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Shares of solar installation firm SunEdison (SUNE) today rebounded in a big way, closing up $1.03, or almost 12%, at $9.72, after falling almost 4% yesterday, after Monday's after-hours announcement the company will cut 15% of its workforce in an effort to "align" itself "with current and future market opportunities" and to "accelerate cash flow positive operations."
CEO Ahmad Chatila this morning gave a talk to analysts that "YieldCos have been impacted by the turbulence in the energy markets," and that "while we believe the underperformance is driven by technical factors rather than a change in the underlying fundamental structure, we need to adjust our tactics, at least in the short to intermediate term, in order to maximize shareholder value."
He said the company would "change tactics" by siphoning off some solar projects to third parties, or to a "warehouse," rather than claiming all of them for the YieldCo, TerraForm Power (TERP). He also said the company would more aggressively look to cut its "cost per watt" by Q2 of next year.
During the Q&A, CFO Brian Wuebbels explained that under an agreement with J.P. Morgan, the company will "get our return of equity at the time when we drop a project into that warehouse." Wuebbels also said SunEdison "will drop no assets to TerraForm" or to another YieldCo., TerraForm Global, out of a remaining 2.5 to 2.7 gigawatts worth of project "retained" for 2016.
Responding to the call, Roth Capital Partners's Philip Shen, who doesn't formally cover SunEdison but covers solar energy names such as JA Solar (JASO), writes of the SunEdison plan "we believe management presented a credible plan to manage through the current yieldco dislocation" and that "We see a positive read through for much of our solar universe."
Although "The earnings power of SUNE remains unclear," Shen believes there are several positives in all this:
(1) SUNE does not plan to drop ANY assets down into TERP or GLBL in 2016, which allows Terraform Power (TERP – Not-covered) or Terraform Global (GLBL – Not-covered) to delay raising equity; (2) Company is pivoting to greater third party sales—approximately 45% of 2016 MW vs. prior expectations of 5-10%; (3) According to management, pricing for assets does not appear to have been reduced as cost of capital remains the same for strategic and utility buyers. Additionally, yieldco renewable asset demand may only represent 2-3% of overall demand; and (4) There does not appear to be a need for near-term capital given SUNE's ~$5bn of warehouse facilities. Additionally, there does not appear to be much near-term risk of forced, untimely project sales as projects can stay in two warehouses for five years, in another for seven years, and the final one is open-ended.
Shares of design software maker Adobe Systems (ADBE) are down $4.89, or almost 6%, at $80.27, after the company yesterday gave an update to the Street on its outlook, after market close, projecting total revenue and earnings for the fiscal year ending in November of 2016 below consensus
The remarks were made at Adobe's annual financial analyst meeting, and somewhat overshadowed its discussion of new products such as "CreativeSync," software for rich media asset workflow.
Bulls today are urging investors to look past the fiscal '16 view and instead focus on the company's outlook for its three-year growth trajectory, with a pledge of EPS growth, on a non-GAAP basis, of 30%, compounded annually, from this year through fiscal 2018, and revenue growth of 20% per annum during that period.
The major other theme is the company's forecast for a level of spending that some view as high. The bulls argue the company is perhaps projecting more spend than they will actually carry out, and that profit, therefore, may show upside.
Among bulls on the stock, Deutsche Bank's Nandan Amladi reiterates a Buy rating and raises his price target to $90 from $85, writing "On the surface, lower guidance for FY16 whipsawed the stock after hours tonight, but a deeper look shows previous guidance effectively unchanged, with FX adjustments and the continuing license transition."
He's bullish given "over 70% of Adobe's revenue now recurring in nature and a bold but achievable three-year growth model issued today."
Jefferies & Co.'s John DiFucci reiterates a Buy rating, and a $92 price target, writing that the "revenue guide-down is defensible given FX movements and greater subscription adoption across ADBE's portfolio."
"The real surprise is 15% growth in operating expenses for FY16 and compounded through FY18. We see conservatism on the margin guide, with top line growth and corresponding LTV remaining priorities."
RBC Capital Markets's Ross MacMillan reiterates an Outperform rating and a $100 price target, writing that "implied opex CAGR of ~15% seems high in a historic and absolute dollar context," but that "the good news is that we think the market will pay for higher growth and it's clear that margin optimization is still in play for beyond FY18."
