Jan. 22, 2014, 9:45 AM
- VMware (VMW -1.2%), parent EMC (EMC -1.3%), Citrix (CTXS -2%), and SAP (SAP -1.5%) are all lower following news of VMware's $1.54B acquisition of leading mobile device management (MDM) software firm AirWatch.
- Citrix (thanks to the Zenprise acquisition) and SAP (through its Sybase unit) compete with AirWatch. As does BlackBerry (BBRY +4.6%), which remains higher following news of its real estate sale plans.
- AirWatch's products, which also include mobile app management and security solutions, complement VMware's Horizon Workspace, which provides a secure, siloed workspace for business apps and files on mobile devices. With Citrix and SAP already offering an array of complementary mobile software tools for enterprises, VMware's move is in part an attempt to keep pace.
- AirWatch, Citrix, SAP, and BlackBerry, along with other firms such as IBM (previous) and Good Technology, are trying to profit from growing enterprise interest in MDM solutions, which help companies cope with the ongoing bring-your-own-device (BYOD) trend.
- In tandem with the acquisition, VMware has reported preliminary Q4 revenue of $1.48B (+15% Y/Y), slightly above a $1.47B consensus. Q4 license revenue is expected to come in at $$687M (+15%), within a guidance range for 12%-16% growth. VMware's full Q4 results are due on Jan. 28.
Jan. 21, 2014, 5:44 AM
Jan. 21, 2014, 2:06 AM
- SAP (SAP) expects 2014 adjusted operating profit of €5.8-6B vs €5.9B in 2013 and consensus of €6.06B.
- The company also forecasts that revenue from software and software-related services will increase 6-8% after four years of double-digit growth.
- SAP has put back its profit goals by two years as part of its transition to cloud-based services from its traditional licensing model. "We choose not to harvest the margin in the short run but to go for share in the cloud," co-CEO Bill McDermott says.
- SAP now expects its adjusted operating profit to reach 35% of sales by 2017 rather than by 2015. The company also predicts that sales will rise to at least €22B ($30B), with cloud revenue €3-3.5B. SAP may make acquisitions in order to hit the cloud target.
- See SAP full-year earnings. (PR)
Jan. 21, 2014, 12:05 AM
Jan. 20, 2014, 5:30 PM
Jan. 14, 2014, 9:47 AM
- Intel (INTC +2.2%) has been upgraded to Overweight by JPMorgan ahead of Thursday's Q4 report.
- Facebook (FB +1.1%) and Yelp (YELP +1.7%) have been started at Outperform by FBN as part of an Internet sector coverage launch. Facebook reports on Jan. 29.
- Nokia (NOK -1.1%) has been cut to Underperform by Raymond James. Q4 results arrive on Jan. 23.
- Juniper (JNPR -0.6%) has been upgraded to Outperform by Oppenheimer a day after Elliott Management disclosed a 6.2% stake and called for big changes.
- SAP (SAP -0.7%) has been cut to Underweight by Santander four days after releasing preliminary Q4 results. Pac Crest downgraded shares yesterday, albeit to little effect.
- Brocade (BRCD +2.5%) and VeriFone (PAY +4%) have been upgraded to Overweight by JPMorgan.
- Jabil (JBL +5.1%) has been upgraded to Conviction Buy by Goldman. Shares cratered last month after the company provided disappointing guidance.
- ON Semi (ONNN +2.2%) has been upgraded to Outperform by Credit Suisse.
- Logitech (LOGI +2.8%) has been upgraded to Buy by Goldman.
- ChannelAdvisor (ECOM -5.5%) and Demandware (DWRE -2.1%) have been cut to Neutral by Goldman. Though offering different products/services, both companies cater to e-commerce firms.
- TripAdvisor (TRIP -2%) has been cut to Hold by Wunderlich.
- Mellanox (MLNX +3.5%) has been started at Outperform by Macquarie.
