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From Briefing.com: 4:30 pm : Strength among financials helped the broader market fend off the challenge of another midsession sovereign debt downgrade and a late flurry of selling. The latest FOMC policy statement had no real effect on trade.

Early trade was rather choppy, but the action was generally positive as stocks sported broad-based gains. Buying came largely as a reflex to the outsized losses that dropped stocks in the prior session.

Another big batch of upbeat earnings and a moderately weaker dollar helped support the improved mood. However, the broader market quickly reversed into the red when news was released that analysts at Standard & Poor's downgraded Spain's credit rating to AA from AA+. Though Spain's debt is still investment grade, a knee-jerk selling effort still followed the announcement, which came just one day after Standard & Poor's cut its rating for Portugal and Greece.

Volatility also spiked and sent many participants back to the dollar, which swung from a modest loss to a 0.4% gain. The greenback gradually gave up its gain and with a 0.2% loss, while volatility cooled and the Volatility Index closed down 7.5%.

Financials were a primary source of strength in the broader market's rebound. The sector also offered leadership as sellers redoubled their efforts in the final hour of trade. Financials settled with a 1.3% gain, which was the best of any major sector.

Relative weakness among large-cap tech issues hampered the Nasdaq, however. It lagged for the entire session and closed flat.

The latest policy statement from the Federal Open Market Committee proved to be a nonevent. The FOMC indicated that the fed funds target rate remains unchanged at the range 0.00% to 0.25%, as expected, and that rates will stay exceptionally low for extended period.

With the policy statement out of the way, many participants turn their focus to the weekly jobless claims count tomorrow and then the first quarter GDP reading on Friday.

Advancing Sectors: Financials (+1.3%), Energy (+1.1%), Materials (+1.0%), Utilities (+0.9%), Industrials (+0.8%), Health Care (+0.7%), Consumer Staples (+0.6%), Telecom (+0.5%), Tech (+0.2%)
Declining Sectors: Consumer Discretionary (-0.3%) DJ30 +53.28 NASDAQ -0.26 NQ100 +0.1% R2K +0.2% SP400 +0.2% SP500 +7.65 NASDAQ Adv/Vol/Dec 1412/2.66 bln/1284 NYSE Adv/Vol/Dec 1809/1.44 bln/1222

6:36PM Palm trades ~27% higher after hours following news that HPQ will acquire the co (PALM) 4.63 -0.02 : See 16:05 comment

5:33PM Interdigital Comm misses by $0.12, reports revs in-line (IDCC) 28.35 -0.13 : Reports Q1 (Mar) earnings of $1.09 per share, $0.12 worse than the Thomson Reuters consensus of $1.21; revenues rose 64.6% year/year to $116.2 mln vs the $116.8 mln consensus. Co states, "Regarding the sequential increase in operating expenses from fourth quarter 2009, approximately $6 million of that increase relates to increases in arbitration and litigation expenses, an adjustment to the company's long-term compensation accrual and seasonal increases in the first part of the year. For second quarter 2010, a portion of the seasonal increases in expenses will recur. Given the opportunity to further generate near term revenues from our SlimChip modem core platform, we expect to see a moderate increase in development expense in second quarter 2010, but this increase will be offset by associated revenues. Expenses for arbitration and litigation will be driven by the level of activity in those areas."

4:19PM AXT Inc beats by $0.04, beats on revs (AXTI) 4.09 +0.38 : Reports Q1 (Mar) earnings of $0.08 per share, $0.04 better than the Thomson Reuters consensus of $0.04; revenues rose 141.6% year/year to $18.6 mln vs the $16.7 mln consensus. "This was another very good quarter for AXT," said Morris Young, chief executive officer. "We have continued to experience solid demand for our products across all of our primary markets, driven by significant and extended market trends, such as the rapid expansion of wireless devices and subscribers, the increasing momentum in the adoption of LED technology and the growing interest in solar energy. Further, our own execution has been strong throughout our engineering, manufacturing, sales and administrative functions. We have had tremendous success in continuing to develop our valuable, long-term customer relationships as well as penetrating new customers and new opportunities to drive our growth and diversify our base. In addition, our efforts to restructure and refocus our organization over the past nine months are resulting in tangible benefits in our efficiency, productivity and profitability - creating a solid foundation for our success in quarters to come."

