Applied Materials Off Despite Solid Q1, Guidance Hike
Applied Materials (AMAT) shares are taking a hit today despite the company’s announcement after the close yesterday of sold results for its fiscal first quarter ended January, and a significant hike in FY 2010 revenue guidance.
As I noted yesterday, the company posted revenue of $1.85 billion, above the Street at $1.75 billion, with non-GAAP EPS in-line at 13 cents. For Q2, the company sees sales up 15%-25% sequentially, with profits of 17-22 cents a share, above the old consensus of 15 cents. For the full year, AMAT now sees sales up at least 50%; old guidance was for sales up at least 30%.
So what’s wrong?
* Lack of conviction on second-half growth: On the post-earnings conference call, CEO Michael Splinter said that the company expects revenue in the second half of its fiscal year from its semi equipment segment will be “flat to plus-or-minus 10%.” As Pacific Crest analyst Weston Twigg wrote in a research note today, the good news of the strong Q2 guidance was “”dampened by lack of conviction to forecast meaningful growth beyond next quarter.”
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Die G7 bringen Billionen zur Rettung des Finanzsystems auf.
Gleichzeitig ist aber 1 Milliarde Menschen ständig vom Hunger bedroht, obwohl man Ihnen mit nur 30mrd/Jahr helfen könnte. Eine Schande...
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Die G7 bringen Billionen zur Rettung des Finanzsystems auf.
Gleichzeitig ist aber 1 Milliarde Menschen ständig vom Hunger bedroht, obwohl man Ihnen mit nur 30mrd/Jahr helfen könnte. Eine Schande...
The 'Internet of Things' is rapidly becoming a reality, Barron's reports
Barron's Technology Trader columnist, Eric Savitz, commented that at the CTIA Wireless trade show in Las Vegas last week, there was growing enthusiasm for the notion that soon more or less "everything will be connected to the Internet". Glen Lurie, president of the emerging-devices unit at AT&T (T), is a big believer. He told reporters and analysts at CTIA that the carrier wants to "wirelessly enable everything." Over the past year or so, the telco has cut deals to provide wireless 'Net access to a range of devices that go well beyond the usual cellphone market. The list includes netbooks, digital picture frames and e-readers like the Amazon.com (AMZN) Kindle and the Apple (AAPL) iPad. But that's just the beginning. AT&T sees opportunities to provide wireless data services for a slew of new applications like smart meters, networked handheld games, additional tablet PCs, digital cameras and media players. Lurie is particularly eager to use sensors for cheap tracking of "people, pets and pallets." Ericsson (ERIC) has calculated that sometime in 2009, data surpassed voice as the dominant type of traffic on the global wireless network -- predicting that there will be 50B connected devices on the Internet by 2020. More astonishing, Cisco Systems' (CSCO) CTO, Padmasree Warrior asserted that sometime in 2013, there will about one trillion devices connected to the Internet. If she is right, it would be good for Cisco. Putting a trillion devices online would require 'massive spending on network infrastructure'. The real key to the era of connected everything might be the rise of low-cost wireless sensors, capable of providing continuously updated real-time information on events unfolding in the real world. One area getting a lot of attention is the concept of smart grids, which would effectively put every electric meter on the Web, giving consumers more control over their power usage and home-control systems. Health care could be an even bigger target -- Qualcomm (QCOM) has a number of health-related wireless applications. Given the trouble AT&T has had with congestion on its 3G network this year, due in no small part to the popularity of the Apple iPhone, Savitz says, it strikes some people as surprising to see the company so aggressively pursuing new deals to provide wireless connectivity to new kinds of devices. But with new capacity -- and faster speeds -- coming soon in the form of so-called 4G networks, the company needs to set the stage for filling the enlarged network capacity. All of this has Savitz optimistic on the long-term prospects for networking-equipment stocks.
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Die G7 bringen Billionen zur Rettung des Finanzsystems auf.
Gleichzeitig ist aber 1 Milliarde Menschen ständig vom Hunger bedroht, obwohl man Ihnen mit nur 30mrd/Jahr helfen könnte. Eine Schande...
__________________
Die G7 bringen Billionen zur Rettung des Finanzsystems auf.
Gleichzeitig ist aber 1 Milliarde Menschen ständig vom Hunger bedroht, obwohl man Ihnen mit nur 30mrd/Jahr helfen könnte. Eine Schande...