Jan. 13, 2014, 2:40 PM
- BlackBerry (BBRY -3.8%) has hired Eric Johnson, formerly SAP's (SAP -0.3%) GM of Global Database and Technology (covers SAP's Hana and Sybase products) to be its global sales chief. (PR)
- Like several other recent BlackBerry hires, Johnson is a former colleague of CEO/ex-Sybase chief John Chen. Since taking over in November, Chen has also hired former SAP execs to be BlackBerry's enterprise services and corporate development chiefs, and an ex-Sybase exec to be its head of marketing.
- Johnson will take over a salesforce that has been downsized considerably over the last year, and which (judging by Chen's comments) appears set to have a stronger enterprise focus going forward.
- Shares continue to trade lower thanks to Oppenheimer's downgrade, which was motivated by concerns about further hardware and services sales declines.
Jan. 10, 2014, 7:18 AM
- SAP (SAP -1.4%) Q4 preliminary non-IFRS operating profit €2.09B vs consensus of €2.1B
- Revenue +1% to €5.11B.
- 2013 operating profit +13% at constant currencies to a preliminary €5.9B vs guidance of €5.85–5.95B, resulting in an operating margin expansion of 140 bps to 33.4%.
- FY software and software-related service revenue +6% at actual currencies to €14.03B.
- Cloud subscription & support revenue +121% to €758M
- HANA software revenue +61% to €633M vs guidance of €650-700M (PR)
Jan. 8, 2014, 9:45 AM
- SAP (SAP +1.1%) has been upgraded to Buy by UBS. The upgrade follows news Bob Calderoni, the head of SAP's cloud services unit and formerly the head of SAP-acquired Ariba, has left the company, along with Ariba's current chief.
- Glu Mobile (GLUU +1.7%) has been started at Buy by Roth. Craig-Hallum upgraded shares yesterday.
- Ambarella (AMBA -9.1%) has been cut to Hold by Needham.
- Veeco (VECO -2.1%) has been cut to Hold by Berenberg a day after rallying sharply.
- Guidance Software (GUID +2%) has been upgraded to Buy by Benchmark.
- Itron (ITRI -2.6%) has been cut to Hold by Benchmark.
Dec. 20, 2013, 6:21 PM
- Responsys (MKTG +40.4%) closed today at $27.40, $0.40 above Oracle's (ORCL -0.6%) $27/share acquisition price. Meanwhile, fellow cloud marketing automation software firms Marketo (MKTO +11.3%) and Constant Contact (CTCT +6.8%) closed up sharply.
- Sources tell the WSJ SAP (SAP +0.8%) was "among the final bidders" for Responsys before Responsys decided to sell to Oracle. An analyst talking to the paper thinks Responsys' trading price suggests investors are betting on an SAP counteroffer arriving.
- FBR, on the other hand, thinks Oracle's deal could lead either SAP or NetSuite (N +2.2%) to acquire Marketo. Both SAP (courtesy of the hybris acquisition) and NetSuite (via its SuiteCommerce platform) are major players in e-commerce infrastructure software, but neither have leading positions in online marketing automation.
- Forrester argues Oracle's move will improve the company's "capable but otherwise moribund" marketing software lineup. Goldman notes Oracle is paying 8x Responsys' recurring annual revenue - a steep multiple, but less than the 11x it paid for Eloqua.
Dec. 17, 2013, 6:22 PM
- BlackBerry (BBRY) has hired John Sims, formerly the head of SAP's mobile services ops, to be its enterprise services chief. (PR)
- Sims is a former colleague of chairman/interim CEO John Chen, who joined SAP via its acquisition of Sybase. His' hiring comes as several execs depart as part of an apparent housecleaning effort launched by Chen, who has suggested BlackBerry will be an enterprise-focused company going forward.
- Though holding up somewhat better than its hardware sales, BlackBerry's services revenue has been pressured this year by subscriber losses and a decision to offer basic (consumer-oriented) services for little or no cost to BB10 users.
