Jul. 17, 2014, 5:19 PM
- In addition to beating FQ3 estimates, Skyworks (NASDAQ:SWKS) is guiding for FQ4 revenue of $680M and $1.00, soundly above a consensus of $608.1M and $0.87. The numbers come 6 weeks after Skyworks hiked its FQ3 outlook.
- Gross margin +70 bps Q/Q and +140 bps Y/Y to 45.4%. GAAP opex +11% Y/Y to $115.7M, trailing rev. growth of 35%. 1M shares were repurchased.
- RF Micro (RFMD - reports on July 24) is following Skyworks higher. Merger partner TriQuint (TQNT - reports on July 23) might end up doing the same. Skyworks is once more near a 52-week high of $49.10.
- FQ3 results, PR
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. 9, 2014, 10:36 AM
- A slew of chip stocks are rallying following Analog Devices' (ADI +5.9%) $2B deal to acquire RFIC vendor Hittite Microwave.
- The purchase is part of an M&A wave that has hit the semiconductor industry over the last 12 months, as chipmakers try to gain scale, cut opex, and grow their cross-selling opportunities by consolidating. Other deals: RF Micro/TriQuint, Avago/LSI, Microchip/ISSC.
- ADI, which shares many telecom equipment, defense/aerospace, and automotive clients with Hittite, predicts Hittite's RF, microwave, and millimeter wave ICs will complement its RF and signal-conversion (ADC/DAC) products.
- Several RF and analog/mixed signal chipmakers are higher, but they're not the only gainers: RFMD +1.8%. TQNT +1.8%. PSMI +2.5%. LLTC +1.6%. MSCC +2.1%. IDTI +3.8%. ATML +3.4%. IRF +1.4%. SIGM +3.9%. AMCC +3.8%.
- Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Apr. 30, 2014, 9:11 AM
Apr. 29, 2014, 5:43 PM
Apr. 29, 2014, 4:54 PM
- RF Micro (RFMD) expects FQ1 revenue of $305M and EPS of $0.17, well above a consensus of $277M and $0.11. Gross margin is expected to rise 150-200 bps from an FQ4 level of 42%. Shares +5.2% AH. Merger partner TriQuint (TQNT) +5.3%. (FQ4 results, PR)
- NCR expects 2014 revenue of $6.75B-$6.85B and EPS of $3.00-$3.10 vs. a consensus of $6.85B and $3.05. Shares -4.4% AH. (Q1 results, PR)
- Trulia (TRLA) expects Q2 revenue of $61.5M-$62.5M (above a $61M consensus) and adjusted EBITDA of $2.3M-$2.8M (compares with Q1's $2.8M). Full-year guidance is for revenue of $250M-$253M (up $5M from prior guidance and above a $247.6M consensus) and adjusted EBITDA of $18M-$22M (reiterated). Shares -2.8% AH. Rival Zillow (Z) -1.2% after rising 14.1% in regular trading following Tiger Global's disclosure.
Apr. 29, 2014, 4:02 PM| Comment!
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. 24, 2014, 9:28 AM
Apr. 23, 2014, 5:47 PM
- TriQuint (TQNT) expects Q2 revenue of $215M-$225M and EPS of $0.06-$0.08, above a consensus of $200.3M and $0.04. Shares +6.5% AH. Merger partner RF Micro (RFMD), which reports on April 29, is up 3.1%. Both companies might also be getting a lift from Apple's March quarter iPhone sales print. (Q1 results, PR)
- Fortinet (FTNT) guides in its earnings slides (.pdf) for Q2 revenue of $169M-$172M (above a $168.9M consensus), EPS of $0.10 (below an $0.11 consensus), and billings of $185M-$190M (+17% Y/Y). Q1 billings totaled $188M, +26% Y/Y and well above guidance of $168M-$173M. Shares +4.4% AH. (Q1 results, PR)
- Crown Castle (CCI) has raised its full-year AFFO forecast to $1.346B-$1.361B ($4.04-$4.08/share) from a prior $1.318B-$1.333B. Site rental revenue guidance has been raised by $11M to $2.983B-$2.993B. (Q1 results, PR)
Apr. 23, 2014, 4:03 PM| Comment!
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. 8, 2014, 4:00 PM
- Smart bargain hunting or catching a falling knife? After being bludgeoned almost ceaselessly over the last couple of weeks, many high-beta tech stocks are closing the day with sizable gains.
- The rebound comes on a day when hedge fund Coatue Management announced plans to return over $2B to investors following a 9% March decline caused by tech stock losses. It also comes as several tech giants, including Apple, Microsoft, H-P, and IBM, finish the day near breakeven, or with modest losses.
- Leading U.S. Internet gainers: LNKD +6.2%. P +6%. ZU +5%. SALE +7.2%. SSTK +6%. AOL +4.6%.
- Chinese Internet gainers: EJ +9.1%. WBAI +8.9%. QIHU +7.9%. ATHM +8.1%. YY +6.8%. SFUN +8.7%. GOMO +9.8%. Ctrip and Qunar were among the sector's biggest gainers following M&A rumors.
- Others: FSLR +7%. NMBL +6.2%. NPTN +5.9%. PANW +5.5%. EGHT +5.4%. RFMD +4.9%. QIWI +4.9%. CRUS +4.3%. RALY +5.5%.
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. 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.
Mar. 11, 2014, 9:46 AM
- Vipshop (VIPS -4.1%) has been cut to Neutral by Goldman. Shares blasted off last week in response to the company's Q4 beat and strong guidance.
- Unisys (UIS -6.5%) has been cut to Market Perform by Raymond James.
- Aixtron (AIXG -1.6%) has been cut to Neutral by BNP Paribas.
- As part of a chip sector coverage launch, AppliedMicro (AMCC +1%), TowerJazz (TSEM +1.5%), Neonode (NEON +1.6%), RF Micro (RFMD +1.8%), and TriQuint (TQNT +1.6%) have been started at Buy by Ascendiant Capital.
QRVO vs. ETF Alternatives
Qorvo Inc is a provider of technologies and RF solutions for mobile, infrastructure and aerospace/defense applications. Its products include amplifiers, frequency duplexers, modules and among others.
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