Sat, Apr. 18, 9:48 AM
- The roll-out of 4G LTE high-speed wireless connections in all 2016 General Motors (NYSE:GM) models could provide the automaker with new sources of revenue and jump-start tech initiatives of rivals.
- GM sees OnStar 4G leading to e-commerce revenue from transaction splits (fast-food, hotel rooms, entertainment, advertising), services, and data usage.
- Software upgrades pushed out via broadband connections could also save GM money on repair and warranty costs.
- While execs with GM estimate OnStar will generate $350M in profit over the next three years, some analysts have aimed much higher with their projections.
- Gartner sees 10% of all revenue from the automobile industry generated from connected broadband platforms by 2020 - a formidable mark which explains the increasing presence of Apple and Google in the sector.
- Partnerships between Silicon Valley and Detroit are expected to accelerate.
- GM sits in a nice position to defend its turf against the tech heavyweights through its valuable OnStar property - while BMW (OTCPK:BAMXY), Audi (OTCQX:VLKAY), Nissan (OTCPK:NSANY), and Tesla Motors (NASDAQ:TSLA) are also a few steps away from Internet-based revenue streams.
- Other companies which might benefit to a degree from a connected car explosion: MBLY, NVDA, AMBA, SWKS,SBUX, DPZ, T - add your own in the comments.
Tue, Apr. 14, 2:26 PM
- Citing soft Q1 Chinese demand, Barclays' Blayne Curtis argues Qorvo (QRVO -3%) could provide light calendar Q2 guidance. He thinks Skyworks (SWKS -3.1%) estimates are safe, but also believes a lack of upside could yield multiple compression following a big 2014/2015 rally.
- Curtis expects demand to pick up in seasonally stronger 2H15, but also doesn't forecast a material increase in Apple orders following huge iPhone 6-related sales.
- Others on the sell-side have also reported seeing weak Q1 demand from Chinese smartphone OEMs. Strong Galaxy S6 demand could act as an offset.
- Skyworks remains up 31% YTD; Qorvo is nearly flat. Skyworks' FQ2 report arrives on April 30. Qorvo hasn't set an earnings date yet.
Mon, Apr. 6, 9:34 AM
- Citing valuation, Stephens has downgraded Skyworks (NASDAQ:SWKS) to Equal Weight, while hiking its target by $15 to $100.
- Skyworks has risen nearly 5x from its fall 2012 lows, and 33% in 2015 going into today. Shares now go for 17x Skyworks' FY16 (ends Sep. '16) EPS consensus. The FY15 revenue growth consensus is at 38.9% (big iPhone 6 boost), and the FY16 consensus at 10.9%.
- Last week: Northland hikes Skyworks target to $105
Fri, Apr. 3, 3:20 PM
- Whereas Qualcomm (NASDAQ:QCOM) had six chips designed into many Galaxy S5 models, a Chipworks teardown of Samsung's (OTC:SSNLF) Galaxy S6 didn't turn up a single Qualcomm part.
- In addition to eschewing the Snapdragon 810 app processor (widely reported, and hinted at by Qualcomm itself) in favor of its 8-core Exynos 7420, Samsung (possibly prioritizing margins over performance/battery life) replaced Qualcomm baseband modem, power management, RF transceiver, and envelope tracking chips with home-grown parts. As expected, Samsung is also using its own DRAM/NAND chips and image processor.
- Though Chipworks says it needs to confirm, the site believes Samsung is also using its own NFC controller. NXP (NASDAQ:NXPI) supplies the S5's NFC controller (as well as the iPhone 6's).
- Broadcom (NASDAQ:BRCM) might also be a casualty of Samsung's attempts to buy local: Whereas the S5 contained a Wi-Fi module from Broadcom combo chip client Murata, Chipworks uncovered a Samsung Wi-Fi module - Samsung has already been using home-grown combo chips in cheaper phones. On the other hand, a Broadcom GPS/GNSS chip is included.