4:15PM TriQuint Semi beats by $0.01, beats on revs; guides Q2 EPS above consensus, revs above consensus (TQNT) 7.95 +0.03 : Reports Q1 (Mar) earnings of $0.12 per share, $0.01 better than the Thomson Reuters consensus of $0.11; revenues rose 52.1% year/year to $180.8 mln vs the $175 mln consensus. Co issues upside guidance for Q2, sees EPS of $0.15 vs. $0.13 Thomson Reuters consensus; sees Q2 revs of $200-$210 mln vs. $188.99 mln Thomson Reuters consensus. The company expects continued solid demand in our networks market and strong factory utilization will lead to a non GAAP gross margin of about 40%. Non GAAP operating expenses are expected to grow to between $57-$58 mln. As of today, the company is 92% booked to the midpoint of our revenue guidance.

4:12PM First Solar beats by $0.37, beats on revs; guides FY10 EPS above consensus, revs below consensus (FSLR) 128.13 -0.23 : Reports Q1 (Mar) earnings of $2.00 per share, $0.37 better than the Thomson Reuters consensus of $1.63; revenues rose 35.8% year/year to $568 mln vs the $540.6 mln consensus. Co issues mixed guidance for FY10, sees EPS of $6.80-7.30 vs. $6.15 Thomson Reuters consensus; sees FY10 revs of $2.6-2.7 bln vs. $2.74 bln Thomson Reuters consensus. Total capital spending is projected to be $625 to $650 million. The company expects to generate $725 to $775 million of operating cash flow.

4:10PM LSI Logic beats by $0.05, beats on revs; guides Q2 EPS in-line, revs in-line (LSI) 6.39 +0.13 : Reports Q1 (Mar) earnings of $0.14 per share, excluding non-recurring items, $0.05 better than the Thomson Reuters consensus of $0.09; revenues fell 0.1% year/year to $637.2 mln vs the $629.8 mln consensus. Co issues in-line guidance for Q2, sees EPS of $0.08-0.14, excluding non-recurring items, vs. $0.10 Thomson Reuters consensus; sees Q2 revs of $635-665 mln vs. $642.83 mln Thomson Reuters consensus.

4:10PM Newport beats by $0.02, beats on revs (NEWP) 13.92 +0.33 : Reports Q1 (Mar) earnings of $0.14 per share, $0.02 better than the Thomson Reuters consensus of $0.12; revenues rose 19.8% year/year to $107.2 mln vs the $101.2 mln consensus. They expect sales in the second quarter of 2010 to be similar to the strong first quarter level (consensus is $102.9 mln). In addition, they expect their earnings per diluted share in the second quarter of 2010 to be approximately equal to the first quarter level, and then increase sequentially in the third and fourth quarters of 2010.

4:10PM Power Integrations misses by $0.02, misses on revs; guides Q2 revs above consensus (POWI) 42.75 +0.52 : Reports Q1 (Mar) earnings of $0.49 per share, $0.02 worse than the Thomson Reuters consensus of $0.51; revenues rose 77.4% year/year to $71.5 mln vs the $72.5 mln consensus. Gross margin for the first quarter was 50.2 percent; operating margin was 20.8 percent. Co issues upside guidance for Q2, sees Q2 revs of $74-78 mln vs. $72.44 mln Thomson Reuters consensus. GAAP gross margin is expected to be between 50 percent and 51 percent, including an impact of approximately half a percentage point from stock-based compensation. "We achieved record revenues for the third straight quarter, surpassing $70 million in quarterly revenues for the first time ever, and we expanded our non-GAAP operating margin for the fifth straight quarter. Bookings increased dramatically during the quarter and have remained strong in April. While the strength in orders and resulting expansion of our backlog is partly attributable to extended lead times, we believe our revenue growth is being driven mainly by end-market demand as well as greater penetration of our products into the power-supply market."

4:09PM Cadence Design beats by $0.01, beats on revs; guides Q2 EPS in-line, revs in-line; guides FY10 EPS in-line, revs in-line (CDNS) 7.15 -0.01 : Reports Q1 (Mar) earnings of $0.02 per share, $0.01 better than the Thomson Reuters consensus of $0.01; revenues rose 7.8% year/year to $222 mln vs the $214.9 mln consensus. Co issues in-line guidance for Q2, sees EPS of $0.02-0.04 vs. $0.03 Thomson Reuters consensus; sees Q2 revs of $215-225 mln vs. $218.58 mln Thomson Reuters consensus. Co issues in-line guidance for FY10, sees EPS of $0.05-0.15 vs. $0.14 Thomson Reuters consensus; sees FY10 revs of $865-900 mln vs. $888.37 mln Thomson Reuters consensus. "Cadence is off to a good start in 2010. The team executed across the board and our focus on customer engagement continues to yield success," said Lip-Bu Tan, president and chief executive officer. "Business improved in all geographies with strength in Asia and North America, and in all platform areas, especially verification, custom and digital design."

