Cantor Morning News | Tech/Media/Telco

S&P Futures : 1107; +.51
Resistance: 1122, 1126;
Support: 1100, 1077;
SOX : 359.7; 359.7
VIX : 24.25; 24.25

Leaders: SIMG +30%, RMTR +8%, IACI +4%, AUDC +4%
Laggards: HTCH -13%, WBSN -12.5%, FORM -11.6%, SSYS -9%

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

AKAM- in line June Q with value added services providing the upside. Strong gross margins in line with guidance as well (82%). Mgmt increased spending due to increased confidence.

BMC- qorse Q1, but booking in the Q were positive. This could be a strong driver to future earnings. With the light EPS and rev, and the better bookings mgmt maintained their guidance figures. Mgmt also indicated that the economy is getting better, demand is improving, and they aren’t seeing any weakness.

CML- Strong Q2 and slight guidance raise. North America performed very well in the Q for CML, and new customers came in much better. Mgmt was upbeat during the conference call

CTV- in line Q2 although margins were worse. A better than expected tax rate helped to provide some upside. Mgmt offered Q3 guidance below consensus, but says the North American and LTE builds and wireless network spending should continue.

CTXS- better Q on the top and bottom line, and bookings were also better. Mgmt guided Q3 higher.

DRIV- mixed Q2 and Q3 guidance is slightly disappointing. DRIV saw positive results from the Windows 7 product cycle in the Q. Mgmt expects cost cutting to continue into Q3.

LSI- disappointing Q with an inventory correction in enterprise semis helping to drag to the negative. Guidance is also disappointing as LSI expects SAN components to remain under pressure in Q3.

LRCX- Very Strong Q4 and strong guidance. The better guidance looks due to share gains, which could be a positive for Qs to come. There are still growing concerns over chip demand so guidance could prove to be too strong.

SYMC- weak results in the Q due to storage weakness. Competitor CVLT Commvault also provided weaker results signaling that there is weakness across the board in storage. Enterprise security performed well and mgmt said there was good demand in the Q. guidance for the sept Q is conservative due to the expected sweakness in storage.

TER- better Q2 and strong Q3 guidance. Bookings in the Q were better, and should help to drive the better Q3.

TQNT- better Q on the top and bottom line. Mgmt also guided Q3 better , but margins may see some pressure

Sector News, M&A, Capital Raises

Facebook Security Fears After 'Private Details of 100m Users Leaked to Web'- BBG

Panasonic buying Sanyo, other unit for $9.4 bln- reuters Japan's Panasonic Corp plans to buy out subsidiaries Sanyo Electric and Panasonic Electric Works for up to 818.4b yen ($9.4b) to strengthen its push into greener businesses.

QLCM Qualcomm India unit to sell stake for $64 mln- Reuters

BSkyB buys complete HBO TV catalogue- Guardian

LGF- B.C. regulator dismisses Icahn application for temporary cease trade order- BBG

Digital Sky Technologies has given mandates to GS, MS, and JPM to organize a DST IPO- S&P

Research Away

CML upgraded to Hold from Sell at Canaccord, px tgt $12.50

CTXS upgraded to buy from hold at Deutsche Bank, px tgt to $65 from $45

SYMC downgraded to neutral from buy at Bank of America Merrill Lynch, px tgt to $16 from $19

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