From Briefing.com: 5:33PM Atmel comments on Microchip announcement (ATML) 3.69 -0.21 : Co issued the following statement in response to the announcement that Microchip Technology (MCHP) is terminating its consideration of a potential transaction with ATML and is withdrawing the slate of directors it had previously nominated for election at ATML's next annual meeting of shareholders: With MCHP's withdrawal, the co says, "we look forward to focusing exclusively on the continued execution of our transformation plan. ATML's substantial microcontroller revenue growth, market share gains and gross profit improvement demonstrate the significant progress we are making on this plan. As announced on February 4, 2009, ATML's microcontroller revenues grew 14% in 2008 and full year gross profit margins reached the highest level since 2000. As we enter the next phase of ATML's transformation plan, we remain confident that we are on the right track to further enhance shareholder value."
4:39PM Sierra Wireless beats by $0.13, misses on revs; guides Q1 EPS below consensus, revs below consensus (SWIR) 4.52 -0.37 : Reports Q4 (Dec) earnings of $0.36 per share, $0.13 better than the First Call consensus of $0.23; revenues fell 2.0% year/year to $132.9 mln vs the $138.7 mln consensus. Co issues downside guidance for Q1, sees EPS of $0.00 vs. $0.18 consensus; sees Q1 revs of $93.0 vs. $133.40 mln consensus. Co implemented an expense reduction program that is expected to reduce labor costs by approximately $5.5 million on an annualized basis. The program included the elimination of approximately 56 positions, representing 10% of our workforce. The actions related to this program are expected to be completed during the first quarter of 2009. SWIR expects to incur a pre-tax charge of approximately $1.3 million in the first quarter of 2009 for severance and other costs related to this program.
4:23PM NVIDIA misses by $0.09, misses on revs (NVDA) 9.32 -0.42 : Reports Q4 (Jan) loss of $0.18 per share, $0.09 worse than the First Call consensus of ($0.09); revenues fell 60.0% year/year to $481.1 mln vs the $491.4 mln consensus. Co said, "The environment is clearly difficult and uncertain. Our first priority is to set an operating expense level that balances cash conservation while allowing us to continue to invest in initiatives that are of great importance to the market and in which we believe we have industry leadership. We have initiatives in all areas to reduce operating expenses... Although fiscal 2009 was extremely difficult, it was one of our best years of innovation. We made many important advances in graphics processing with PhysX and 3D Vision, GPU computing with CUDA and Tesla, and mobile computing with ION and Tegra. I am pleased with the excellent achievements we made in each of these important areas."
4:15PM Atmel: Microchip Technology terminates consideration of potential acquisition of Atmel; offer had been for $5 per share (ATML) 3.69 -0.21 : MCHP announced that it is terminating its consideration of a potential transaction with Atmel (ATML) and is withdrawing the slate of directors it had nominated previously for election at Atmel's next annual meeting of shareholders. "The global economy and the semiconductor business environment have deteriorated significantly since Microchip first made an offer of $5 per share on October 1, 2008. Based on actual results and Atmel's first quarter 2009 guidance, Atmel's revenue will have declined more than 30% since then and the company is expected to lose money. In light of the economic uncertainty and the lack of visibility that continues to exist with respect to Atmel's business, Microchip is no longer able to put a value on Atmel. Microchip will therefore terminate consideration of a potential acquisition of Atmel."
4:08PM Applied Materials reports EPS and revs in-line (AMAT) 9.69 -0.45 : Reports Q1 (Jan) net of breakeven, excluding non-recurring items, in-line with the First Call consensus of ($0.00); revenues fell 36.4% year/year to $1.33 bln vs the $1.35 bln consensus, in-line with the company's lower guidance on 02/02 of ($0.02)-0.00/$1.33 bln. "We acted early and decisively to reduce costs in line with economic conditions that have resulted in an unprecedented decline in demand. With our leading technology and strong balance sheet, Applied is positioned to weather this recession and invest in new products and services."
