Microsoft (MSFT) 68.04 +2.61: -- Update -- Conference call concluded, the tone on the call was decidedly positive. Analysts were surprised by strength in the results which exceeded what related hardware results (read Intel) would have suggested. Forward guidance was better than expected and the server business appears to be improving.
Microsoft (MSFT) 68.04 +2.61: -- Update -- On conference call, MSFT says it continues to take share in the server market. Separately, quarter saw more strength in late February through March... not clear whether that was due to more focused sales efforts or an improved overall business climate. MSFT +4.35
Chartered Semi (CHRT) 26.70 +0.76: Semiconductor foundry reports Q1 loss of $0.22 a share, $0.01 better than the First Call estimate), vs year-ago earnings of $0.29; revenues fell 13.3% to $206.69 mln from a year-ago of $238.41 mln; additionally warns that Q2 revenues will be approximately 25% below the first quarter with earnings per share expected to be in the range of a loss of $0.50-0.52; cites downturn in the economic environment and expects companies throughout the supply chain continue to aggressively reduce inventories and align run-rates with current consumption, particularly in the communications segment; see press release.
Microsoft (MSFT) 68.04 +2.61: -- Update -- On conference call, enterprise platform and server business expected to grow in the mid-teens for the fourth quarter and "a little stronger than that" for the subsequent Q1. MSFT +4.08
Scientific-Atlanta (SFA) 58.71 +1.71: -- Update -- Reports Q3 earnings of $0.46 a share, $0.04 better than the First Call consensus of $0.42, vs year-ago earnings of $0.23; revenues rose 50.6% to $663.70 mln (consensus $659 mln) from a year-ago of $440.70 mln. On call, company ups FY01 EPS guidance to $1.72 vs prior guidance of $1.64. Stock at 60.25 after hours; see press release.
PMC-Sierra (PMCS) 41.40 +8.40: -- Update -- Briefing.com was impressed with mgmt over last couple of conference calls. When things were bad, mgmt was honest and told us like it was with no sugar coating unlike some others. So now that conditions appear to be improving, credibility firmly in place...Conf. call ended.
PMC-Sierra (PMCS) 41.40 +8.40: -- Update -- Conference call summary: tone was generally positive. Conditions are difficult right now, but it sounds as though there is light at the end of the tunnel (second half). It's a good sign that early indications for JunQ are slightly positive, but it's still very early. Longer term, well positioned due to high number of design wins....Not surprisingly, market liked the call as stock has traded up to 47.
Nortel Networks (NT) 17.80 +0.35: -- Update -- Nortel call ends with a decidedly mixed tone. On a positive note, company says that service provider network capacity could be fully utilized within about 4 months, which argues for renewed spending. On a negative note, NT appears to believe that a period of "rationalization" is in store for the service provider sector, which doesn't mean an ongoing declines in orders, but does suggest a relatively flat trend. Sees 50/50 chance of a sequential revenue increase in Q2, so bottom may be near, but doesn't seem to expect much of an increase off of that bottom. Stock trades up slightly after hours to 18.15.
eBay (EBAY) 49.99 +4.24: -- Update -- Says it has seen no signs of a slowdown in consumer demand, but that it remains watchful of the macroeconomic environment and alert to the general softness in online advertising market... targeting long-term operating margins in 30-35% range... conference call just concluded... analysts, in general, sounded pleased in Q&A portion... EBAY +3.01
Microsoft (MSFT) 68.04 +2.61: -- Update -- On conference call, impact of Great Plains acquisition somewhat less than previously indicated, will take a charge of 1 cent in Q4 and amortize 2 cents per share going forward. MSFT +3.97
After Hours Action : Hot group: communication ICs, as PMCS suggests that Q2 could see a bottom, with April booking exceeding cancellations. Changes vs close: PMCS +5.7, AMCC +2.3, BRCM +3.5, VTSS +2.2
Microsoft (MSFT) 68.04 +2.61: -- Update -- On conference call, strength of results relative to other tech issues due to "less reliance on Internet and telecomm business relative to other businesses" and MSFT's "broader and compelling server lineup". Strength came despite worldwide PC growth lower than MSFT expected, particularly in the U.S.
