From Briefing.com: 5:39PM Semtech lowers Q4 EPS and revs guidance below consensus (SMTC) 10.50 -0.19 : Co lowers Q4 EPS to $0.13-0.15 vs $0.16 First Call consensus, down from $0.15-0.20; lowers revs to $61-63 mln vs $65.4 mln consensus, down from prior guidance of down 10-20%, which equated to ~$63.8-71.7 mln, due to continued weakness in end demand as a result of worsening global economic conditions. The co will not hold a conference call in conjunction with today's release.
4:21PM MEMC Elec beats by $0.04, beats on revs (WFR) 12.31 -0.48 : Reports Q4 (Dec) earnings of $0.65 per share, excluding charges, $0.04 better than the First Call consensus of $0.61; revenues fell 22.0% year/year to $425.7 mln vs the $408.1 mln consensus. Co states, "The unusually low levels of visibility that many of our customers have in the current environment reduces our ability to provide meaningful quarterly, annual or long term guidance at this time. Our current view of the markets we serve indicates that first quarter 2009 revenue could decline by as much as 50% from the fourth quarter of 2008. (Briefing.com Note: This calculates to Q1 revs of approx $204.05 mln vs $382.8 mln consensus). The reduced pricing and significantly lower factory utilization assumed in this view, the latter of which would result in significant underutilization charges, could result in gross margins declining to the 20 percent range."
4:21PM Advanced Micro misses on top and bottom line (AMD) 2.02 -0.23 : Reports Q4 (Dec) loss of $0.68 per share, excluding non-recurring items, $0.14 worse than the First Call consensus of ($0.54); revenues fell 33.1% year/year to $1.16 bln vs the $1.23 bln consensus. In light of the current macroeconomic conditions, very limited visibility and continued corrections in the supply chain, AMD expects 1Q09 revenue to decrease from the 4Q08. (Q1 consensus calls for a 13% sequential decline in revs) "We remain focused on further reducing our breakeven point through targeted restructuring actions while ensuring we execute our highly-competitive product and technology roadmaps. We made significant progress toward the creation of 'The Foundry Company' in the quarter, and anticipate closing the transaction in February. We expect our ongoing restructuring actions and asset smart strategy, combined with the strength of our innovative product offerings, will leave us well positioned for a global market recovery."
4:14PM Google beats by $0.15, beats on revs (GOOG) 307.29 +4.21 : Reports Q4 (Dec) earnings of $5.10 per share, excluding non-recurring items, $0.15 better than the First Call consensus of $4.95; revenues rose 24.6% year/year to $4.22 bln after deducting Traffic Acquisition Costs of $1.48 bln, vs the $4.12 bln consensus. Co says "aggregate paid clicks, which include clicks related to ads served on GOOG sites and the sites of our AdSense partners, increased ~18% over Q4 of 2007 and increased ~10% over Q3 of 2008... says we expect to continue to make significant capital expenditures." Co also announced that it is planning to offer employees a voluntary, one-for-one stock option exchange.
4:06PM Marvell sees Q4 revs $500-520 mln vs $700.07 mln First Call consensus; prior guidance of $690-730 mln (MRVL) 6.21 : Co sees Q4 revs $500-520 mln vs $700.07 mln First Call consensus; prior guidance of $690-730 mln. "The current macro economic environment is having a significant negative impact on our business... There is a great deal of uncertainty surrounding the duration and depth of the current worldwide economic slow-down. This is especially true within the PC and the consumer electronics markets. While visibility into future demand in these markets remains uncertain, it is clear an inventory correction process is underway in the near term. Consequently, we will continue to take actions to re-align our expense profile to the current environment."
4:05PM Microsemi beats by $0.01, misses on revs; guides Q2 EPS below consensus, revs below consensus (MSCC) 10.37 -0.58 : Reports Q1 (Dec) earnings of $0.36 per share, $0.01 better than the First Call consensus of $0.35; revenues rose 5.7% year/year to $130.6 mln vs the $131.9 mln consensus. Co issues downside guidance for Q2, sees EPS of $0.15-0.20 vs. $0.32 consensus; sees Q2 revs of $104-109.2 vs. $127.62 mln consensus. "Our performance in our first quarter continued to exceed overall industry performance with positive contributions, especially in our satellite, defense and implantable medical markets. We continue to make company-wide operational and efficiency improvements in order to better service our customers. These improvements are also reflected in our cash flow, giving us increased leverage for continued strategic initiatives."
