Tag Archive | "technologies"

Westell Up 4%: FYQ4 Revenue Up 31%

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Shares of communications equipment maker Westell Technologies (WSTL) are up 15 cents, or 4%, at $3.75, after the company reported fiscal Q4 revenue rose 31%, year over year, to $49.6 million, and EPS rose a penny to 5 cents per share.

Northland Securities analyst Mike Latimore is the only analyst listed by Thomson Financial as covering the stock. He had been modeling $49.6 million and 4 cents per share.

Gross profit declined from the year-earlier 37.4% to 31%, the company said. Westell ended the quarter with $86.4 million in cash after generating half a million of cash during the quarter.

Westell, which is selling its customer networking business to Netgear (NTGR), said that the division saw a 65% jump in revenue in the quarter. The unit saw an improvement from a $1 million net loss a year earlier to just $700,000 in net loss last quarter.

Article courtesy of Tech Trader Daily

AddThis creator closes $20M in series D

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Clearspring Technologies, the creator of the AddThis social content sharing platform, can now add this to its list of accomplishments: $20 million in series D funding in a round led by Institutional Venture Partners (IVP).Clearspring’s existing investors also participated in the round.

McLean, Va.-based Clearspring said in a press release that the funds will be used for acquisitions, as well as for growing the company’s publisher and advertising offerings.

The round is good news for Clearspring, who suffered last year after it was alleged that it gathered private data from users via their AddThis widgets. It now appears that the lawsuits stemming from the charges could be dismissed.

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Article courtesy of VentureBeat » deals

Akamai Tumbles 15%, Nasdaq in the Red

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Shares of Akamai Technologies (AKAM) were off 15.1% in recent trading, the worst performer in the S&P 500 (SPX), following the company’s earnings report last night.

Although the stock gained at first on the report, in which Akamai reported small EPS and revenue beats, it then reversed course after hours on its uninspiring forecast, and continued to fall this morning.

Collins Stewart analyst Greg Miller called Akamai’s outlook “questionable,” writing in a research note that “We believe investors will largely view the comments as a sign of incremental competition from Level 3 (LVLT) and others and that the perceived attractiveness of that segment of business is just not as once anticipated.” He reiterated his Neutral rating.

Think Equity’s Robert Coolbrith also reiterated his Hold rating, warning “While we view the company’s long-term secular growth opportunities as intact, we believe management’s previously stated objective for 15%+ FY11 revenue growth could now be out of reach.”

Akamai wasn’t the only name suffering; tech stocks in general were falling, with the Nasdaq (COMP) down 0.05%, even as the S&P gained 0.07% and the Dow Jones Industrial Average (DJIA) was up 0.14%. A notable exception was Citrix Systems (CTXS), which gained 10% following its earnings report last night.

Article courtesy of Tech Trader Daily

Intel: How Do You Explain Another $800M Of Revenue?

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As noted earlier, Intel (INTC) crushed Street estimates this afternoon, reporting Q1 revenue of $12.9 billion and earnings per share of 59 cents, versus the average $11.6 billion estimate for revenue and 46 cents for earnings, excluding some costs.

Even on a GAAP basis, including certain deferred revenue estimates, the quarter’s $12.8 billion in revenue and 56 cents per share was a stunning beat.

The company’s conference call with analysts is coming up in a few minutes and obviously one of the questions will be … drum roll… How could Intel be so wrong?

I mean, the analysts were obviously way off, on average, but Intel’s own forecast back on January 31st was for $11.7 billion in revenue, give or take $400 million.

Even at the upper end of that forecast, $12.1 billion, Intel was off by $700 million to $800 million, on a GAAP or a non-GAAP basis, respectively.

That updated forecast was supposed to account for all manner of special items, including the defects that slowed Intel’s “Cougar Point” chipset rollout, and, by extension, the sales of its Sandy Bridge processor to some computer makers. It also incorporated results for the acquisition of software maker McAfee, and for the wireless chip business Intel bought from Infineon Technologies AG (IFNNY).

So, what gives, Intel?  Why were you way off on your guidance?  Well, we’ll know soon enough!

Article courtesy of Tech Trader Daily

TXN-NSM: FCS, AVGO, MCHP To Get Bid Up, Says Miller Tabak

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Miller Tabak chip analyst Brendan Furlong this afternoon writes that National Semiconductor (NSM) investors should “take the bid” after the shares jumped more than 70% in late trading on Texas Instrument’s (TXN) announcement it will buy National for $6.5 billion in cash.

Furlong sees no counter bid coming, and “my philosophy is to sell the deal, any deal.”

Furlong has been bullish on National shares, with a Buy rating, and he notes the stock generally had been rated Hold or Sell by the majority of analysts. The shares sold short were roughly 5% at the end of February, I’d note.

Furlong writes that TI’s bid is “a bit odd,” as TI is “buying more fabs” while already having its own. He opines TI is focused on National’s expertise in power management chips. National also has more business in industrial applications — 40% versus just 14% for TI — and National has gross margin of 66% to 67%, versus about 54% for TI.

TI is paying 20 times forward earnings estimates for National, he notes, while most analog stocks trade in the mid-teens.

Tomorrow, he sees Fairchild Semiconductor (FCS), Avago Technologies (AVGO), and Microchip Technology (MCHP) likely to “get bid up.” Others include Analog Devices (ADI), Maxim Integrated Products (MXIM), and Linear Technology (LLTC.).

