Industry Members
Apple Computer (AAPL) 20.78 -0.92: After close, reports Q1 (Dec) earnings of $0.11, in line with Multex consensus; revenues were $1.375 bln vs the consensus of $1.432 bln. Company targeting Mar qtr revenues of about $1.5 bln and EPS flat with Dec qtr of $0.11; both numbers are higher than the Multex consensus estimates of $1.35 bln and $0.09.
Compaq (CPQ) 11.00 -0.40 (-3.5%): After close, reports Q4 EPS of $0.06 (exluding merger-related charge), $0.05 better than consensus; revs were $8.5 bln, better than consensus of 8.05 bln consensus. Co projects moderate 1H02 growth with a stronger recovery in 2H02. Company guides higher for Q1, sees revenue of $7.6 bln and EPS of $0.01 vs Multex consensus estimates of $7.3 bln and breakeven.
Extended Systems (XTND) 6.36 -0.64: After close, reports Q2 proforma EPS of ($0.09), $0.11 better than consensus; revs were $6.8 mln, better than consensus of $6.20 mln.
Mercury Computer (MRCY) 31.11 -4.16 (-11.8%): After close, posts Q2 EPS of $0.16, $0.01 better than consensus; revs were $37.4 mln, better than consensus of $36.50 mln consensus. The co anticipates sequential QoQ growth in both rev and EPS in Q3, with rev growing approx 10%-12% from Q2. Annual rev will be in the range of flat to down, possibly as much as 5% to 10%, from the previous year, due to the lower than anticipated 1H02 results and continued uncertainty in the defense business.
Networking
Industry Members
Extreme Networks (EXTR) 14.61 -0.75: After close, reports Q2 (Dec) earnings of $0.02, a penny better than the Multex consensus of $0.01; revenues were $109.1 mln vs the Multex consensus of $110.0 mln. On call, says that while forward visibility remains limited given the uncertain macro-economic environment, it is optimistic that the worst of the industry downturn is behind them... Says it will take several quarters for Americas region to return to historical form where it accounts for 45-50% of total revs... over next 18-24 months, is targeting gross margins at 53-55%; R&D at 12-13%, and operating profit at 15-20%... EXTR +0.14 at 14.75 time... did note that it was optimistic that it will see some degree of sequential revenue growth... current consensus sales and EPS estimates are $114.39 mln and $0.02... EXTR +0.14 at 14.75
Interdigital Comm (IDCC) 11.94 +2.48: Finding buy interest after announcing royalty-bearing license agreement with NEC Corp for sales of wireless products compliant with all 3G and narrowband CDMA standards. Under the 3G agreement, Interdigital's ITC unit will receive a royalty on each licensed product sold by NEC... volume 408K.
Juniper Ntwks (JNPR) 16.96 -1.00: Thomas Weisel downgrades JNPR to BUY from Strong Buy and Robertson Stephens downgrades JNPR to ACCUMULATE from Buy... SG Cowen believes JNPR may have lost 3-6% market share to CSCO during Q4 and sees poor visibility due to fewer core network builds... JP Morgan believes the current valuation reflects limited visibility or longer-term competitive risks and maintains their Market Perform rating... Merrill Lynch is more optimistic on shares; firm maintains their long-term Strong Buy based on JNPR's market position and profitability.
NetScout Systems (NTCT) 7.60 -0.39: After close, reports Q3 (Dec) earnings of $0.02, in line with the Multex consensus; revenues were $21.5 mln (no consensus estimate); company expects short-term quarterly sequential revenue growth in the 5-10% range and modest increases in EPS (consensus calls for $0.03 next qtr, and $0.25 for the year-ended Mar 2003).
Internet
Industry Members
Commerce One (CMRC) 2.68 -1.18: The Financial Times reports that company and SAP will scale back their relationship. CMRC was told by the German software giant to seek business independently of the partnership even if it meant competing with SAP... Heard from traders, citing Dow Jones, that SAP is out with comments on its relationship with CMRC; SAP saying it will maintain its 20% stake in the co, and that Commerce One is and will continue to be a strategic partner. Reaction to DJ headlines was minimal, as CMRC shares closed just off the low.
