From Briefing.com: 4:10 pm : 6:00PM Teradyne and Corelis announce agreement to bolster boundary-scan in-circuit test capability (TER) 15.62 -0.05 : Co announced that it has entered into an OEM agreement with Corelis, Inc. to sell and distribute a package of Corelis ScanExpress boundary-scan test execution and diagnostic software and hardware modules. The solution establishes a straightforward integration path for adding advanced boundary-scan and embedded test capabilities to Teradyne's popular TestStation legacy GR228X family of In-Circuit Test systems.
4:04PM Brooks Automation beats by $0.02, beats on revs; guides Q3 EPS below consensus, revs in-line (BRKS) 10.67 +0.20 : Reports Q2 (Mar) earnings of $0.20 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.18; revenues fell 27.7% year/year to $139.3 mln vs the $136.2 mln consensus. Co issues guidance for Q3, sees EPS of $0.15-0.20, excluding non-recurring items, vs. $0.22 Capital IQ Consensus Estimate; sees Q3 revs of $140-147 mln vs. $145.39 mln Capital IQ Consensus Estimate. Order bookings for the second quarter of fiscal 2012 grew 20.9% to $155.3 million, compared to order bookings in the fiscal first quarter of $128.5 million. Bookings included strong Life Science Systems orders for fiscal 2013 delivery. "We generated revenue and earnings during the quarter at the high end of our guidance range due to a number of factors including 21% sequential growth in our Product Solutions segment as we had full participation in the front end semiconductor market recovery and we improved consolidated gross margin by 110 basis points on a sequential basis. In addition, our Life Science Systems revenue continued to grow and achieved profitability absent purchase accounting adjustments. We are pleased with the continued progression of this business segment."
The Dow avoided its seventh consecutive day of losses after withstanding some late-day selling to finish with a gain of 20 points. The S&P 500 closed up 0.3% to lead the way while the Nasdaq finished fractionally in the red. News flow out of Europe was rather quiet as markets await word as to whether or not the newly elected Greek leaders are able to form a coalition government. This morning’s claims data was mixed as initial claims missed estimates while continuing claims beat.
European financials recorded strong gains as National Bank of Greece (NBG 2.05, +0.15) and Banco Santander (STD 6.33, +0.32) rallied 7.9% and 5.3% respectively. Germany's Deutsche Bank (DB 40.30, +0.90) and Britain's Barclays (BCS 13.47, +0.41) saw less notable advances, but still outperformed.
Cisco Systems (CSCO 16.81, -1.97) plunged 10.5% following yesterday's earnings. The company announced earnings per share of $0.48 which was $0.01 better than the Capital IQ Consensus Estimate while posting in-line revenues of $11.59 billion. The company now expects to see earnings per share of $0.44 to $0.46 per share on expectations of $0.49 and revenue growth of 2% to 5% versus consensus expectations of a 7.1% increase. Macro headwinds were given as reasons for the downbeat outlook.
Shares of Priceline (PCLN 681.11, -37.84) tumbled 5.3% following yesterday's better than expected earnings as guidance was disappointing. The company announced earnings of $4.28 per share which was $0.30 better than the Capital IQ Consensus Estimate, and in-line revenues of $1.04 billion. Guidance weighed as the company said it expects revenues to increase 18 to 23% year over year, compared with analyst expectations of a 26% increase.
Kohl's (KSS 48.66, -2.20) fell 4.3% after the company reported earnings of $0.63 per share which was $0.02 better than the Capital IQ Consensus Estimate. The company's revenues were in-line with estimates, climbing 1.9% year over year to $4.24 billion. Management also reaffirmed its fiscal year 2013 earnings per share guidance of $4.75 which is $0.01 below the consensus estimate of $4.76. However, the stock weakened as the company's gross margins disappointed.
Treasuries trimmed their losses following this afternoon's solid $16 billion 30-yr bind reopening. The auction drew 3.090% and saw a 2.73x bid/cover as indirect bidders took down a larger than average 33.8% of the offering. Dollar demand was the strongest since August 2010, coming in at $43.6 billion. The 10-yr yield finished the day up 4.9 basis points at 1.884% after hitting a session high of 1.921%.
