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Thursday, January 30, 2014 9:13:34 PM
From Briefing.com: 4:25 pm : The major averages finished the Thursday session near their highs as the volatile week continued. The Nasdaq surged 1.8% while the S&P 500 gained 1.1% as all ten sectors ended in the green. As a result of the advance, the S&P 500 will enter Friday's session with a slim week-to-date gain of 0.2% while the Nasdaq remains lower by 0.1% for the week.
Stocks jumped out of the gate and continued climbing steadily into the early afternoon. The S&P 500 notched a session high of 1798.77 just before 13:00 ET, and spent the rest of the trading day near that level. The upbeat start to the session was aided by overnight gains in index futures which rallied while the Japanese yen weakened. The futures market received an additional boost an hour before the cash open when it was reported that fourth quarter GDP rose 3.2%, per the advance estimate.
The Nasdaq Composite spent the entire session in the lead with the likes of Amazon.com (AMZN 403.01, +18.81), Google (GOOG 1135.39, +28.47), Facebook (FB 61.08, +7.55), and Qualcomm (QCOM 73.26, +2.14) providing support. Amazon.com and Google rallied ahead of their earnings while Facebook and Qualcomm posted respective gains of 14.1% and 3.0% after reporting better-than-expected results.
Biotechnology also factored into the outperformance of the Nasdaq as the iShares Nasdaq Biotechnology ETF (IBB 249.96, +7.16) rose 3.0%. In turn, this underpinned the health care space (+1.8%), which ended in the lead.
Similar to health care, other heavily-weighted sectors like consumer discretionary (+1.7%), financials (+1.3%), and technology (+1.5%) ended ahead of the broader market.
Elsewhere, the energy sector (+0.2%) finished behind the remaining groups as Dow component ExxonMobil (XOM 93.99, -1.12) lagged after missing on earnings.
Speaking of the Dow (+0.7%), the price-weighted index was unable to keep pace with the broader market as 3M (MMM 128.05, -2.20) and Boeing (BA 126.53, -3.25) weighed. 3M lost 1.7% after reporting in-line earnings on below-consensus revenue while Boeing fell 2.5% after cautious guidance overshadowed its earnings beat.
Treasuries ended near the middle of their range with the 10-yr yield up two basis points at 2.70%.
Trading volume was below average as 641 million shares changed hands at the NYSE.
Today's economic data included initial claims, fourth quarter GDP, and the pending home sales report for December.
Most notably, GDP increased 3.2% in the fourth quarter, according to the advance estimate. That was down from a 4.1% gain in the third quarter but slightly above the Briefing.com consensus estimate of a 3.0% increase. Despite the above-consensus reading, the report was actually a disappointment. Real final sales, which our model was tracking to be near a 4.0% gain, only increased 2.8%. That was the largest increase since a 3.4% gain in Q1 2012, but it was within the same trends that we have been seeing for the past couple of years. Contrary to the headline numbers, there has been no real acceleration in growth over the last few quarters.
Weekly initial claims unexpectedly spiked to 348,000 from an upwardly revised 329,000 (from 326,000) while the Briefing.com consensus expected the claims level to fall to 325,000.
Pending home sales for December tumbled 8.7%, which was worse than the 0.2% decrease forecast by the Briefing.com consensus. The reading followed last month's revised decrease of 0.3% (from +0.2%).
Tomorrow, December Personal Income, Personal Spending, Core PCE Prices, and the fourth quarter Employment Cost Index will all be released at 8:30 ET while the final reading of the University of Michigan Consumer Survey for January will be reported at 9:55 ET.
Nasdaq Composite -1.3% YTD
Russell 2000 -2.0% YTD
S&P 500 -2.9% YTD
Dow Jones Industrial Average -4.4% YTD
DJ30 +109.82 NASDAQ +71.69 SP500 +19.99 NASDAQ Adv/Vol/Dec 1958/1.95 bln/636 NYSE Adv/Vol/Dec 2340/641.1 mln/711 3:30 pm :
Precious metals traded lower today as the dollar index climbed on this morning's GDP data. According to the advance reading, GDP rose 3.2% in Q4, while the Briefing.com consensus estimate called for a 3.0% increase.
Feb gold brushed a session low of $1237.50 per ounce in morning action and traded in a consolidative fashion just above that level for the remainder of the session. Unable to gain momentum, it settled with a 1.6% loss at $1241.90 per ounce.
Mar silver dipped to a session low of $18.97 per ounce and eventually settled at $19.13 per ounce, or 2.1% lower.
Mar crude oil, on the other hand, gained strength on the GDP data. The energy component touched a session high of $98.59 per barrel moments before equity markets opened and spent the remainder of the session trading just below that level. It settled with a 1.0% gain at $98.25 per barrel.
Mar natural gas erased most of yesterday's 10% gain as it tumbled on forecasts for milder weather and inventory data. The EIA reported that inventories for the week ending Jan 24 showed a draw of 230 bcf when a draw of 231-236 bcf was anticipated. Priced touched a session high of $5.30 per MMBtu in late morning pit trade but slipped again in afternoon action. Natural gas dipped to a session low of $4.98 per MMBtu moments before settling at $5.02 per MMBtu, or 7.6% lower.
4:34PM Unisys beats by $1.10, beats on revs (UIS) 31.15 +0.62 : Reports Q4 (Dec) earnings of $2.82 per share, excluding non-recurring items, $1.10 better than the Capital IQ Consensus of $1.72; revenues rose 1.7% year/year to $995.9 mln vs the $948.43 mln consensus.
International revenue grew 2% (3% on a constant currency(3) basis) in the fourth quarter as growth in Europe and Asia Pacific more than offset declines in Latin America. U.S. revenue was flat compared to the fourth quarter of 2012.
The company reported an overall fourth-quarter 2013 gross profit margin of 31.7%, up from 29.2% in the year-ago quarter.
Q4 services revenue increased 1% (2% on a constant currency basis) as growth in outsourcing and systems integration offset declines in core maintenance. Reflecting a richer mix of higher-margin services and solutions as well as a continued focus on cost control, fourth-quarter 2013 services gross profit margin improved to 21.9 percent from 20.2% a year ago and services operating profit margin improved to 9.8% from 6.6% a year ago.