- A Texas Instruments (NASDAQ:TXN) wireless power receiver handles wireless charging for the S6; many expected IDT (NASDAQ:IDTI), which supplies a transmitter chip for the S6's wireless charging pad, would score the design. Meanwhile, Cirrus Logic's (NASDAQ:CRUS) Wolfson unit supplies an audio codec IC, and Maxim (NASDAQ:MXIM) is providing an audio amplifier and complementary power management IC.
- Skyworks (NASDAQ:SWKS) and Avago (NASDAQ:AVGO) have won RF slots: The former provides a multi-mode/multi-band front-end module and antenna switch, and the latter two power amplifier modules. Both companies also had S5 design wins.
- Not surprisingly, InvenSense (NYSE:INVN) is providing a 6-axis gyroscope/accelerometer (the MPU-6500). As was rumored, STMicroelectronics (NYSE:STM) won the touch controller slot, beating out S5 supplier Synaptics.
- While Qualcomm lost out on the S6, the company has landed a number of other Snapdragon 810 design wins for high-end Android phones. The Snapdragon 820, which sports a next-gen ARM CPU core (Kryo) and Qualcomm's Zeroth neural networking tech, begins sampling in 2H15. 3D SoCs (said to enable a 50% shrink in die size) are expected to enter testing in 2016.
- The Chipworks teardown follows a long list of glowing reviews for the S6 - reviewers especially like the 2K display and Samsung's decision to go with a metal/glass body instead of the usual plastic - and reports of production hikes and strong pre-orders. Sales start on April 10.
- Update: A Chinese S6 teardown turned up a chip said to be an NXP NFC part; its name (the 66T05) is very different from the chips in NXP's announced NFC controller line. A Sprint RDF file indicates Sprint's version of the S6 features Qualcomm's MDM9635 modem. That suggests Samsung could use Qualcomm modems for phones requiring 3G EV-DO compatibility (those used by Sprint, Verizon, and a handful of overseas carriers).
Thu, Apr. 2, 5:14 PM
- Resonant (NASDAQ:RESN) has "received notice that the development agreement with its first customer has been terminated, and that Resonant must pursue commercialization of its designs with this customer by working directly with the filter manufacturer."
- Resonant intends to collaborate with the company, generally known to be Skyworks (NASDAQ:SWKS), to "continue to submit improved product designs for consideration by this customer for insertion into its product modules."
- CEO Terry Lingren tries to provide a positive take: "While the probability has been reduced that our design will be selected for the customers original target product, we believe that the design for the band that we developed for the original product could be considered by this customer for use in next generation, follow-on modules ... we are now permitted to market the design for the same band to other potential customers."
- Shares have plunged to $4.90 AH. They's now down 68% since Resonant disclosed in its Feb. 26 Q4 report its duplexer design had failed to meet Skyworks' specifications. The boost provided by a March 9 announcement that the company had landed a second customer proved short-lived.
- Lingren reiterates Resonant is on track to provide the second customer a filter design in less than a year, and to finish its tunable filter prototype by year's end. "By the end of this year, we expect to have multiple products in development for consideration by several customers. Given recent developments with our first customer, however, we are re-evaluating our prior guidance regarding the timing of receipt of our first revenues."
Fri, Mar. 27, 11:48 AM
- After falling 8.3% over the last two days thanks to a major chip stock selloff, Skyworks (NASDAQ:SWKS) is recovering some of its losses in the wake of a $15 Northland Securities target hike to $105. Northland's target was at $80 prior to Skyworks' Jan. 22 FQ1 beat.
- Meanwhile, Citi and Rosenblatt are dueling over near-term smartphone demand. Citi has respectively cut its 2015 and 2016 smartphone unit growth forecasts to 16% and 13% from 19% and 15.5% due to a belief Chinese/emerging markets demand is softer than expected. "We expect a challenging outlook for smartphone companies with high China exposure." With OEMs typically pricing phones in dollars, a strong dollar is seen hurting sales to "price-sensitive markets" in general.