After Hours Action : Positive tone reemerges thanks in large part to Microsoft, Nasdaq 100 After Hours indicator +37. Changes vs close, winners: MSFT +2.6, EBAY +3.2, PMCS +6, XLNX +2, INKT +1. Losers: TMTA -4, MEDI -1.3, IDPH -3. Little change: SUNW, GTW, NT, CMRC.
eBay (EBAY) 49.99 +4.24: -- Update -- Management feels there are far more similarities in international businesses with EBAY than dissimilarities; characterizes its most mature German market being at a state now that is comparable to where EBAY was 2 years ago; thinks international businesses may reach profitability sooner than company expected just 6-8 months ago... EBAY +3.42
Nortel Networks (NT) 17.80 +0.35: -- Update -- More on inventories from the call: though finished goods inventories fell $400 mln vs Q4, component inventories rose $400 mln as NT fulfilled contracts with suppliers. So while the news for NT on overall inventories is not that bad, the news for communication IC cos is not as good with component inventories still rising. Nortel says that Q2 inventories will fall much more substantially and across categories; implication is that component orders and inventories will fall now that contracts have been fulfilled. Unlike Cisco, NT has no plans to write down inventory.
PMC-Sierra (PMCS) 41.40 +8.40: -- Update -- On conference call, company said that it is seeing more bookings than cancellations thus far in JunQ....In MarQ, all products were equally weak, nothing stands out as particularly weak....stock keeps trading up -- now at 46.23.
eBay (EBAY) 49.99 +4.24: -- Update -- Says three conclusions to be drawn from its financial performance in Q1: 1) Core business is strong 2) Future outlook for core business and new initiatives remains bright and 3) EBAY's business model continues to be validated by its ability to deliver on the bottom-line... Q1 summarized as a "very strong quarter"... EBAY +3.26
Sun Microsystems (SUNW) 20.71 +2.31: Final thoughts on SUNW's earnings and call - Tone of call was interesting in that company was much less brash than in recent quarters, despite reminding people on several occasions how its server business continues to outperform IBM (now if they could get the stock to perform like IBM)... Also downplayed uptick in inventory, but Briefing.com concerned that 60% year/year jump in inventories v. 33% jump in sales could spell trouble for margins going forward - putting into question company claim that margins would improve in Q4... Also a bit surprised to hear that company plans on adding nearly 500 people in Q4... Many on street thought company might announce layoffs... Overall, the outlook was below consensus but it wasn't as bad as worst fears... In last few days, that's been good enough to rally stocks... SUNW currently up $0.14 in after hours trading after falling by nearly one point.
PMC-Sierra (PMCS) 41.40 +8.40: -- Update -- On conference call, company differentiated who is cancelling orders. Largest five customers look as if they have already cancelled all they are planning to cancel (only $24 mln in backlog for these customers). Smaller company cancellations look to have bottomed. They do not seem to have the inventory issues the biggies have...Separately, mgmt said it would not be surprised to see a dozen high profile service provider bankruptcies...Company introduced a record 16 new products in MarQ vs 26 for all of 2000....stock trading at 45.28.
Nortel Networks (NT) 17.80 +0.35: -- Update -- Company says that chances of Q2 sequential revenue growth vs a decline is 50/50; current consensus had called for a sequential increase of about 7%.
PMC-Sierra (PMCS) 41.40 +8.40: -- Update -- On conference call, mgmt guiding down JunQ EPS to break-even vs First Call of $0.03 and a 10% sequential sales decline....stock trading at 44.90.
Nortel Networks (NT) 17.80 +0.35: -- Update -- On call, book-to-bill was 0.80 due to long-haul optical, which was said to be very weak.
Mainspring (MSPR) 3.2 +0.19: E-consulting firm agrees to be acquired by IBM Corp (IBM) for $4 per share in cash.
Nortel Networks (NT) 17.80 +0.35: -- Update -- Though company won't offer specific guidance, it says on the call that they "cannot hope for much change in guidance on the top-line" in the coming quarter, but can hope for some improvement on bottom-line. Meaning of this comment unclear, but it appears to suggest that revenue growth will not resume, without endorsing any specific number.
Documentum (DCTM) 16.10 +0.05: Reports a Q1 loss of $0.40 a share, much worse than the consensus loss est. of $0.18, vs yr-ago EPS of $0.01; company to reduce workforce by approx. 12%; company will give employees the opportunity to cancel outstanding stock options in exchange for new options.