Mgmt. is clearly more bullish on the opportunity and we think is trying to calibrate expense expectations to the upper boundaries of what might be required to drive growth. Our model is a compromise, where we expect both slightly less revenue and expense growth than that implied by guidance.
MacMillan cuts his 2016 and 2017 estimates, but raises 2018 to $8 billion and $5 per share in earnings from a prior $7.69 billion and $5.21.
Citigroup's Walter Pritchard reiterates a Buy rating, but cuts his price target to $99 from $104, writing that "We had expected 4Q15 (Nov) was the peak of FX impact while fairly aggressive hedging program has deferred the impact to peak in 1Q16 with a longer tail than we modeled."
"We have adjusted top line for this and more ratable recognition of Acrobat and marketing products."
Operating expense projections are high, he thinks:
Long-term guidance suggests 20% top-line growth and 30% EPS growth for FY15-18. We remain slightly above these ranges. As we expect the market to get over impact of FX quickly, the debate that is likely to persist is whether management will grow OpEx at the implied 15%+ rate from FY15-18. This level looks high and while there was more color than before to justify the ramp, we note that management has never spent to guidance and we expect profitability still holds upside.
Among the bears, Credit Suisse's Philip Winslow reiterates a Neutral rating, and cuts his price target to $65 from $75, writing about something else entirely: The company is further along in moving its users to its subscription usage pricing, which may mean less upside for growth:
In addition to its 5.3 million Creative Cloud (CC) subscriptions (for which the company provides regular updates each quarter), management revealed that Adobe also has approximately 3.3 million seats from CC ETLAs for a total of 8.6 million subscribers, which we believe is far higher than Wall Street had previously believed. Although management suggested that another 8.3 million Creative Suite users have yet to convert (implying an installed base of 16.9 million), Adobe had stated that its Creative installed base equaled 12.8 million at its Financial Analyst Meeting in 2013. Comparing these two disclosures is a bit "fuzzy," as we would view a 32% increase in the creative user base in only two years as rather unlikely. If the installed base is indeed close to 12.8 million, then Adobe's current base of 8.6 million Creative Cloud users is well past the half-way point of its adoption curve. Therefore, although we believe that Adobe can achieve its revenue CAGR targets through FY2018, further growth beyond these levels will be predicated on sustained adoption of the Creative Cloud Photography Plan by non- traditional hobbyist users, which is a more difficult market to estimate.
Another bear, Wunderlich's Rob Breza, who has a Hold rating on the name, and a $90 price target, also has a problem with the "model transition" of the business: Why isn't it more predictable?
With approximately 77% of the model transition behind the company, we believe results should be more predictable. However, results continue to disappoint, which will likely have investors pausing. Inconsistent results over the past few quarters combined with a premium valuation and reduced estimates will likely negatively impact near- term performance until a more consistent performance record is established.
Morgan Stanley's Keith Weiss, who has an Equal Weight rating, and an $84 price target, writes that the fiscal '16 outlook is not too concerning" because "once adjusted for ~$200M FX headwind vs last update in Dec '14, and ~$100M impact from transition of perpetual licenses to subscription within Digital Marketing, numbers would have been essentially unchanged."
But where he's not as happy is that "having wrung significant efficiencies out of the business during the cloud transition, opex likely grows more robustly going forward – limiting one avenue of upside."
The Street today is pondering what to make of Samsung Electronics's (005930KS) report today of better-than-expected Q3 profit, as related by my colleague Shuli Ren.
Among those stocks apparently getting a lift are wireless chip maker Skyworks Solutions (SWKS), which had seen some weakness yesterday after failing to deliver the upside in its forecast some were hoping for given its prominent position as a supplier to Samsung. The stock today is up $2.07, or 2.6%, at $82.78.
Another supplier to Samsung is Universal Display (OLED), which has provided fundamental enabling technology for Samsung's development of screens based on organic light-emitting diodes. Universal shares are up 52 cents, or 1.5%, at $36.07.
Cowen & Co.'s Robert Stone, who has an Outperform rating on Universal Display, and a $60 price target, writes of the Samsung report that the "strength appears to have come from AMOLED displays and LSI logic."
That jibes with what he observed in meetings in Asia recently.
"When we visited Seoul in September, Samsung noted rising shipments to other OEMs along with better Y/Y compares for Galaxy models. We note recent models including Google Nexus 6P, and Microsoft Lumia 950/950 XL."
Other makers using OLED include Hauwei, Micromax, and Oppo, he notes.