- Rosenlatt, by contrast, says supply chain talks suggest little has changed. "We don’t believe that Taiwan Semi‘s and SanDisk’s forecast cuts are related to the overall smartphone industry ... We believe that Samsung is increasing [Chinese] production from 3 million per month in Q1 to 7-8 million per month in Q2. Qualcomm (NASDAQ:QCOM) and MediaTek are also seeing strong orders from China."
- In addition to Qualcomm/MediaTek, Rosenblatt expects Skyworks, Avago (NASDAQ:AVGO), Synaptics (NASDAQ:SYNA), and Micron (NASDAQ:MU) to benefit from healthy Chinese demand. The firm argued back in December Skyworks and Micron would benefit.
Thu, Mar. 26, 10:50 AM
- The Philadelphia Semi Index (SOXX -1.8%) is now down 6% over the last two days. Today's losses come after NAND flash giant SanDisk issued a Q1 warning and withdrew its full-year guidance - price pressure, soft enterprise sales, and delayed product qualifications were all blamed.
- Meanwhile, some are partly blaming yesterday's big selloff on cautious remarks from TSMC (has an estimated ~50% global foundry share) at a Credit Suisse conference. CS analyst Randy Abrams reports TSMC (NYSE:TSM) has observed "a slowdown in the past 4-5 weeks due to US$ strength impacting European and emerging market purchasing power," and that inventories "will be a few days above seasonal exiting 1Q15." Pac Crest downgraded TSMC two weeks ago on inventory concerns.
- Following an Asian trip, Susquehanna's Chris Caso has argued there isn't too much to be alarmed about, though he admits forex could be an issue. "There’s mixed signals here and there. We weren’t picking up anything that was tremendously different across the supply chain. PCs were the weakest area. That’s really not a surprise."
- RF chipmakers Skyworks (SWKS -4.6%) and Qorvo (QRVO -2.1%), among 2014's best performers, are again selling off; peer Avago is off only slightly. Also seeing further profit-taking are Ambarella (AMBA -3%), NXP (NXPI -3.6%), Freescale (FSL -2.8%), Cavium (CAVM -3.2%), and STMicroelectronics (STM -4.5%).
- Among equipment makers, Axcelis (ACLS -2.9%), Aixtron (AIXG -3.6%), Veeco (VECO -3%), and Kulicke & Soffa (KLIC -2.5%) are declining. A selloff in European equities could be affecting Aixtron, NXP/Freescale, and STMicro.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
- Update: Credit Suisse, Goldman, and Deutsche have each offered thoughts on the chip selloff.
Wed, Mar. 25, 12:03 PM
- Chip stocks are particularly hard-hit (SOXX -3.6%) on a rough day for tech. The Nasdaq is down 1.3%, and the S&P 0.7%. Going into today, good earnings reports and ongoing M&A activity had led the Philadelphia Semi Index to rise 10% from its Jan. 30 close; the index remains up nearly 2x from its fall 2012 lows.
- AMD (AMD -7.2%) is a major decliner following a UBS downgrade. AMD rival/GPU giant Nvidia (NVDA -5.2%) and memory giant Micron (MU -3.7%) are also selling off, as are merger partners NXP (NXPI -3.8%) and Freescale (FSL -3.4%), RF chipmakers Avago (AVGO -5.2%), Skyworks (SWKS -5.3%), and Qorvo (QRVO -7.1%), LED/RF chipmaker Cree (CREE -4.1%), and high-flying video processor developer Ambarella (AMBA -4.3%).
- Other decliners include telecom chipmakers/ARM server CPU vendors Cavium (CAVM -4.8%) and AppliedMicro (AMCC -4.4%), microcontroller vendors Atmel (ATML -3.5%), Cypress (CY -5.5%), and STMicroelectronics (STM -3.5%), voice processor developer Audience (ADNC -3.7%), analog/mixed-signal chipmakers Linear (LLTC -3.7%), Maxim (MXIM -3%), and Intersil (ISIL -3.5%), FPGA maker Lattice (LSCC -3.9%), and mixed-signal/wireless charging IC developer IDT (IDTI -5.4%).