PMC-Sierra (PMCS) 41.40 +8.40: -- Update -- On conference call, mgmt saying there is a large amount of inventory in the supply chain, however, it should all be burned off by end of Q3. Q2 will likely be the bottom.....Sales force increased sales expectations this week for the first time in six months, but that can change...."pricing is stable"...stock trading at 43.75.
MedImmune (MEDI) 40.46 -0.91: -- Update -- Company warns that Q2 loss per share will be $0.04-0.06 vs mean estimate of ($0.03).
eBay (EBAY) 49.99 +4.24: -- Update -- On conference call, indicated that international operations accounted for 12% of net revenues and that it is ramping international operations in steady fashion; also touting value proposition of lower prices on EBAY during difficult economic times; says its business has "great momentum"... EBAY +2.11
PMC-Sierra (PMCS) 41.40 +8.40: -- Update -- On conference call, mgmt expects shipments to grow strongly in second half. Gross margins will increase in 2H, but JunQ will be lower than MarQ....Guides down JunQ revenue to $108 mln, vs consensus of $116.8 mln.....stock trading at 43.24.
Alpharma (ALO) 29.95 -0.14: Company warns that Q1 earnings will come in between $0.26 and $0.28, compared to current mean estimate of $0.38; expects Q2 earnings to approximate Q1 (mean $0.43) and projects full yr EPS of about $1.70 (mean $2.05).
Nortel Networks (NT) 17.80 +0.35: -- Update -- On conference call, company says that it is on track to bring inventories down notably in Q2; says inventories rose in January due to contracts with suppliers, but stabilized in Feb, and fell noticably in March.
KPMG Consulting (KCIN) 16 +2.59: Company to reduce workforce by approx. 450 to 550 employee or 5%. "While overall our business continues to grow, we have seen weakened demand for some services." KCIN expects to post revenues of $743-$753 mln for Q3 (mean $738 mln)
SonicWALL (SNWL) 14.91 +1.86: Reports Q1 earnings of $0.08 a share, $0.01 better than the First Call consensus of $0.07, vs year-ago earnings of $0.07; revenues rose 83.3% to $24.57 mln from a year-ago of $13.41 mln.
eBay (EBAY) 49.99 +4.24: -- Update -- In addition to saying that it believes consolidated net revenues over the next two quarters could be as much as $10-$15 mln higher than previously anticipated, EBAY also indicated that it is "generally comfortable" with the current bottom-line consensus expectations, as adjusted for the acquisition of iBazar which is expected to close in 2Q01 (current First Call consensus for Q2 is $0.08 and $0.36 for FY01); also expects gross margins to remain above 80% for the balance of the year... conference call just starting... EBAY +1.51
McDATA (MCDT) 31.01 +7.81: -- Update -- Posts Q1 net of $0.08 a share, in line with consensus; lowers Q2 outlook to $0.04-$0.06 (mean est. $0.11); sees FY01 earnings "slightly lower-to-slightly higher" than yr-ago period; in the yr-ago, MCDT earned $0.34 and was expected to make $0.48 for FY01; this is a best guess forecast that will updated as visibility improves.
Sybase (SYBS) 17.07 +0.80: Reports Q1 earnings of $0.25 a share, in line with the First Call consensus of $0.25, vs year-ago earnings of $0.21; revenues rose 1.0% to $229.07 mln from a year-ago of $226.77 mln.
Copper Mountain (CMTN) 3.64 +0.76: Posts Q1 loss of $0.20 a share, 9 cents better than consensus, vs a yr-ago profit of $0.24; net revenues tumbled 86.5% to $8.2 mln; company says encouraged by meeting Q1 revenue goals... Stock trades down 12% in after-hours.
Atmel Corp (ATML) 12.47 +0.70: Reports Q1 earnings of $0.12 a share, $0.02 worse than the First Call consensus of $0.14, vs year-ago earnings of $0.09; revenues rose 22.5% to $525.94 mln from a year-ago of $429.19 mln.
After Hours Action : After hours trading more negative than in recent days, with a couple notable exceptions (changes vs close): MSFT +2.5, EBAY +2.4. Losers: TMTA -4, SUNW -0.9, EMLX -1, PMCS -2, MEDI -2, IDPH -3.