Q4 services orders grew from the fourth quarter of 2012, driven by higher orders for outsourcing and systems integration services. Services backlog at December 31, 2013 was $4.8 billion, down 5% from services backlog at December 31, 2012. Fourth-quarter 2013 technology revenue grew 5% from the prior-year quarter.
Q4 technology gross profit margin declined to 61.4% from 68.1% in the year-ago quarter, resulting from a higher mix of third-party product sales, and technology operating profit margin declined to 40.6% from 43.9% in the year-ago quarter.
4:31PM Broadcom sees Q1 revs ~$1.9-2.0 bln vs $1.97 bln Capital IQ Consensus; non-GAAP product gross margin -50 to -100 bps QoQ from 52.6% (BRCM) 29.21 +0.52 :
4:17PM Broadcom beats by $0.03, beats on revs; announces 9% increase in quarterly dividend to $0.12 (BRCM) 29.21 +0.52 : Reports Q4 (Dec) earnings of $0.60 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.57; revenues fell 1.0% year/year to $2.06 bln vs the $2.02 bln consensus.
"In 2013 Broadcom delivered record revenue in all three business groups. Continued strength in our Infrastructure Business Group drove Q4 revenue and earnings ahead of expectations. Looking into 2014, we are building momentum in LTE, setting the stage for Ultra HD and powering next generation service provider and data center networks."
4:30PM Ixia Receives Nasdaq Acceptance of its Plan to Regain Compliance (XXIA) 13.01 +0.20 : XXIA announced today that The Nasdaq Stock Market has accepted the company's plan to regain compliance with Nasdaq Listing Rule 5250(c)(1), which acceptance will permit the continued listing of Ixia's common stock on the Nasdaq Global Select Market.
As previously reported, on November 19, 2013, Ixia received a letter from Nasdaq stating that the company is not in compliance with the Rule because co had not filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 with the Securities and Exchange Commission . In its letter, Nasdaq notified co that it had 60 days to submit to Nasdaq a plan to regain compliance with the Rule.
On January 17, 2014, Ixia timely submitted to Nasdaq a plan to regain compliance with the Rule. After reviewing co's plan, Nasdaq accepted the plan and granted an exception to enable co to regain compliance with the Rule.
Under the terms of the exception, co is required to file the Form 10-Q with the SEC on or before March 18, 2014 as required by the Rule.
Nasdaq has advised co that a failure to file the Form 10-Q within the extension period may result in a notice of delisting of the company's common stock.
4:29PM Microchip beats by $0.02, beats on revs; guides Q4 EPS in-line, revs in-line; announced $0.355 dividend (MCHP) 45.36 +0.75 : Reports Q3 (Dec) earnings of $0.61 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.59; revenues rose 16.0% year/year to $482.4 mln vs the $474.25 mln consensus.
Co issues in-line guidance for Q4, sees EPS of $0.59-0.63 vs. $0.62 Capital IQ Consensus Estimate; sees Q4 revs of $482.4-496.8 mln vs. $484.04 mln Capital IQ Consensus Estimate.
Microchip also announced today that its Board of Directors declared a quarterly cash dividend on its common stock of 35.5 cents per share. The quarterly dividend is payable on March 7, 2014 to stockholders of record on February 21, 2014.4:18PM Emulex beats by $0.04, beats on revs; guides Q3 EPS in-line, revs below consensus (ELX) 7.58 +0.03 : Reports Q2 (Dec) earnings of $0.21 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.17; revenues rose 0.7% year/year to $123 mln vs the $120.6 mln consensus. Co issues mixed guidance for Q3, sees EPS of $0.14-0.17 vs. $0.16 Capital IQ Consensus Estimate; sees Q3 revs of $110-114 mln vs. $114.40 mln Capital IQ Consensus Estimate.
4:16PM PMC-Sierra beats by $0.01, beats on revs (PMCS) 6.42 +0.18 : Reports Q4 (Dec) earnings of $0.09 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.08; revenues fell 2.6% year/year to $126.1 mln vs the $123.79 mln consensus.
Commentary: Fourth quarter results were above the midpoint of our expectations and reflected solid growth in our storage business," said Greg Lang, PMC president and chief executive officer. "It is encouraging to see our storage and server businesses finish the year strong."
4:14PM Riverbed Technology beats by $0.01, reports revs in-line (RVBD) 19.78 +0.30 : Reports Q4 (Dec) earnings of $0.31 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.30; non-GAAP revenues rose 19% year/year and 7% Sequentially to $285 mln vs the $283.4 mln consensus.
4:12PM Google misses by $0.28, reports revs in-line (GOOG) 1135.39 +28.74 : Reports Q4 (Dec) earnings of $12.01 per share, $0.28 worse than the Capital IQ Consensus Estimate of $12.29; revenues rose 17.9% year/year to $16.86 bln vs the $16.76 bln consensus.
Google Sites Revenues- Google-owned sites generated segment revenues of $10.55 billion, or 67% of total Google segment revenues, in the fourth quarter of 2013. This represents a 22% increase over fourth quarter 2012 Google sites segment revenues of $8.64 billion.Google Network Revenues - Google's partner sites generated segment revenues of $3.52 billion, or 23% of total Google segment revenues, in the fourth quarter of 2013. This represents a 3% increase over fourth quarter 2012 Google network segment revenues of $3.44 billion.Google Segment International Revenue- Google segment revenues from outside of the United States totaled $8.77 billion, representing 56% of total Google segment revenues in the fourth quarter of 2013, compared to 56% in the third quarter of 2013 and 54% in the fourth quarter of 2012. CPC and Paid Clicks
Paid Clicks- Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 31% over the fourth quarter of 2012 and increased approximately 13% over the third quarter of 2013.Cost-Per-Click- Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 11% over the fourth quarter of 2012 and decreased approximately 2% over the third quarter of 2013.TAC
Traffic acquisition costs, the portion of revenues shared with Google's partners, increased to $3.31 billion in the fourth quarter of 2013, compared to $3.08 billion in the fourth quarter of 2012. TAC as a percentage of advertising revenues was 24% in the fourth quarter of 2013, compared to 25% in the fourth quarter of 2012.The majority of TAC is related to amounts ultimately paid to our Network members, which totaled $2.49 billion in the fourth quarter of 2013. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $824 million in the fourth quarter of 2013.
