Jul. 18, 2014, 2:51 PM
- "We believe Skyworks’ (SWKS +13.5%) diverse analog portfolio is enabling content share gains in its handset customer base," writes Canaccord after taking in the RF component giant's FQ3 beat and very strong FQ4 guidance.
- Canaccord thinks the FQ4 outlook is due to a mixture of strong iPhone 6 content share, growing sales of higher dollar-content integrated solutions to Chinese/emerging markets OEMs (gaining Android share), and "growing traction" for the company's non-phone analog IC business.
- 802.11ac Wi-Fi, mobile infrastructure, and embedded products (the proverbial "Internet of Things") are some of the non-mobile RF markets Canaccord sees Skyworks growing its sales to. Needham, for its part, also sees the smart grid, automotive, and medical markets providing a boost.
- On the CC (transcript), CEO David Aldrich declared broader mobile RF demand is benefiting from the need to support a larger number of spectrum bands - Avago (AVGO +4.3%) also benefits from this - as well as growing system complexity (driving a shift towards integrated solutions) and OEM efforts to improve signal performance.
- RF component peers Avago, RF Micro (RFMD +6.7%), TriQuint (TQNT +6.8%), and Resonant (RESN +7%) are outperforming amid a tech rally, as are several other mobile suppliers. INVN +3.9%. HIMX +2.9%. OLED +5.3%. CRUS +2.9%.
Jun. 25, 2014, 6:22 PM
- Black Sand Technologies, based out of Austin, was founded in '05 and has raised $28.2M in funding over its history.
- Notably, the product page on Black Sand's site only shows 3G amplifiers, and the most recent PR on its news page is from 2012. All signs suggest Qualcomm (QCOM) is buying the company to strengthen its power amplifier IP and/or engineering talent, as it encroaches on the turf of established vendors such as Skyworks (SWKS), TriQuint (TQNT), RF Micro (RFMD), and Avago (AVGO) with system-level solutions.
- Qualcomm, estimated to have 64% of the 2013 baseband processor market, made a dramatic entry into the amplifier market last year by announcing an RF front end solution (amplifiers included) that promised superior 3G/4G multi-band support and (via technologies such as envelope tracking) power efficiency. Skyworks, TriQuint, and RF Micro all tumbled following the announcement.
Jun. 23, 2014, 7:19 AM
Jun. 5, 2014, 9:21 AM
May. 29, 2014, 6:35 PM
- With newly-acquired LSI in tow, Avago (AVGO) expects FQ3 revenue of $1.3B-$1.4B. The consensus, which might not fully account for LSI, is at $1.24B.
- FQ2 gross margin was 54%, up from FQ1's 52% and the year-ago period's 51%, and above guidance of 51.5%-53.5%. Moreover, FQ3 GM is expected to be in a range of 54%-56%.
- Wireless chip sales (boosted by 4G component/FBAR filter demand) +25% Y/Y and 50% of revenue. Wired infrastructure (lifted by CyOptics) +43% and 31% of revenue. Industrial & Other +3% and 19% of revenue.
- Opex was 21% of revenue, down from 23% a year ago.
- Shares are making new 52-week highs AH, and are up 37% YTD.
- FQ2 results, PR
May. 29, 2014, 4:07 PM| Comment!
May. 29, 2014, 9:34 AM
- Seagate (STX) is expanding its flash storage lineup - generally seen as a weakness as flash encroaches on hard drives - in a big way by acquiring LSI's PCIe server flash storage module/flash controller chip unit from new LSI parent Avago (AVGO) for $450M in cash.
- Seagate, which already offers SSDs, notes the LSI unit is the #2 player in the PCIe flash market - Fusion-io (FIO +1%) is the largest - and that its offerings in the space are optimized for cloud/hyperscale deployments - Fusion-io also has a keen interest in this area. The unit's SandForce controllers have a number of SSD design wins.
- Seagate expects its enterprise SSD and controller ops to produce at least $150M in revenue in FY15 (ends June '15), albeit with an op. margin headwind of $30M-$40M. Better profitability is expected in FY16.
- The deal follows a string of flash storage acquisitions from archrival Western Digital: PCIe flash vendor Virident, SSD vendor sTec, and SSD caching software startup Velobit.
- It appears to remove one more potential suitor for Fusion-io, long the subject of M&A speculation.
May. 28, 2014, 5:35 PM
May. 15, 2014, 4:39 PM
- After cutting its Yahoo (YHOO) stake in half to 8M shares in Q4, Dan Loeb's Third Point LLC fully liquidated its position in Q1. (13F).
- Loeb, whose fund once owned 60M Yahoo shares, resigned from the company's board last July as part of a deal to sell back 40M shares to the company. His decision to exit Yahoo comes ahead of Alibaba's much-anticipated IPO.
- Loeb also liquidated the 10M-share BlackBerry (BBRY) position he established in Q4. BBRY -1.6% AH.