Taiwan Semi Reportedly Concerned About Client Overbooking
Posted by Eric Savitz
Taiwan Semiconductor (TSM), the big contact chip maker, has become alarmed over rising inventory levels, DigiTimes reports, citing industry sources. The report contends that the company is demanding IC design houses take delivery of ordered wafer starts before placing new orders.
The piece contends Taiwan Semi “is alarmed by the possibility that the clients might have been overbooking.”
DigiTimes writes that the company’s inventory of analog ICs in particular is “50% higher than its safe level,” with inventories of network- and consumer-related ICs also above their “safe levels” by about 20%.
__________________
Die G7 bringen Billionen zur Rettung des Finanzsystems auf.
Gleichzeitig ist aber 1 Milliarde Menschen ständig vom Hunger bedroht, obwohl man Ihnen mit nur 30mrd/Jahr helfen könnte. Eine Schande...
Enterprise Software: Awaiting An Outbreak Of Merger Mania
By Eric Savitz
Nothing gets the Street’s juices flowing like speculative chatter about M&A.
Ergo, there’s lots of discussion this morning about a new report from FBR Capital analyst David Hilal about the prospects for consolidation in the enterprise software sector. He thinks the flow of M&A deals in the group is going to accelerate this year and into 2011. “Software vendors are flush with cash given the cash-flow rich nature of the software model and more than a handful of vendors have even recently raised additional capital,” he notes.
Hilal even provides eight specific deals he thinks would make strategic sense:
* Akamai (AKAM) buys Limelight (LLNW), thus strengthening their position in content delivery networks.
* American Express (AXP) buys Concur (CNQR), provider of expense management software; he ntoes tha the company’s already have a tight partnership.
* Hewlett-Packard (HPQ) buys McAfee (MFE): This one has already turned into a rumor; the theory is that it would strengthen HP’s hand in security software.
* Oracle (ORCL) buys Red Hat (RHT), thus extending its reach into the Linux software market.
* Oracle buy AthenaHealth (ATHN), building on its recent acquisition of Phase Forward to further pursue the health care segment.
* Salesforce.com (CRM) buys RightNow (RNOW), expanding beyond sales force automation software into customer service and support software.
* SAP (SAP) buys Tibco (TIBX), boosting the German software giant’s middleware stack.
* SAP buys Informatica (INFA), in another boost to the company’s software stack.
He then goes on to suggest even more potential deals:
* Automatic Data Processing (ADP), he says, could buy Concur.
* Oracle could buy Amdocs (DOX), Ariba (ARBA), Manhattan Associates (MANH) and/or Parametric Technology (PMTC).
* SAP could buy Salesforce.com.
* Microsoft could buy Citrix (CTXS) or Limelight.
* Google could buy Salesforce or Akamai.
* AT&T or Verizon could buy Akamai.
* Cisco could buy Riverbed.
* Microsoft or Google could buy Nuance (NUAN).
da sind wirklich einige sachen dabei, die sinn machen.
gerade ORCL und SAP werden weiter zukaufen müssen, da sich das organische wachstum stark verlangsamt hat.
Salesforce (CRM) ist als cloud platzhirsch für fast alle grossen companies interessant.
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Die G7 bringen Billionen zur Rettung des Finanzsystems auf.
Gleichzeitig ist aber 1 Milliarde Menschen ständig vom Hunger bedroht, obwohl man Ihnen mit nur 30mrd/Jahr helfen könnte. Eine Schande...
* Analysts say worries grow of inventory build (Adds analyst comments, Samsung response, and inventory data)
By Ian Sherr
SAN FRANCISCO, April 30 (Reuters) - Shares in U.S. chip makers slid on Friday after Samsung Electronics Co Ltd (005930.KS) said it will "substantially increase" capital spending in 2010, stoking fears about excess semiconductor supply.
The world's largest maker of memory chips and flatscreen TVs also warned that the low-end DRAM memory chip market may go into oversupply by the year's end. Local newspaper Korea Economic Daily cited chip gear suppliers as saying Samsung was preparing to invest as much as $17.3 billion to increase semiconductor capacity in the period leading up to 2011.
Samsung said in a statement it had not reached a decision on that, and would not disclose further information for another six months. [ID:nLDE63T01G]
Analysts say investors cashed out on Friday of shares such as Intel Corp (INTC.O) and memory chip maker Micron Technology Inc (MU.O) after the South Korea's Samsung said that inventory could grow in the second half of the year. [ID:nTOE63S005]
"Samsung said they are pushing up capital spending and could see oversupply by the back half of the year," said Broadpoint Amtech analyst Doug Freedman.