Dec. 12, 2013, 4:13 PM
- Beauty products giant Avon (AVP -1.3%) expects to take a $100M-$125M charge related to the failed rollout of an SAP-based (SAP -0.6%) order management software system. The WSJ states the system was "so burdensome and disruptive to Avon representatives' daily routine that they left in meaningful numbers."
- As Steve Rosenbush notes, Avon's decision, and the employee backlash that triggered it, shines a light on how corporate workers are increasingly demanding the business apps they use be as intuitive and user-friendly as the consumer apps they rely upon.
- This trend, which ties into the "consumerization" of IT, poses a challenge to traditional enterprise software giants such as SAP, Oracle (ORCL), and IBM, and often works to the benefit of enterprise cloud software providers whose offerings emphasize ease-of-use and flexibility over the richest possible feature set.
Nov. 15, 2013, 9:07 AM
- SAP has been upgraded to Overweight by Barclays. Shares +1.3% premarket.
- Ericsson (ERIC) has been upgraded to Buy by Banco Santander. Shares +2%.
- Millennial Media (MM) has been cut to Neutral by Goldman two days after it posted a disappointing Q3 report (I, III).
- GOGO has been cut to Underweight by Morgan Stanley following a huge run-up in response to a strong Q3 report and a positive FAA ruling. Two other firms have already downgraded the in-flight Wi-Fi provider since its Q3 report. Shares -3.1%.
- ARM (ARMH) has been started at Outperform by JMP.
Oct. 28, 2013, 1:27 PM
- "Blackberry doesn't fit with our strategy," says SAP (SAP +0.6%) CFO Werner Brandt, shooting down reports the German software giant is interested in parts of BlackBerry (BBRY -0.2%). Cisco, Samsung, and Google have also been reported to be interested in acquiring some of the struggling smartphone vendor's assets.
- Meanwhile, the new Android/iOS BBM apps has received a harsh review from The Verge, and a muted review from The Inquirer. The former only gave the apps a score of 5.0/10, while criticizing their "ugly design" and the absence of features offered by rival mobile messaging services, such as voice calls, video chats, and location sharing. The latter likes the apps' "reasonably smooth" UI and invite features, but sees them having trouble standing out in a crowded landscape.
- Also: Complaints have come in about fake BBM reviews on Google Play, where the app maintains a user rating of 4.2/5 stars. BlackBerry says it had nothing to do with the fake reviews.
- Previous: BBM Android/iOS downloads top 10M
Oct. 24, 2013, 12:09 AM
- Ahead of tomorrow's Q3 report, NetSuite (N) has struck a deal to acquire TribeHR, a developer of cloud HR apps aimed at SMBs. NetSuite plans to fuse the startup's offerings with its SMB-focused cloud ERP apps.
- "Really there has been no HR offering in the mid-market," states NetSuite CEO Zach Nelson (a little hyperbolically). He sees an intergrated ERP/HR solution allowing SMBs to do away with manual HR processes, and also talks up the value of TribeHR's social/collaboration tools.
- The purchase means NetSuite will compete more with Workday (WDAY), which leads the cloud HR market and also offers cloud ERP software. But Workday has a stronger focus on large enterprises. Ultimate Software (ULTI), Cornerstone OnDemand (CSOD), and Paylocity (reportedly eying an IPO) also compete in cloud HR.
- Separately, NetSuite and others see an opportunity for the company to poach clients from SAP's SMB-focused Business ByDesign cloud apps, which the German software giant has decided to pare its investments in. NetSuite has launched a Business ByDesign migration program.
- SAP has reportedly invested €3B in Business ByDesign development over 7 years, but the platform has never generated more than €23M/year in sales in 3 years of availability. Business ByDesign resources will be shifted towards SAP's Hana Cloud, which runs cloud apps on top of the popular Hana in-memory database.
Oct. 21, 2013, 9:15 AM
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