DoubleClick (DCLK) 12.36 -0.27: Lehman upgrades to BUY from Mkt Perform after the co beat ests last night, as the core biz appears to be stabilizing and the co is making progress in streamlining ops... Solid traction with new initiatives should allow DCLK to outperform industry growth in 2002; raises 2002 est to $0.04 from ($0.02); 20% upside possible to price target of $15... Salomon Smith Barney continues to rate DCLK a Neutral but raises their price target to $12 from $8 consistent with signs that risk of further fundamental downdraft is fading... Soundview rates DCLK a Buy but would not recommend buying shares beyond $15 until evidence appears that mgmt's guidance was overly conservative... Thomas Weisel rates the stock fairly valued at current levels and maintains their Market Perform rating.
EarthLink Ntwrk (ELNK) 10.30 -1.67: Goldman Sachs reduces 2002 EBITDA estimate to $80 mln from $100 mln, reflecting an expected increase of $20 mln in sales and marketing expense that will be necessary amid increased competition and slowing industry growth; cuts price target to $17 from $19.
eBay (EBAY) 59.94 -4.09: Goldman Sachs reiterates Recommended List rating with $75 price target but makes no change to 2002 EPS estimate of $0.75... Merrill Lynch maintains near-term Buy rating and says company's results were very strong, but reduces its 2002 estimate to $0.78 from $0.85, still above the $0.75 consensus and eBay's $0.70-0.73 target... A more cautious view of eBay comes from Lehman's Holly Becker, who says that the tough online ad market will significantly decrease company's high margin ad revenue in 2002, which will need to be made up in transaction revenue and adds uncertainty to the story; expects pressure on the stock due to unchanged guidance... Meanwhile, Prudential suggests investors buy EBAY now and sees no evidence to suggest EBAY cannot meet or beat its $3 bln revenue goal in full-year 2005. Finally, USB Piper Jaffray urges some caution and maintains their Market Perform rating; firm believes the stock already reflects the expected strong growth and stresses multiple expansion is unlikely given the slowing upside to the estimates.
Inktomi (INKT) 6.66 -0.46: After the close, reports Q1 (Dec) loss of $0.06 per share, $0.05 better than the Multex consensus of ($0.11); revenues of $40.0 mln were in line with the consensus of $40.1 mln.
Macromedia (MACR) 17.36 -2.23: After close, posts a Q3 loss of $0.17 a share, $0.02 worse than consensus, vs yr-ago net of $0.36. Rev was $73.3 mln vs consensus of $72.23 mln. Co expects rev in Q4 to be sequentially flat with Q3 (consensus $75.6 mln). Sees a return to profitability in the JunQ (consensus -$0.02).
McAfee.com (MCAF) 32.29 -4.11: After the close, reports Q4 (Dec) earnings of $0.09, four cents better than the Multex consensus of $0.05; revenues were $18.6 mln vs the consensus of $17.8 mln... During its conference call, the co guides higher Q1 rev/EPS to $19.1 mln/$0.06 (consensus is $18.95 mln/$0.05); FY02 projections are revs of $80-$90 mln, 69-72% gross mgn, and EPS should be in the range of $0.25-$0.28 (in the mid-point of rev consensus of $85.82 mln, and better than EPS consensus of $0.22).
Openwave (OPWV) 9.05 -0.45: Wedbush Morgan upgrades to BUY from Hold based on valuation and positive outlook; raises price target to $13 from $8.50.
Symantec (SYMC) 66.95 -3.45: After close, reports Q3 earnings of $0.78 per share, $0.14 better than the consensus estimate; reports Q3 revenues of $290.2 mln versus the consensus estimate of $263 mln... On conference call, says it expects fiscal Q4 (Mar.) revenues to be $285-295 mln (consensus is $276.9 mln), gross margins to be 84-85%, operating expenses around $170 mn, and EPS of $0.66-0.74 (consensus is $0.67)... For FY02, expects revenues to be $1.045-1.055 bln (consensus is $1.014 bln) and EPS to be $2.44-2.52 (consensus is $2.30)... For FY03, expects revenues to be $1.220-1.240 bln (consensus is $1.184 bln) and EPS to be $2.80 per share (consensus is $2.80)... SYMC +2.06 at 69.01
Travelocity.com (TVLY) 22.68 -0.44: After close, reports Q4 (Dec) earnings of $0.09, a penny worse than the Multex consensus of $0.10; revenues were $68.1 mln, in line with the Multex consensus; company guides 2002 EPS to $0.65-0.75 vs the current consensus of $0.66.