- A 4M-share position in Activision (ATVI) and a 1M-share position in NXP (NXPI) were also unloaded. A 2M-share position was taken in Avago (AVGO), as was a 2.55M-share position in Citrix (CTXS) and a 1.6M-share position in Brazilian carrier TIM Participacoes (TSU).
May. 5, 2014, 6:45 PM
Apr. 28, 2014, 11:09 AM
- Skyworks (SWKS - unchanged) and Panasonic (PCRFY) are forming a JV to develop SAW filters for mobile devices and other products.
- Skyworks will pay $148.5M in cash for a 66% stake in the JV, which will be have 590 employees and facilities in Japan and Singapore. The deal is expected to close by the end of calendar Q3, and be immediately accretive to margins and EPS.
- Rival Avago (AVGO -1.4%) is trading lower. Avago has differentiated its RF modules (particularly for 4G designs) partly through the use of FBAR filters (a type of BAW filter) offering better performance than SAW alternatives
- Morgan Stanley estimated last fall Avago has a ~70% share of the premium filter market, and predicted the market will grow to $1.75B in 2015 from slightly over $800M in 2013. TriQuint (TQNT -0.2%), about to merge with RF Micro (RFMD +0.8%), was estimated to have the remaining 30%.
- Skyworks asserts the JV is complementary to its ongoing BAW filter investments, and that Panasonic is the leader in the growing market for high-performance TC SAW filters - typically more expensive than traditional SAW filters, but cheaper than BAW filters. The company predicts the deal will allow it to "develop customized solutions for any band configuration where filter technology is applicable."
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. 22, 2014, 2:28 PM
- The ITC has issued a final ruling clearing Mellanox's (MLNX +4.2%) optical cables and VCSEL laser drivers of infringing an Avago (AVGO +2.8%) laser driver patents. An administrative law judge (ALJ) had ruled in Mellanox's favor in January.
- At the same time, the ITC has upheld an ALJ ruling declaring Mellanox infringes another Avago VCSEL-related patent, and has issued cease-and-desist orders related to covered products (supplied to Mellanox by third parties).
- Mellanox insists the latter ruling won't affect its ability to supply optical cables, or otherwise affect its product line.
- Mellanox and Avago are both rallying on a good day for tech stocks. Mellanox's Q1 report is due on Thursday.
Apr. 7, 2014, 9:35 AM
- Analog Devices (ADI +0.8%) has been upgraded to Neutral by Goldman. The firm cut ADI to Sell on Jan. 2, when shares were moderately lower.
- Avago (AVGO -1.1%) has been pulled from Goldman's Conviction Buy list, but remains rated a Buy.
- FireEye (FEYE +1.9%) has been started at Outperform by FBN.
- Calix (CALX +2.3%) has been started at Buy by Craig-Hallum.
- Inphi (IPHI +2.7%) has been started at Buy by CRT Capital.
- Align Technology (ALGN +1%) has been upgraded to Outperform by Barrington Research.
Apr. 2, 2014, 7:06 PM
- A Chipworks teardown of Samsung's Galaxy S5 has turned up six Qualcomm (QCOM) chips: Two power management ICs, two RF transceivers, an audio codec IC, and the previously-disclosed Snapdragon 801 baseband/app processor.
- One of the power management ICs is part of Qualcomm's much-hyped RF front end, and improves 4G battery life via envelope tracking. Google/LG's Nexus 5 also contains the chip.
- Three Avago (AVGO) RF components are also inside the S5, including a 2G/3G/4G module. It's worth noting a phone's RF circuitry can vary depending on the particular market it's being sold into.
- Other components include an Audience (ADNC) voice processor, a Lattice Semi (LSCC) FPGA, an RF Micro (RFMD) antenna control chip (the company has strong Galaxy S4 exposure), and a Silicon Image (SIMG) MHL video transmitter IC.
- A previous teardown from a Russian site revealed components from Maxim, Synaptics, NXP, InvenSense, and Skyworks (SWKS). Aside from the Skyworks components (apparently swapped out for Avago parts in Chipworks' S5 model), the Chipworks teardown largely turns up the same parts.
- Earlier: Snapdragon 600 inside Amazon's Fire TV set-top
Mar. 28, 2014, 9:50 AM
- InvenSense (INVN +3%) has been upgraded to Buy by Roth.
- Ciena (CIEN -1.4%) and JDS Uniphase (JDSU -0.4%) have been cut to Sector Perform by RBC. MKM upgraded JDS a week ago.
- Veeco (VECO +4.6%) has been upgraded to Buy by CLSA. UBS upgraded shares earlier in March.
- Avago (AVGO +1.9%) has been started at Outperform by Pac Crest.
- Telecom Italia (TI +2.2%) has been upgraded to Buy by Berenberg.
- Integrated Silicon (ISSI +3.4%) has been started at Buy by B. Riley.
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