Read EVERY statement. Why I should stay bearish? -->
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
TQNT: strength in the satellite communications, some broadband digital wireless applications, and defense electronics markets.
(Skipping EBAY since they are always good, but P/E
always in stratosphere).
Sun Microsystems (SUNW) 20.71 +2.13: On the conference call, company noted that backlog dropped 11% to $3.6 bln.
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.
SUNW -- Meanwhile, year/year sales rose in Europe, Japan and Other by 16%, 21% and 19%, respectively
Sequentially, only Japan was higher.
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.
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.
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,
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,
SUNW -- Also a bit surprised to hear that company plans on adding nearly 500 people in Q4.
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
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.
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. Sees 50/50 chance of a sequential revenue increase in Q2, so bottom may be near.
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.
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
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.
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 |
