From Briefing.com: 5:24PM Microsemi Board of Directors announces results of independent inquiry, the Board's Decision to retain Microsemi CEO, and penalties with remedial actions (MSCC) 8.41 -0.08 : Co announces the Governance and Nominating Committee and the Board of Directors of Microsemi Corporation ("Microsemi" or the "Company") (Nasdaq:MSCC) have concluded their review of the academic credentials of MSCC's President and Chief Executive Officer, James J. Peterson. The independent inquiry on behalf of the Committee and the Board of Directors was commenced in December 2008 and was conducted by the law firm of Munger, Tolles & Olson LLP. The Committee and the Board determined that Mr. Peterson did not obtain either a Bachelor's Degree or Masters of Business Administration. The Committee and the Board confirmed that Mr. Peterson earned an Associate's Degree from Ricks College (presently known as Brigham Young University - Idaho) on December 15, 1978 and that he also earned substantial credits toward a Bachelor's Degree at Brigham Young University - Provo from 1979 through 1980. "Under these circumstances, the Board's mission is to protect shareholder interests by balancing the results of the independent inquiry against the great value and strategic vision that Jim Peterson has created at Microsemi," said Dennis Leibel, Chairman of MSCC's Board of Directors. "In the end, the Board concluded that the interests of MSCC's shareholders are best served by retaining Mr. Peterson while imposing appropriate financial penalties and remedial actions."
5:10PM Sierra Wireless announces expense reduction program (SWIR) 5.59 -0.04 : The co announces that it is implementing an expense reduction program. The expense reduction program is expected to reduce labor costs by approximately $5.5 million on an annualized run rate basis. The program includes the elimination of approximately 56 positions, representing 10% of the company's workforce. The positions eliminated will impact all levels and functions of the company. These actions are expected to be largely completed during the first quarter of 2009. The company expects to incur a pre-tax charge of approximately $1.3 million in the first quarter for severance and other costs related to this program.
5:02PM Chartered Semi beats by $0.20, reports revs in-line (CHRT) 1.56 -0.07 : Reports Q4 (Dec) loss of $0.05 per share, $0.20 better than the First Call consensus of ($0.25); revenues fell 0.3% year/year to $351.7 mln vs the $352.9 mln consensus. Capacity utilization in fourth quarter 2008 was 59 percent compared to 81 percent in the year-ago quarter, and 85 percent in third quarter 2008.
5:02PM California Micro beats by $0.01, misses on revs; guides Q4 EPS above consensus, revs in-line (CAMD) 2.19 -0.05 : Reports Q3 (Dec) loss of $0.13 per share, excluding $0.23 in non-recurring items, $0.01 better than the First Call consensus of ($0.14); revenues fell 35.3% year/year to $9.7 mln vs the $10.2 mln consensus. Co issues upside EPS guidance for Q4, sees EPS of ($0.13)-(0.11), excluding non-recurring items, vs. ($0.15) consensus; sees Q4 revs of $8.5-10.0 mln vs. $9.45 mln consensus. Factors affecting the March quarter outlook include the continuing weakness in the global economy and the seasonal weakness typical of this quarter, especially in the handset market.
4:31PM KLA-Tencor misses by $0.06, reports revs in-line (KLAC) 19.03 -1.34 : Reports Q2 (Dec) loss of $0.12 per share, $0.06 worse than the First Call consensus of ($0.06); revenues fell 37.6% year/year to $397 mln vs the $394 mln consensus. Co said, "In light of the current economic environment and our limited visibility regarding future market conditions, KLA-Tencor has been taking aggressive steps to reduce operating expenses and drive structural efficiencies across our organization, while maintaining a high level of investment in research and development, as well as our focus on customer service. We are confident these actions will allow us to sustain our technological and market leadership during this severe downturn and position us well when industry conditions improve, while protecting our balance sheet."
4:25PM Applied Micro announces CEO to step down, COO to take over (AMCC) 4.40 -0.31 : Co announced that Kambiz Hooshmand, President and Chief Executive Officer, will step down on June 1st 2009. Dr Paramesh Gopi, currently the Chief Operating Officer, will take over the role of President and CEO at that time.