Motorola
Motorola Mobile Segment Revenues- Motorola Mobile segment revenues were $1.24 billion, or 7% of consolidated revenues in the fourth quarter of 2013, compared to $1.51 billion, or 11% of consolidated revenues in the fourth quarter of 2012. Capital
Cash Flow and Capital Expenditures- Net cash provided by operating activities in the fourth quarter of 2013 totaled $5.24 billion, compared to $4.67 billion in the fourth quarter of 2012. In the fourth quarter of 2013, capital expenditures were $2.26 billion, the majority of which was for production equipment, data-center construction, and real estate purchases. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the fourth quarter of 2013, free cash flow was $2.98 billion.We expect to continue to make significant capital expenditures.
Cash- As of December 31, 2013, cash, cash equivalents, and marketable securities were $58.72 billion.4:06PM Micrel beats by $0.01, reports revs in-line (MCRL) 10.01 +0.16 : Reports Q4 (Dec) earnings of $0.08 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.07; revenues fell 3.7% year/year to $60 mln vs the $59.61 mln consensus.
"We are cautiously optimistic that Micrel has turned the corner and will resume its growth trajectory. We are thrilled with the number of new products that are getting great traction with our customers. With the acceleration of the 'Internet of Things' trend, our LAN, timing and analog products are in strong demand. In addition, our penetration into the automotive market remains firmly on-track. Revenue in the first quarter of 2014 will be in the range of down 1% to up 3% on a sequential basis. Gross margins are expected to be approximately 51% resulting in GAAP EPS within the range of $.05 to $.08 per diluted share," Mr. Zinn concluded.
GAAP consensus is for GAAP Q1 EPS of $0.07
4:05PM JDS Uniphase acquires Trendium and Time-Bandwidth Products; terms not disclosed (JDSU) 12.72 +0.67 : JDSU announced it has acquired substantially all of the assets of Trendium, a provider of real-time intelligence software solutions for customer experience assurance, asset optimization and monetization of big data for 4G/LTE mobile network operators.
In addition, JDSU acquired Time-Bandwidth Products, a provider of high-powered and ultrafast lasers for the industrial and scientific markets.
The addition of Trendium employees and technology enables JDSU to introduce a new paradigm of customer experience assurance, enabling operators of 4G/LTE networks to achieve a real and relevant improvement in customer satisfaction while maximizing productivity and profitability for dynamic converged 4G/LTE networks and beyond.
4:03PM Celestica beats by $0.01, misses on revs; guides Q1 EPS in-line, revs below consensus (CLS) 10.05 +0.12 : Reports Q4 (Dec) earnings of $0.24 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 4.0% year/year to $1.44 bln vs the $1.47 bln consensus.
Co issues in-line EPS guidance for Q1, sees EPS of $0.17-0.23, excluding non-recurring items, vs. $0.20 Capital IQ Consensus Estimate; sees Q1 revs of $1.3-1.4 bln vs. $1.41 bln Capital IQ Consensus Estimate.
Large Cap Gainers
ALXN (161.66 +20.89%): Beat on EPS by $0.04, beat on revs; guide FY14 EPS above consensus, revs above consensus.
FB (62.03 +15.88%): Beat on EPS by $0.04, beat on revs; tgt raised to $66 from $60 at FBR Capital; tgt raised to $75 from $61 at Deutsche Bank; Buy; tgt raised to $80 from $60 at Jefferies; tgt raised to $75 from $70 at Credit Agricole; tgt raised to $80 from $72.50 at Wedbush; tgt raised to $72 from $68 at Susquehanna; tgt raised to $67 from $56 at Janney; tgt raised to $70 from $57 at Citigroup; tgt raised to $80 from $62 at JP Morgan; tgt raised to $60 from $50 at BMO Capital Mkts; tgt raised to $75 at CRT Capital; tgt raised to $71 from $63 at Raymond James; tgt raised to $70 from $65 at Nomura.
TWTR (64.6 +8.66%): Social/online media related names higher following FB results (LNKD also higher).
Large Cap Losers
SYMC (22.24 -7.91%): Beat on EPS by $0.09, beat on revs; guided Q4 EPS in-line, revs in-line.
CTXS (52.99 -8.01%): Beat on EPS by $0.06, reported revs in-line; guided Q1 below consensus; guided FY14 below consensus; CEO Templeton returning from leave of absence but will retire within next year; tgt lowered to $70 from $75 at Mizuho; tgt lowered to $70 from $76 at FBR Capital; downgraded to Neutral from Buy at Citigroup; tgt lowered to $58 from $70; downgraded to Neutral at Robert W. Baird; tgt lowered to $64; upgraded to Buy from Hold at Drexel Hamilton; downgraded to Mkt Underperform from Mkt Perform at JMP Securities; downgraded to Equal Weight from Overweight at a boutique firm; downgraded to Sector Perform from Outperform at Pacific Crest.
DEO (121.03 -4.76%): Beat H1 ests on bottom line, misses on revs; downgraded to Hold from Add at Numis.
Mid Cap Gainers
UA (105.76 +24.1%): Beat on EPS by $0.06, beat on revs; raised FY14 outlook.
NOW (67.13 +16.55%): Reported EPS in-line, beat on revs; guided Q1 revs above consensus; guided FY14 revs well above consensus; upgraded to Outperform at Robert W. Baird; tgt raised to $70; tgt raised to $75 from $59 at JMP Securities; tgt raised to $60 from $55 at Evercore.
CNQR (127.04 +16.7%): Beat on EPS by $0.09, beat on revs; guided Mar EPS and revs above consensus; guided FY14 EPS above consensus, revs in-line; tgt raised to $115 from $97 at FBR Capital; tgt raised to $140 from $126 at Stifel.
Mid Cap Losers
NSR (35.13 -19.69%): Beat on EPS by $0.08, beat on revs; guided FY14 EPS below consensus, revs in-line; provided update on local number portability administrator selection process - co was notified that its Oct 2013 proposal would not be considered; authorized share repurchase program for up to $200 mln of its Class A common shares beginning Jan 30, 2014 through Dec 31, 2014; downgraded to Neutral at Robert W. Baird; tgt lowered to $36.
ADT (31.7 -16.16%): Reported Q1 earnings of $0.66 per share, may not be comparable to the $0.49 estimate, missed on revs; downgraded to Perform at Oppenheimer.
KMT (44.31 -7.07%): Missed on EPS by $0.09, beat on revs; lowered FY14 guidance. Universal Display (OLED) and Kaneka announced the signing of a new OLED Technology License Agreement where Universal Display has granted Kaneka license rights, under various patents owned or controlled by Universal Display, to manufacture and sell phosphorescent OLED lighting products.