Volume on the floor of the New York Stock Exchange was weak as just 784 million shares changed hands.DJ30 +19.98 NASDAQ -1.07 SP500 +3.41 NASDAQ Adv/Vol/Dec 1437/1.93 bln/1128 NYSE Adv/Vol/Dec 1893/784.1 mln/1128
12:09PM Cisco Systems extends drop to -10% (CSCO) 16.86 -1.92 : Slide reaches back to its Mid-Oct reaction low and the top of the June-Sep trade range/bull breakout point at 16.80/16.84.
Qualcomm (QCOM) and Digibras Industria do Brasil (owner of the brands CCE Info and CCE Mobi) have entered into 3G and 4G license agreements. Under the terms of the agreements, Qualcomm has granted CCE worldwide, royalty-bearing patent licenses to develop, manufacture and sell 3G WCDMA and TD-SCDMA, and 4G OFDMA subscriber units and routers.
6:14AM Canadian Solar beats by $0.04, misses on revs; sees Q2 gross margin between 8-10% (CSIQ) 3.21 : Reports Q1 (Mar) loss of $0.49 per share, $0.04 better than the Capital IQ Consensus Estimate of ($0.53); revenues fell 26.5% year/year to $325.8 mln vs the $361.47 mln consensus.
Guidance: For the second quarter of 2012, shipments are expected to be in the range of ~430 MW to 450 MW, with gross margin expected to be between 8% and 10%. The Company reiterates its annual guidance to ship ~1,800 MW to 2,000 MW of solar products in 2012.
"Our results reflect the continued successful execution of our near-term and long-term business strategy. This is evidenced by the improvement of our gross margin after factoring out one-time items, the geographic diversification of our revenue mix and our ability to generate positive operating cash flow in a seasonally slow quarter. We are very pleased with the continued progress of our total solutions business and expect it will enhance our financial results as we move through 2012 and beyond. We continue to evaluate costs across our global organization."
Intel's (INTC) McAfee announced increased focus and updated security solutions specifically designed to meet the needs of small to medium sized businesses with new SMB security solutions and channel programs bring cost-effective and easy-to-use solutions
3:09AM Micron confirms discussions with Elpida Memory Trustees (MU) 6.36 : Co confirms it is engaged in discussions with Elpida Memory trustees to acquire Elpida's business. MU made the announcement following a May 10 approval by the Tokyo District Court allowing Elpida's trustees to negotiate an agreement with Micron, pursuant to which Micron would become Elpida's sponsor and acquire Elpida's entire business in accordance with the corporate reorganization proceedings. Elpida, filed a petition for commencement of Corporate Reorganization Proceedings with the Tokyo District Court under the Corporate Reorganization Act of Japan on Feb. 27, 2012, which proceedings have been commenced.
Cisco Systems (CSCO $17.20 -1.58) reported third quarter earnings of $0.48 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.47, while revenues rose 6.6% year/year to $11.59 billion versus the $11.58 bln consensus. "We delivered solid results this quarter with record revenue and non-GAAP earnings per share," said John Chambers, Cisco chairman and CEO. "We are successfully executing against our long-term strategic plan of growing profit faster than revenue, and in a cautious IT spending environment, we continue to outperform our competitors." Cash flows from operations were $3.0 billion for the third quarter of fiscal 2012, compared with $3.1 billion for the second quarter of fiscal 2012, and compared with $3.0 billion for the third quarter of fiscal 2011. Non-GAAP inventory turns were 11.1 in the third quarter of fiscal 2012, compared with 10.8 in the second quarter of fiscal 2012, and compared with 10.3 in the third quarter of fiscal 2011.