Following the opening of trading this morning of Pure Storage (PSTG), the upstart storage vendor that is using NAND flash memory chips to challenge incumbents EMC (EMC) ant NetApp (NTAP), CEO Scott Dietzen was kind enough to take a few minutes to talk with me at the New York Stock Exchange.
The shares traded below their IPO price of $17 at the open, and are now at around $16.24. But the mood of the hundred or more Pure employees, bankers and well wishers gathered in a boardroom at NYSE, which was festooned with the company's orange color scheme, were upbeat, if not exuberant.
Now comes the hard part: Peer Nimble Storage (NMBL) is down about 30% from its IPO on December 13th of 2013; and Violin Memory (VMEM), another all-flash upstart, is down about 76% since its debut on September 27th of that year.
At least Pure's shares haven't plunged today, as Violin's did back on their first day. But they also haven't soared as Nimble's did at the IPO.
And so I asked Dietzen the most important question: Why orange? noting that the employee gathering looked like a Princeton University reunion.
Said Dietzen, who had on an orange tie and orange socks, "We wanted something that would stand out." IBM (IBM), EMC, and NetApp are all blue, he pointed out.
How is Pure different? They are different from the big firms like EMC in bringing greater software compatibility to systems built around flash memory chips, claims Dietzen, so that you can easily move your data from traditional systems that use mostly disk drives.
Within the so-called "tier one" storage inside the enterprise, mission-critical stuff, a $24 billion market, most is disk, highly reliant 15,000-rpm drives and the like, with only about a billion dollars in annual sales of equipment using NAND flash chips.
"We set out to fix a system that is too fragile, too complicated, and too slow," he said of drives. NAND chips had cost four times as much as disk a few years ago for comparable capacity, but have now come down to less than the cost of disk, he observed — proof, to Dietzen, that it's worth riding the cost curve of Moore's Law and semiconductor progress as it makes NAND ever more efficient.
He cites anecdotes of how Pure Systems pay for themselves several times over in a matter of a few years. "A customer of ours moved data onto a $500,000 storage system from us, and they were shrinking their server footprint, and they were able to save $8 million over three years," he says. Much of that comes from reducing operating expense for storage, he claims, which is generally viewed to be a bigger cost for IT than the up-front purchase price of technology.
By contrast, traditional disk systems take two years to provision and transfer data, and then another two years to decommission when upgrading equipment, he says, because of the complexity of those systems. Which to him means that enterprises are spending four out of every six year replacement cycle just setting up and taking down equipment rather than actually using it.
What happened to Fusion-io, which got bought out last year by SanDisk (SNDK), after struggling financially, and Violin, which is trying to make a comeback under CEO Kevin DeNuccio.
"They got the flash part right," but as far as everything else they were supposed to deliver — greater economy, ease of use, etc. — "they didn't deliver any of those things," he claims. Dietzen says the focus has been on greater software compatibility with existing applications and systems software, to smooth the path for customers coming from existing enterprise equipment.
"Their customers had have all their own software teams to develop for those products, and our customers don't need that," he claims.
Dietzen regards Nimble as being in a different part of the market entirely. "they are playing to capacity," he says, implying low-value, commodity storage, versus the high-end, high-reliability systems Dietzen says Pure is focused on.
Nimble, for whom Dietzen has a high regard as a company (he speaks warmly of CEO Suresh Vasudevan) uses a blend of disk and flash, rather than the "all-flash" approach of Pure. And Nimble has traditionally been selling more to small and medium-sized businesses, though it is moving up to enterprise sales more and more.
As for EMC, the response is already evident. "You see they've been promoting Xtreme-io more and more," he observes, of the EMC all-flash offering. "That's an admission that the old stuff is less and less sufficient for the task."
We also talked about growth, and profit, or lack thereof.
Pure had $159 million in revenue in the six months ended in July, up 169% from the prior year's level, and closing in on the $227 million that Nimble made in the fiscal year that ended this past January.
But Pure has a ways to go to catch up to Nimble on profitability, having lost $112 million in that period, a negative 70% margin, versus Nimble's loss of $96 million, or negative 42%. That disparity in operating performance is despite the fact that they have similar gross profit margin. Pure's gross profit on that $159 million is not bad — $94 million, or 59%. But the operating expenses of $205 million overwhelm that. Nimble's gross profit is more like 65%.
(More details are available in the company's prospectus on file with the Securities and Exchange Commission for the IPO.