8:07AM KEMET beats by $0.09, misses on revs (KEM) 5.33 : Reports Q3 (Dec) earnings of $0.02 per share, $0.09 better than the Capital IQ Consensus Estimate of ($0.07); revenues rose 4.9% year/year to $207.3 mln vs the $213.23 mln consensus.
"Revenue, excluding discontinued operations, was essentially flat compared to the prior quarter as we forecasted and it is gratifying to see our cost reduction efforts reflected in our financial results with positive non-GAAP earnings per share in this challenging environment," stated Per Loof, KEMET's Chief Executive Officer.
"We have seen steady improvement in our operating margins and we will continue to stay focused on our overall cost structure to leverage our position as the economic rebound occurs in our industry," continued Loof.
4:57AM LM Ericsson beats by SEK0.94, beats on revs (ERIC) 11.95 : Reports Q4 (Dec) earnings of SEK2.42 per share, SEK0.94 better than the Capital IQ Consensus Estimate of SEK1.48; revenues rose 0.1% year/year to SEK67 bln vs the SEK65.19 bln consensus.
The business mix, with a higher share of coverage projects than capacity projects, started to shift towards more capacity during the year. As anticipated, sales came under some pressure during the quarter. As previously communicated, the major reason behind this development is the two large mobile broadband coverage projects, which peaked in North America in the first half of 2013 and the impact from reduced activity in Japan.
The long-term fundamentals in the industry remain attractive and with our ongoing strategic initiatives we are well positioned to continue to support our customers in a transforming ICT market.
Co states it ended the year with a strong cash flow of SEK 17.4 (22.0) b. and a full-year cash conversion of 79%, above the target of 70%.
The Board of Directors proposes a dividend for 2013 of SEK 3.00 (2.75) per share, an increase by 9%.
Qualcomm (QCOM) reported first quarter adjusted earnings of $1.26 per share, which is higher than expected, while revenues rose 10.0% year/year to $6.62 billion which is slightly below estimates.First Quarter Key Business Metrics MSMTM chip shipments: 213 million units, up 17 percent y-o-y and 12 percent sequentially. September quarter total reported device sales: ~$61.6 billion, up 16 percent y-o-y and 2 percent sequentially. September quarter estimated 3G/4G device shipments: ~276 to 280 million units, at an estimated average selling price of ~ $219 to $225 per unit. The company issued downside guidance for the second quarter with EPS of $1.15-1.25 and revenues $6.1-6.7 billion. The company issued guidance for fiscal year 2014 with raised EPS to $5.00-5.20, excluding non-recurring items, from $4.95-5.15, which is in line with estimates, with reaffirmed fiscal year 2014 revenues of $26.0-27.5 billion which is line with estimates.
Facebook (FB) reported fourth quarter earnings of $0.31 per share, which is higher than expected, while revenues rose 63.1% year/year to $2.59 billion which is higher than expected. Daily active users (DAUs) were 757 million on average for December 2013, an increase of 22% year-over-year. Mobile DAUs were 556 million on average for December 2013, an increase of 49% year-over-year. Monthly active users (MAUs) were 1.23 billion as of December 31, 2013, an increase of 16% year-over-year. Mobile MAUs were 945 million as of December 31, 2013, an increase of 39% year-over-year. Revenue from advertising was $2.34 billion, a 76% increase from the same quarter last year. Mobile advertising revenue represented approximately 53% of advertising revenue for the fourth quarter of 2013, up from approximately 23% of advertising revenue in the fourth quarter of 2012. GAAP costs and expenses for the fourth quarter of 2013 were $1.45 billion, an increase of 37% from the fourth quarter of 2012, driven primarily by increased headcount and infrastructure expense. Operating margin: GAAP operating margin was 44% for the fourth quarter of 2013, compared to 33% in the fourth quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 56% for the fourth quarter of 2013, compared to 46% for the fourth quarter of 2012. Capital expenditures for the fourth quarter of 2013 were $483 million. Cash and marketable securities were $11.45 billion at the end of 2013. Citrix Systems (CTXS) reported fourth quarter earnings of $1.04 per share, excluding non-recurring items, which is higher than expected, while revenues rose 8.4% year/year to $802.4 million which is line with estimates. Product and license revenue increased a half of a%; Software as a service revenue increased 13%; Revenue from license updates and maintenance increased 11%; Professional services revenue, which is comprised of consulting, product training and certification, increased 28%; Net revenue increased in the EMEA region by 14%, increased in the Americas region by 8% and decreased in the Pacific region by 12%; Deferred revenue totaled $1.4 billion as of December 31, 2013, compared to $1.2 billion as of December 31, 2012, an increase of 18%. The company issued downside guidance for the first quarter with EPS of $0.57-0.60, excluding non-recurring items and revenues of +8-10% to approximately $726.7-740.2 million which is higher than expected. The company issued downside guidance for EPS of $2.85-2.95 and revenues of +8-10% to approximately $3.15-3.21 billion. In addition, Citrix announced today that the co's chief executive officer, Mark Templeton, will be returning from his previously announced leave of absence to resume is role as CEO. Mr. Templeton intends to retire within the next year, subject to the naming of his successor. The board of directors has formed a committee of independent directors to lead a search process to identify the next CEO. David J. Henshall, who has been serving as acting CEO, has been promoted to chief operating officer and will retain a portion of the executive responsibilities that he assumed during Mr. Templeton's absence. Mr. Henshall will continue in his roles as executive vice president and chief financial officer, with responsibility for the company's finance and accounting organizations.
Fortinet (FTNT) reported fourth quarter earnings of $0.15 per share, which is higher thane expected, while revenues rose 17.3% year/year to $177.4 million which is higher than expected. Highlights for the qtr: Billings of $209.8 million, up 20% year over year Cash flow from operations of $46.7 million. Free cash flow of $39.5 million. Cash, cash equivalents and investments of $843.0 million with no debt.
QLogic (QLGC) reported third quarter earnings of $0.29 per share, which is higher than expected, while revenues were unchanged from the year-ago period at $119.4 million. Operating margin: 17.0% GAAP, 23.1% non-GAAP. "During the third quarter, we delivered strong financial results, including non-GAAP earnings per diluted share that exceeded our original guidance range...We are very pleased with our continued focus and execution. As a result of our restructuring activities earlier in the year, we have continued our sharper focus on the server and storage connectivity markets and are now operating more effectively and efficiently as reflected in our financial results."