4:24PM Broadcom misses by $0.19, beats on revs; guides Q1 revs below consensus (BRCM) : Reports Q4 (Dec) earnings of $0.08 per share, excluding a cumulative $0.40 in charges, $0.19 worse than the First Call consensus of $0.27; revenues rose 9.7% year/year to $1.13 bln vs the $1.07 bln consensus. Co issues downside guidance for Q1, sees Q1 revs of $800-875 mln vs. $953.14 mln consensus. "... As we look into the first quarter of 2009, we believe the current economic slowdown will continue to negatively impact our business as demand continues to decrease and settle into new levels and channel inventory adjusts accordingly..."
4:22PM Integrated Device beats by $0.04, reports revs in-line (IDTI) 5.48 -0.37 : Reports Q3 (Dec) earnings of $0.18 per share, $0.04 better than the First Call consensus of $0.14; revenues fell 16.9% year/year to $167.1 mln vs the $166.6 mln consensus.
4:20PM Varian Semi misses by $0.07, reports revs in-line; guides Q2 revs below consensus (VSEA) 18.92 -2.48 : Reports Q1 (Dec) loss of $0.19 per share, $0.07 worse than the First Call consensus of ($0.12); revenues fell 57.7% year/year to $107.4 mln vs the $107.9 mln consensus. Co issues downside guidance for Q2, sees Q2 revs of $60-70 mln vs. $90.93 mln consensus.
4:18PM Microchip beats by $0.01, beats on revs; guides Q4 EPS in-line, revs in-line (MCHP) 18.39 -0.70 : Reports Q3 (Dec) earnings of $0.23 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.22; revenues fell 23.9% year/year to $192.2 mln vs the $188.9 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.13-0.15 vs. $0.17 consensus; sees Q4 revs of $173 vs. $174.52 mln consensus. "We are continuing actions to reduce production levels in our wafer fabrication facilities in the U.S. and our assembly and test facility in Thailand to moderate inventory growth. We are lowering our production levels by about 40% in the March quarter from peak levels in the September 2008 quarter. We are charging the underutilization to cost of goods sold to reflect lower than normal production levels. We are also implementing various other actions to further reduce operating expenses."
4:17PM Lattice Semi misses by $0.01, beats on revs; guides Q1 revs below consensus (LSCC) 1.52 -0.06 : Reports Q4 (Dec) loss of $0.03 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of ($0.02); revenues fell 13.2% year/year to $50 mln vs the $49.3 mln consensus. Co issues downside guidance for Q1, sees Q1 revs of $40-45 mln vs. $45.50 mln consensus. Gross margin expected to be 52-54%.
4:16PM PMC-Sierra misses by $0.01, reports revs in-line (PMCS) : Reports Q4 (Dec) earnings of $0.07 per share, $0.01 worse than the First Call consensus of $0.08; revenues fell 2.3% year/year to $120.8 mln vs the $119.7 mln consensus.
4:16PM Amazon.com beats by $0.13, beats on revs; guides Q1 revs in-line (AMZN) 50.00 -0.36 : Reports Q4 (Dec) earnings of $0.52 per share, $0.13 better than the First Call consensus of $0.39; revenues rose 18.2% year/year to $6.7 bln vs the $6.44 bln consensus. Co issues in-line guidance for Q1, sees Q1 revs of $4.525-4.925 bln vs. $4.57 bln consensus. Operating income for Q1 is expected to be between $125 million and $210 million, or between 37% decline and 6% growth compared with first quarter 2008. "We remain relentlessly focused on serving customers with low prices, great selection and free shipping offers, including Amazon Prime ... We're particularly grateful for the unusually strong demand for Kindle in the fourth quarter."
4:15PM Ramtron reports Q4 (Dec) results, misses on revs; guides FY08 revs in-line (RMTR) 2.00 +0.02 : Reports Q4 (Dec) earnings of $0.03 per share, may not be comparable to the First Call consensus of $0.05; revenues rose 14.0% year/year to $16.3 mln vs the $16.5 mln consensus. Co issues in-line guidance for FY08, sees FY08 revs of ~$63.5 vs. $63.73 mln consensus.
