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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (51328)	3/4/2011 11:09:30 AM
From: FJB	1 Recommendation Respond to of 95396

In the announcement, Marvell blamed the weak results on “seasonal declines in our mobile and wireless end markets.” But on a conference call with the Street, the company provided additional detail that suggested there was more than just seasonal factors at work. In the storage market, the company suffered a 2% sequential revenue drop, worse than the flat revenues it had previously projected. The company noted that PC sales have been weaker than expected – which suggests that Marvell could be feeling the impact of a consumer shift toward tablets and away from personal computers. (Notebooks have hard drives; tablets do not.) Meanwhile, the company’s mobile and wireless segment suffered a 13% sequential revenue decline in the quarter, worse than the 10% drop Marvell had previously projected. The company noted that during the quarter, one of its key customers – the Street believes this was a reference to Research In Motion (RIMM) – shift production for emerging markets towards 2.5G phones and away from 3G phones, which can’t yet be used in some markets. Marvell notes that it does not produce parts applicable to the company’s 2.5G phones. The company expects a mid-single-digit sequential revenue drop in storage products in the fiscal first quarter, with a 20% drop in the mobile and wireless segment. In addition to the mix shift at one key customers, Marvell said results also will be affected by a shift in inventory strategy by one key customer – again, the Street sees this as a reference to RIMM – to one in which parts will be held by Marvell, and not the customer. The upshot is that Marvell sees Q1 revenue of $800 million to $850 million, with non-GAAP profits of about 30 cents a share; that’s well below the Street at $890 million and 37 cents. blogs.forbes.com

To: Donald Wennerstrom who wrote (51328)	3/4/2011 11:11:46 AM
From: Donald Wennerstrom	1 Recommendation Read Replies (1) \| Respond to of 95396

Baird raises Intel, other semiconductor stocks reuters.com Fri Mar 4, 2011 4:49am EST * Upgrades Intel, Altera to outperform from neutral * Says inventories remain lean March 4 (Reuters) - Robert W. Baird upgraded Intel Corp (INTC.O), Altera Corp (ALTR.O) and some other semiconductor stocks and said it expects PC and wireless infrastructure trends to rebound in the second half of 2011. The brokerage said its recent field research points to a continued rebound in order trends for semiconductors, resilient lead times, lean inventories, and a favorable pricing environment, which should lead gross margins to continue tracking at above-historical levels. Steady lead times, notably for commodity components, remain well above average, suggesting no serious inventory correction is likely in the near term, the brokerage said. Ongoing concerns about inflation and higher raw material prices could lead to some inventory rebuild, which could help semiconductor orders over the next few quarters, Baird analysts said. The brokerage also upgraded Fairchild Semiconductor International (FCS.N), ON Semiconductor Corp (ONNN.O), STMicroelectronics (STM.N) and Lattice Semiconductor Corp (LSCC.O) to "outperform". Below are the price target and rating changes: Company Rating Target New Old New Old Altera Corp Overweight Neutral $53 $38 Fairchild Semiconductor Overweight Neutral $28 $16 Intel Corp Overweight Neutral $27 $25 Lattice Semiconductor Overweight Neutral $10 $7 ON Semiconductor Overweight Neutral $16 $12 STMicroelectronics Overweight Neutral $17 $12 Xilinx Inc Neutral Neutral $40 $25