He notes, "We are are growing much faster than Nimble," whose sales are expected by the Street to rise 48.5% this year. "We are are growing at this meteoric pace," he says. "We're fast than a lot of the names out there, such as Palo Alto Networks (PANW)."
"For each additional dollar of operating expense we've taken on, we have grown an additional $1.50 of revenue," he points out. He won't say when or at what threshold of sales the company will reach breakeven. "Our intent is to continue to invest, but also to continue at the same time the productivity improvements we are bringing about."
"If we slowed down our pace of growth, we could be profitable much more quickly. But we're adding to marketing, to sales, and to support and operations," says Dietzen. Pure has 1,000 employees at the moment. "Growth is expensive."
If you want further background on Pure, an interview I did with him in May of last year still has some interesting background on the company's approach and the storage industry.
Junheng Li with boutique research shop J.L. Warren Capital this morning opines that Apple's (AAPL) rollout of its iPhone 6s is failing to meet expectations, citing as the main reason a failure of the Chinese market to deliver.
"According to information and/or data readily available from AAPL suppliers, we consider that the iPhone 6s initial launch in the 12 markets globally, is not meeting market expectations," writes Li.
Oddly enough, although Apple announced on September 28th that its first-weekend sales of the 6s beat last year's 10 million for the iPhone 6, selling more than 13 million units, Li argues the result was underwhelming.
"During the first week (including weekend) or 3 days post launch, we estimate ~13million units were sold. This number is lower than original expectations, largely due to an overestimated demand from mainland China."
Li cites some China market data from something called Gray Market Marker, which apparently collects the price of iPhones trading on the black market:
AAPL launched the iPhone 6s simultaneously in Hong Kong and mainland China which cannibalized sales in HK. According to the largest grey market make [sic] a consumer electronics trading platform, the current spot prices for many models even on the launch data (9/30/2015) were below the official retail prices, unprecedented in the iPhone launch history. In total, we estimate that ~2.5-3 million of units of the 6s were sold in the mainland and ~1.5 units sold in HK. In comparison with previous years iPhone launches, when the mainland was not included in the initial launch, only 30% of the 6s purchases were from mainland, vs. 50% in previous years.
(One point not addressed by Li is whether the premium can be expected to be lower, or even absent, precisely because the iPhone 6 was only available on the black market last year, having been left out of rhr first round of retail sales.)
Li offers one explanation for why she thinks sales to China are below plan: "Since ZTE and Huawei already launched smart phones with 3D force touch, the new screen is not novel to Chinese consumers."
Li also offers some other tidbits, such as that the iPhone that comes in rose gold finish was the best seller, making 45% of sales.
As for the outlook, she opines,
We believe that China is the biggest moving piece for AAPL's global sales in 2015, given it is about 20+% of the company's global market and the demand for the iPhone is growing at ~20% according to our research. We currently project 200 million units of sell-in for iPhone 6/6+ and iPhone 6s/6s+ combined in 2015, which is 10million sell-through units lower than, the current street consensus.
Apple shares today are down 81 cents, or 0.7%, at $110.50.
Shares of flash memory-based enterprise storage startup Pure Storage are getting set to start trading on the New York Stock Exchange, under the ticker "PSTG," where I gathered with company employees this morning, after being invited to observe from the floor as CEO Scott Dietzen and fellow executives rang the opening bell.
Dietzen is formerly the head of application development at Yahoo!. His company raised $470 million in private financing prior to this offering.
More on Pure and Dietzen in an interview I wrote here in May of 2014.
The stock priced at $17 last night, for 25 million shares, the middle of an expected pricing range of $16 to $18.
Pure competes with Violin Memory (VMEM) and Nimble Storage (NMBL) to an extent, though its target, like a lot of these younger companies, is storage giant EMC (EMC).
Everyone on the floor is accented with some accessory — scarf, tie, socks — in the company's signature orange.
We're waiting for an indication of price. Wire service TheFlyontheWall is saying it may be below, perhaps $16.50.
Update: Pure has opened below the IPO price, at $16.74, and is now at $16.81.
Looking for chip takeout targets in the wake of Skyworks Solutions's (SWKS) proposed $2 billion takeover of PMC-Sierra (PMCS)?
Sterne Agee CRT's Douglas Freedman today proposes Maxim Integrated Products (MXIM), the $9.7 billion (market cap) maker of a broad variety of semiconductor parts, from battery management chips to analog filters to transceivers to "NFC" wireless tags.