Yahoo! (YHOO) 17.87 -1.60: After the close, posted Q4 net of $0.03 a share, $0.02 better than consensus... Rev was 188.9 mln, well above the $170.89 mln consensus... Announces that Jeff Mallett will step down as President and COO in April, and expects to outline a succession plan prior to Mallett's departure... He is leaving the co to take advantage of greater flexibility for family and business interests... For Q1, co sees earnings of $0.01-$0.02 (consensus $0.01)... Co sees earnings of $0.07-$0.10 for 2002 vs consensus of $0.09... Rev projections for the periods are lifted to $160-$180 mln and $750-$800 mln, compared to consensus rev estimates of $161.55 mln and $743.1 mln.
Semiconductor
Industry Members
Advanced Micro (AMD) 17.91 -1.24: After close, reports Q4 (Dec) loss of $0.05 per share, $0.13 better than the Multex consensus of ($0.18); revenues fell 19% year/year to $951.9 mln vs the $860.2 mln consensus.
Alpha Ind (AHAA) 18.50 +0.61: After close, reports Q3 (Dec) loss of $0.04 per share, in line with the Multex consensus of ($0.04); revenues rose 0.3% year/year to $33.1 mln vs the $33.6 mln consensus; expects "total net sales and operating results for the March quarter to be similar to the levels reported for the December quarter;"; guidance amounts to a warning as the consensus estimates for Q4 are for breakeven operating results on revenues of $37.9 mln.
Conexant (CNXT) 13.30 +0.72: After close, reports Q1 proforma EPS of ($0.42), $0.02 better than consensus; revs grew 14% sequentially to $229.5 mln, better than consensus of $219.66 mln. For Q2, the co anticipates that both wireless and broadband businesses will be flat to slightly up on a sequential basis, that gross margins will improve by 3-5%, and expects a further 10% sequential improvement in EPS, or roughly a penny better than the Mar qtr consensus of a loss of $0.39.
GlobeSpan Virata (GSPN) 15.82 -1.33: Needham & Co reiterates Strong Buy rating and price target of $27 as recent Japanese DSL subscriber data point to continued strength in DSL deployments there, and GSPN is a leading chipset supplier to the OEM's serving the red-hot Japanese market. Firm believes GSPN's leadership position in DSL technology and continued integration of value added capabilities, coupled with the expected strong growth in DSL deployments worldwide, as evidenced by recent subscriber data as well as comments from a partner/supplier IC company, should allow the company to grow on average at 50% per year over the longer term.
Intel (INTC) 33.71 -0.97: Bear Stearns Ripple Effect reviews the impact of INTC's earnings report last night: PC demand was strong, which is positive for CY, ICST, and NSM; AMD may be under pressure due to greater availability of P4; regarding capex cut, co's with most INTC exposure are NVLS, TER, LRCX, and RTEC, yet firm believes that sell-off is overdone; those with less or no INTC exposure are MTSN, SMTL, and CMOS... CSFB upgrades to BUY from Hold, based on capex and headcount cuts that better position INTC for upgrade cycle and efficiencies from 300mm in 2003... Owing to projected higher gross margins, firm raises Q1 est by a penny to $0.15 on rev of $6.8 bln, raises 2002 by 7 cents to $0.70 on rev of $29 bln, and raises 2003 by 11 cents to $0.99 on rev of $33.1 bln... SG Cowen believes that INTC's lowered capex spending plans may concentrate co's focus on 300mm and 0.13 micron lines, leading to investments in copper and perhaps low-k dialectrics, which should benefit KLAC and NVLS.
LSI Logic (LSI) 15.29 -0.21: Co announces a 20% reduction in its workforce and reiterates guidance for Q4 of a $0.23 loss (consensus -$0.24). LSI continues to see 0%-5% rev growth from Q3 level (consensus +3%). As part of its restructuring, co plans to divest its CDMA handset and DSL standard product business units.
RF Micro Device (RFMD) 17.25 -0.96: CSFB names RFMD their favorite stock given their better than expected channel inventory management, continued margin out-performance and new product/customer momentum. Bank of America maintains their Buy rating but reduces their price target to $24 from $28; firm looks for visibility on Jun to get aggressive at current levels. ABN AMRO rates the outlook for the Mar quarter "not very good" and believes the reason for that is excess inventory in the wireless handset channel. Wachovia does not believe the company's shares will outperform until there is a resurgence of wireless demand and firm does not see any recovery for demand in handsets.