"Some of the inventory data coming out of some of the semiconductor supply chain companies is concerning people," he added. Investors were "taking profits."
Analysts have quizzed every major chip manufacturer during the quarterly earnings season about the possibility that companies will over-build, swelling inventories again.
"The evidence is piling up," said Auriga analyst Daniel Berenbaum. "Over the course of this earnings season, you see large OEMs, end manufacturers, contract manufacturers and distributors building inventory."
WHITHER STOCKS?
Freedman pointed to WPG Holdings (3702.TW), a chip and electronics distributor based in Asia, as the latest signal that inventories may be building up rapidly in the supply chain. In its earnings release, WPG said inventory for its first quarter had grown 31 percent from the previous quarter.
"It's all the signs that the cycle is weakening," said Wedbush Morgan analyst Patrick Wang.
Stock in graphics chip maker Nvidia Corp (NVDA.O) was also hit by inventory concerns, which Raymond James analyst Hans Mosesmann said were unfounded.
"Today it is unlikely that there is a glut of notebook discrete GPUs," he said in a note to investors, referring to Nvidia's graphics chips for desktop and notebook computers.
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Die G7 bringen Billionen zur Rettung des Finanzsystems auf.
Gleichzeitig ist aber 1 Milliarde Menschen ständig vom Hunger bedroht, obwohl man Ihnen mit nur 30mrd/Jahr helfen könnte. Eine Schande...
erstmals ganz klare negative kommentare aus dem zuletzt sonnenverwöhnten tech sektor. europa und china machen sorgen.
könnte dem cycle erstmal einen kurzfristigen dämpfer verpassen.
glaube nicht so ganz, dass der zyklus ganz vorbei ist, da in den usa immer noch erheblicher investitionsbedarf besteht, das aber erst freigesetzt wird, wenn auch der mittelstand endlich anzieht.
Asustek Trims Q2 View On Trouble In Europe; INTC, AMD Slide
Posted by Eric Savitz
Asustek Computer, which makes Asus brand PCs, this morning cut its revenue and shipment forecast for the second quarter, citing lower demand from Europe, where it generated 41% of Q1 revenue, as well as the depreciating Euro and fallout from the Greek bond market crisis. The news appears to be causing some pressure on PC-related component stocks, including Intel (INTC) and Advanced Micro Devices (AMD).
Barclays Capital analyst Tim Luke writes in a research note that the lower outlook from Asustek, in addition to recent “subdued commentary” from other PC companies and contract manufacturers such as Acer and Compal “are likely to temper sentiment toward PC related vendors” Intel and AMD, although he says meetings with management suggest the companies are on track for the current quarter.
“Contrary to commentary on its recent earnings call on April 30th where CEO Jerry Shen stated that he does not believe the bond crisis in Europe would affect the company’s notebook shipments and sales for Q2, Asus changed its forecast, indicating that the uncertainty of Europe’s economy and depreciating Euro is in fact impacting the company’s outlook for both the second quarter and peak third quarter,” he writes in a research note.
“We do not see lower Q2 outlook for flat as too surprising given decelerating netbook sales,” he adds. “Asus previously forecasted notebook shipments to increase by 0 -10% in second quarter, Eee PC shipments to increase by 0-5% and motherboard shipments to decline in the range of 5-10%. Asus now looks for notebook and netbook shipments and overall sales to be flat [sequentially] and increased the extent of its decline in its 2Q motherboard shipments. Additionally Asus sees China as another area of potential concern as the company is seeing weaker demand quarter to date in 2Q. We note approximately 41% of Asus’ revenues are attributed to China.”
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Die G7 bringen Billionen zur Rettung des Finanzsystems auf.
Gleichzeitig ist aber 1 Milliarde Menschen ständig vom Hunger bedroht, obwohl man Ihnen mit nur 30mrd/Jahr helfen könnte. Eine Schande...
Samsung Plans Record Investments to Widen Lead in Chips, LCDs
By Kevin Cho
May 17 (Bloomberg) -- Samsung Electronics Co. plans to outspend Intel Corp., International Business Machines Corp. and Sony Corp. combined to widen its lead as the world’s largest maker of memory chips and flat-panel displays.
Capital expenditure will jump to 18 trillion won ($15.6 billion) this year from 8 trillion won in 2009, Suwon, South Korea-based Samsung Electronics said in a statement today. Including research and development, spending will increase to 26 trillion won, it said.
