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From Briefing.com: 4:29PM Pericom Semi lowers Q2 rev guidance to $29-30 mln (from $30.5-34.5 mln) vs $32.77 mln Capital IQ Consensus Estimate (PSEM) 8.09 -0.03 : Co announced updated revenue guidance for the second quarter of fiscal 2013, which ended December 29, 2012. Pericom now expects sales to be $29.0-30.0 mln (vs $32.77 mln Capital IQ Consensus Estimate) compared to previous guidance of $30.5-34.5 mln. Guidance for gross margins and operating expenses remain unchanged. "The demand environment has remained weak throughout the quarter, therefore we are updating our guidance on revenues," commented Alex Hui, President and CEO of Pericom. "We have seen continued softness in end user demand resulting from challenging macroeconomic conditions in both our domestic and international markets." No conference call will be held in conjunction with this guidance update. Additional information will be available when the Company reports its second quarter 2013 results during the week of January 28, 2013.

Advanced Energy Industries (AEIS) announced sales and service distribution partnerships with Scientech Corporation and with Collaborated Service Solution both in Taiwan, to provide product and service sales and support for Advanced Energy products in the Taiwan market.

Cisco (CSCO) and NXP Semiconductors N.V. (NXPI) announced that they have each made an investment in Cohda Wireless to advance intelligent transportation systems and car-to-X communications.

6:02AM Silicon Image lowers Q4 revenue guidance below consensus (SIMG) 5.16 :

8:02AM Cray issues prelim revenue expectations of $420 mln vs $447.6 mln Capital IQ Consensus Est; Co also raised FY13 revenue guidance to ~$500 mln vs $458.8 mln consensus, co expects to be profitable in 2012 and 2013 (CRAY) 16.25 : Co reported that its gross margins are expected to be ~36%, slightly higher than previously provided guidance and total operating expenses are expected to be about $120 mln, consistent with previously provided guidance.

Based on preliminary results, total revenue for 2012 is expected to be about $420 mln, of which less than $1 mln is attributable to the acquisition of Appro International. For 2012, gross margins are expected to be ~36%, slightly higher than previously provided guidance, and total operating expenses are expected to be about $120 mln, consistent with previously provided guidance. Total operating expenses for 2012 will depend on the final accounting treatment of the Appro acquisition and includes estimates of ~$7 mln in stock based compensation and acquisition related expenses. Based on these preliminary results, the Co expects to be solidly profitable for 2012, independent of the $139 mln pre-tax gain on the development program divestiture completed during the second quarter.

"We had a record year in 2012 in revenue and operating income -- even after excluding the gain from the Intel transaction. The year was highlighted by the installations of both the largest system in our Co's history and our largest commercial win ever, and by the building momentum in our storage and Big Data initiatives. We completed the acceptance process on the Blue Waters supercomputer at the University of Illinois, but were not able to complete the upgrade to the XK7 system at Oak Ridge National Laboratory. We now expect to complete the Oak Ridge acceptance during the first half of 2013 and have increased our outlook accordingly."

While a wide range of results remains possible for 2013, the Co now expects 2013 revenue to be about $500 mln. Revenue is expected to ramp during 2013 with about $60 mln in Q1 (vs. $76.7 mln consensus) and roughly 45% of the annual revenue expected in Q4.

Gross margins for 2013 are anticipated to be in the mid-30% range. Total operating expenses for the year are expected to be in the range of $160 mln, which includes ~$10 mln in non-cash items including stock based compensation and the preliminary estimate of amortization of items related to the Appro acquisition. Based on this outlook, we expect to be profitable for 2013.


Silicon Image (SIMG) lowered guidance for the fourth quarter with&with;revenues of $59-60 mln from prior guidance of $64-67 million versus the $65.70 mln Capital IQ consensus. The company announced the reduction is the result of the rescheduling of certain orders by a large customer. The Company also announced it has taken a charge to reflect the write down of certain unsalable inventory due to defects in the material used by one of our assembly vendors in the packaging process. All parts known to be defective have been identified and are within the Company's control. The Company is working with its vendor to resolve this matter as well as to recover the value of the inventory being written off. The amount of this charge as of December 31, 2012 is approximately $6.3 million which will be included in cost of goods sold and represents a GAAP pre-tax per share charge of approximately $0.08 per diluted share for the quarter. This charge will be excluded from our non-GAAP results as we believe this is an unusual and one time charge for which the Company is seeking recovery. "Our lowered revenue guidance for the fourth quarter is the result of changes in the timing of production schedules and the level of inventory management by one of our large customers. Our operating expenses will be lower than planned for the quarter due to continued cost controls as well as lower incentive pay as a result of the reduced financial performance."

08:07 am IPG Photonics downgraded to Hold at Stifel Nicolaus: . Stifel Nicolaus downgrades IPGP to Hold from Buy as its analysis indicates a neutral reward to risk profile at current levels, given: (1) IPGP's premium valuation relative to both Commercial Laser peers and historic norms; (2) an expectation of decelerating earnings and revenue growth in 2013; (3) difficult 2013 quarterly comps; and (4) anticipation of increased high power fiber laser competition in 2013/2014.

10:27 am S&P Information Technology Sector trading lower by 0.3% and behind the broader market
The tech sector is trading lower today, trailing gains in the broader market. Semiconductors are showing relative weakness as well with the SOX trading 0.5% lower. Within the chip index, SPRD (-4.2%) is a notable laggard. Among other major indices, the SPY is trading 0.1% higher today, while the QQQ is down 0.3% and the NASDAQ is trading 0.2% lower on the session. Among tech bellwethers, GOOG (+1.1%) is showing notable strength, while AAPL (-1.6%) is under pressure.

In tech earnings, PRGS (+6.3%) posted a miss and guided lower. EXTR (-5.1%) and SIMG (-9.9%) also lowered their guidance, while CRAY (-3.2%) offered mixed guidance. In news, ROVI (+4.9%) announced its intent to pursue sale of Rovi Entertainment Store Business. Among rumors, S (-0.4%) is considering Sprint-branded pre-paid plan, according to reports. Among notable analyst upgrades this morning in the tech space, ADNC (+12.3%) was upgraded to Overweight at JP Morgan and Stifel upgraded APKT (+9.2%) and ARUN (+2.2%) to Buy. Among downgrades, FSL (-2.3%) was downgraded to Neutral at JP Morgan and Argus downgraded MSFT (-0.8%) to Hold. There are no notable names in tech scheduled to report quarterly results today after the close.

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