Freedman, who has a Buy rating on Maxim stock, sees companies such as Texas Instruments (TXN) as logical acquirers for Maxim, though he's not trying to coax any deals out of anyone, he writes:
Should SWKS have not acquired PMCS, we view PMCS as a potential strategic acquisition for MXIM given the company size and product synergies. Additionally, we also crossed SWKS off the potential buyer list that we think could acquire MXIM given the announcement. However, we still think it makes sense for Texas Instruments (50.20, Buy), NXP (83.42, Buy) and Microchip (MCHP, $45.08, NR) to acquire MXIM, adding incremental benefits from diversification and sales synergies. We are not trying to put any companies "in play", but simply trying to point out where logical pairs might occur on the basis of products, markets, and managements. We also don't see other bidders for PMCS at this point, but we do see the deal synergy can also come from other buyers such as Marvell (MRVL, $9.38, not rated), Western Digital (WDC, $82.99, Buy. Cihra), Seagate (STX, $46.18, Neutral, Cihra), SanDisk (SNDK, $61.25, Neutral) and Micron
Shares of data center and cloud purveyors Rackspace Hosting (RAX) declined 13 cents, half a percent, to close the session at $25.74, even after the company this morning announced a partnership to support Amazon.com's (AMZN) Amazon Web Services, confirming speculation last week by The Wall Street Journal's Robert McMillan.
In the release, Rackspace said it will provide a variety of different fee-based services, including running all of a customer's operations on AWS, or more limited offerings such as security monitoring. Amazon executive Terry Wise was quoted as saying "A growing number of businesses who want the benefits of the AWS Cloud will find value in working with AWS Managed Service Partners like Rackspace."
Amazon actually declined $6.20, or 1%, to close at $537.48.
Analysts had been pondering the possibility of an Amazon deal following a partnership announced this summer with Microsoft's (MSFT) Azure cloud computing operation.
Gray Powell with Wells Fargo, who has an Outperform rating on Rackspace shares, writes that "we expect this will benefit new and existing customers that want AWS Cloud but also want RAX customer support." There's likely to be "limited revenue impact in the near-term," but "it should help RAX address a broader market and improve margin profile."
Evercore ISI's Jonathan Schildkraut, who has a Hold rating on Rackspace, writes that "we support the strategic shift to offer Fanatical Support on third party infrastructure, where AWS has dominated customer adoption," but that "we remain concerned" because:
(1) the market for AWS support services is highly competitive, (2) leading providers in the space are generating only $100MM of annual revs (relative to RAX's current $2.0B+), and (3) we see a long lead time to establish revenue generating contracts and secure lighthouse customers. Thus, even if RAX were successful in building a market position – against an existing $2.0B+ revs business – the new strategic direction is unlikely to reverse decelerating top-line growth any time soon.
Piper Jaffray's Gene Munster, who has an Overweight rating on Amazon shares, thinks this confirms the "winner take all" nature of cloud:
This confirms the trajectory of the cloud storage and computing space: winners take all, high-touch servicers thrive through partnerships. We believe this space is set to continue to consolidate toward key winners (AWS, Azure, and Google), while others focus on offering higher-touch services for integration, management, and optimization.
Microsoft (MSFT) shares closed up 12 cents today at $46.75, after the company held an event in New York City this morning to unveil new models of its "Lumia" line of smartphones, its "Band" wearable fitness bracelet, its Surface tablet computer, and also a new laptop, a version of Surface called the "Surface Book," which people some think could make the PC market even tougher for Microsoft's many partners, such as Hewlett-Packard (HPQ).
Just a trickle of sell-side notes have come over the transom so far in response.
FBR & Co.'s Daniel Ives, who has an Outperform rating on the company, and shared his thoughts with clients yesterday prior to the event, and who was at the event, today writes that
"While the new hardware products look impressive, it all comes down to consumer adoption as Microsoft aggressively tries to change its consumer image,"
It's a tough battle against Apple (AAPL) and others in mobile, but at least they've made big strides in terms of the technology, writes Ives:
At today's event it is clear from presentations as well as speaking with the Microsoft team that Redmond feels that Windows 10 will help finally vault Microsoft into relevance on the smartphone landscape. In our opinion the company has done a commendable job narrowing the gap from a technology perspective on both Surface and Lumia vs established stalwarts to at least get Microsoft into the conversation among consumers. That said, this is going to be a long road for Nadella as Microsoft plays major catch-up on this key market, with all hopes relying on Windows 10 to brighten the consumer growth prospects for the company after years of walking aimlessly in a dark forest under the reigns of Ballmer.
