Thu, Apr. 30, 2:32 PM| Comment!
Wed, Apr. 29, 3:30 PM
- Tech companies rallying after posting earnings include telecom analog/mixed-signal chipmaker InPhi (IPHI +11.5%) and process-optimization/supply-chain software vendor Aspen Technology (AZPN +6.3%). Those down strongly include telecom equipment vendor Calix (CALX -8.1%), pay-TV infrastructure hardware provider Harmonic (HLIT -6.4%), and cloud HR software vendor Ultimate Software (ULTI -5.6%).
- InPhi beat Q1 estimates and offered in-line Q2 guidance: Revenue of $59.6M-$60.8M and EPS of $0.22-$0.24 vs. a consensus of $60.6M and $0.23. With shares having sold off going into earnings thanks to soft guidance from peers, the outlook is better than feared.
- Aspen beat FQ3 estimates and issued strong FY15 (ends June '15) guidance on its CC (transcript): Revenue of $437M-$439M and EPS of $1.41-$1.43, above a consensus of $436.9M and $1.33.
- Calix missed Q1 estimates and offered light guidance on its CC (transcript): Revenue of $94M-$98M and EPS of -$0.06 to -$0.02, below a consensus of $104.4M and $0.05. The company blames delays in the rollout of carrier capex budgets.
- Harmonic beat Q1 estimates, but also guided for Q2 revenue of $97M-$107M, below a $108.4M consensus. The company blames macro issues in several regions, a strong dollar, customer M&A activity, and the deferred revenue components of new projects.
- Ultimate posted roughly in-line Q1 results and guided for Q2 revenue of $146M, below a $148.4M consensus. Full-year revenue growth guidance of 22% is in-line. Many peers are rallying following a report stating Salesforce has received buyout interest.
- Previously covered: Twitter, GoPro, LogMeIn, Xoom, GrubHub, MicroStrategy, Smith Micro, AppliedMicro, OpenText
Tue, Mar. 24, 3:18 PM
- Today's notable tech gainers include chip packaging/testing firm ChipMOS (IMOS +3.7%), and headphone maker Skullcandy (SKUL +3.9%), mobile banking tech provider Mitek (MITK +6.5%), search toolbar/mobile ad platform provider Perion (PERI +8.8%), Chinese social network/game provider Renren (RENN +4.8%), peripherals giant Logitech (LOGI +4%), security IP licensing firm Finjan (FNJN +13.7%).
- Notable decliners include e-commerce services firm ChannelAdvisor (ECOM -5.6%), program guide/content protection IP firm Rovi (ROVI -4.3%), telecom equipment vendor Calix (CALX -3.5%), and Fibre Channel/Ehternet switch vendor Brocade (BRCD -3.4%).
- Likely helping Finjan: An H.C. Wainwright note stating the company has committed $5M to a Jerusalem Venture Partners (JVP) cybersecurity fund; Alibaba announced yesterday it's investing in JVP. Logitech announced a $100 wireless mouse today. Skullcandy is once more within striking distance of a 52-week high of $11.83.
- Previously covered: Twitter, solar stocks, Sonus/AudioCodes/BroadSoft, Neonode, Arista, Taser, Ciena, Zagg, Gogo, Digital Ally
Wed, Mar. 11, 3:08 PM
- A day after equity markets tumbled (with many high-beta names especially hard-hit), major tech gainers are outnumbering major decliners, though the Nasdaq is nearly flat.
- Today's notable tech gainers include RF backhaul hardware vendors DragonWave (DRWI +15.6%) and Aviat (AVNW +8%), LED lighting provider Revolution Lighting (RVLT +5.4%) online textbook rental/learning services provider Chegg (CHGG +3.8%), auto site TrueCar (TRUE +5.3%), loan-shopping site owner Lendingtree (TREE +6.9%), telecom equipment vendor Calix (CALX +2.7%), TV/set-top SoC provider Sigma Designs (SIGM +4.9%), and VoIP hardware/software provider Mitel (MITL +3.8%).
- Notable decliners include supercomputer maker SGI (SGI -2.9%), 3D printing software vendor Materialise (MTLS -5.5%), security hardware/software provider KEYW Holding (KEYW -2.9%), and Chinese online game developer Changyou (CYOU -2.9%).
