Fri, Mar. 27, 3:12 PM
- Today's notable tech gainers include next-gen firewall leader Palo Alto Networks (PANW +3.5%), touchscreen tech developer UniPixel (UNXL +5.9%), solar microinverter leader Enphase (ENPH +5.8%), optical transport/switching hardware vendor Infinera (INFN +3.8%), telecom service/analytics provider Neustar (NSR +4.4%), and Chinese online classifieds leader 58.com (WUBA +4%). The Nasdaq is up 0.3%
- There are relatively few major decliners today. The group includes Infinera rival Ciena (CIEN -4.5%), Chinese sports lottery site 500.com (WBAI -5.3%), and Chinese online video leader Youku (YOKU -3.4%).
- Palo Alto is adding to Thursday gains seen amid a broader cybersecurity stock rally. Likewise, Enphase gained on Thursday following rival SolarEdge's IPO, Neustar gained after announcing a $150M buyback, and Infinera gained following a bullish MKM note.
- Ciena is reversing the Tuesday gains seen after Stifel reported the company's share of a major Verizon 100G metro contract (has been officially announced) could be larger than expected. 500.com is giving back major Thursday gains; yesterday morning, SA Instablog author/former i-banker MNS Global reported hearing Chinese authorities are thinking of indefinitely extending recently-placed bans on online sports lottery sales, after uncovering corruption.
- Previously covered: EMC, HP, Voxeljet, Skyworks, SuperCom, Stratasys, Qunar, Pandora, SanDisk
Tue, Mar. 24, 11:29 AM
- Like others, Stifel reports Ciena (NYSE:CIEN) and Cisco (NASDAQ:CSCO) are expected to share a huge Verizon 100G metro optical contract. However, while others have reported Cisco will get ~2/3 of the contract, Stifel's checks indicate the Cisco/Ciena split hasn't been determined; the firm believes "both vendors will start on an equal footing," and that Ciena might even get a majority of the deal.
- Ciena is expected to supply a platform that's similar to its 6500 series packet-optical (integrated Ethernet switching/optical networking) hardware, and which supports OTN switching. Stifel thinks Ciena, whose 6500 series is already used in Verizon's 100G long-haul network, could get over $100M in 2016 revenue from the metro deal. Cowen has estimated the total contract opportunity could be worth $200M-$300M over two years.
- Optical component vendor NeoPhotonics (NPTN +4%), which received 15% of its 2014 revenue from Ciena (trailing only Huawei's 38%) and has healthy 100G exposure, is also rallying. Its shares are now up 104% since a Q4 beat was posted on March 3.
- Update: Verizon has confirmed Ciena and Cisco have won the deal. No word on the split between the companies.
Mon, Mar. 16, 3:19 PM
- Though the Nasdaq is up 1.1%, major tech decliners are roughly on par with major gainers today.
- Notable gainers include telecom equipment vendor Ciena (CIEN +3.9%), data center owner CyrusOne (CONE +4.6%), optical component maker NeoPhotonics (NPTN +6.1%), software outsourcing firm Luxoft (LXFT +7.7%), supply chain software vendor Manhattan Associates (MANH +4.2%), and Chinese game developer NetEase (NTES +3.7%).
- Notable decliners include leading Chinese online video platform Youku (YOKU -4%), 4G router/M2M module maker Novatel (MIFI -5.5%), security hardware/software vendor KEYW Holding (KEYW -5.3%), Chinese online retailer LightInTheBox (LITB -8.7%), Chinese online real estate plays E-House (EJ -4.7%) and Leju (LEJU -5.3%), seismic tech provider Geospace (GEOS -7.5%), and U.S. solar installer Vivint (VSLR -4.3%).
- CyrusOne, Luxoft, and Manhattan Associates are making new 52-week highs. Geospace's decline comes as crude oil falls to fresh 6-year lows. The Chinese decliners are failing to get a boost from pro-stimulus remarks from premier Li Keqiang (they've lifted many other Chinese names).