4:08PM TTM Tech beats by $0.04, beats on revs; guides Q1 EPS below consensus, revs in-line (TTMI) : Reports Q4 (Dec) earnings of $0.18 per share, $0.04 better than the First Call consensus of $0.14; revenues fell 1.5% year/year to $164.9 mln vs the $155.2 mln consensus. Q4 gross margin of 18.6% declined from third gross margin of 19.0%. Cash and cash equivalents and short-term investments at the end of the fourth quarter totaled $152.1 million, an increase of $17.1 million from $135.0 million at the end of the third quarter. Co issues mixed guidance for Q1, sees EPS of $0.07-0.12 vs. $0.12 consensus; sees Q1 revs of $146-154 mln vs. $149.10 mln consensus.
4:20 pm : Stocks logged their worst performance since a 5.3% loss on Jan. 20 as investors dumped stocks after Treasury Secretary Geithner failed to deliver the specifics that investors sought from Treasury's financial rescue plan.
The build up ahead of Treasury's financial rescue plan helped stocks climb more than 4% over the prior three sessions. Financial stocks climbed 11% during that time. Enthusiasm quickly turned to pessimism, though, when Treasury failed to provide clarity on how it will handle the toxic assets that are driving losses and write-downs on bank balance sheets. Recognition that this part of the plan has yet to be finalized creates an impression that Geithner still doesn't have a complete solution to the situation.
Still, Geithner did indicate the bank recovery plan will help the flow of credit, strengthen banks, and provide aid for homeowners and small businesses. Treasury intends for institutions that need capital to access a new funding mechanism that uses Treasury funds as a bridge to private capital. Meanwhile, Treasury's investments will be placed in a Trust.
Together with the Fed, FDIC, and private sector, Treasury will establish a public-private investment fund to provide capital and financing to help leverage private capital to get private markets working. There is a range of different structures for this program, but Treasury believes it should ultimately provide up to $1 trillion in financing capacity.
The Federal Reserve Board announced it could expand the Term Asset-Backed Securities Loan Facility (TALF) to encompass other types of newly issued AAA-rated asset-backed securities, such as commercial mortgage-backed securities, and private-label residential mortgage-backed securities. The date that the TALF will begin operations will be announced later this month.
Disappointment in Treasury's plan left market participants disinterested in the Senate's $838 billion economic stimulus bill. The bill was passed midday, but it has been relegated since it aims to drive long-term economic growth, rather than provide a short-term lift.
Federal Reserve Chairman Ben Bernanke's testimony to the Financial Services Committee provided some positive points, but did little to ease selling pressure. He stated extraordinary programs have improved market conditions and eased strains. He also indicated the U.S. remains well capitalized and the Fed will be able to offset any losses through eventual gains on asset sales.
There was little market-moving data beyond the government developments. The only item on the economic calendar was a worse-than-expected December wholesale inventory report. Meanwhile, corporate headlines carried more of the same: job cuts are coming from beleaguered General Motors (GM 2.70, -0.13) and beaten down Swiss financial giant UBS (UBS 11.20, +0.16); UBS also posted a multibillion dollar loss, and; Boeing (BA 40.21, -2.59) and Monsanto (MON 80.85, -2.81) refreshed profit concerns.
Every major sector in the S&P 500 finished substantially lower. Financials led the decline, losing 10.9%. Diversified banks (-14.2%) and regional banks (-17.1%) were primary laggards in the sector. Trading volume was the highest since mid-December.DJ30 -381.99 NASDAQ -66.83 NQ100 -4.1% R2K -4.7% SP400 -4.5% SP500 -42.43 NASDAQ Adv/Vol/Dec 481/2.15 bln/2203 NYSE Adv/Vol/Dec 470/1.76 bln/2621
3:22 pm Intel (INTC)
Intel (INTC 14.16, -0.75) said it will spend $7 billion over the next two years to upgrade manufacturing sites in the U.S.