- DragonWave and Aviat are reversing yesterday's big losses. Materialise is making fresh 52-week lows a week after posting mixed Q4 results; KEYW is also seeing new 52-week lows. Revolution's gains continue a volatile post-earnings ride: Shares soared last week after the company posted its Q4 results, but gradually gave back their gains.
- Previously covered: SanDisk, Intel, EMC, SunEdison, Resonant, Immersion, Logitech, VeriFone, Mobileye, Dangdang, InvenSense
Wed, Feb. 4, 12:44 PM
Wed, Feb. 4, 9:41 AM
- Though it beat Q4 revenue estimates and posted in-line EPS, Calix (NYSE:CALX) guided on its Q4 CC (transcript) for Q1 revenue of $89M-$93M and EPS of -$0.04 to -$0.09, below a consensus of $94.6M and $0.02.
- Pressuring EPS: Operating expenses are expected to rise to $46.5M-$47.5M from $40.7M a year earlier. Gross margin is expected to be in a 47.5%-48.5% range after totaling 48.1% in Q4 and 45.9% a year earlier.
- CFO William Atkins: "Due to the book, bill and ship nature of our business our visibility can generally be limited to the next 90 days. With Q1 being the most difficult quarter to project given that many of our customers are still finalizing our budgets." JDS Uniphase stated last week 2015 carrier budgets remain in flux.
- Q4 results, PR
Wed, Feb. 4, 9:13 AM
Dec. 9, 2014, 1:52 PM
- Verizon CFO Fran Shammo has promised his company will continue growing wireless capex (albeit while cutting wireline capex) to keep up with data traffic growth. Small cells and smart antennas were mentioned as areas of interest.
- The remarks have been well-received by investors in telecom equipment and component/chip vendors, many of whom have been hit hard by soft North American and (to an extent) European spending. The Nasdaq is up 0.3%.
- Gainers: JDSU +3.6%. FNSR +3.1%. CYNI +10.1%. INFN +2.8%. CIEN +1.9%. AMCC +3.7%. PMCS +3.7%. ZHNE +3%. OCLR +5.4%. AFOP +2.8%. ADTN +2.5%. UBNT +2.2%. XXIA +1.7%. CALX +3.5%. EZCH +2.9%. SONS +2.4%. Sonus is also benefiting from a bullish Wedbush coverage launch.
- The group was pummeled in November after AT&T set a 2015 capex budget of $18B, down from 2014's $21B.
Nov. 13, 2014, 3:28 PM
- Though Cisco is higher after beating FQ1 estimates and issuing soft FQ2 guidance, many telecom equipment and component/chip names are going in the opposite direction.
- At issue: Cisco reported a 10% Y/Y drop in service provider orders (-18% in the U.S.), while stating on its CC (transcript) it "saw dramatically reduced spend at several large U.S. service providers." The networking giant also suggested demand will remain weak during the next couple of quarters.
- The remarks came just a few days after AT&T set a 2015 capex budget of $18B (down from 2014's $21B), prompting a Monday selloff in equipment vendors and their suppliers.
- Today's decliners: ALU -3.8%. CIEN -2.8%. JDSU -3.1%. FNSR -3.7%. JNPR -1.7%. INFN -3.8%. RKUS -3.4%. ZHNE -3.2%. AMCC -4.1%. CALX -2.7%. CYNI -1.8%. ADTN -3.5%. ALLT -2.4%. FN -1.9%.
Oct. 30, 2014, 12:47 PM
Oct. 29, 2014, 4:34 PM
Oct. 24, 2014, 12:32 PM
- Though Ericsson (ERIC -3%) beat Q3 estimates, the mobile infrastructure giant stated North American business activity "slowed down during the quarter as operators currently focus on cash flow optimization." It added North American spending patterns make it tough to judge near-term demand.
- Ericsson's North American sales fell 3% Y/Y to $1.93B, partly offsetting strong growth in China, India (+56%), the Middle East (+38%), and other emerging markets. Top-line figures were boosted some by M&A.
- AT&T and Verizon have been taking cautious approaches to capex, and Sprint (though investing heavily in 4G following the SoftBank deal) has been looking to cut costs under new CEO Marcelo Claure. The U.S. and Japan have been ahead of many other developed markets in ramping 4G coverage.