Stocks jumped out of the gate and continued climbing steadily into the early afternoon. The S&P 500 notched a session high of 1798.77 just before 13:00 ET, and spent the rest of the trading day near that level. The upbeat start to the session was aided by overnight gains in index futures which rallied while the Japanese yen weakened. The futures market received an additional boost an hour before the cash open when it was reported that fourth quarter GDP rose 3.2%, per the advance estimate.
The Nasdaq Composite spent the entire session in the lead with the likes of Amazon.com (AMZN 403.01, +18.81), Google (GOOG 1135.39, +28.47), Facebook (FB 61.08, +7.55), and Qualcomm (QCOM 73.26, +2.14) providing support. Amazon.com and Google rallied ahead of their earnings while Facebook and Qualcomm posted respective gains of 14.1% and 3.0% after reporting better-than-expected results.
Biotechnology also factored into the outperformance of the Nasdaq as the iShares Nasdaq Biotechnology ETF (IBB 249.96, +7.16) rose 3.0%. In turn, this underpinned the health care space (+1.8%), which ended in the lead.
Similar to health care, other heavily-weighted sectors like consumer discretionary (+1.7%), financials (+1.3%), and technology (+1.5%) ended ahead of the broader market.
Elsewhere, the energy sector (+0.2%) finished behind the remaining groups as Dow component ExxonMobil (XOM 93.99, -1.12) lagged after missing on earnings.
Speaking of the Dow (+0.7%), the price-weighted index was unable to keep pace with the broader market as 3M (MMM 128.05, -2.20) and Boeing (BA 126.53, -3.25) weighed. 3M lost 1.7% after reporting in-line earnings on below-consensus revenue while Boeing fell 2.5% after cautious guidance overshadowed its earnings beat.
Treasuries ended near the middle of their range with the 10-yr yield up two basis points at 2.70%.
Trading volume was below average as 641 million shares changed hands at the NYSE.
Today's economic data included initial claims, fourth quarter GDP, and the pending home sales report for December.
Most notably, GDP increased 3.2% in the fourth quarter, according to the advance estimate. That was down from a 4.1% gain in the third quarter but slightly above the Briefing.com consensus estimate of a 3.0% increase. Despite the above-consensus reading, the report was actually a disappointment. Real final sales, which our model was tracking to be near a 4.0% gain, only increased 2.8%. That was the largest increase since a 3.4% gain in Q1 2012, but it was within the same trends that we have been seeing for the past couple of years. Contrary to the headline numbers, there has been no real acceleration in growth over the last few quarters.
Weekly initial claims unexpectedly spiked to 348,000 from an upwardly revised 329,000 (from 326,000) while the Briefing.com consensus expected the claims level to fall to 325,000.
Pending home sales for December tumbled 8.7%, which was worse than the 0.2% decrease forecast by the Briefing.com consensus. The reading followed last month's revised decrease of 0.3% (from +0.2%).
Tomorrow, December Personal Income, Personal Spending, Core PCE Prices, and the fourth quarter Employment Cost Index will all be released at 8:30 ET while the final reading of the University of Michigan Consumer Survey for January will be reported at 9:55 ET.
Nasdaq Composite -1.3% YTD
Russell 2000 -2.0% YTD
S&P 500 -2.9% YTD
Dow Jones Industrial Average -4.4% YTD
DJ30 +109.82 NASDAQ +71.69 SP500 +19.99 NASDAQ Adv/Vol/Dec 1958/1.95 bln/636 NYSE Adv/Vol/Dec 2340/641.1 mln/711 3:30 pm :
Precious metals traded lower today as the dollar index climbed on this morning's GDP data. According to the advance reading, GDP rose 3.2% in Q4, while the Briefing.com consensus estimate called for a 3.0% increase.
Feb gold brushed a session low of $1237.50 per ounce in morning action and traded in a consolidative fashion just above that level for the remainder of the session. Unable to gain momentum, it settled with a 1.6% loss at $1241.90 per ounce.
Mar silver dipped to a session low of $18.97 per ounce and eventually settled at $19.13 per ounce, or 2.1% lower.
Mar crude oil, on the other hand, gained strength on the GDP data. The energy component touched a session high of $98.59 per barrel moments before equity markets opened and spent the remainder of the session trading just below that level. It settled with a 1.0% gain at $98.25 per barrel.
Mar natural gas erased most of yesterday's 10% gain as it tumbled on forecasts for milder weather and inventory data. The EIA reported that inventories for the week ending Jan 24 showed a draw of 230 bcf when a draw of 231-236 bcf was anticipated. Priced touched a session high of $5.30 per MMBtu in late morning pit trade but slipped again in afternoon action. Natural gas dipped to a session low of $4.98 per MMBtu moments before settling at $5.02 per MMBtu, or 7.6% lower.
4:34PM Unisys beats by $1.10, beats on revs (UIS) 31.15 +0.62 : Reports Q4 (Dec) earnings of $2.82 per share, excluding non-recurring items, $1.10 better than the Capital IQ Consensus of $1.72; revenues rose 1.7% year/year to $995.9 mln vs the $948.43 mln consensus.
International revenue grew 2% (3% on a constant currency(3) basis) in the fourth quarter as growth in Europe and Asia Pacific more than offset declines in Latin America. U.S. revenue was flat compared to the fourth quarter of 2012.
The company reported an overall fourth-quarter 2013 gross profit margin of 31.7%, up from 29.2% in the year-ago quarter.
Q4 services revenue increased 1% (2% on a constant currency basis) as growth in outsourcing and systems integration offset declines in core maintenance. Reflecting a richer mix of higher-margin services and solutions as well as a continued focus on cost control, fourth-quarter 2013 services gross profit margin improved to 21.9 percent from 20.2% a year ago and services operating profit margin improved to 9.8% from 6.6% a year ago.
Q4 services orders grew from the fourth quarter of 2012, driven by higher orders for outsourcing and systems integration services. Services backlog at December 31, 2013 was $4.8 billion, down 5% from services backlog at December 31, 2012. Fourth-quarter 2013 technology revenue grew 5% from the prior-year quarter.