Silicon Graphics (SGI $7.15 -1.90) reported third quarter earnings of $0.11 per share, $0.14 better than the Capital IQ Consensus of ($0.03), while revenues rose 38.8% year/year to $199.4 million versus the $189.91 million consensus. The company issued guidance for the fourth quarter with EPS of ($0.52) - ($0.37), may not be comparable to $0.16 Capital IQ Consensus Estimate; sees Q4 revs of $177-197 million versus the $208.87 million consensus. Fourth quarter fiscal year 2012 non-GAAP EPS guidance excludes earnings per share impacts from share-based compensation and amortization of intangibles are anticipated to be approximately $0.10. In addition, SGI anticipates earnings per share impact from restructuring charges of ~$0.10 in Q4 FY12. Regrading FY12, co said A large deal originally anticipated to revenue in fourth quarter fiscal year 2012 slipped to Q1 FY13. Product transition and new products to be available late Q4 FY12, resulting in delay in demand from customers as they wait availability of the new products A number of large deals with low gross margin expected to revenue in fourth quarter fiscal year 2012.
Universal Display (PANL $35.57 -3.59) reported a first quarter loss of $0.03 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.04, while revenues rose 31.3% year/year to $12.6 million versus the $16.28 million consensus. Results in the first quarter do not include the recognition of any revenue under a licensing agreement with Samsung Mobile Display under which SMD is obligated to make payments to the Company of $15 million in each of the second and fourth quarters of this year. Had the Company recognized these payments on a pro rata quarterly basis over the year, it would have resulted in an additional $7.5 million of royalty and license fees revenue in the first quarter. The Company will incur a license fee of 3% payable to its university partners, and 16.5% payable as tax on sales to South Korea in connection with the SMD licensing revenue.
Priceline.com (PCLN) reported first quarter earnings of $4.28 per share, $0.30 better than the consensus of $3.98, while revenues rose 28.1% year/year to $1.04 billion versus the $1.04 billion consensus. The company issued in-line guidance for the second quarter with EPS of $7.20-7.40 versus the $7.34 Capital IQ Consensus Estimate.The Group's international operations contributed revenues in the 1st quarter of $617 million, a 58.5% increase versus a year ago (approximately 65% on a local currency basis). The Group's gross profit for the 1st quarter was $743 million, a 47.0% increase from the prior year. The Priceline Group said it was targeting the following for 2nd quarter 2012: Year-over-year increase in total gross travel bookings of approximately 26% - 31%; Year-over-year increase in international gross travel bookings of approximately 32% - 37% (an increase of approximately 41% - 46% on a local currency basis); Year-over-year increase in domestic gross travel bookings of approximately 5% - 10%; Year-over-year increase in revenue of approximately 18% - 23% (Capital IQ consensus approximately +26%); Year-over-year increase in gross profit of approximately 31% - 36%; Non-GAAP net income per diluted share of $7.20 to $7.40.
09:26 am Cree initiated with a Buy at Stifel Nicolaus; tgt $38: . Stifel Nicolaus initiates CREE with a Buy and price target of $38 saying although they expect volatility in earnings and the stock over the near term, they see strong secular drivers for Cree as the company designs innovative products aimed to drive adoption of LEDs in general lighting. They expect recent announcements of high performance, attractively priced LED products to drive momentum over the next 6-12 months.
10:25 am Technology sector trading lower despite broad market gains
The tech sector is trading lower today, despite gains in the broader market. Semiconductors are again showing relative weakness with the Philly Semi Index trading lower by 0.4?y. STM (+2.3%) is a notable leader in that chip index, while WFR (-7.3%) is a notable laggard. Among other major indices, the SPY is trading 0.6% higher today, while the QQQ and the NASDAQ are trading -0.2% lower on the session. Among tech bellwethers, AAPL (+0.6%) is showing relative strength for the sector.
In earnings last night, CSCO (-8.4%) announced disappointing guidance on the conference call and PCLN (-4.3%) reported an inline quarter. Among notable analyst upgrades this morning, VRTU (+3.5%) was upgraded before the open to Buy from Hold at BB&T Capital Mkts. JDSU was upgraded to Buy from Neutral at UBS. In downgrades, DLB (-2.8%) was downgraded to Neutral from Overweight at JP Morgan.
CA. HSFT are notable names in tech scheduled to report quarterly results today after the close. |