4:14PM Semitool misses by $0.06, beats on revs; guides Q2 EPS above consensus, revs above consensus (SMTL) 2.60 : Reports Q1 (Dec) loss of $0.23 per share, $0.06 worse than the First Call consensus of ($0.17); revenues fell 31.9% year/year to $33.1 mln vs the $32 mln consensus. Gross margins for the qtr were 43% vs 50% a year ago. Co issues upside guidance for Q2, sees EPS of ($0.07)-($0.02) vs. ($0.18) consensus; sees Q2 revs of $31-$35 mln vs. $25.50 mln consensus.
4:14PM Rambus beats by $0.13, beats on revs (RMBS) : Reports Q4 (Dec) loss of $0.10 per share, $0.13 better than the First Call consensus of ($0.23); revenues fell 7.2% year/year to $37.6 mln vs the $29.9 mln consensus. "It was a challenging year yet we finished the fourth quarter above guidance thanks to strong technology royalties as well as a one-time benefit of withheld royalties received once the FTC's order was vacated."
4:13PM Sunpower beats by $0.13, beats on revs; guides FY09 EPS in-line, revs in-line (SPWRA) : Reports Q4 (Dec) earnings of $0.70 per share, $0.13 better than the First Call consensus of $0.57; revenues rose 78.7% year/year to $401 mln vs the $396.8 mln consensus. Co issues in-line guidance for FY09, sees EPS of $2.20-2.80, ex items vs. $2.66 consensus; sees FY09 revs of $1.6-2.0 bln vs. $1.89 bln consensus. "Long-term solar market fundamentals remain in place and we are encouraged by the commitment to renewable energy by President Obama and Congressional leadership," continued Werner. "Given these factors, we are well positioned to take advantage of growing global demand for solar this year and in the future, despite uncertainty in today's economic and credit environment."
4:12PM Juniper Networks reports EPS in-line, misses on revs (JNPR) 16.97 -1.37 : Reports Q4 (Dec) earnings of $0.32 per share, in-line with the First Call consensus of $0.32; revenues rose 14.1% year/year to $923.5 mln vs the $936.2 mln consensus. "Even in this tough economy, we managed to grow year-over-year quarterly revenue by 14% and non-GAAP diluted earnings per share by 19%. We continue to play offense and grow market share while at the same time taking action to responsibly manage our cost structure. The long-term growth fundamentals of high performance networking remain strong and by strengthening our product portfolio and focusing on the customer, Juniper is positioned for accelerated growth once market conditions improve."
4:10PM Maxim Integrated beats by $0.10, reports revs in-line; guides Q3 revs below consensus (MXIM) 12.87 -0.69 : Reports Q2 (Dec) earnings of $0.14 per share, $0.10 better than the First Call consensus of $0.04; revenues fell 18.1% year/year to $410.7 mln vs the $409.9 mln consensus. Co issues downside guidance for Q3, sees Q3 revs of $290-$330 mln vs. $367.31 mln consensus. The co's fiscal Q2 net realizable bookings decreased by 34% compared to Q1 of fiscal 2009 and the co's 90 day backlog declined by 30% to $206 mln. The co sees Q3 gross margins in the range of 46%-49%. "We finished our December quarter with a very cautious view of the global economy. Revenue as well as customer orders were weak across the board. While our recent review of our markets and customers indicates that bookings pace should improve this quarter, we nevertheless continue to manage expenses prudently. We are on schedule to complete our wafer fab consolidation project. This will improve our manufacturing efficiencies next fiscal year. Additionally, we took several measures to reduce our operating expenses."
4:07PM Applied Micro beats by $0.08, misses on revs (AMCC) : Reports Q3 (Dec) earnings of $0.06 per share, excluding non-recurring items, $0.08 better than the First Call consensus of ($0.02); revenues fell 13.1% year/year to $57.6 mln vs the $58.6 mln consensus.