Cowen & Co.'s Gregg Moskowitz, who has a Market Perform rating on Microsoft shares, writes that the Surface Book was the most important announcement, and a "nice surprise."
Moskowitz writes that "even some MSFT insiders we spoke with professed surprise at its release."
He thinks the 13.5-inch notebook-and-tablet combo is has "high-end innovative features such as a unique and distinctive hinge," and that with a starting price of $1,499, "Surface Book appears to be priced at a reasonable level."
In fact, he presents the following comparison of the Book and other machines (click on the image to see it larger):
Shares of communications chip maker PMC-Sierra (PMCS) soared $2.55, or 33%, to close at $10.24 today, just below the $10.50 that wireless chip maker Skyworks Solutions (SWKS) proposed last night to acquire the company in an all-cash deal.
Skyworks shares slipped on the deal, closing down $1.16, or 1.4%, at $80.71, even though the company simultaneously raised its outlook for the FYQ4 ended in September above consensus expectations.
There were no ratings changes on either stock today, that I can see, and most estimates and targets are staying put. The outlook for this quarter, many said, is not what many wanted to hear given that Skyworks is supposed to be showing more upside based on sales of chips into Apple's (AAPL) iPhone 6s and Samsung Electronics's (005930KS) "Galaxy Note"
I'd note that Avago Technologies (AVGO), which is a rival to PMC in the data center, was not enjoying this newfound competition, the shares declining $4.11, or 3.4%, to close at $117.11. Skyworks competitor Qorvo (QRVO) traded down by 49 cents, or 1%, to close at $44.28.
Mostly, the bulls stood up for the savvy of Skyworks's deal, even though the storage and server products of PMC are a different market from Skyworks's focus on mobile and wireless.
Citigroup's Atif Malik, who just started coverage of Skyworks, reiterates his Buy rating, writing that the deal will expand profitability:
PMCS with storage/networking centric end market exposure (88% of sales with remaining mobile) should help expand SWKS' broad-based market sales mix to low 30% from the current 25% of sales. Moreover, the acquisition should help drive the L/T $7 EPS target in C16 to +$8-$8.50 in C17 which is a key area of investor focus based on initiation feedback we received last week.
Canaccord Genuity's Mike Walkley, who has a Buy rating on Skyworks shares, and a $132 price target, writes that the raised outlook is about as he expected, and he opines Skyworks probably saw "content share gains" in the quarter "in the iPhone 6 and Samsung's Galaxy S6 smartphones combined with our belief Skyworks gained additional content share in the new iPhone 6S smartphones and Galaxy Note."
Walkley thinks there are no "synergies" between Skyworks's wireless revenue and the storage and server ambitions it has for PMC's chips. "However, we believe management has a strong track record in successfully integrating acquisitions and will achieve the majority of its $75M in cost synergy targets exiting C2016 assuming the deal closes by Q2/C2016."
Walkley raises his 2015 estimates to $3.258 billion in revenue and $5.27 per share in EPS from a prior $3.25 billion and $5.26. For 2016, his numbers go to $3.869 billion in revenue from $3.779 billion, while his EPS estimate goes down to $6.28 from $6.41.
Likewise, Ian Ing with MKM Partners, who has a Buy rating on Skyworks, and a $130 price target, writes of the outlook that "this may be viewed as disappointing given SWKS' positive content trends in AAPL iPhone 6s ramps and a reliable track record for at least a slight 'beat and raise' most quarters."
"Although we think secular growth and complexity trends in RF remain intact for some time, the near-term will be subject to data points on iPhone sell-through."
Oppenheimer & Co.'s Rick Schafer, who has an Outperform on Skyworks stock, and a $120 price target, writes that the sell-off is because of "only modest F4Q (Sept) sales/EPS upside of $880M/ $1.52 vs. consensus' $875M/$1.51 ests." Investors are worried about "decelerating handset growth, particularly in China," but Schafer thinks that's "overdone and an opportunity for longer term investors."
"We applaud the deal's top-line diversification and accretive nature," especially since, "Post synergies, SWKS/PMCS should boast GM/OM of 55%/40%, near the very top of semi group profitability."