4:05PM Palm: HPQ to acquire Palm for $1.2 bln or $5.70 per share in cash (PALM) 4.63 -0.02 : HPQ announced that they have entered into a definitive agreement under which HPQ will purchase Palm (PALM) at a price of $5.70 per share of Palm common stock in cash or an enterprise value of approximately $1.2 bln. The transaction has been approved by HPQ and Palm boards of directors. "The combination of HP's global scale and financial strength with Palm's unparalleled webOS platform will enhance HP's ability to participate more aggressively in the fast-growing, highly profitable smartphone and connected mobile device markets. Palm's unique webOS will allow HP to take advantage of features such as true multitasking and always up-to-date information sharing across applications... Palm's innovative operating system provides an ideal platform to expand HP's mobility strategy and create a unique HP experience spanning multiple mobile connected devices."

Integral Systems (ISYS) announced that it has acquired privately held Sophia Wireless for $2.5 million in an all cash transaction. The acquisition will be financed using the Company's existing cash available...

8:02AM First Solar agrees to acquire NextLight Renewable Power; total consideration for the transaction is approx $285 mln (FSLR) 128.36 : Co and NextLight Renewable Power, LLC announce they have entered into a definitive agreement for First Solar to acquire NextLight, a developer of utility-scale solar projects in the southwestern United States. The acquisition includes a 1,100 megawatt solar project pipeline. First Solar will acquire NextLight in an all-cash transaction that is expected to be completed in the third quarter of 2010, pending the satisfaction of certain closing conditions specified in the merger agreement. Total consideration for the transaction is approx $285 million, subject to certain closing adjustments as provided in the merger agreement.

8:01AM Silicon Labs acquires Silicon Clocks and CMEMS technology (SLAB) 50.71 : The co announces the acquisition of Silicon Valley-based Silicon Clocks, an early stage company creating innovative microelectromechanical system (MEMS) technology. Silicon Clocks' CMEMS(TM) (CMOS+MEMS) technology is aligned with Silicon Labs' efforts to leverage its CMOS-based timing products into high-volume applications such as consumer electronics.

7:17AM Owens Corning beats by $0.27, beats on revs; FY10 EPS could be as high at $2.00 vs the $.54 consensus (OC) 29.80 : Reports Q1 (Mar) earnings of $0.42 per share, excluding non-recurring items, $0.27 better than the Thomson Reuters consensus of $0.15; revenues rose 17.8% year/year to $1.26 bln vs the $1.03 bln consensus. The Composites segment increased profits in the first quarter, demonstrating strong operating leverage. In the Roofing business, the strong momentum continued into the first quarter of 2010 with an increase in earnings before interest and taxes (EBIT) of nearly one-third over the same period a year ago. The Insulation business performed as expected, narrowing its losses despite continued weakness in the U.S. housing market. Based on continued strong margins in the Roofing business and improved results for the Composites segment, OC expects that the co's 2010 adjusted EBIT could be as high as $450 million, which equates to an adjusted earnings per share of about $2.00 (consensus is $1.54). In the Composites segment, the co believes that overall demand will continue to trend upward as global industrial activity improves. The rate of market recovery remains uncertain. The co expects to increase production to meet improved market demand, which will result in higher capacity utilization during the year as compared to 2009. Additionally, the Composites segment will continue to realize the benefit of various cost-reduction actions and prior price increases. The co expects strong momentum to continue in the Roofing business, as actions taken to increase margins in 2008 and 2009 will drive profitability in 2010. Owens Corning believes that margins in excess of 20 percent will be achieved in 2010. The co estimates that the Insulation business will narrow its losses in 2010, despite continued U.S. residential construction market weakness.

7:03AM Corning beats by $0.10, beats on revs; raises expectations for annual growth of LCD market (GLW) 20.12 : Reports Q1 (Mar) earnings of $0.52 per share, $0.10 better than the Thomson Reuters consensus of $0.42; revenues rose 57.0% year/year to $1.55 bln vs the $1.52 bln consensus. Flaws said higher-than-expected retail demand for LCD televisions, laptops, and desktop computers in quarter one, along with an improved outlook for these consumer electronic products through the remainder of the year, "have led us to increase our expectations for the annual growth of the LCD glass market. We now forecast a range of 2.9 billion square feet to 3.1 billion square feet of glass this year, up from our original expectation of 2.8 billion to 3.0 billion square feet." This represents a year-over-year growth rate of 18% to 27%. In its Display Technologies segment, Corning expects second-quarter volume will increase in the mid-single digits for both its wholly owned business and SCP. Glass price declines in the quarter should be similar to the first quarter. The co said it plans on running all available capacity by the end of quarter two to meet panel maker demand. "Our first quarter was outstanding, driven by excellent results across nearly all of our major business units. We were particularly pleased with the performance in Display Technologies where we were essentially sold out. We are also encouraged by the growing market demand for Corning Gorilla glass for handheld and other electronic devices." Gross margin improved significantly to 47% from 42% in the previous quarter, and over last year's first quarter of 27%.