Q4 technology gross profit margin declined to 61.4% from 68.1% in the year-ago quarter, resulting from a higher mix of third-party product sales, and technology operating profit margin declined to 40.6% from 43.9% in the year-ago quarter.
4:31PM Broadcom sees Q1 revs ~$1.9-2.0 bln vs $1.97 bln Capital IQ Consensus; non-GAAP product gross margin -50 to -100 bps QoQ from 52.6% (BRCM) 29.21 +0.52 :
4:17PM Broadcom beats by $0.03, beats on revs; announces 9% increase in quarterly dividend to $0.12 (BRCM) 29.21 +0.52 : Reports Q4 (Dec) earnings of $0.60 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.57; revenues fell 1.0% year/year to $2.06 bln vs the $2.02 bln consensus.
"In 2013 Broadcom delivered record revenue in all three business groups. Continued strength in our Infrastructure Business Group drove Q4 revenue and earnings ahead of expectations. Looking into 2014, we are building momentum in LTE, setting the stage for Ultra HD and powering next generation service provider and data center networks."
4:30PM Ixia Receives Nasdaq Acceptance of its Plan to Regain Compliance (XXIA) 13.01 +0.20 : XXIA announced today that The Nasdaq Stock Market has accepted the company's plan to regain compliance with Nasdaq Listing Rule 5250(c)(1), which acceptance will permit the continued listing of Ixia's common stock on the Nasdaq Global Select Market.
As previously reported, on November 19, 2013, Ixia received a letter from Nasdaq stating that the company is not in compliance with the Rule because co had not filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 with the Securities and Exchange Commission . In its letter, Nasdaq notified co that it had 60 days to submit to Nasdaq a plan to regain compliance with the Rule.
On January 17, 2014, Ixia timely submitted to Nasdaq a plan to regain compliance with the Rule. After reviewing co's plan, Nasdaq accepted the plan and granted an exception to enable co to regain compliance with the Rule.
Under the terms of the exception, co is required to file the Form 10-Q with the SEC on or before March 18, 2014 as required by the Rule.
Nasdaq has advised co that a failure to file the Form 10-Q within the extension period may result in a notice of delisting of the company's common stock.
4:29PM Microchip beats by $0.02, beats on revs; guides Q4 EPS in-line, revs in-line; announced $0.355 dividend (MCHP) 45.36 +0.75 : Reports Q3 (Dec) earnings of $0.61 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.59; revenues rose 16.0% year/year to $482.4 mln vs the $474.25 mln consensus.
Co issues in-line guidance for Q4, sees EPS of $0.59-0.63 vs. $0.62 Capital IQ Consensus Estimate; sees Q4 revs of $482.4-496.8 mln vs. $484.04 mln Capital IQ Consensus Estimate.
Microchip also announced today that its Board of Directors declared a quarterly cash dividend on its common stock of 35.5 cents per share. The quarterly dividend is payable on March 7, 2014 to stockholders of record on February 21, 2014.4:18PM Emulex beats by $0.04, beats on revs; guides Q3 EPS in-line, revs below consensus (ELX) 7.58 +0.03 : Reports Q2 (Dec) earnings of $0.21 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.17; revenues rose 0.7% year/year to $123 mln vs the $120.6 mln consensus. Co issues mixed guidance for Q3, sees EPS of $0.14-0.17 vs. $0.16 Capital IQ Consensus Estimate; sees Q3 revs of $110-114 mln vs. $114.40 mln Capital IQ Consensus Estimate.
4:16PM PMC-Sierra beats by $0.01, beats on revs (PMCS) 6.42 +0.18 : Reports Q4 (Dec) earnings of $0.09 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.08; revenues fell 2.6% year/year to $126.1 mln vs the $123.79 mln consensus.
Commentary: Fourth quarter results were above the midpoint of our expectations and reflected solid growth in our storage business," said Greg Lang, PMC president and chief executive officer. "It is encouraging to see our storage and server businesses finish the year strong."
4:14PM Riverbed Technology beats by $0.01, reports revs in-line (RVBD) 19.78 +0.30 : Reports Q4 (Dec) earnings of $0.31 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.30; non-GAAP revenues rose 19% year/year and 7% Sequentially to $285 mln vs the $283.4 mln consensus.
4:12PM Google misses by $0.28, reports revs in-line (GOOG) 1135.39 +28.74 : Reports Q4 (Dec) earnings of $12.01 per share, $0.28 worse than the Capital IQ Consensus Estimate of $12.29; revenues rose 17.9% year/year to $16.86 bln vs the $16.76 bln consensus.
Google Sites Revenues- Google-owned sites generated segment revenues of $10.55 billion, or 67% of total Google segment revenues, in the fourth quarter of 2013. This represents a 22% increase over fourth quarter 2012 Google sites segment revenues of $8.64 billion.Google Network Revenues - Google's partner sites generated segment revenues of $3.52 billion, or 23% of total Google segment revenues, in the fourth quarter of 2013. This represents a 3% increase over fourth quarter 2012 Google network segment revenues of $3.44 billion.Google Segment International Revenue- Google segment revenues from outside of the United States totaled $8.77 billion, representing 56% of total Google segment revenues in the fourth quarter of 2013, compared to 56% in the third quarter of 2013 and 54% in the fourth quarter of 2012. CPC and Paid Clicks
Paid Clicks- Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 31% over the fourth quarter of 2012 and increased approximately 13% over the third quarter of 2013.Cost-Per-Click- Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 11% over the fourth quarter of 2012 and decreased approximately 2% over the third quarter of 2013.TAC
Traffic acquisition costs, the portion of revenues shared with Google's partners, increased to $3.31 billion in the fourth quarter of 2013, compared to $3.08 billion in the fourth quarter of 2012. TAC as a percentage of advertising revenues was 24% in the fourth quarter of 2013, compared to 25% in the fourth quarter of 2012.The majority of TAC is related to amounts ultimately paid to our Network members, which totaled $2.49 billion in the fourth quarter of 2013. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $824 million in the fourth quarter of 2013.
Motorola
Motorola Mobile Segment Revenues- Motorola Mobile segment revenues were $1.24 billion, or 7% of consolidated revenues in the fourth quarter of 2013, compared to $1.51 billion, or 11% of consolidated revenues in the fourth quarter of 2012. Capital
Cash Flow and Capital Expenditures- Net cash provided by operating activities in the fourth quarter of 2013 totaled $5.24 billion, compared to $4.67 billion in the fourth quarter of 2012. In the fourth quarter of 2013, capital expenditures were $2.26 billion, the majority of which was for production equipment, data-center construction, and real estate purchases. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the fourth quarter of 2013, free cash flow was $2.98 billion.We expect to continue to make significant capital expenditures.
