notes RF component makers (RFMD, TQNT, SWKS, AVGO, ANAD) should also benefit from the policy change, as 5-mode phones require more RF circuitry than 3-mode phones.
Feb. 24, 2014, 2:40 PM
- As expected, Samsung (SSNLF, SSNGY) has unveiled its next-gen flagship smartphone at a Mobile World Congress event (live blog). Whereas the Korean electronics giant trumpeted a variety of bells and whistles (some might say gimmicks) when launching the Galaxy S4 a year ago, it's taking a more low-key approach with the S5.
- The S5 has a 5.1" display, just slightly larger than the S4's 5" display. The resolution is unchanged at 1080p; past reports had pointed to a 2K resolution. Like Apple (AAPL) with the iPhone 5S, Samsung is integrating a fingerprint sensor into the S5's home button, and is offering a gold model.
- A 16MP camera supporting 4K video recording is included (the S4 has a 13MP camera), as is a perforated back meant to provide better grip. Qualcomm's (QCOM +0.2%) Snapdragon 801 baseband/app processor (2.5GHz., quad-core) powers the device. A heart rate monitor and slightly larger battery are also on board.
- Remarks from co-CEO JK Shin point to a shift in Samsung's product philosophy, one that arguably meshes with reports of a deal with Google to tone down Samsung's efforts to customize its hardware. "Our consumers do not want eye-popping technology or the most complex technology."
- Likely S5 suppliers with strong exposure: OLED, MXIM, SYNA, ANAD
Feb. 24, 2014, 9:21 AM
- Skyworks (SWKS) is up 3.2% premarket, Qualcomm (QCOM) is up 1%, and Anadigics (ANAD) is up 3.7% following news RF component vendors TriQuint and RF Micro are merging. The merging companies themselves are up sharply.
- RF Micro/TriQuint, which comes on the heels of Avago/LSI, appears to be fueling hopes of additional consolidation in the RF component space. There might also be expectations rivals will be able to take share, as common customers such as Apple and Samsung try to stay diversified.
- Though Qualcomm's chip unit is best known for its baseband and app processors, it also has a large and growing RF component business, one Qualcomm hopes to expand via its innovative/ambitious RF front end platform.
Feb. 20, 2014, 6:05 PM
- Anadigics (ANAD) expects revenue in seasonally weak Q1 to fall 34%-37% from a Q4 level of $36.3M. That implies a range of $24M-$25M, below a $31.8M consensus. Shares -10.2% AH. (Q4 results, PR)
- Immersion (IMMR) expects 2014 revenue of $54M-$62M and EPS of $0.27-$0.50 vs. a consensus of $61.3M and $0.47. Excluding a $1.24/share tax benefit, Q4 EPS was $0.02, below a $0.07 consensus. Shares +2.3% AH. (Q4 results, PR)
- Tremor Video (TRMR) expects Q1 revenue of $29M-$31M, above a $25.5M consensus, and adjusted EBITDA of -$7.5M- to -$6.5M. Full-year guidance is for revenue of $155M-%165M, above a $148.1M consensus, and adjusted EBITDA of -$11M to -$8M. Shares +8.1% AH. (Q4 results, PR)
- Blucora (BCOR) expects Q1 revenue of $213M-$222M and EPS of $1-$1.06, below a consensus of $223.7M and $1.15. Shares -5% AH. (Q4 results, PR)
Feb. 20, 2014, 4:15 PM
Feb. 20, 2014, 12:10 AM| 2 Comments
Feb. 19, 2014, 5:35 PM| Comment!
Feb. 4, 2014, 2:07 PM
- Samsung (SSNLF) has sent out invites for a Feb. 24 event at the Mobile World Congress that's expected to feature the launch of the Galaxy S5. Separately, Korean and Indian sites indicate the S5, like the S4, will eventually be accompanied by a water/dust-resistant Active version, and a Zoom version featuring a camera with an optical zoom.
- The timing of the S5 event is three weeks ahead of when the S4 launched last year.
- The S5 is expected to have ~5.25" display with a whopping 2K (2560x1440) resolution, a 16MP camera, and a fingerprint sensor. It might also ship in both a costlier metal version and a cheaper plastic version.
- The launch of Samsung's next flagship will follow a downbeat Q4 report, and a reported deal with Google in which Samsung agreed to tone down its efforts to offer custom apps/UIs for its Android hardware.
- Samsung is facing stiffening competition from Chinese OEMs as Android sales continue seeing a mix shift towards cheaper hardware (often sold in emerging markets). Following an epic rise from 2011-2013, IDC estimates Samsung's smartphone share fell 30 bps Y/Y in Q4 to 28.8%.
- Companies likely to have strong S5 exposure (as a % of total revenue): OLED, ANAD, SYNA, RFMD, MXIM.
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