Intel's investment will be made at manufacturing sites in Oregon, Arizona and New Mexico. The company said the investment will support approximately 7,000 existing high-wage, high-skill jobs.
The investment is aimed at getting the facilities ready to produce 32 nanometer chips that are smaller, faster and consume less energy. Intel said the $7 billion would be spread roughly evenly between 2009 and 2010.
The commitment represents Intel's largest-ever investment for a new manufacturing process.
8:56AM Research In Motion: Certicom receives notification from VeriSign that it will not match RIMM offer (RIMM) 59.00 : Certicom announced that it has received notice from VeriSign (VRSN) that VeriSign will not exercise its right to match the offer by RIMM announced on February 3, 2009, to acquire all of the issued and outstanding common shares of the Company at a cash price of C$3.00 per share by way of a statutory plan of arrangement. Under the arrangement agreement between VeriSign and Certicom, VeriSign had agreed to acquire all of the issued and outstanding shares of the Company at a cash price of C$2.10 per share. On February 4, 2009, Certicom notified VeriSign that the RIM Offer is a "Superior Proposal" as defined under the VeriSign Agreement.
8:07AM Vishay misses by $0.07, reports revs in-line (VSH) 3.37 : Reports Q4 (Dec) loss of $0.07 per share, excluding multiple non-recurring items, $0.07 worse than the First Call consensus of ($0.00); revenues fell 21.1% year/year to $575.4 mln vs the $574.3 mln consensus. Co says, "We expect the 2009 cash outlay for restructuring and severance programs to be approximately $50 mln, covering all contemplated 2009 initiatives and unpaid balances from 2008 programs. Capital expenditures in 2009 are anticipated to be less than $70 mln as compared to $152 mln in 2008. We intend to reduce our inventories by $50 to $100 mln in 2009. If warranted, we are prepared to implement additional measures to adapt the Co to the sales level that we can realize under the current economic conditions. We believe that we will achieve positive free cash flow for the year 2009. We are very confident that Vishay will emerge from the general economic crisis as a perhaps different but definitely stronger co... We expect sales for the first quarter 2009 to be weaker at lower margins than in the fourth quarter 2008. The current uncertainties do not permit a more quantitative guidance."
7:12AM SiRF Technology and CSR to merge; SiRF shareholders to get 0.741 of an ordinary share in CSR for each SiRF share (SIRF) 1.08 : CSR and the co entered into a conditional agreement under which SiRF will merge with CSR, increasing the scale of CSR in the high-growth GPS technology market and strengthening CSR's position as a global leader in both Bluetooth and GPS. SiRF shareholders will receive 0.741 of an ordinary share in CSR for each SiRF share; SiRF shareholders will own 27% of the enlarged CSR group; The boards of both CSR and SiRF unanimously endorse the transaction; SiRF's Diosdado Banatao and Kanwar Chadha will be invited to join the CSR Board as Non-Executive Director and Executive Director respectively; The merger is expected to complete late in the second quarter of 2009.
4:01AM SiRF Technology beats by $0.06, misses on revs (SIRF) 1.808 : Reports Q4 (Dec) loss of $0.16 per share, excluding non-recurring items, $0.06 better than the First Call consensus of ($0.22); revenues fell 52.9% year/year to $47.3 mln vs the $50.8 mln consensus.
1:37AM Emcore reports Q109 results, misses by $0.03 (EMKR) 1.09 : Reports Q1 (Jan) loss of $0.11 per share, excluding non-recurring items, $0.03 worse than the First Call consensus of $(0.08); revenues increased 15% year/year to $54.1 mln vs the $59.75 mln consensus. On a segment basis, first quarter non-GAAP gross margin for the Fiber Optics segment was 11.2% and 18.8% for the Photovoltaics segment. Co reports an order backlog of approx $53.2 mln. EMKR expects the environment for Fiber Optics segment to remain challenging and expects revenues in that business to be flat to 15% down on a sequential quarterly basis. |