- Juniper (JNPR -6.3%) offered light Q4 guidance two weeks after delivering a Q3 warning, and reported its service provider sales were down 6% Y/Y due to soft demand from Asia-Pac, EMEA, and (especially) U.S. carriers.
- When the world's #2 carrier router vendor was asked on the CC (transcript) about 2015 sales, CEO Shaygan Keradpir admitted Juniper has poor near-term visibility, and that a rebound could take time. "Because we think these cycles typically take 2 to 4 quarters ... our planning assumption is that growth will return in the second half of 2015."
- Nokia and Infinera recently offered more positive numbers/commentary. Bulls have argued strong data/video traffic growth will lift capex. Bears have argued soft (if not negative) carrier revenue growth will continue pressuring spending.
- Decliners: ALU -1.6%. JDSU -2%. INFN -3.1%. CIEN -2.5%. CALX -2.5%. FNSR -1.8%. ADTN -1.5%. The Nasdaq is up 0.4%.
Oct. 15, 2014, 4:07 PM
- In an encouraging sign for beaten-down telecom equipment and chip/component stocks, Adtran (ADTN +5.7%) managed to rally even though it guided on its Q3 CC (transcript) for a low-to-mid teens Q/Q revenue drop. Consensus (doesn't appear to have fully accounted for Adtran's Q3 warning) was for revenue to drop 2% to $154.9M in Q4.
- Adtran attributed much of its Q3 weakness to "a decline in Europe as a large project there had a seasonal slowdown." Enterprise softness also took a toll.
- The company "[expects] to see an upturn in this business" in 2015, but European sales are expected to remain soft in Q4. Other equipment vendors, such as Juniper (JNPR +2%) and Ciena (CIEN +2.7%), have provided weak guidance blamed on U.S. wireline capex; AT&T is generally seen as a big culprit.
- In addition to Juniper and Ciena, many other industry names have closed with healthy gains. PKT +6.3%. INFN +3.4%. ZHNE +6.7%. ALLT +5.2%. AFOP +4.5%. AMCC +12.5%. CYNI +4%. CALX +3.3%. FNSR +3.1%. UBNT +4.2%. OPLK +3.4%. RKUS +3.3%.
Oct. 8, 2014, 10:10 AM
- Goldman has upgraded broadband/access telecom equipment vendors Adtran (ADTN +2%) and Calix (CALX +2.4%) to Buy.
- The firm likes Adtran's valuation in the wake of last week's warning, and forecasts share gains and continued healthy demand from Deutsche Telekom. It likes Calix's last-mile fiber wins and exposure to CenturyLink's broadband buildout.
- Adtran reports on Oct. 15, and Calix on Oct. 29.
Oct. 3, 2014, 1:37 PM
- Adtran (NASDAQ:ADTN) expects Q3 revenue of $162M-$163M and EPS of $0.23-$0.24, below a consensus of $177.4M and $0.27.
- The company blames a bigger-than-expected Q/Q drop in European sales, and a "softer enterprise spending environment." On the other hand, sales to U.S. carriers (a weak spot for many companies as of late) grew Q/Q, and Adtran forecasts "a re-acceleration in carrier spending both in Europe and the U.S." in 2015.
- Telecom equipment peer Cyan (CYNI -5.4%) is selling off on a day the Nasdaq is up 1%. Calix (CALX -1.1%) is off moderately.
Apr. 16, 2014, 11:53 AM
- Though Adtran (ADTN -6.2%) has reiterated guidance for Q2 revenue of $172M-$180M (consensus is at $174.9M), the telecom equipment vendor is forecasting gross margin will drop to 49%-50% from Q1's 52.9%.
- In addition, Adtran says U.S. carrier spending was slower than usual in seasonally soft Q1.
- Shares are off sharply in response, after opening with just modest losses in response to Adtran's mixed Q1 results. Rival Calix (CALX -0.9%), which reports on April 29, is edging lower on an up day for the Nasdaq.
CALX vs. ETF Alternatives
Calix, Inc., offers broadband communications access systems and software for fiber- and copper-based network architectures that enable communications service providers, to connect to its residential and business subscribers.
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