From Briefing.com: 4:36PM Varian Semi reports EPS in-line, revs in-line; guides Q4 revs below consensus (VSEA) 29.48 -1.10 : Reports Q3 (Jun) earnings of $0.25 per share, in-line with the First Call consensus of $0.25; revenues fell 36.8% year/year to $182.6 mln vs the $181.2 mln consensus. Co issues downside guidance for Q4, sees EPS of slightly above breakeven vs. $0.27 consensus; sees Q4 revs of $130-140 mln vs. $183.25 mln consensus. Co says, "We have taken a number of cost-cutting actions, including a shutdown during the last week of August. We continue to drive cost reductions, including additional shutdowns in the calendar year."
4:32PM Vishay expects its Q2 results to be impacted by a material goodwill impairment charge (VSH) 8.64 -0.38 : The co announces that it expects financial results for the second quarter of 2008 to be impacted by a material goodwill impairment charge. The amount of the charge is still being determined, but is anticipated to be a substantial portion of the goodwill recorded on its balance sheet. While the goodwill impairment charge will reduce reported results under U.S. generally accepted accounting principles, it will be non-cash in nature and will not affect Vishay's liquidity, cash flows from operating activities, or debt covenants, or have any impact on future operations.
4:18PM Ixia beats by $0.02, beats on revs (XXIA) 7.29 -0.01 : Reports Q2 (Jun) earnings of $0.07 per share, $0.02 better than the First Call consensus of $0.05; revenues rose 6.7% year/year to $45.9 mln vs the $43.6 mln consensus.
4:17PM Western Digital beats by $0.12, beats on revs (WDC) 33.62 -1.37 : Reports Q4 (Jun) earnings of $0.94 per share, $0.12 better than the First Call consensus of $0.82; revenues rose 45.8% year/year to $1.99 bln vs the $1.89 bln consensus.
4:15PM Celestica reports EPS in-line, misses on revs; guides Q3 EPS in-line, revs in-line (CLS) 8.50 +0.14 : Reports Q2 (Jun) earnings of $0.17 per share, excluding non-recurring items, in-line with the First Call consensus of $0.17; revenues fell 3.1% year/year to $1.88 bln vs the $1.93 bln consensus. Co issues in-line guidance for Q3, sees EPS of $0.17-0.23 vs. $0.20 consensus; sees Q3 revs of $1.9-2.1 bln vs. $2.14 bln consensus.
4:13PM Rambus misses by $0.01, beats on revs (RMBS) 14.74 -1.22 : Reports Q2 (Jun) loss of $0.13 per share, excluding $1.25 charge, $0.01 worse than the First Call consensus of ($0.12); revenues fell 24.8% year/year to $35.7 mln vs the $34.3 mln consensus.
4:13PM Pixelworks misses by $0.01, reports revs in-line; guides Q3 EPS in-line (PXLW) 1.22 unch : Reports Q2 (Jun) net of breakeven, $0.01 worse than the First Call consensus of $0.01; revenues fell 22.7% year/year to $20.8 mln vs the $20.7 mln consensus. Co issues in-line guidance for Q3, sees EPS of ($0.08)-$0.11 vs. $0.07 consensus.
4:10PM Cymer beats by $0.07, reports revs in-line; guides Q3 revs below consensus (CYMI) : Reports Q2 (Jun) earnings of $0.46 per share, $0.07 better than the First Call consensus of $0.39; revenues rose 0.9% year/year to $124 mln vs the $123.4 mln consensus. Co issues downside guidance for Q3, sees Q3 revs down 8-10% sequentially (roughly $111.6-114.1 mln) vs. $118.50 mln consensus.
4:09PM Flextronics misses by $0.01, reports revs in-line; guides Q2 EPS in-line, revs in-line (FLEX) 8.99 -0.46 : Reports Q1 (Jun) earnings of $0.27 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of $0.28; revenues rose 61.9% year/year to $8.35 bln vs the $8.3 bln consensus. Co issues in-line guidance for Q2, sees EPS of $0.28-0.31 vs. $0.31 consensus; sees Q2 revs of $8.5-9.0 bln vs. $8.92 bln consensus.
4:09PM Silicon Image beats by $0.03, beats on revs; guides Q3 revs in-line; guides FY08 revs in-line (SIMG) 6.41 +0.03 : Reports Q2 (Jun) earnings of $0.07 per share, $0.03 better than the First Call consensus of $0.04; revenues rose 4.5% year/year to $70.1 mln vs the $67.6 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $75-77 mln vs. $75.23 mln consensus; sees gross margins of 56%-57%. Co issues in-line guidance for FY08, sees FY08 revs of $284-289 mln vs. $283.34 mln consensus; sees gross margins of 57%-58%.