He thinks Skyworks will do more deals: "Importantly, we do not believe this deal will change SWKS's appetite for M&A, and we expect mgm't to remain acquisitive; we continue to believe SWKS will still look to add on analog and sensor IP, to complement its offerings in mobile and IoT."
Mehdi Hosseini with Susquehanna, who has had a "Positive" view on PMC stock, had a couple of suggestions for Skyworks management, including ways to divest portions of the portfolio:
SWKS noted on the call they don't intend to divest any portion of PMCS post acquisition closure though we disagree and don't rule out divestiture of PMCS's PCIe biz unit. We note that revenue synergies were not baked into the acquisition synergies that SWKS outlined in the press release yesterday evening […] Our view is that there are two main areas where SWKS could scale certain biz/revenues acquired from PMCS: 1) OTN Networking, particularly with regard to Huawei (China market); and, 2) SAS I/O controllers. Furthermore, we note that cost synergies outlined (reduction to opex of $75M by YE16) were in addition to whatever PMCS already had underway, which is unclear if it includes the $40M opex reduction related to the acquisition of HP RAID Software and the exiting of the Remote Radiohead business announced last quarter.
He notes PMC was already on path to take some share in the datacenter from Avago:
We note that AVGO is the primary competitor in the SAS I/O market though has lost some market share to PMCS, which we attribute to AVGO's distraction with other business endeavors (acquisitions, more material business lines). Given design wins in the 12Gb (from 6Gb) SAS transition, PMCS had planned to take an incremental 10% share, primarily from AVGO, yielding an additional ~$75M by 2H16.
Vijay Rackesh of Mizuho, though, thinks you should buy both Avago and Skyworks:
Diversification, Execution and FCF a cornerstone for AVGO and SWKS and make them both attractive here. We would note AVGO has ~40% exposure to wireless, with Datacenter ~25% and Wired Communications ~25% and rest 10% industrial. We would note post the PMCS deal, SWKS will have wireless ~45-50%, storage ~10%, Optical 5%, Linear(industrial, automotive)~35%. Also, we continue to see AVGO and SWKS focused on execution and driving significant FCF post the deals.
Even some bears were mildly impressed. Angelo Zino with S&P Capital IQ reiterated a Hold rating on Skyworks, and cut his rating on PMC to Hold, while admitting that "PMCS will enhance SWKS margin profile and will also provide greater diversification given its exposure within the storage, optical and mobile network arenas."
Tech Trader Daily is a blog on technology investing written by Barron's veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: email@example.com.


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StarbucksRead MoreFor the perfect jolt of caffeine, look no further than Starbucks. Gluten-free and low-fat eaters will enjoy the menu at Starbucks. Dine out in the open during Starbucks' summer season when patio tables are available for use. Check email, shop online, or get the latest game scores on Starbucks' free wifi. With parking onsite, it's easier to get straight to our delicious food. Bikers can store their bikes safely while they enjoy a meal at Starbucks. So when you need a morning boost, treat yourself to a cup of Joe from Starbucks.440 N Estrella PkwyGoodyear, AZ US
Dream SwirlsRead MoreCuisine Type: Self-serve frozen yogurt, ice cream Most popular offering: Custom made smoothies, frozen yogurt Kid-friendly: Yes Number of Tables: 11–25 Outdoor Seating: Yes Established: 2013 Parking: Parking lot Handicap Accessible: Yes Pro Tip: Create your own frozen yogurt sundae or enjoy a custom-made smoothie Q&A with Lizzy, Owner In your own words, how would you describe your menu? We offer 10 flavors of frozen yogurt, as well as more than 50 toppings and sauces, to make the perfect sundae. We also offer custom-made smoothies that start with a delicious non-fat vanilla frozen yogurt base and incorporates the toppings of your choice for a perfect smoothie, whether is be a chocolate bomb or fruity refreshment. We sell it by the ounce, so get as little or as much as you like. What's the best reaction you've ever gotten from a customer? That our store is clean, our staff is friendly, and our product is creamy and delicious. Is there anything else you want to add that we didn't cover? You can reserve the patio for a birthday party or event. It's partially covered and has misters to keep you cool. We also offer weekly specials, and active military members receive 10% off everyday.15570 W. Van Buren St. Ste D-101Goodyear, AZ US
