Design (CDT) 11.60 -0.30: Reported Q2 net of breakeven, in line with the Multex consensus. Rev fell 37.3% year/year to $127.1 mln vs the $124.0 mln consensus.
Comverse Tech (CMVT) 15.65 -1.03: CMVT announced this morning that Bouygues Telecom had selected its Multimedia Messaging Service (MMS) solution; Bouygues is a French wireless operator with 6.6 mln subscribers; size of the contract was not announced. CSFB does not believe this contract will result in significant near-term revenue, but does stress it is an important win that validates the co's MMS solution as an important source of revenue for CMVT; noted that the co. has announced several large SMS and MMS wins over the past few month. CSFB reiterated their Buy rating.
Finisar (FNSR) 6.10 -1.39: FNSR reported in-line with consensus expectations of ($0.05); analyst's reiterated their confidence in the co. CIBC continues to believe FNSR is taking market share in this environment and rates the stock a Buy. Soundview would be aggressive buyers of shares today on mgmt's conviction on a strong improvement in the coming quarters. CSFB wrote "despite the risks, we continue to believe that FNSR can outperform the market:" firm would view near-term disruptions as a buying opportunity.
Integrated Device (IDTI) 25.57 -1.53: On call after the close, mgmt said its business with Cisco is growing this qtr over last qtr; expects that it should see growth from EMC Corp. and some growth from Lucent (LU), Siemens (SI) and Infineon (IFX).
Lucent Tech (LU) 5.56 +0.07: Goldman Sachs initiated coverage with a Market Perform as firm believes a series of new product launches, coupled with strong carrier relationships, are critical to Lucent's rebuilding. However, firm's analysis of Lucent's current product mix suggests the company's revenue growth in a recovery scenario will be in line with, not above, the market.
Nortel Networks (NT) 5.07 -0.09: Goldman Sachs initiated coverage with a Market Perform. Firm believes the market declines and product restructuring of 2001 have left Nortel with a favorable revenue mix that will enable it to achieve above-market growth rates in 2003 and beyond. However, significant risks remain in 2002, including low visibility, customer exposure, and an uncertain top-line outlook.
Polycom (PLCM) 24.34 -1.21: Announced that Unicom has selected Polycom as one of its major system providers for the world's largest Internet Protocol video communications network. China Unicom is purchasing $3.35 mln worth of video communications systems from Polycom beginning in Q4 of 2001, and continuing into Q1 2002.
Sonus Networks (SONS) 2.65 -0.15: Goldman Sachs initiated coverage with a Market Outperform. Firm noted that Sonus leads the fast-growing and highly profitable softswitch market, and with two incumbent carrier customers, looks capable of overcoming current market turmoil. Investors underestimate the importance of Sonus' technology and the intrinsic value of its market position, in firm's view.
Telecom Bill : Regarding the passage of the telecom bill in the House, Bear Stearns said that the bill's success potentially accelerates the deployment of DSL, which could also prompt acceleration of cable modem service deployment as a response. This could ultimately be a positive for semi co's that have exposure to cable modem and DSL broadband access mkts, such as: BRCM, TUNE, TXN, CNXT, ALA, GSPN, CTLM, ADI, ELNT, TXN, CNXT, INTC, and STM.
Tellabs (TLAB) 10.26 -0.46: Goldman Sachs initiated coverage with a Market Perform. Firm said that over one-third of Tellabs' share price assumes new product success, which looks to be steadily materializing. Valuation and low top-line visibility leave firm looking for top-line stability and new product traction as catalysts to get more aggressive with the stock. |