Cash- As of December 31, 2013, cash, cash equivalents, and marketable securities were $58.72 billion.4:06PM Micrel beats by $0.01, reports revs in-line (MCRL) 10.01 +0.16 : Reports Q4 (Dec) earnings of $0.08 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.07; revenues fell 3.7% year/year to $60 mln vs the $59.61 mln consensus.
"We are cautiously optimistic that Micrel has turned the corner and will resume its growth trajectory. We are thrilled with the number of new products that are getting great traction with our customers. With the acceleration of the 'Internet of Things' trend, our LAN, timing and analog products are in strong demand. In addition, our penetration into the automotive market remains firmly on-track. Revenue in the first quarter of 2014 will be in the range of down 1% to up 3% on a sequential basis. Gross margins are expected to be approximately 51% resulting in GAAP EPS within the range of $.05 to $.08 per diluted share," Mr. Zinn concluded.
GAAP consensus is for GAAP Q1 EPS of $0.07
4:05PM JDS Uniphase acquires Trendium and Time-Bandwidth Products; terms not disclosed (JDSU) 12.72 +0.67 : JDSU announced it has acquired substantially all of the assets of Trendium, a provider of real-time intelligence software solutions for customer experience assurance, asset optimization and monetization of big data for 4G/LTE mobile network operators.
In addition, JDSU acquired Time-Bandwidth Products, a provider of high-powered and ultrafast lasers for the industrial and scientific markets.
The addition of Trendium employees and technology enables JDSU to introduce a new paradigm of customer experience assurance, enabling operators of 4G/LTE networks to achieve a real and relevant improvement in customer satisfaction while maximizing productivity and profitability for dynamic converged 4G/LTE networks and beyond.
4:03PM Celestica beats by $0.01, misses on revs; guides Q1 EPS in-line, revs below consensus (CLS) 10.05 +0.12 : Reports Q4 (Dec) earnings of $0.24 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 4.0% year/year to $1.44 bln vs the $1.47 bln consensus.
Co issues in-line EPS guidance for Q1, sees EPS of $0.17-0.23, excluding non-recurring items, vs. $0.20 Capital IQ Consensus Estimate; sees Q1 revs of $1.3-1.4 bln vs. $1.41 bln Capital IQ Consensus Estimate.
Large Cap Gainers
ALXN (161.66 +20.89%): Beat on EPS by $0.04, beat on revs; guide FY14 EPS above consensus, revs above consensus.
FB (62.03 +15.88%): Beat on EPS by $0.04, beat on revs; tgt raised to $66 from $60 at FBR Capital; tgt raised to $75 from $61 at Deutsche Bank; Buy; tgt raised to $80 from $60 at Jefferies; tgt raised to $75 from $70 at Credit Agricole; tgt raised to $80 from $72.50 at Wedbush; tgt raised to $72 from $68 at Susquehanna; tgt raised to $67 from $56 at Janney; tgt raised to $70 from $57 at Citigroup; tgt raised to $80 from $62 at JP Morgan; tgt raised to $60 from $50 at BMO Capital Mkts; tgt raised to $75 at CRT Capital; tgt raised to $71 from $63 at Raymond James; tgt raised to $70 from $65 at Nomura.
TWTR (64.6 +8.66%): Social/online media related names higher following FB results (LNKD also higher).
Large Cap Losers
SYMC (22.24 -7.91%): Beat on EPS by $0.09, beat on revs; guided Q4 EPS in-line, revs in-line.
CTXS (52.99 -8.01%): Beat on EPS by $0.06, reported revs in-line; guided Q1 below consensus; guided FY14 below consensus; CEO Templeton returning from leave of absence but will retire within next year; tgt lowered to $70 from $75 at Mizuho; tgt lowered to $70 from $76 at FBR Capital; downgraded to Neutral from Buy at Citigroup; tgt lowered to $58 from $70; downgraded to Neutral at Robert W. Baird; tgt lowered to $64; upgraded to Buy from Hold at Drexel Hamilton; downgraded to Mkt Underperform from Mkt Perform at JMP Securities; downgraded to Equal Weight from Overweight at a boutique firm; downgraded to Sector Perform from Outperform at Pacific Crest.
DEO (121.03 -4.76%): Beat H1 ests on bottom line, misses on revs; downgraded to Hold from Add at Numis.
Mid Cap Gainers
UA (105.76 +24.1%): Beat on EPS by $0.06, beat on revs; raised FY14 outlook.
NOW (67.13 +16.55%): Reported EPS in-line, beat on revs; guided Q1 revs above consensus; guided FY14 revs well above consensus; upgraded to Outperform at Robert W. Baird; tgt raised to $70; tgt raised to $75 from $59 at JMP Securities; tgt raised to $60 from $55 at Evercore.
CNQR (127.04 +16.7%): Beat on EPS by $0.09, beat on revs; guided Mar EPS and revs above consensus; guided FY14 EPS above consensus, revs in-line; tgt raised to $115 from $97 at FBR Capital; tgt raised to $140 from $126 at Stifel.
Mid Cap Losers
NSR (35.13 -19.69%): Beat on EPS by $0.08, beat on revs; guided FY14 EPS below consensus, revs in-line; provided update on local number portability administrator selection process - co was notified that its Oct 2013 proposal would not be considered; authorized share repurchase program for up to $200 mln of its Class A common shares beginning Jan 30, 2014 through Dec 31, 2014; downgraded to Neutral at Robert W. Baird; tgt lowered to $36.
ADT (31.7 -16.16%): Reported Q1 earnings of $0.66 per share, may not be comparable to the $0.49 estimate, missed on revs; downgraded to Perform at Oppenheimer.
KMT (44.31 -7.07%): Missed on EPS by $0.09, beat on revs; lowered FY14 guidance. Universal Display (OLED) and Kaneka announced the signing of a new OLED Technology License Agreement where Universal Display has granted Kaneka license rights, under various patents owned or controlled by Universal Display, to manufacture and sell phosphorescent OLED lighting products.