Sun Microsystems (SUNW) 20.71 +2.31: On call, SUNW sees slight sequential increase in Q4 revenues, though pro-forma earnings are expected to be flat to down sequentially... This amounts to a warning, in that street had been expecting a 14% increase in revenues and EPS of $0.10, or two cents above Q3 level... For FY02 sees revenue growth of about 15%, with pro-forma earnings growing at a faster rate... Street had been forecasting revenues of $22.7 bln (+17%) and earnings of $0.65 (+33%)... Based on call, Briefing.com expects street to trim its Q401 and FY02 estimates.
La-Z-Boy (LZB) 17.90 +0.40: Company warns for Q4; sees EPS of $0.26 - $0.31 vs mean of $0.34. Revenues to be flat to slightly down.
Nuance Comms (NUAN) 15.69 -0.63: Speech recognition software company posts a Q1 loss of $0.36 a share, a penny worse than consensus, vs yr-ago loss of $0.26; revenues increased 39% to $11 mln; company to reduce its workforce by approx. 20% in attempt to bring expenses more in line with the anticipated business demand.
Sun Microsystems (SUNW) 20.71 +2.13: On conference call, management projects a slight improvement in gross margins in Q4... Also sees SG&A expenses for Q4 close to absolute levels achieved in Q1 and Q2.
Emulex (EMLX) 30.87 +6.62: -- Update -- Company projecting Q4 net of $0.10 a share (consensus $0.11) and fiscal 2002 earnings of about $0.53 (mean $0.60).
Packeteer (PKTR) 6.11 +0.85: Reports Q1 loss of $0.10 a share, $0.03 worse than the First Call consensus of ($0.07); revenues rose 56.2% to $11.18 mln from a year-ago of $7.16 mln.
Sun Microsystems (SUNW) 20.71 +2.13: On conference call, company noted that revenue weakness largely due to soft US market, where sales slumped 15% year/year... Meanwhile, year/year sales rose in Europe, Japan and Other by 16%, 21% and 19%, respectively... However, noted some slowing in Europe and Asia... Sequentially, only Japan was higher.
Gateway (GTW) 18.02 +0.72: -- Update -- Company sees Jun qtr EPS of about breakeven vs consensus of $0.02, and expects to return to profitability and post year/year unit sales growth in the second half of 2001.
Emulex (EMLX) 30.87 +6.62: -- Update -- Reports Q3 net of $0.13 a share, in line with consensus, vs yr-ago net of $0.10; revenues increased 65% to $60.4 mln; forecasting sequentially flat revenues of roughly $60 mln for Q4 (mean $64.8 mln); cautions investors that orders have not yet returned to the pattern that typified earlier qtrs, and there is no guarantee that business will reach the level achieved in Q3.
Gateway (GTW) 18.02 +0.72: Reports Q1 pre-tax loss of $0.02 a share; company does not provide an after-tax number excluding gains and changes; loss would be $0.01 worse than the First Call consensus of ($0.01), but it's not clear if the pre-tax number is comparable to estimates. Revenues fell 15.2% to $2.03 bln (consensus $2.06 mln) from a year-ago of $2.40 bln.
Iomega (IOM) 3.62 +0.18: Reports Q1 earnings of $0.04 a share, $0.02 worse than the First Call consensus of $0.06, vs year-ago earnings of $0.19; revenues fell 19.3% to $278.18 mln from a year-ago of $344.90 mln.
Conexant (CNXT) 12.45 +0.66: Posts Q2 loss of $0.39 a share, 2 cents worse than consensus, but within range of previous guidance; revenues fell 39% to $251 mln.
Sun Microsystems (SUNW) 20.71 +2.13: On the conference call, company noted that backlog dropped 11% to $3.6 bln.
eBay (EBAY) 49.99 +4.24: Reports Q1 EPS of $0.11, $0.03 better than consensus. Revenues of $154.1 million were up 79% from $85.9 million a year ago. EBAY guides revenues $10 to $15 mln higher than previously anticipated.
Business Objects (BOBJ) 41.75 +3.62: Reports Q1 net of $0.16 a share, a penny better than expected, vs yr-ago EPS of $0.11; revenues increased 35% to $98.3 mln; company sees Q2 net in the range of $0.16-$0.17 (mean $0.19) and full yr EPS of $0.71-$0.75 (mean $0.83). |
