Tech stocks outperformed slightly with semis pulling the weight down. It seemed that  earnings were again the primary force behind the price action. SANM -17% disappointed investors after reporting quarterly results on Monday after the close. Worth mentioning that the stock has over 11% float short with 7 days to cover. Interestingly we did see some further short selling in the name yesterday. On the positive note LXK +8%, UCTT +13% and IDTI +10.5% were a bright spots on the earnings front.

 

Last night after the close DWA delivered solid results and announced a new $150M share buyback. In a press release company stated that 2010 is tracking to be a great year. The results might help to lift movie theaters names (RGC, CNK and CKEC).

Expect increased volatility in S today as company reported strong Q2 results this morning. Recall that stock was down 4% yesterday after being up 7% on Monday on elevated volume.

Notable earnings tonight after the close: LSI, LRCX, MANT and SYMC

Today's Tech/Media/Telco Stories
Macro/Technicals | Active Names | Earnings | Sector News, M&A, Capital Raises | Research Away

Macro/Technicals

S&P Futures : 1111.5; +.05
Resistance: 1122, 1126;
Support: 1100, 1077;
SOX : 366.08; -.93
VIX : 23.19; +2.02

Leaders: +19.6%, UCTT +13.4%, UIS +12%, LXK +8.5%
Laggards: SANM -16.9%, VLTR -13%, MSPD -13%, PLXT -12%

Active Names

 

Enterprise/Service/ SW: BR, CIEN, DGIT, MCCC, MSFT, SWI, ASIA

PCs/Devices/Net: BIDU, DELL, ADCT, Q, CMVT, YHOO

Semis/Circuits: Storage: NVLS, MU, VRGY, AMD, WFR

Network Products: CSCO, BRCD, PLCM, FTR

Telco: CVC, GNCMA, ETM, VZ, T, TWX, ROIAK, LEAP

Electronic components: APH, TNB, ENS, SANM, ENTG

Media: AOL, CVC, SIRI, PLA, VMED

Smaller Caps: BDE, MTSN, ADPT, HYC, ORCC, VTSSD

Earnings

 

BLKB- in line to slightly better Q2 and better Q3 guidance. Tha major positive was there was license growth for the first time in two years.  The spending environment looks to be stabilizing. BLKB is increasing its investment in services headcount, sales, and marketing to help get the remainder of their 31eCRM clients up and running. Currently only 14 are up and running.

BRCM- beat and raise Q2 with Mobile and Wireless the biggest contributors, and broadband was also strong. Inventories increased in the Q, but mgmt points out 60% of the inventory growth was for cellular chips to be shipped in 2H10 and in particular for one BRCM customer BRCM has a deal woith to store inventories at their hub. Some on the street believe this to be Nokia.

FORM- weak Q, but there is new management in place, and they will need more time to implement their own goals. FORM did not see profits from the recovery in DRAM because old FORM mgmt had drastically cut ASPs on Harmony to gain market share. FORM is aggressively restructuring and will take a market share hit as it tries to condition customers to accept higher ASPs.

JDAS- mixed Q with higher revs and an EPs miss due to some higher expenses. The Dillard’s and Oracle lawsuits drove up legal expenses and cause the EPS miss. The major positive from the Qwas stronger licensing revenues.

PMTC- slightly better Q3 and FY guidance remains the same. The Q3 upside came from strong PLM license sales. Domestic revs declined due to timing issues, but it appears to be primed to return to growth in the coming Q. Other geographies showed growth across the board.

RFMD- mostly in Line Q. The cellular products group performed well, but GMs decreased 30 basis points in the Q. Guidance is slightly disappointing heading into a usually seasonally strong September Q. The company’s transceiver business is expected to bring the Sept Q downside.  Weakness in the handset end market is also dragging on RFMD earnings, and could for Qs to come as handset makers are already or are expected to report weaker earnings in many cases.

TRMB- Strong Q2 results and better guidance. E&C revs were the major driver to better earnings, but were slightly offset by FX headwinds and weakness in MS margins. TRMB saw the first rebound in the survey segment in two years, which could be a major positive driver for future earnings.

WBSN- weak Q and disappoiting billings causes FY guidance to be lowered. Softening demand in Europe also contributed to the weak Q and lowered guidance. The sales mgmt transition is still underway and there are questions on how long it will take to work through it. Lower renewal rates in some segments also provided some downside to the Q.

Sector News, M&A, Capital Raises

 

T S&P informs AT&T that it will be placed on credit watch

GOOG: Google’s Cash Hoard Makes It Prime for Stock Buyback, Dividend- BBG

Google in talks to build Facebook competitor- Reuters

Vivo: Telefonica and Portugal Telecom Agree on 7.5B Vivo deal-El Pais

DIS: Tutor, Colony Said to Move Ahead With Miramax Buy- BBG

DIS: Disney buying Playdom for at least $563 million- Reuters

TRB Tribune deal marred by ‘dishonesty’- FT

ADBE Agrees to Buy Day Software in 255 Million Franc Deal- BBG

JNPR Buys SMobile for $70 Million to Expand Mobile Security- BBG

SAP is interested in further acquisitions after the takeover of Sybase- Die Welt

HRS Harris Corp awarded $78.5M US Army contract

MTSC MTS settles patent-infringement litigation; preannounces Q3

ADCT ADC and AFL resolve pending litigation, reach FTTX licensing agreement

GOOG: Android Market to Stop Unauthorized App Use- eWeek

Acer to launch dual-OS netbook

Research Away

 

GPN downgraded to neutral from buy at Janney Capital

GPN downgraded to Underweight from Equal Weight at Morgan Stanley

GPN upgraded to Overweight from Equal Weight at Stephens

ENTG upgraded to hold from sell at Citi, px tgt unchanged at $5