7:06AM DSP Group beats by $0.05, beats on revs (DSPG) 78.75 : Reports Q1 (Mar) earnings of $0.11 per share, $0.05 better than the Thomson Reuters consensus of $0.06; revenues rose 40.6% year/year to $56.1 mln vs the $54.1 mln consensus. "We continue to improve our financial performance, and feel optimistic about our business outlook. Our first quarter financial results exceeded the higher end of our guidance range as better than expected revenues and lower non-GAAP operating expenses contributed to higher non-GAAP operating income. On the product side, we passed another milestone event by commencing commercial shipments of our XpandR multimedia platform, and anticipate the launch of additional XpandR-based products this year by leading consumer electronic brands."

11:36 am BRCM Beats Q1 EPS Expectations

Broadcom (BRCM 6.58, +0.29) released its fiscal first quarter results after the close yesterday, which beat expectations.

The company reported first quarter GAAP earnings of $0.40 per share, $0.11 better than the Thomson Reuters consensus of $0.29. Revenues rose 9.0% year-over-year to $1.46 billion, modestly better than the $1.38 billion consensus. In the quarter, the company reported gross margins of 52.5% versus the 52.6% Thomson Reuters consensus.

For the second quarter, the company is forecasting revenues to be in the range of $1.535 billion to $1.635 billion (+5-12% sequentially), above the current $1.42 billion Thomson Reuters consensus. The company also forecasted gross margins, which it expects to be flat with the first quarter, in-line with consensus.

The company said, "Our focus to increase expenses more slowly than revenue produced solid operating margins and record earnings per share. Demand for current products, coupled with new product introductions, should enable us to deliver strong sequential growth into the second quarter. Our products for the Home, Hand, and Infrastructure are extremely well positioned to deliver sustained profitable growth and will benefit from both improved global demand and the increasing role of communications in a connected world."

10:00 am FLEX Guides Q1 In-line

Flextronics International (FLEX 7.89, -0.05) released its fiscal fourth quarter earnings yesterday after the close, which were slightly ahead of consensus. Also, the company guided first quarter earnings and revenues in-line with consensus.

The company reported earnings of $0.16 per share, excluding non-recurring items, $0.01 better than the Thomson Reuters consensus of $0.15. Revenues rose 6.4% year-over-year to $5.94 billion, missing the $6.04 billion consensus.

For the first quarter, the company said it expects earnings to be in the range of $0.16 to $0.19 per share, excluding non-recurring items, in-line with the $0.16 Thomson Reuters consensus. On the top line, the company sees revenues falling in the range of $6.1 billion to $6.6 billion, in-line with the $6.33 billion Thomson Reuters consensus.

09:53 am RFMD Tops Q4 Expectations

RF Micro Devices (RFMD 5.92, +0.43) reported fourth quarter earnings after the close yesterday, which were better than Wall Street expectations.

The company reported fourth quarter earnings of $0.16 per share, which were $0.05 better than the Thomson Reuters consensus of $0.11. Revenues rose 51.4% year-over-year to $260.8 million, higher than the $240.2 million consensus.

For fiscal year 2011, the company noted in its press release that it sees expects revenue and non-GAAP EPS to increase over fiscal 2010 results (current consensus is for FY11 of $0.52/$1.037 billion).

RFMD stated in its earnings release that they are currently fully booked for sequential revenue growth in the June quarter and currently expects June quarterly gross margin to be consistent with March quarterly results. (first quarter revenue estimate is $247.86 million).

RFMD currently expects transceiver revenue to increase sequentially in the June quarter and to begin a ramp-down in the September quarter. Fiscal 2011 free cash flow to be consistent with fiscal 2010 levels and to become net cash positive during fiscal 2011, as noted in the company's press release.

The company also said it expects moderate year-over-year operating expense growth in fiscal 2011 and cash taxes of approximately $6 million to $7 million per quarter, reflecting the Company's improved outlook for revenue and profitability.