Semi Equipment
Industry Members
Amkor Tech (AMKR) 18.04 -1.26: Announces that Agilent Tech (A) will outsource its printer ASIC assembly requirements to Amkor.
Semi Equip : Analysts weigh-in on the implications of INTC's capex budget decline of 25% for 2002; USB Piper Jaffray forecasts that capital spending for a group of leading global semiconductor device manufacturers will decline 25% in 2002 to $22 bln from nearly $30 bln in 2001. Firm notes that spending priorities at INTC for 2002 continue to be shrinking device geometries to the 0.13 micron node and the move to 300mm wafers; USB predicts that KLAC is the most weighted toward geometry shrinks while AMAT is the best play towards 300mm; NEWP actually serves both trends as a supplier to AMAT and KLAC. Thomas Weisel would not be surprised if foundry stocks trade off sharply in sympathy with INTC's lowered capex budget; firm would use such a sell-off as a buying opportunity for TSM and UMC.
Software
Industry Members
Affiliated Computer (ACS) 106.69 -2.70: AG Edwards downgrades to HOLD from Buy based on valuation. After a period of sustained undervaluation, the shares have recently had a great run. While momentum may take this stock somewhat higher, firm thinks that ACS shares are approaching a fair value.
Black Box (BBOX) 52.81 -0.47: Robert W. Baird upgrades to MARKET OUTPERFORM from Market Perform and ups price target to $66 from $55, based on company's impressive, demonstrated ability to reduce costs in a difficult sales environment, the potential for earnings performance when revenues reaccelerate, and valuation under firm's new outlook. Longer term, the fundamentals are set to improve, and firm believes investors seeking growth at a reasonable price should consider BBOX at current levels.
Manugistics (MANU) 16.80 -1.94: Robert W. Baird upgrades to MARKET OUTPERFORM from Market Perform rating with price target of $22. Firm says that confidence in its revenue and EPS estimates is incrementally higher for both 4Q01 (Feb) and FY03 following several conversations with leaders of MANU's key vertical practices. Notes that MANU is currently trading at 4.1x 02 projected revenues, which matches the current valuation of ITWO as well as the average multiple for a broader group of leading enterprise software vendors. Based on an improving market position and what firm believes to be an upward bias to its estimates, firm is incrementally more confident that MANU's current valuation is sustainable.
Numerical Tech (NMTC) 24.78 -1.80: After the close, reports Q4 (Dec) earnings of $0.07 per share, in line with the Multex consensus of $0.07; revenues rose 67% year/year to $14.2 mln vs the $14.6 mln consensus... Company warns for Q1 (Mar), expects EPS of $0.04, excluding charges, vs. consensus estimate of $0.06, revs of $13 mln vs. consensus estimate of $15 mln.
Oracle Corp (ORCL) 16.58 -0.41: Deutsche Bc Alex. Br reiterates Buy, after recent meeting with ORCL execs to discuss current environment, outlook for 2002, key product areas. Outlook appears to be firming, activity levels increased over last few weeks. Growing pipelines increase firm's conviction that steady improvement and healthier growth will begin mid-year and continue in 2H'02. Increased homeland security and government healthcare initiatives are driving growth in public sector business. Deutche believes ORCL is uniquely positioned to benefit from strong public sector IT spending given advanced security features of 9i database, Oracle's long-standing and strong presence with the fed govt.
PeopleSoft (PSFT) 35.77 -3.14: One of the weaker names in the software complex. Several reasons being cited for stock's underperformance including 1) insider trading data showing that a party affiliated with Chairman David Duffield sold 300K shares, 2) rumor of heavy discounting in CRM, 3) accounting concerns. Morgan Stanley's Chuck Phillips is defending the stock against rumors that the co needs to close a few large deals in order to make their Q4 ests; says software co's all face back-end-loaded Q4s as a general characteristic, so rumor is most likely not credible.
SmartForce (SMTF) 22.75 -1.45: Very busy after the close... First, announces it will acquire Centra Software (CTRA) in a stock-for-stock transaction; under the terms of the agreement, Centra shareholders will receive 0.425 shares of SmartForce for each Centra share; based on yesterday's closing price of SmartForce American Depositary Shares, the transaction is valued at approximately $284 million, including the assumption of Centra's stock options... Second, company reports Q4 earnings of $0.04 per share, in line with the consensus estimate; reports Q4 revenues of $65.3 mln versus the consensus estimate of $65.1 mln.