4:06PM Cohu beats by $0.02, beats on revs (COHU) 15.80 -0.15 : Reports Q2 (Jun) earnings of $0.01 per share, $0.02 better than the First Call consensus of ($0.01); revenues fell 21.9% year/year to $51.8 mln vs the $50 mln consensus. "Second quarter sales exceeded our guidance while the decline in orders reflects continued weak conditions in the semiconductor equipment industry. A bright spot in this challenging market was a multiple unit order for Delta Design's Summit thermal handler by a large U.S. graphics IC manufacturer, further validating the significant benefits that our thermal technology provides in testing high-speed, high-power ICs such as GPUs and MPUs."
4:03PM Micrel beats by $0.01, beats on revs; guides Q3 EPS in-line, revs in-line (MCRL) 9.37 -0.42 : Reports Q2 (Jun) earnings of $0.12 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.11; revenues rose 8.4% year/year to $70.6 mln vs the $68.9 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.11-0.13 vs. $0.12 consensus; sees Q3 revs of $68.5-72.7 mln vs. $70.66 mln consensus. "The outlook for the second half of 2008 remains cloudy due to concerns about the strength of this year's seasonal holiday build in the face of slower economic growth. In response, Micrel is heavily focused on reducing its operating costs as we move into the second half of the year while continuing to produce new, high-performance products at a rapid rate, which we believe will position the Company to grow faster than the market over time."
4:02PM Plexus beats by $0.02, beats on revs; guides Q4 EPS in-line, revs above consensus (PLXS) 28.55 -0.91 : Reports Q3 (Jun) earnings of $0.41 per share, $0.02 better than the First Call consensus of $0.39; revenues rose 20.2% year/year to $456.4 mln vs the $441.2 mln consensus. Co issues guidance for Q4, sees EPS of $0.42-0.46 vs. $0.43 consensus; sees Q4 revs of $470-490 mln vs. $461.64 mln consensus.
4:30 pm : The stock market trended lower for virtually the entire session Thursday as stocks lacked leadership and participants returned their focus toward negative themes. The descent dragged the stock market to a 2.3% loss.
Selling was the most concentrated in the financial sector, which finished 6.7% lower. Coming into the session, the financial sector was up 34% from its low last week. However, when the sector dipped there was no buying support, as in recent sessions.
Participants were reminded of the troubles in the housing sector, which has caused considerable pain to the financial sector, when the June existing home sales were announced. Annualized sales came in at 4.86 million, which is down from the prior reading of 4.99 million and below the consensus forecast of 4.94 million. Month-over-month, existing home sales slipped 2.6%. Additionally, the inventory of unsold homes jumped to 11.1 month's worth of supply from 10.8. The increased supply was taken as a sign that a bottom may be farther off than many hoped.
Separately, renewed worries about the financial condition of Washington Mutual (WM 4.03, -0.62) and government sponsored enterprises Fannie Mae (FNM 12.02, -2.98) and Freddie Mac (FRE 8.81, -1.99) also played a role in driving down the financial sector. Weakness in the latter two stocks was notable as it came amid reports the Senate was on the verge of passing the housing bill.
In other economic news, initial jobless claims for the week ending July 19 totaled 406,000, which is an increase of 34,000 from the prior week and 26,000 more than economists expected. That is the second time in four weeks the claims number has been reported above 400,000.
08:47 am Qualcomm (QCOM)
Shares of Qualcomm (QCOM 44.82) are soaring in premarket trading after the communication equipment company unexpectedly settled a lawsuit with Nokia (NOK 26.70). QCOM also reported in-line earnings for its latest quarter.
Qualcomm and Nokia entered a new agreement to cover the various wireless standards, which will result in a settlement of all litigation between the two companies.
The agreement term spans 15 years, and grants Nokia a license for all QCOM patents for use in Nokia mobile devices and infrastructure equipment. Meanwhile, Nokia will not use its patents directly against QCOM, allowing QCOM to integrate Nokia's technology into its chipsets. Nokia has also agreed to assign ownership of a number patents to QCOM.
Wall Street is pleased with the results, sending QCOM shares 20% higher in premarket trading. Brokerage firm Oppenheimer noted that the agreement means all companies must deal with Qualcomm to be a player in 3G and future 4G wireless technologies.
Separately, QCOM reported fiscal third quarter earnings per share of $0.55, which met estimates. Revenue rose 19% year-over-year to $2.76 billion, compared to the $2.71 billion consensus.
The company raised its full year earnings per share outlook to between $2.11 and $2.13, from $2.04 and $2.09. However, the raised guidance still falls short of the consensus estimate of $2.15 per share. |