4:05PM Micrel beats by $0.02, beats on revs (MCRL) 7.19 -0.42 : Reports Q4 (Dec) earnings of $0.09 per share, ex-items, $0.02 better than the First Call consensus of $0.07; revenues fell 14.6% year/year to $55.2 mln vs the $54.3 mln consensus. For 1Q09, the company estimates that revenues will decline between minus 12% to minus 17% on a sequential basis. Gross profit margin is expected to range between 50% to 51%. In addition, the company estimates that GAAP net income will be approx $0.01 to $0.03 per diluted share.
4:20 pm : Dour economic data and mixed earnings announcements gave market participants an excuse to sell stocks and take profits this session. Stocks finished 3.3% lower, ending a four-session streak of gains. Stocks are still up 1.6% week-to-date, though.
Thursday's mood wasn't helped by news that December durable goods orders declined 2.6%, marking the fifth straight monthly decline. Excluding transportation, orders were down 3.6%. The drop in both readings was also steeper than expected.
In other economic news, December new home sales declined more than expected, falling almost 15% from the prior month. The supply of new homes is at an all-time high of nearly 13 months, based on the pace of current sales. Demand for new homes remains weak as weak labor markets limit buyers. Initial jobless claims for the week ended Jan. 24 increased modestly to 588,000, which exceeded the 575,000 claims expected. Continuing claims climbed to 4.78 million, which is the highest level for continuing claims in 40 years.
To help stimulate the ailing economy, the U.S. House of Representatives has approved an $819 billion stimulus plan. Meanwhile, government officials have discussed spending a separate $1 trillion to $2 trillion to help banks restore their health, according to The Wall Street Journal.
With banks at the center of economic concerns, financial stocks continue leading the broader market. Financials tumbled 8.4% to finish at their session low. Losses were widespread in the sector, but life and health insurers (-11.4%) saw some of the worst selling as Allstate (ALL 23.50, -6.14) missed analysts' consensus earnings estimate.
With a market cap that's more than double the collective market caps of the Dow's four financial firms, Exxon Mobil (XOM 77.00, -2.25) was the heaviest weight on the broader market this session. It was also a laggard in the Dow. Exxon reports its latest quarterly results ahead of tomorrow morning's opening bell.
Fellow Dow component 3M (MMM 56.43, +1.01) posted better-than-expected quarterly earnings results, but lowered its 2009 earnings outlook. The revised outlook is still in-line with estimates, though. It finished the session as a relative leader.
In other earnings news, Qualcomm (QCOM 34.55, -2.27) fell short expectations, while Ford (F 1.95, -0.08) reported a loss, as expected, but is drawing on its credit lines. Eli Lilly (LLY 37.97, -1.12) and Colgate-Palmolive (CL 65.22, +1.37) both beat expectations, as did utilities American Electric (AEP 32.70, +0.94) and Dominion (D 36.21, +0.52).
Without any true leadership, the stock market finished near its session lows. All 10 sectors in the S&P 500 finished in the red.
Investors now turn their focus to the advance fourth quarter GDP report, which is due tomorrow morning (8:30 AM ET). Given the challenges facing the economy, the consensus forecast calls for a 5.5% annualized fourth quarter decline in GDP. DJ30 -226.44 NASDAQ -50.50 SP500 -28.95 NASDAQ Adv/Vol/Dec 577/1.93 bln/2128 NYSE Adv/Vol/Dec 513/1.44 bln/2549
9:31AM Trina Solar signs sales agreement with GA Solar (TSL) 7.95 -0.05 : Co announces it entered into a sales agreement with Spanish customer Gestamp Asetym Solar. The agreement was signed during the recent World Future Energy Summit 2009 in Abu Dhabi, held on January 19-21. Under the terms of this agreement, Trina Solar will supply GA Solar between 20 to 36 MW of PV modules for one year at pre-determined prices. Shipments under this agreement have recently been initiated.