Visual Networks (VNWK) 4.59 +0.19: Issue upgraded to BUY from Accumulate at Kaufman Bros after co better-than-expected Q4 results. Firm believes that the launch of new products broadens co's competitive advantages supporting mixed environments including frame relay, ATM, private IP, and public IP networks. Kaufmann raises its 12-month price target to $10 from $6... volume 237K.
Telecom Equip
Industry Members
EXFO (EXFO) 10.32 -0.74: Posted Q1 loss of $0.03 a share, $0.01 better than consensus, vs yr-ago EPS of $0.16. Sales fell 29.5% to $20.1 mln (consensus $20.24 mln). Co warns for Q2; sees loss of $0.05-$0.09 on sales of $14-$18 mln vs consensus estimates of -$0.03 and $19.5 mln.
Lucent Tech (LU) 6.89 -0.06: Announces that Cingular Wireless, the nation's second largest wireless carrier, has selected software from Lucent to provide interoperability between Cingular's existing TDMA and GSM networks in the United States.
Motorola (MOT) 13.95 -0.13: Raymond James downgrades to MARKET PERFORM from Strong Buy based on deteriorating wireless industry fundamentals. With wireless handset penetration rates approaching saturation, a number of operators have recently posted disappointing new net-adds, and as a result, handset manufacturers are losing a key component of unit growth. Firm notes that, while this had been expected, recent customer addition trends have been below even the most conservative expectations. Also, firm downgrades Nokia (NOK) to MARKET PERFORM from Strong Buy, citing the above reasoning.
Redback Ntwrks (RBAK) 5.86 -0.09: After close, posts a Q4 pro forma net loss of $0.20 a share, $0.01 better than consensus, vs a yr-ago loss of $0.28. Rev was $40.2 mln, exceeding $38.71 mln consensus... On call, company says "downward revenue cycle is stabilizing."... Does not see need for more job cuts....Company expects Q1 revenue of "flat to slightly up." In Q4 rev was $40.2, so it appears to be a very slight miss for Q1 as Multex consensus is $42.8 mln... For 2002, company says analyst range for revenue of $200-$240 mln is reasonable...No earnings guidance for Q1 or 2002... Company says it gained market share in the quarter and expects to return to cash break even in the second half of the year... DSOs improved by 3 days to 79 days... Stock at 5.46.
Sonus Networks (SONS) 4.92 -0.32: After close, reports Q4 (Dec) loss of $0.04 per share, $0.01 better than the Multex consensus of ($0.05); revenues rose 36.0% year/year to $38.9 mln vs the $38.7 mln consensus.
Spectrian Corp (SPCT) 13.82 +0.34: After close, reports Q3 (Dec) loss of $0.73 per share, $0.12 better than the Multex consensus of ($0.85); revenues rose 25.0% year/year to $25.5 mln vs the $24.8 mln consensus.
UTStarcom (UTSI) 27.11 -2.22: After close, company announces that the number of subscribers using its PAS and IP-based PAS city-wide wireless access systems in Mainland China has increased to approximately 3.0 million as of Dec. 31, 2001 an addition of 1 million subscribers in Q4 2001 or approximately 50% sequential growth.
Telecom Services
Industry Members
Level 3 Comms (LVLT) 4.04 -0.04: Announce it has signed multiple agreements to provide COX with broadband infrastructure services that support the company's 779,000 residential and business high-speed Internet customers. Terms of the deal were not disclosed.
Verizon Comm (VZ) 49.35 -0.74: Merrill Lynch names VZ as their favorite pick among the "pure" RBOCs on grounds of valuation, strategic positioning and ability to absorb (to an extent) the pressures of the current weak economy via tough cost control. In the near term, Merrill does not expect better news on EPS as the economy moves through its trough but does expect to continue to hear about progress on cost reduction to ameliorate adverse economic effects and protect EPS from downward pressures. VX is rated a near-term Strong Buy/long-term Strong Buy... Separately, the co is reportedly looking at a number of possible combinations in order to get access to more of the wireless spectrum, according to BusinessWeek Online. The story says that the co may attempt to acquire NXTL, AT, or even PCS; "Everything's on our radar screen," one senior VZ executive is quoted as saying. |