4:01PM Microsemi prelim $0.36 vs $0.35 First Call consensus; revs $130.6 mln vs $131.94 mln First Call consensus (MSCC) :
4:35 pm : Stocks fell as much as 4.3% after opening the session with broad-based weakness, but mustered a rebound that took the stock market back to the unchanged mark. The rebound was short lived, however, as stocks turned in a 1.5% loss.
The session's negative bias stemmed from the tech sector (-2.3%), where bellwether Microsoft (MSFT 17.11, -2.27) underscored sector concerns by posting disappointing quarterly earnings and revenue results. Microsoft indicated it will not offer an outlook for the balance of this fiscal year. Though that removes a reporting hurdle for management, it limits transparency into the company.
Microsoft also announced it will eliminate up to 5,000 jobs. Meanwhile, fellow tech giant and Dow component Intel (INTC 12.82, -0.44) announced last evening restructuring plans expected to affect between 5,000 and 6,000 employees.
Apple (AAPL 88.36, +5.53) reported better-than-expected top and bottom line results for the latest quarter, but issued downside guidance. The company is typically overly cautious in its outlooks so the stock still traded higher. Apple's performance provided support to the tech sector. However, its strength shouldn't be projected across the industry, given the company's uniqueness stemming from such as the iPod and the iPhone.
With competition in the mobile handset market tight and global economic conditions waning, Nokia (NOK 12.30, -1.41) fell to a multiyear low after reporting earnings results that missed expectations. The mobile phone giant also gave a pessimistic outlook for industry volume.
The Nasdaq Composite Index traded with steeper losses than the other headline indices, despite leadership from Apple. The disproportionate weakness was partly fueled by the presence of regional banks like Fifth Third (FITB 2.85, -1.14) and Popular Inc (BPOP 2.46, -2.52). Both banks reported steep losses and had their credit ratings downgraded.
Financials, overall, remain a primary point of weakness. The sector finished 5.8% lower, though it was down 8.5% at its session low. Aflac (AFL 22.90, -13.37) was the primary laggard in the financial sector this session. It was sent to multiyear lows amid concerns regarding its investments in hybrid securities.
Bank of America (BAC 5.71, -0.97) also traded as a laggard, falling more than 14%. This was the fifth straight session shares of BAC have gained or lost at least 10%. Reports indicated former Merrill Lynch boss John Thain will be leaving Bank of America, though he was the one that initiated a deal between the two companies.
Only the health care sector (+0.2%) finished the session with a gain. Its advance was supported by UnitedHealth (UNH 27.19, +2.14) and Baxter International (BAX 56.77, +1.30). UnitedHealth reported in-line results and offered an in-line outlook. Baxter, meanwhile, posted better-than-expected earnings for the latest quarter.
Glum economic data did little to revive optimism in the broader market. Initial claims for the week ending Jan. 17 jumped 62,000 to 589,000. The consensus estimate called for 543,000 claims. Continuing claims gained 97,000 to nearly 4.61 million. The level of claims reflects persistently weak labor conditions, and suggests another decline for monthly nonfarm payrolls.
December housing starts totaled 550,000. They were expected to total 605,000. Housing starts for December were at their worst level in decades. Meanwhile, December building permits totaled 549,000. The consensus estimate called for 600,000 building permits.DJ30 -105.30 NASDAQ -41.58 NQ100 -1.5% R2K -3.1% SP400 -2.3% SP500 -12.74 NASDAQ Adv/Vol/Dec 670/2.32 bln/2008 NYSE Adv/Vol/Dec 674/1.56 bln/2385
9:06AM Microsoft misses by $0.02, misses on revs; to cut up to 5000 jobs; to no longer offer guidance for the balance of the fiscal year (MSFT) 19.38 : Reports Q2 (Dec) earnings of $0.47 per share, $0.02 worse than the First Call consensus of $0.49; revenues rose 1.6% year/year to $16.63 bln vs the $17.08 bln consensus. In light of the further deterioration of global economic conditions, Microsoft announced additional steps to manage costs, including the reduction of headcount-related expenses, vendors and contingent staff, facilities, capital expenditures and marketing. As part of this plan, Microsoft will eliminate up to 5,000 jobs in R&D, marketing, sales, finance, legal, HR, and IT over the next 18 months, including 1,400 jobs today. These initiatives will reduce the company's annual operating expense run rate by approximately $1.5 billion and reduce fiscal year 2009 capital expenditures by $700 million. "Economic activity and IT spend slowed beyond our expectations in the quarter, and we acted quickly to reduce our cost structure and mitigate its impact," said Chris Liddell, chief financial officer at Microsoft. "We are planning for economic uncertainty to continue through the remainder of the fiscal year, almost certainly leading to lower revenue and earnings for the second half relative to the previous year. In this environment, we will focus on outperforming our competitors and addressing our cost structure." Due to the volatility of market conditions going forward, Microsoft is no longer able to offer quantitative revenue and EPS guidance for the balance of this fiscal year. Microsoft offers operating expense guidance of approximately $27.4 billion for the full year ending June 30, 2009. This information supercedes the fiscal year 2009 guidance that Microsoft provided on Oct. 23, 2008. (Briefing.com note: Co was originally scheduled to report tonight after the close.)