- Chip equipment, IP, and foundry providers are also underperforming. Big decliners include ARM (ARMH -4.4%), KLA-Tencor (KLAC -4.2%), Lam Research (LRCX -5.4%), ASML (ASML -4.1%), TowerJazz (TSEM -4.3%), Mattson (MTSN -4.5%), Ultratech (UTEK -4.7%), and Tessera (TSRA -6.1%). ASML has been downgraded to Hold by Banco Santander.
- TSMC (TSM -4.6%) is among the decliners in spite of a Digitimes report stating the foundry giant's sales are expected to rise 0%-5% Q/Q in Q2 - consensus is for a 2% drop - with strong Apple A8 CPU orders offsetting soft Qualcomm Snapdragon 810 orders.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Mon, Mar. 16, 12:42 PM
- Topeka Capital has hiked its Skyworks (NASDAQ:SWKS) target by $15 to $105, while reiterating a Buy. The firm had only a $48 target on Skyworks going into last June.
- Shares are making fresh highs once again - they rallied last week on news Skyworks is joining the S&P 500. D.A. Davidson upgraded peers Avago and Qorvo to Buy this morning.
- Skyworks now trades for 20x its FY15 (ends Sep. '15) EPS consensus and 17x its FY16 EPS consensus. Estimates have been steadily rising over the last several quarters.
Mon, Mar. 9, 5:24 PM
- Skyworks (NASDAQ:SWKS) will replace PetSmart in the S&P 500 following Wednesday's close. PetSmart is about to be taken private.
- SWKS +2.1% AH to $94.09. Shares rose 1.5% in regular trading, making new highs along the way. Canaccord hiked its target by $12 to $102 earlier today, citing upbeat comments from management at last week's Mobile World Congress.
- Canaccord: "We believe Skyworks strong portfolio of integrated solutions should increase Skyworks' [addressable market] for the fast growing RFIC market and enable Skyworks to capture RF $-content share in the LTE smartphone market. In fact, we believe Skyworks' broad portfolio should enable dollar content share growth in both Apple's and Samsung's premium tier smartphones during 2015 and grow content share in the fast growing Chinese LTE smartphone market."
Fri, Feb. 27, 9:34 AM
- Resonant (NASDAQ:RESN) CEO Terry Lingren in the company's Q4 report: "We have delivered a completed duplexer design for consideration to our first customer. Our design does not meet all the specifications in the development agreement, but we believe it delivers competitive performance ... Our customer's decision whether to use our design is complex and based on a number of considerations, many of which are beyond our control."
- Resonant has an RF duplexer design partnership with Skyworks (NASDAQ:SWKS), through which Skyworks has the option to license the design in exchange for royalties.
- Lingren adds Resonant is "evaluating several single band opportunities and are in active discussions with other potential customers," and expects to announce another filter design customer in 1H15. "We also see multiple opportunities to improve upon the design of traditional SAW filters, potentially augmenting our customers capacity-constrained engineering teams."
- In 2015, the company aims to begin generating revenue, double its technical staff to 20, and and finish its tunable filter prototype design.
- Resonant's Q4 operating expenses totaled $2.2M, up for $815K a year earlier - R&D spend totaled $921K, and G&A $1.19M. The company ended Q4 with $13.8M in cash/investments, down from $15.7M at the end of Q3. It believes its has "sufficient cash to support planned operations into early 2016, even assuming no revenues."
- Shares had rallied strongly in recent months. They're now back around where they traded in early January.
- Q4 results, PR
Wed, Feb. 25, 6:19 PM
- In addition to beating FQ1 EPS estimates (while posting in-line revenue), Avago (NASDAQ:AVGO) is guiding for FQ2 revenue to be down 3% to up 1% Q/Q. That implies a range of $1.59B-$1.65B, above a $1.54B consensus.
- Driving the FQ1 EPS beat: Gross margin was 59%, up from FQ4's 58% and the year-ago period's 52%, and above guidance of 57.5% (+/- 1%). FQ2 GM guidance is at 58.5% (+/- 1%).
- Also helping EPS: Operating expenses totaled $293M, up from $142M a year ago thanks to acquisitions, but down from $303M in FQ4 thanks to cost cuts.
