Sep. 22, 2014, 9:33 AM
- Baird has downgraded InvenSense (INVN -4.2%) to Neutral, and lowered its target by $7 to $23. The firm thinks a major smartphone OEM (Apple or Samsung?) could be switching to a dual-source strategy for gyroscopes and other components, and also believes STMicroelectronics (STM -2.9%) could be gaining share at other smartphone OEMs.
- It was only a few days ago that teardowns uncovered a 6-axis InvenSense gyroscope/accelerometer in iPhone 6 models; past iPhone models had relied on STMicro motion sensors.
- Samsung, meanwhile, has relied heavily on InvenSense to date. The electronics giant accounted for 30% of InvenSense's June quarter sales.
Sep. 19, 2014, 9:36 AM
- iFixit's teardown of the iPhone 6 Plus turned up five Qualcomm (NASDAQ:QCOM) chips, up from the three found in last year's teardown of the 5S and nearly matching the six found in certain Galaxy S5 teardowns.
- In addition to the expected Cat-4 LTE baseband modem, a Qualcomm power management IC, RF transceiver, receive-only chip (needed to enable LTE carrier aggregation), and envelope-tracking IC (relatively new, improves battery life) were found in the 6 Plus.
- In-line with rumors and the company's hints, an InvenSense (NYSE:INVN) motion sensor - specifically, a 6-axis gyroscope/accelerometer - was found. That suggests InvenSense has displaced STMicroelectronics (NYSE:STM) as the iPhone's motion sensor supplier.
- Two Skyworks (NASDAQ:SWKS) power amplifier modules are found, including a low-band LTE part. Avago (NASDAQ:AVGO) has both a high-band amplifier module, and an integrated ultra high-band amplifier/FBAR filter module. TriQuint (NASDAQ:TQNT) can claim a 3G amplifier module, and merger partner RF Micro (NASDAQ:RFMD) an antenna switch module.
- Broadcom (NASDAQ:BRCM) appears to remain the iPhone's combo chip supplier (courtesy of a module from partner Murata), and also supplies a touch controller IC. Chipworks thinks Broadcom also has the Wi-Fi slot for the Apple Watch.
- As expected, NXP (NASDAQ:NXPI) is supplying an NFC module and the M8 motion co-processsor, and Cirrus Logic (NASDAQ:CRUS) the audio codec IC. Texas Instruments (NASDAQ:TXN) is providing a touch transmitter IC.
- Moving in response: INVN +1.9%. AVGO +1.5%. STM -3.9%.
Aug. 27, 2014, 11:52 AM
- Credit Suisse has started STMicroelectronics (STM -1%) at Underperform, and European chip peer Infineon (OTCPK:IFNNF +0.7%) at Outperform.
- Bernstein downgraded STM to Underperform a month ago, predicting 2015 revenue growth will be 300 bps below consensus. Shares go for only 0.9x 2015E sales.
- Infineon has rallied since announcing last week it's buying International Rectifier for $3B.
Jul. 29, 2014, 11:05 AM
- "We expect revenue growth 3 pts below consensus next year, driving material earnings misses and forcing management to drop or postpone their 10% operating margin target," writes Bernstein's Pierre Ferragu, while downgrading STMicroelectronics (STM -2.2%) to Underperform.
- Ferragu sees STM's auto, industrial, and microcontroller growth slowing a bit, as 32-bit microcontroller competition grows and auto growth shifts to regions with less chip content per car. Power management chip growth is expected to pick up due to smartphone demand.
- More importantly, he expects STM's digital convergence group (DCG) to grow "well below management's ambitions" due to a long-term decline in set-top chip sales, and predicts the company's MEMS business (hasn't seen growth since 2011) will witness further share losses. He notes Bosch recently won an iPhone MEMS socket at STM's expense.
- STM is a week removed from posting a Q2 revenue miss to go with an EPS beat, and offering below-consensus Q3 guidance.
Jul. 23, 2014, 3:59 PM
- In addition missing Q2 revenue estimates (while beating on EPS), STMicroelectronics (STM) has guided for Q3 revenue to grow 3% Q/Q (+/- 3.5%). That implies revenue of $1.92B at the midpoint, below a $2B consensus.
- Contributing to the EPS beat: Q2 gross margin was 34%, +120 bps Q/Q and Y/Y, and 40 bps above STM's guidance midpoint. GM is expected to come in at 34.4% (+/- 2%) in Q3.
- Automotive IC sales grew 11% Y/Y in Q2 to $463M, but analog/MEMS sales fell 19% to $264M. Industrial & power discrete sales rose 2% to $475M, and microcontroller, memory, & secure MCU sales rose 13% to $396M. Digital convergence group sales tumbled 51% to $184M thanks to the ST-Ericsson wind-down/asset transfer.
- Plenty of other chip stocks are also selling off, with some help from Xilinx and Juniper.
- Q2 results, PR
Jul. 23, 2014, 3:45 AM| Comment!
Jul. 22, 2014, 5:30 PM
Jul. 15, 2014, 10:17 AM
- OTR Global reports Synaptics (SYNA -5%) has lost the touchscreen controller slot for Samsung's upcoming Galaxy Note 4 to STMicroelectronics (STM -0.6%).
- Synapitcs has the touch controller slot for the Note 3, and both the touch controller and fingerprint sensor slots for the Galaxy S5. High-volume Samsung design wins have contributed heavily to the company's strong mobile growth over the last two years.
Jun. 20, 2014, 12:39 PM
- A 6-axis InvenSense (INVN) motion sensor may have been designed into the iPhone 6, thinks Craig-Hallum, reiterating an Outperform and $22 PT. The firm sees the win providing a $0.25 EPS boost if it happens.