8:03AM Cypress Semi reports EPS in-line, misses on revs (CY) : Reports Q4 (Dec) loss of $0.08 per share, excluding non-recurring items, in-line with the First Call consensus of ($0.08); revenues fell 25.6% year/year to $165.6 mln vs the $170.4 mln consensus. Non-GAAP1 consolidated gross margin for Q4 was 42.8%, down 7.7% from the previous quarter due mainly to reduced factory utilization as co proactively reduced wafer starts to manage inventory levels to a significantly lowered end-customer demand. Overall corporate average selling price remained flat. Net inventory balances decreased by 5% sequentially. "Our semiconductor book-to-bill ratio ended Q4 at 0.70, the lowest level since the dotcom crash, but not as bad--at least so far. Customer ordering patterns have yet to stabilize so visibility remains extremely limited, but we continue to see strong customer acceptance of our products in the marketplace. We remain proactive on managing our cost structure and have a solid balance sheet."
6:03AM Cabot Micro misses by $0.04, beats on revs (CCMP) 22.51 : Reports Q1 (Dec) earnings of $0.01 per share, $0.04 worse than the First Call consensus of $0.05; revenues fell 32.5% year/year to $63 mln vs the $62.3 mln consensus. Gross profit, expressed as a percentage of revenue, was 45.6% this quarter, which is slightly lower than the co's full fiscal year guidance range of 46-48% of revenue. Comparable gross profit percentages were 47.9% in the same quarter a year ago and 46.6% last quarter.
2:27AM Taiwan Semi reports EPS in-line, revs in-line; provides Q109 revenue guidance (TSM) 7.15 : Reports Q4 (Dec) earnings of $0.07 per ADS (GAAP), in-line with the First Call consensus of $0.07; revenues fell 32.1% year/year to $1.96 bln vs the $1.95 bln consensus. Q408 saw a decline in the demand for semiconductors across all applications co states. Gross margin for the quarter was 31.3%, operating margin was 18.6%, and net margin was 19.3%. CFO comments that Q408 "end- market sell-through was much below the already conservative expectations, and consumer demand remains very weak. This has led to a rising DOI for our customers, who continue to pare their inventories aggressively, resulting in a further significant cut back of wafer demand." Based on current business outlook, management expects overall performance for Q109 to be as follows: Revenue is expected to be between NT$32-35 bln; gross profit margin is expected to be between 1% and 5%; operating profit margin is expected to be between -19% and -15%.
7:36AM Intl Game Tech beats by $0.02, beats on revs (IGT) 11.57 : Reports Q1 (Dec) earnings of $0.29 per share, $0.02 better than the First Call consensus of $0.27; revenues fell 6.8% year/year to $601.6 mln vs the $592.2 mln consensus. Product sales revenue declined 8% and gross profit declined 14% for the quarter on a 22% reduction in worldwide machine shipments. On a regional basis, North America revenues improved 29% on stronger machine shipments into new or expanding markets, partially offsetting international revenue declines on softer international demand. International results were challenged by both the unfavorable global economic conditions and difficult comparisons to record results in the prior year. Total gross margin on product sales was 50% compared to 53% in the prior year, primarily due to obsolescence charges and a less favorable product sales mix.
09:36 am Marvell downgraded to Buy at BWS Financial; tgt lowered to $8: . BWS Financial downgrades MRVL to Buy from Strong Buy and lowers their tgt to $8 from $11.50 as there has been clear evidence of further deterioration in all markets the Company serves. Firm says hard disk makers are going through an inventory situation while other segments have pushed out their purchasing requirements due to softer sales. The valuation seemed reasonable over the last few months due to MRVL being diversified in many segments, but it seems the broad revenue stream is only adding to the problem.