- Previously covered: Xilinx, Neonode, MoSys, Superconductor Technologies, Himax, Alibaba, Avago, Qorvo, King Digital, iDreamSky, MicroVision
Thu, Mar. 5, 6:33 PM
- Though Ciena (NYSE:CIEN) soundly missed FQ1 revenue estimates, it's guiding for FQ2 revenue of $585M-$615M, in-line with a $597.2M consensus. Meanwhile, EPS beat estimates thanks to a 620 bps Q/Q and 70 bps Y/Y increase in gross margin to 44.1% (favorable to guidance for a low-40s GM).
- FY15 (ends Oct. '15) revenue growth guidance is now at 5%, below a 7.9% consensus. However, guidance would still be at 7%-9% if not for forex.
- Investors took the numbers in stride; Ciena closed up 0.2%. However, shares are up 1.7% AH thanks to optical component supplier Finisar's strong April quarter guidance.
- On the CC (transcript), the FQ1 sales miss was blamed on both forex and the timing of U.S. federal orders - they're now expected to arrive in FQ2 and FQ3. The gross margin growth was attributed to cost cuts and a mix shift towards software and "certain kinds of metro [systems] where you’ve got high packet and switching capabilities built into the platform." FQ2 GM guidance is at 42%-43%.
- Also: CEO Gary B. Smith stated Ciena thinks it's "very well placed" to win a major Verizon contract for a 100G metro optical buildout, and that it expects a decision soon. In December, Cowen predicted Ciena would be one of two suppliers, and that the deal could be worth $200M-$300M over two years.
- Packet networking (Ethernet switch) and software/services revenue saw healthy Y/Y growth in FQ1; converged packet optical (integrated Ethernet/optical systems, 63.6% of revenue) grew slightly, and optical transport (now just 4% of revenue) fell sharply. Operating expenses fell 1% Y/Y to $199.8M.
- FQ1 results, PR
Thu, Mar. 5, 7:03 AM
Wed, Mar. 4, 5:30 PM
Fri, Jan. 30, 2:56 PM
- Optical networking/carrier Ethernet hardware vendor Ciena (CIEN -4%), optical component suppliers Finisar (FNSR -2.4%) and Oclaro (OCLR -2%), and telecom chipmakers AppliedMicro (AMCC -5.9%) and Cavium (CAVM -4.4%) are all off after component vendor JDS Uniphase (JDSU -7.4%) missed FQ2 estimates and provided soft FQ3 guidance.
- On its CC (transcript), JDS observed its FQ2 network enablement (test equipment) and service enablement (telecom software/services) revenue fell a combined 8% Y/Y due to "weaker carrier spending and no budget flush in historically stronger December quarter." Network enablement is expected to remain soft in seasonally weak FQ3 as customers weigh their 2015 spending plans. Service enablement is expected to grow ~24%, after growing 16.6% in FQ2.
- AppliedMicro is down 10% since providing a soft FQ4 EPS guidance (-$0.09 vs. a -$0.07 pre-earnings consensus) on Tuesday afternoon to go with an FQ3 beat. Cavium is giving back the gains it saw yesterday after beating Q4 estimates and providing strong Q1 guidance.
Fri, Jan. 23, 10:32 AM
- Infinera (INFN +17.7%) knocked the cover off the ball yesterday afternoon, soundly beating Q4 estimates and issuing strong Q1 guidance on the back of growing demand for its DTN-X optical transmission/switching platform for 100G deployments.
- Rival Ciena (CIEN +3.7%) and optical component vendors JDS Uniphase (JDSU +2.7%) and Finisar (FNSR +2.3%) are rallying in response. The companies followed equity markets higher yesterday after Verizon guided for its 2015 capex to be slightly above 2014 levels (contrasts with AT&T's planed capex cut).
- On its CC (transcript), Infinera said it added 10 new invoiced DTN-X customers in Q4 (3 new to Infinera altogether), raising its total to 59, and that nearly half of all DTN-X clients are now opting for the company's Instant Bandwidth rapid provisioning tech. Initial revenue for the Cloud Xpress point-to-point interconnect platform was received in December, and 8 customer commitments have been received to date.