- InvenSense was frequently rumored last year to be the motion sensor supplier for the iPhone 5S/5C, but Apple ultimately went with traditional supplier STMicroelecronics (STM -2%). iPhone 6 sales forecasts are running high, given Apple is expected to finally address pent-up demand for bigger iPhones.
- Meanwhile, Roth thinks InvenSense might have scored multiple design wins for Amazon's Fire phone. In addition to typical motion sensors, the Fire phone has baked optical image stabilization into its 13MP rear camera, and supports 3D viewing with the help of 4 front cameras. Shipments will likely be a small fraction of iPhone levels.
- Previous: InvenSense launches gyroscope for wearables
Jun. 2, 2014, 9:41 AM
- Xilinx (XLNX -1.1%) has been cut to Neutral by Goldman.
- STMicroelectronics (STM -1.5%) has been cut to Sell by Citi. HSBC downgraded shares on May 22.
- Microsemi (MSCC +3.1%) has been upgraded to Buy by Goldman.
- Proofpoint (PFPT +1.5%) has been upgraded to Buy by Sterne Agee. Shares joined IT security peers in selling off on Friday.
- Universal Electronics (UEIC -8.4%) has been cut to Neutral by B. Riley.
May 22, 2014, 10:16 AM
Apr. 28, 2014, 5:35 PM
- STMicroelectronics (STM) expects Q2 revenue to be up 2% Q/Q (+/- 3.5%). The consensus is for revenue to grow 5% Q/Q to $1.93B.
- The chipmaker has also announced it's promoting Jean-Marc Chery, the GM of its embedded processing solutions (EPS) unit, to the new position of COO. Chery will still be in charge of EPS, as well as STMicro's central manufacturing ops.
- Q1 gross margin was 32.8%, -10 bps Q/Q and +150 bps Y/Y, and slightly above a guidance midpoint of 32.4%. STMicro expects a 33.6% GM (+/- 2%) in Q2.
- Though total revenue growth was -9%, it would've been +0.7% if not for legacy sales related to the discontinued ST-Ericsson JV. Q2's ST-Ericsson sales are expected to be less than half a Q1 level of $63M.
- A $0.10/share quarterly dividend has been proposed for Q2 and Q3 (on par with STMicro's current dividend).
- Q1 results, PR
Apr. 28, 2014, 4:51 PM| Comment!
Apr. 27, 2014, 5:35 PM
Apr. 14, 2014, 9:52 AM
- Stratasys (SSYS +1.5%) has been started at Buy by Goldman, and 3D Systems (DDD -3.1%) at Neutral. Shares of both companies (like those of many high-beta tech names) were clobbered last week. UBS issued similar opinions for Stratasys and 3D Systems two weeks ago.
- VMware (VMW +1.3%) has received a two-notch upgrade to Outperform from CLSA ahead of its April 22 Q1 report.
- F5 (FFIV +4.1%) has been upgraded to Buy by Stifel. Q1 results arrive on April 23.
- Palo Alto Networks (PANW +1.2%) has been upgraded to Overweight by both Barclays and Stephens.
- TTM Technologies (TTMI +3.1%) has been upgraded to Buy by Stifel and UBS.
- CalAmp (CAMP +1.7%) has been upgraded to Buy by B. Riley.
- STMicroelectronics (STM -2.3%) has been cut to Sell by UBS. Q1 results arrive on April 29.
- AudioCodes (AUDC +4.1%) has been started at Buy by Needham. Shares rose last week after the Israeli government approved an R&D program involving the company.
- ChannelAdvisor (ECOM +1.2%) has been started at Buy by Janney.
- Paylocity (PCTY +1.4%) has received five bullish ratings and one neutral rating on underwriter coverage day. Q2 (QTWO +3.1%) has received six bullish ratings.
Mar. 31, 2014, 6:52 PM
- An early teardown (translation) of Samsung's (SSNLF) Galaxy S5 has turned up the same 6-axis InvenSense (INVN) motion sensor found in the Note 3. The InvenSense part displaces the STMicroelectronics (STM) motion sensor found in the S4.
- Multiple Maxim (MXIM) power ICs were also uncovered. Though Barclays thinks Maxim lost the gesture IC slot it had in the S4 to rival AMS, it nonetheless thinks its dollar content grew ~10% (previous).
- An NXP (NXPI) NFC controller/secure element displaced the Broadcom (BRCM) NFC chip that went into the S4; Barclays estimates the design win will be worth $50M-$60M to NXP, assuming average content of $1. Broadcom is still expected to get $4/unit for supplying the S5's Wi-Fi/Bluetooth combo chip.
- Synaptics (SYNA) is believed to have the S5's touch controller slot and (though not revealed in the teardown) its fingerprint/swipe sensor slot. The company's S4 touch controller win delivered a windfall.
- Though a Skyworks (SWKS) power amplifier module and discrete amplifier were found, and a Wi-Fi filter is believed to be present, Barclays thinks Skyworks' content share likely fell, thanks to the absence of Wi-Fi switch/LNA content. It also thinks the total value of the S5's Wi-Fi RF content is lower due to Broadcom's use of internal power amplifiers (possibly a negative for S4 supplier ANAD).
- Separately, DisplayMate calls the S5's OLED display "the best-performing smartphone display we have ever tested," after doing an in-depth analysis. The display's color accuracy, brightness, ambient lighting performance, and power efficiency all receive high marks. OLED materials/tech supplier Universal Display (OLED) will be happy to hear that.
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STMicroelectronics NV designs, develops, manufactures and markets semiconductor products used in different microelectronic applications, including automotive products, computer peripherals, telecommunications systems, consumer products, & control systems.
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