8:07AM KEMET beats by $0.09, misses on revs (KEM) 5.33 : Reports Q3 (Dec) earnings of $0.02 per share, $0.09 better than the Capital IQ Consensus Estimate of ($0.07); revenues rose 4.9% year/year to $207.3 mln vs the $213.23 mln consensus.
"Revenue, excluding discontinued operations, was essentially flat compared to the prior quarter as we forecasted and it is gratifying to see our cost reduction efforts reflected in our financial results with positive non-GAAP earnings per share in this challenging environment," stated Per Loof, KEMET's Chief Executive Officer.
"We have seen steady improvement in our operating margins and we will continue to stay focused on our overall cost structure to leverage our position as the economic rebound occurs in our industry," continued Loof.
4:57AM LM Ericsson beats by SEK0.94, beats on revs (ERIC) 11.95 : Reports Q4 (Dec) earnings of SEK2.42 per share, SEK0.94 better than the Capital IQ Consensus Estimate of SEK1.48; revenues rose 0.1% year/year to SEK67 bln vs the SEK65.19 bln consensus.
The business mix, with a higher share of coverage projects than capacity projects, started to shift towards more capacity during the year. As anticipated, sales came under some pressure during the quarter. As previously communicated, the major reason behind this development is the two large mobile broadband coverage projects, which peaked in North America in the first half of 2013 and the impact from reduced activity in Japan.
The long-term fundamentals in the industry remain attractive and with our ongoing strategic initiatives we are well positioned to continue to support our customers in a transforming ICT market.
Co states it ended the year with a strong cash flow of SEK 17.4 (22.0) b. and a full-year cash conversion of 79%, above the target of 70%.
The Board of Directors proposes a dividend for 2013 of SEK 3.00 (2.75) per share, an increase by 9%.
Qualcomm (QCOM) reported first quarter adjusted earnings of $1.26 per share, which is higher than expected, while revenues rose 10.0% year/year to $6.62 billion which is slightly below estimates.First Quarter Key Business Metrics MSMTM chip shipments: 213 million units, up 17 percent y-o-y and 12 percent sequentially. September quarter total reported device sales: ~$61.6 billion, up 16 percent y-o-y and 2 percent sequentially. September quarter estimated 3G/4G device shipments: ~276 to 280 million units, at an estimated average selling price of ~ $219 to $225 per unit. The company issued downside guidance for the second quarter with EPS of $1.15-1.25 and revenues $6.1-6.7 billion. The company issued guidance for fiscal year 2014 with raised EPS to $5.00-5.20, excluding non-recurring items, from $4.95-5.15, which is in line with estimates, with reaffirmed fiscal year 2014 revenues of $26.0-27.5 billion which is line with estimates.
Facebook (FB) reported fourth quarter earnings of $0.31 per share, which is higher than expected, while revenues rose 63.1% year/year to $2.59 billion which is higher than expected. Daily active users (DAUs) were 757 million on average for December 2013, an increase of 22% year-over-year. Mobile DAUs were 556 million on average for December 2013, an increase of 49% year-over-year. Monthly active users (MAUs) were 1.23 billion as of December 31, 2013, an increase of 16% year-over-year. Mobile MAUs were 945 million as of December 31, 2013, an increase of 39% year-over-year. Revenue from advertising was $2.34 billion, a 76% increase from the same quarter last year. Mobile advertising revenue represented approximately 53% of advertising revenue for the fourth quarter of 2013, up from approximately 23% of advertising revenue in the fourth quarter of 2012. GAAP costs and expenses for the fourth quarter of 2013 were $1.45 billion, an increase of 37% from the fourth quarter of 2012, driven primarily by increased headcount and infrastructure expense. Operating margin: GAAP operating margin was 44% for the fourth quarter of 2013, compared to 33% in the fourth quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 56% for the fourth quarter of 2013, compared to 46% for the fourth quarter of 2012. Capital expenditures for the fourth quarter of 2013 were $483 million. Cash and marketable securities were $11.45 billion at the end of 2013. Citrix Systems (CTXS) reported fourth quarter earnings of $1.04 per share, excluding non-recurring items, which is higher than expected, while revenues rose 8.4% year/year to $802.4 million which is line with estimates. Product and license revenue increased a half of a%; Software as a service revenue increased 13%; Revenue from license updates and maintenance increased 11%; Professional services revenue, which is comprised of consulting, product training and certification, increased 28%; Net revenue increased in the EMEA region by 14%, increased in the Americas region by 8% and decreased in the Pacific region by 12%; Deferred revenue totaled $1.4 billion as of December 31, 2013, compared to $1.2 billion as of December 31, 2012, an increase of 18%. The company issued downside guidance for the first quarter with EPS of $0.57-0.60, excluding non-recurring items and revenues of +8-10% to approximately $726.7-740.2 million which is higher than expected. The company issued downside guidance for EPS of $2.85-2.95 and revenues of +8-10% to approximately $3.15-3.21 billion. In addition, Citrix announced today that the co's chief executive officer, Mark Templeton, will be returning from his previously announced leave of absence to resume is role as CEO. Mr. Templeton intends to retire within the next year, subject to the naming of his successor. The board of directors has formed a committee of independent directors to lead a search process to identify the next CEO. David J. Henshall, who has been serving as acting CEO, has been promoted to chief operating officer and will retain a portion of the executive responsibilities that he assumed during Mr. Templeton's absence. Mr. Henshall will continue in his roles as executive vice president and chief financial officer, with responsibility for the company's finance and accounting organizations.
Fortinet (FTNT) reported fourth quarter earnings of $0.15 per share, which is higher thane expected, while revenues rose 17.3% year/year to $177.4 million which is higher than expected. Highlights for the qtr: Billings of $209.8 million, up 20% year over year Cash flow from operations of $46.7 million. Free cash flow of $39.5 million. Cash, cash equivalents and investments of $843.0 million with no debt.
QLogic (QLGC) reported third quarter earnings of $0.29 per share, which is higher than expected, while revenues were unchanged from the year-ago period at $119.4 million. Operating margin: 17.0% GAAP, 23.1% non-GAAP. "During the third quarter, we delivered strong financial results, including non-GAAP earnings per diluted share that exceeded our original guidance range...We are very pleased with our continued focus and execution. As a result of our restructuring activities earlier in the year, we have continued our sharper focus on the server and storage connectivity markets and are now operating more effectively and efficiently as reflected in our financial results."
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