The largest spending budget in the technology industry may help Samsung build on its market lead and force smaller competitors to boost investments to keep up. Samsung’s purchases may be a boon for equipment makers including Applied Materials Inc. as the industry recovers from the global recession.
“I believe this massive amount of spending during tough times will cement Samsung’s leadership,” said Kim Young Joon, who oversees $932 million of stocks at NH-CA Asset Management in Seoul as head of equity investment, including Samsung shares. “The investments could pressure competitors to follow suit, which could be a burden for smaller rivals that aren’t as financially strong as Samsung.”
Samsung fell 3.2 percent to close at 784,000 won on the Korea Exchange, compared with the benchmark Kospi index’s 2.6 percent decline.
‘Substantial’ Increase
Samsung, which said last month it would “substantially” increase its 2010 spending budget, plans to invest 9 trillion won in the memory-chip business, compared with an earlier budget of 5.5 trillion won. Spending on liquid-crystal displays will rise to 5 trillion won from 3 trillion won, it said.
Investments for semiconductors will include a new production line for memory chips and adding capacity to an existing manufacturing facility, Samsung said. The company also plans to build a new production line for LCDs on so-called eighth-generation technology to meet rising demand.
Today’s decision “was made to address indications of improving market conditions throughout the global consumer electronics and IT industries, while further strengthening Samsung’s leadership in memory semiconductors and LCD panels,” Samsung said in the statement.
Samsung, which had about 20 trillion won in cash, equivalents and short-term investments at the end of March, is able to spend “aggressively” compared with rivals who are still recovering from the industry’s three-year slump, according to Lee Sun Tae, a Seoul-based analyst at Meritz Securities Co.
Return to Profit
The computer-memory chip industry posted net losses for 10 consecutive quarters before returning to a profit last year, El Segundo, California-based researcher, ISuppli Corp. said this month. Weaker demand amid the economic downturn prompted manufacturers to cut production and investment plans, helping ease the industry glut.
...
“Distributed Unevenly”
“The benefits of the current up-cycle will be distributed unevenly as the gap between first tiers and second tiers has widened, in terms of both capability to add capacity and technology,” Chung Chang Won, an analyst at Nomura Holdings Inc., wrote in a report last month.
Samsung had a 32.3 percent share of the global dynamic random access memory, or DRAM, market in the first quarter, compared with second-ranked Hynix’s 21.5 percent, according to Dramexchange Technology Inc., operator of Asia’s biggest spot market for semiconductors. Japan’s Elpida Memory Inc. had a 17.4 percent share, while Micron had 14.1 percent.
While investment by computer-memory chipmakers will almost double to $8.4 billion this year, it’s still 32 percent less than 2008, according to Taipei-based Dramexchange.
Don’t Have Potential
Samsung’s spending isn’t a sign that the market “is going to fall apart,” according to Song Myung Sup, an analyst at HI Investment & Securities Co. “If the smaller companies join and increase investment together, then that can be a danger signal. But right now, the others don’t seem to have the potential.”
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__________________
Die G7 bringen Billionen zur Rettung des Finanzsystems auf.
Gleichzeitig ist aber 1 Milliarde Menschen ständig vom Hunger bedroht, obwohl man Ihnen mit nur 30mrd/Jahr helfen könnte. Eine Schande...
erstmals ganz klare negative kommentare aus dem zuletzt sonnenverwöhnten tech sektor. europa und china machen sorgen.
könnte dem cycle erstmal einen kurzfristigen dämpfer verpassen.
glaube nicht so ganz, dass der zyklus ganz vorbei ist, da in den usa immer noch erheblicher investitionsbedarf besteht, der aber erst freigesetzt wird, wenn auch der mittelstand endlich anzieht.
via flyonthewall:
Electronics up-cycle likely ending, says Roth Capital
ATHR, BRCM, CAVM, MPWR, NETL, POWI, VLTR
details nur im kostenpfl. subscriber bereich. evtl. bringt barrons etwas im laufe des tages.
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Die G7 bringen Billionen zur Rettung des Finanzsystems auf.
Gleichzeitig ist aber 1 Milliarde Menschen ständig vom Hunger bedroht, obwohl man Ihnen mit nur 30mrd/Jahr helfen könnte. Eine Schande...
AW: The Big Picture: Nasdaq Composite
Linear-Darstellung