Papa Murphys Take n BakeRead MoreIf you are in search of a satisfying meal that won't cost a fortune, then look no further than Papa Murphys Take n Bake on W Van Buren St. Whether you are visiting for the great quality, lightning-fast service, or both, you'll always leave this restaurant satisfied. There's not really a recommended attire, so feel free to dress comfortably. Also, though the prices may be low, you can bank on the ingredients being fresh. If you're in a hurry, you can always take advantage of the convenient take-out offerings. One of the better pizza chains in the area, a trip to Papa Murphys Take n Bake is definitely worthwhile, no matter how you slice it.15570 W Van Buren StGoodyear, AZ US
Arizona Pet VetRead MoreArizona Pet Vet is a network of 17 animal hospitals peppered throughout the Valley area. The veterinarians use modern treatments and therapies to care for animal companions, treating each pet like an important member of its owner's family. The company doles out tips for bringing home a new pet on its website and exhibits evidence of the animal kingdom's capacity for cuteness on its Facebook page.380 North Estrella ParkwayGoodyear, AZ US
Indulge Culinary AcademyRead MoreWith classes for both adults and children, Indulge Culinary Academy does its part to create a new generation of kitchen wunderkinds. Luckily, it also whips up sweet treats at its bakery. Freshly-baked, made-to-order desserts spring forth from the ovens there, each item made from scratch and occasionally covered with frosting.560 North Estrella ParkwayGoodyear, AZ US
Knight AcademyRead MoreWhat services does your business offer and what makes your business stand out from the competition? Knight Tutoring LLC/Knight Academy has been serving the West Valley for over three years. With our new state-of-the-art facility we are now able to offer more classes that meet the needs of a larger audience. Do you provide any materials? What should your students expect to bring? We will provide a PowerPoint presentation for each of the four (4) classes. Students are encouraged to bring their own laptop computer to each class. What was the inspiration to start or run this business? Scott Knight, the current CEO of Knight Tutoring, has always had a passion for helping others learn. He started working with small groups of children in local charter schools reinforcing math concepts. Knight Tutoring now offers a much wider range of services to help make learning enjoyable.560 North Estrella ParkwayGoodyear, AZ US

subset: commoncrawl


text:
34503EDIT- Gregory Z 55 – Initial Report – Ed Morse
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- Jun 1, 2007EDIT- Gregory Z 55 � Initial Report � Ed Morse
Nice job on the report. A few Edits and then please upload.
EDIT: Therm-a�Rest
The picture caption is also incorrect.
Here I have my old Thermorest strapped to the bottom of the pack. The front
pocket zipper is closed in this view.
EDIT: may instead of my
Essentially I am told to hand wash with a mild detergent or soap solution
and stubborn stains my require use of a soft bristle nylon brush.
[Non-text portions of this message have been removed]
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text:
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Performs diversified duties relating to food service, including food preparation and cleaning. Responsibilities Prepares, assembles and delivers patient - Indeed
Assists with ADLs and rehabilitation techniques on the nursing unit to maximize patient recovery. Assists patients in the inpatient nursing department in the... - Indeed
For over six decades, Kessler Institute for Rehabilitation has pioneered the course of physical medicine and rehabilitation.... - Indeed
Reinforces rehabilitation techniques as directed to maximize patient recovery including:. Assists patients in the inpatient nursing dept in the rehabilitation... - Indeed
Performs diversified duties related to departmental guidelines for menu implementation and maintenance fo departmental office systems. Follows standard - Indeed
Operates the switchboard and page system. Acts as Institute receptionist. Provides supportive clerical services to various departments. Responsibilities - Indeed
Provides support to the Materials Manager to ensure efficiency of service. Assists in purchasing and delivery of supplies; equipment and services upon receipt - Indeed
Organizes clerical functions of the nursing unit, including communication, record keeping, logs and patient information. Notifies the nursing staff and/or - Indeed
Throughout the country we operate primarily as Select Physical Therapy, NovaCare Rehabilitation, Kessler Rehabilitation Center and KORT.... - Indeed
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takes place in a grimey northern pub. no doubt bolton offered sunderland £20, a few pints and a chip curry and rice meal down tut' pub. to which sunderland replied alrighht pet'i hate bloody bolton!!!
me too mate. Horrible team, despised since Fat Sam was the main man. Did you see the state of him today on Sky Soccer Saturday. Rent a suit. Fat #$%$.
heythat was the man the southern press stood for when we were being a laughing stock/circus when keegan came back...... the point is the press are'nt us (footy fans)p.s.what the #$%$ are you's thinking of voting that tory bumbling snob in? shame on you's who did it.