10:10 am Intel (INTC)
Intel (INTC 12.70, -0.56) announced restructuring plans after Wednesday's close as the chipmaker continues to address sharply weaker demand for its products.
The company said it plans to close two existing assembly test facilities in Penang, Malaysia and one in Cavite, Philippines. Intel will also halt production at plants in Hillsboro, Ore. and Santa Clara, Calif. that produce older wafers.
Intel said the actions are expected to affect between 5,000 and 6,000 employees worldwide, but some employees may be offered positions at other facilities.
Intel stressed that the moves will not impact deployment of new, leading-edge 45-nanometer and 32-nanometer manufacturing capacity.
09:21 am Microsoft (MSFT)
Microsoft (MSFT 19.38) surprised the market by reporting earnings before Thursday's open, rather than after the close as originally scheduled. As with so many other companies this quarter, Microsoft's surprise wasn't a good one.
For the quarter, Microsoft reported earnings of $0.47 per share, $0.02 worse than the First Call consensus of $0.49.
Revenues grew 1.6% year-over-year to $16.63 billion, shy of the $17.08 billion consensus.
Microsoft announced job cuts, saying it will eliminate up to 5,000 jobs in R&D, marketing, sales, finance, legal, HR, and IT over the next 18 months, including 1,400 jobs today. The company expects to reduce its annual operating expense run rate by approximately $1.5 billion and reduce fiscal 2009 capital expenditures by $700 million.
Microsoft declined to provide guidance, saying that the volatility of market conditions will keep them from providing quantitative revenue and EPS guidance for the balance of the fiscal year.
08:25 am Nokia (NOK)
Nokia (NOK 13.71) saw steep declines in its latest quarter and issued an outlook that expects the decline to continue.
The world's No. 1 mobile phone maker reported fourth quarter earnings of euro 0.26 per share; the First Call consensus expected earnings of euro 0.28.
Revenues fell 19.2% year-over-year to euro 12.7 billion vs. the euro 13.09 billion consensus.
Nokia said mobile device volumes were down 15% year-over-year and down 4% from the third quarter. In turn, Nokia reported that its market share shrunk to 37% in the fourth quarter, down from 40% in the prior year. Nokia's market share was 38% in the third quarter of 2008.
Looking ahead, Nokia said it expects industry mobile device volumes in the first quarter 2009 to decline sequentially to a greater extent than the seasonal sequential decrease in the first quarter of the past few years.
For the full year, the company said it expects 2009 industry mobile device volumes to decline approximately 10% from 2008 levels, with a greater decline expected in the first half of the year than the second half. Nokia earlier expected mobile device volumes to decline 5% in 2009.
Shares of NOK are trading more than 8% lower in premarket action.
08:04 am Apple (AAPL)
Apple (AAPL 82.83) reported strong fiscal first quarter results and posted $10 billion in quarterly revenue for the first time in its history.
For its first fiscal quarter, Apple reported earnings of $1.78 per share, $0.39 better than the First Call consensus of $1.39. Revenues rose 5.8% year-over-year to $10.17 billion; the consensus called for revenues of $9.75 billion.
Apple sold 4.36 million iPhones in the quarter; Wall Street expected approximately 4.6 million. Macs were in-line, with sales of 2.52 million matching the 2.5 million Street expectation.
Gross margins were well ahead of consensus, coming in at 34.7%. The First Call consensus expected gross margins of 31.9%.
Despite the strong quarter, concerns about the company remain. On Jan. 14, Apple chief executive Steve Jobs announced a medical leave of absence until the end of June, saying that his health-related issues "are more complex than I originally thought."
In addition, reports surfaced Wednesday that the Securities and Exchange Commission is examining Apple's disclosures related to Jobs' illness to ensure that investors weren't misled.
Apple, in typical fashion, issued downside guidance for its fiscal second quarter, expecting earnings between $0.90 and $1.00 per share. The current consensus expects $1.13 per share. Apple expects revenues between $7.6 billion and $8 billion, shy of the $8.2 billion consensus.
Shares of AAPL sunk to a 52-week low Tuesday, but bounced Wednesday leading into earnings, gaining nearly 6%.
finance.yahoo.com
Thank your daughter for getting that song stuck inside my head. Where's my Preparation H? ;-) RtS |