- As expected, strong iPhone-related sales acted as a big FQ1 tailwind: Wireless product sales (40% of total revenue) rose 6% Q/Q and 90% Y/Y. Wired infrastructure (21% of total revenue, boosted by the PLX and LSI acquisitions) fell 1% Q/Q and rose 52% Y/Y. Enterprise storage (29% of revenue, a product of the LSI acquisition) rose 5% Q/Q. Industrial/other (10% of revenue) fell 4% Q/Q and rose 21% Y/Y.
- Avago has risen to $119.03 AH, making new highs in the process. RF component rivals are ticking higher: Skyworks (NASDAQ:SWKS) +0.9% to $88.49. Qorvo (NASDAQ:QRVO) +1.1% to $67.92.
- Avago's FQ1 results, Emulex acquisition, PR
Tue, Jan. 27, 6:01 PM
- Apple suppliers Cirrus Logic (NASDAQ:CRUS), NXP (NASDAQ:NXPI), Skyworks (NASDAQ:SWKS), Qorvo (NASDAQ:QRVO), and Avago (NASDAQ:AVGO) are up AH after the tech giant blew away FQ1 estimates on the back of 74.5M iPhone sales (+46% Y/Y and above forecasts of ~66-67M). iPad sales of 21.4M (-18%) were roughly in-line
- CRUS +2.9% to $26.79. NXPI +1.5% to $79.20. SWKS +1.3% to $82.60. QRVO +1% to $74.48. AVGO +2.7% to $107.60.
- Cirrus and Qorvo report tomorrow, and NXP on Feb. 4. Skyworks posted an FQ1 beat and offered strong guidance last week.
Fri, Jan. 23, 1:03 PM
- After barely moving in AH trading yesterday in response to its FQ1 beat and strong FQ2 guidance, Skyworks (SWKS +2.3%) has risen above $81 today as a flurry of bullish analyst reactions arrive. Rivals/fellow iPhone suppliers Qorvo (QRVO +4.8%) and Avago (AVGO +1.6%) are heading in the same direction.
- Brean's Mike Burton, hiking his Skyworks target by $22 to $92: "The [FQ1] upside was predominantly driven by the Integrated Solutions segment as Apple's iPhone 6/6+ ramped ... we believe LTE growth in China and several new model ramps (Samsung Galaxy S6 amongst others to be unveiled in Barcelona) coupled with Skyworks Solutions less seasonal Broad Markets business is driving the better-than-seasonal guidance."
- Burton also thinks Skyworks is on its way to achieving a 50% gross margin (up from FQ1's 46.7%), and notes inventory days (58) were down by 15 Y/Y.
- Canaccord's Mike Walkley: "We believe Skyworks' diverse analog portfolio is enabling content share gains with its smartphone customers. Further, we anticipate Skyworks' share gains in markets such as WiFi 802.11ac, wireless infrastructure, and the IoT market are also driving strong growth trends." His FY16 (ends Sep. '16) EPS estimate has been hiked by $0.66 to $5.89.
- On the CC (transcript), CEO David Aldrich noted Skyworks' non-mobile design wins include a GM telematics platform, Cisco home gateways, ZigBee connectivity modules for Philips/LG smart light bulbs, Amazon's Echo and Fire TV devices, and a DirecTV set-top. China's Xiaomi has joined Apple and Samsung as a major mobile client.
- Qorvo reports on Jan. 28.
Thu, Jan. 22, 4:29 PM
- Skyworks (NASDAQ:SWKS) expects FQ2 revenue of $750M (+56% Y/Y) and EPS of $1.12, above a consensus of $708.7M and $1.04. With shares up 28% since the Nov. 6 FQ4 report and peer Avago having posted strong numbers in December, expectations were high.
- FQ1 gross margin rose 230 bps Y/Y to 46.7%. Excluding $1.3M in charges, GAAP opex rose 18% to $124.9M (compares with 59% revenue growth).
- SWKS +0.5% AH. Shares rose 2.6% in regular trading.
- FQ1 results, PR.
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