Indeed, all those stocks are already bid up this evening.

Article courtesy of Tech Trader Daily

Google Bids $900M For Nortel Patent Portfolio

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Google (GOOG) this morning said that as part of a strategy to protect itself against frivolous patent suits, it has placed a bid for Nortel Networks’s (NRTLQ) patent portfolio in the latter’s bankruptcy proceeding.

“If successful, we hope this portfolio will not only create a disincentive for others to sue Google, but also help us, our partners and the open source community—which is integrally involved in projects like Android and Chrome—continue to innovate,” Google’s General Counsel, Kent Walker, wrote on the company’s blog.

Google’s bid, apparently worth $900 million, covers 6,000 patents on wireless technology, data networking, and other technologies. It is a “stalking horse bid,” meaning that it serves as a baseline and that other bidders may offer more.

Nortel’s shares traded in the pink sheets are up about a penny, or 50%, at roughly 4 cents. Google shares are down $3.75, or 0.6%, at $588.05.

Article courtesy of Tech Trader Daily

Write-Offs: 03.31.11

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$$$ Libya-Owned Bank Drew at Least $5 Billion From Fed‎ [Bloomberg]

$$$ In testimony on Thursday, former Galleon portfolio manager Adam Smith acknowledged that the hedge fund had been awash with speculation about a possible merger of chipmakers Advanced Micro Devices and ATI Technologies months before the announcement of a $5.4 billion deal on July 24, 2006. But Smith said: “The speculation was public. The fact that it was happening was not public.” [Reuters]

$$$ Falcone-backed telecom hires Ed “We’re a nation of wusses” Rendell to lobby for LightSquared [Reuters]

$$$ “We need to get the owners of banks to behave like they own them. Institutions are turning over their bank shares every six months or so. They don’t consider themselves owners. I think we should get capital requirements up in the future but allow them to grow at the moment, and in the meantime make sure shareholders own shares for longer and engage with management. The job of policing management shouldn’t be left to the government. It should be the owners that do that. But we lost that. Again, maybe we need another tax to make shareholders hang on longer. I would call it the Warren Buffett Tax.” [Fortune]

$$$ Moody’s Cuts Tepco’s Credit Rating [WSJ]

$$$ Fed’s Tarullo: Banks Need Tough Capital Standards [CNBC]

$$$ Will Goldman’s Special Situations Group Survive Dodd-Frank? [BW]

$$$ $5 Fees May Be Coming to an ATM Near You [CNBC]

Article courtesy of Dealbreaker

RIM Says PlayBook Runs Android Apps

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Research in Motion (RIMM) this afternoon announced its “PlayBook” tablet computer, which will go on sale April 19th, will run apps written not only natively for its “QNX” operating system, but also programs written for Google’s (GOOG) “Android” operating system, as well as program’s written in the Java programming language.

The Android and Java programs will be supported on the PlayBook via two “app players” provided as an option to PlayBook users. Users can then download Java and Android apps from RIM’s BlackBerry App World online store, the company said.

RIM said as well that games developers Ideaworks Labs and Unity Technologies will bring video game titles to the PlayBook.

RIM is branding QNX as the “BlackBerry Tablet OS,” and said that it will “shortly release the native SDK for the BlackBerry PlayBook enabling C/C++ application development” for the operating system.

RIM shares are down $7.41, or almost 12%, at $56.68 after the company offered a disappointing Q1 forecast this afternoon.

Article courtesy of Tech Trader Daily

Raj Rajaratnam Made Sure To Show Anil Kumar He Appreciated His Tips

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While richly compensating employees, consultants and/or people providing you with material non-public information for jobs well done is probably the biggest factor in encouraging performance, a good manager knows there are other important ways to motivate people. As a Wharton grad, Raj Rajaratnam knew full well the benefit of patting lessors on the head to make them feel like a valuable member of the team so they continue to strive for your approval and affection. Take Anil Kumar. In 2006 he informed Raj of AMD’s plans to acquire ATI Technologies, in a project that was code-named ‘Supernova’ and ‘Go Big.’

Initially, the Galleon founder almost didn’t believe the tip. “This is completely ridiculous, it makes no sense. … Are you absolutely sure?’” Kumar, testifying Monday, said Rajaratnam told him. Once Kumar confirmed it was true, a grateful Rajaratnam told him, “Wow, this is really useful.” And then later:

After the deal was announced, Mr. Kumar said, Mr. Rajaratnam told him, “We’re all cheering you right now. … He said something like, ‘You’re a star, or you’re a hero.”

Anyone with a cash cow on their payroll would be wise to take note.

Galleon Witness Testifies of ‘Super Confidential’ Deal Tips [WSJ]

Article courtesy of Dealbreaker

ARMH: Bloomberg Mulls Takeover Prospects

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Rather curious piece this morning by Jonathan Browning of Bloomberg regarding ARM Holdings (ARMH), which Browning characterizes as “the most expensive takeover target in the semiconductor industry since 2006.”

Browning notes that it would cost an acquirer $11.7 billion to buy ARM, and that at 59 times forward earnings estimates, the stock would be more expensive than any semiconductor takeover since ATI Technologies was bout in 2006 by Advanced Micro Devices (AMD).

Paul Morland, an analyst at London’s Peel Hunt tells Browning that any acquirer, had they actually been interested, would not have waited this long, allowing the shares to soar in value.

Article courtesy of Tech Trader Daily