Dec. 24, 2014, 2:40 PM
Dec. 23, 2014, 1:13 PM
- Cowen's Paul Silverstein believes Verizon will likely select Ciena (CIEN +1.9%) to be a supplier for its upcoming 100G metro optical buildout.
- Though 100G is increasingly a part of long-haul network upgrades, metro investments are still in their early stages. Verizon stated earlier this year Fujitsu and Tellabs would be among its 100G metro suppliers.
- Soft demand from North American carriers has been taking a toll on Ciena and many others. Verizon announced last week it has used Ciena's WaveLogic photonic systems to provision its first 200G ultra-long-haul link.
- Update: Silverstein thinks Ciena will be "one of the two key suppliers" for Verizon's buildout, and that a deal could be worth $200M-$300M over two years. "To be clear, our checks indicate that Verizon has not selected vendors for this 100Gbps metro optical build-out. That said, our checks also indicate that Ciena currently is well in front of the pack..."
Dec. 11, 2014, 9:25 AM
- Though Ciena (NYSE:CIEN) missed FQ4 EPS estimates (while slightly beating on revenue) and offered FQ1 EPS guidance ($540M-$570M) that was below a $566.6M consensus at the midpoint, it guided on its CC for 7%-9% FY15 (ends Oct. '15) revenue growth; consensus is at 7.1%.
- Also: Gross margin is expected to rebound to the low-40s range in FQ1 after falling 640 bps Q/Q and 290 bps Y/Y in FQ4 to 37.9%. Longer-term, Ciena expects GM to return to the low-to-mid 40s range.
- Helping Ciena's cause today: Shares were down 29% YTD going into earnings, thanks to worries about weak telecom capex and the margin pressure caused by "up-front incentives" provided to AT&T for its huge Domain 2.0 initiative.
- Ciena has been trying to lower its dependence on AT&T and other major telcos: "Non-carrier infrastructure" firms (including Internet companies) now make up more than 30% of revenue, and are expected to continue growing their revenue share.
- FQ4 results, details
Dec. 11, 2014, 7:50 AM
- FQ4 adjusted net loss of $8.2M or $0.08 per share vs. profit of $18.3M or $0.16 one year earlier.
- Adjusted gross margin of 37.9% vs. 40.8% a year ago.
- Converged Packet Optical revenue of $383.3M vs. $350.9M a year ago.
- Packet Networking revenue of $56.4M vs. $61.2M.
- Optical Transport revenue of $26.5M vs. $52.6M.
- Software and Services revenue of $124.8M vs. $118.7M.
- FQ1 revenue expected at $540M-$570M, with adjusted gross margin in the low 40s range, and adjusted operating expense of about $210M.
- Conference call at 8:30 ET
- Previously: Ciena misses by $0.21, beats on revenue
- CIEN -2.7% premarket
Dec. 11, 2014, 7:03 AM
Dec. 10, 2014, 5:30 PM
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. 20, 2014, 1:38 PM
- Optical networking hardware vendors and their component suppliers are turning in a good day. The gains come a day after component vendor Oplink announced it's being acquired by Koch Industries for $445M, and will be managed by connector maker Molex (a Koch subsidiary).
- RBC thinks Koch's entrance into the slumping component industry could trigger further consolidation. "Current fab utilization rates remain low ... with optical component vendors unable to charge a premium for their innovation. Gross margins are currently weighed by competitive pressures with optical component makers willing to cut pricing to account for high fixed costs."
- The firm believes Finisar (FNSR +1%) could be a buyer, and JDS Uniphase (JDSU +1.5%) and Oclaro (OCLR +7.1%) sellers. JDS, set to spin off its component unit, is facing activist pressure to put the business on sale.
- Meanwhile, Ciena (CIEN +2.8%) announced this morning it's partnering with Avaya to offer an enterprise solution that pairs its optical networking and integrated optical/Ethernet gear with Avaya's Ethernet switches. Like peers, Ciena is trying to lower its dependence on pressured carrier capex budgets.
- Other gainers: AFOP +3.7%. NPTN +3.3%. ADTN +2.7%. INFN +1.9%.
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