8:18AM Ultratech beats by $0.03, misses on revs (UTEK) 11.05 : Reports Q4 (Dec) earnings of $0.17 per share, $0.03 better than the First Call consensus of $0.14; revenues rose 14.8% year/year to $34.1 mln vs the $35.8 mln consensus. Co says, "In 2008, we met our aggressive goals that were set forth at the beginning of the year... Global economic uncertainty has caused many semiconductor manufacturers to aggressively search for ways to minimize costs and optimize processes. While we cannot predict the duration, our strategic focus remains intact to continue to be a market leader and increase market share in 2009 in both advanced packaging and laser processing. We believe this strategic focus and our strong balance sheet, along with cost control discipline, will enable us to extend our market leadership in our served markets and emerge even stronger when the economy recovers."
7:32AM Fairchild Semi beats by $0.01, reports revs in-line; guides Q1 revs below consensus (FCS) 5.02 : Reports Q4 (Dec) earnings of $0.06 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.05; revenues fell 25.7% year/year to $320.9 mln vs the $320.1 mln consensus. Co issues downside guidance for Q1, sees Q1 revs of $220-245 mln vs. $289.40 mln consensus. Co said, "We are encouraged by the recent stabilization of order rates in January and we are now building backlog for Q1. Fairchild is committed to taking advantage of this market to speed improvements and to build a higher value business. We have a strong balance sheet today and expect to maintain this strength throughout 2009."
4:16AM SanDisk and Toshiba sign definitive agreement to restructure Flash manufacturing joint ventures (SNDK) 12.69 : Co announces that it has signed a definitive agreement with Toshiba to restructure their Flash manufacturing joint ventures operating at the 300-mm Fab 3 and Fab 4. As part of the agreement, more than 20% of the joint ventures' capacity will be transferred to Toshiba. The restructuring will result in the transfer of equipment lease obligations from SanDisk to Toshiba and a cash payment to SanDisk for the transfer of certain equipment currently owned by the joint ventures. The total value to SanDisk is approx 80 bln yen, or approx $890 mln based on current exchange rates. Approximately two-thirds of the total amount will reduce SanDisk's current equipment lease obligations by about 28% and approx one-third will be received by SanDisk in cash. The lease transfers and cash payment are expected to be completed by the end of the first calendar quarter of '09.
12:18AM Teradyne misses by $0.06, misses on revs; guides Q1 EPS below consensus, revs below consensus (TER) 5.25 : Reports Q4 (Dec) loss of $0.19 per share, excluding non-recurring items and includes $0.03 loss per share as a result of Eagle Test Systems, $0.06 worse than the First Call consensus of ($0.13); revenues fell 25.2% year/year to $194.8 mln vs the $201.1 mln consensus. Co issues downside guidance for Q1, sees EPS of $(0.38)-(0.31) vs. ($0.15) consensus; sees Q1 revs of $125.0-145.0 mln vs. $183.89 mln consensus. Co will reduce worldwide staff by approx 14% and implementing a 10% broad-based temporary pay cut. These actions, along with other cost reduction, will reduce expenses by approx $140 mln on an annualized basis.
08:17 am Qualcomm (QCOM)
Qualcomm (QCOM 36.82) reported disappointing earnings and issued downside guidance for 2009 as it expects demand to continue shrinking.
For its fiscal first quarter, Qualcomm reported earnings of $0.31 per share, excluding nonrecurring items, $0.16 worse than the First Call consensus of $0.47. Earnings per share were down 40% year-over-year.
Revenues rose 3.0% year-over-year to $2.51 billion, topping the $2.42 billion consensus, driven primarily by the mix of higher-end chipsets, and higher-priced data capable devices. Qualcomm said it saw "healthy demand" for 3G as CDMA-based device shipments in the quarter were at the high end of its expectations and reflect more than 30% year-over-year growth.
Qualcomm said that it would not provide earnings per share guidance "due to the volatility of financial markets and the impact it has had and may have on our investment portfolio and net income." The company did provide revenue guidance for its second fiscal quarter, projecting revenues between $2.25 billion and $2.45 billion. The consensus calls for revenues of $2.41 billion. Qualcomm's guidance translates to a year-over-year revenue decline between 6% and 14%.
The company also gave downside full year 2009 revenue guidance, projecting revenue between $9.3 billion and $9.8 billion, well short of the $10.25 billion consensus and below the company's earlier outlook that called for revenue between $10.2 billion and $10.8 billion. |
