Showing posts with label Financials. Show all posts
Showing posts with label Financials. Show all posts

Monday, August 31, 2020

Zoom reports 458% growth in key customer segment

Zoom Video Communications reported quarterly revenue of $663.5 million, up 355% year-over-year. GAAP net income was $185.7 million, or $0.63 per share, compared to GAAP net income attributable to common stockholders of $5.5 million, or $0.02 per share in the second quarter of fiscal year 2020. Non-GAAP net income for the quarter was $274.8 million.

“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom's video-first platform. At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases,” said Zoom founder and CEO, Eric S. Yuan. “Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth of 355% year-over-year in Q2 and enabled us to increase our revenue outlook to approximately $2.37 billion to $2.39 billion for FY21, or 281% to 284% increase year-over-year.”

Some metrics:

  • Approximately 370,200 customers with more than 10 employees, up approximately 458% from the same quarter last fiscal year.
  • 988 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 112% from the same quarter last fiscal year.
  • A trailing 12-month net dollar expansion rate in customers with more than 10 employees above 130% for the 9th consecutive quarter.



Thursday, August 27, 2020

Nutanix posts revenue of $327.9M, up 9% yoy, Bain invests $750M

Nutanix reported revenue of $327.9 million for its fourth quarter of fiscal 2020, up 9% year-over-year from $299.9 million in the fourth quarter of fiscal 2019. GAAP gross margin was 79.6%, up from 77.0% in the fourth quarter of fiscal 2019. There was a GAAP net loss of $185.3 million, compared to a GAAP net loss of $194.3 million in the fourth quarter of fiscal 2019; Non-GAAP net loss was $79.0 million, compared to a non-GAAP net loss of $105.8 million in the fourth quarter of fiscal 2019.

  • Expanded Customer Base: Nutanix ended the fourth quarter of fiscal 2020 with 17,360 end-customers. 
  • During the quarter, the company launched Nutanix Hybrid Cloud Infrastructure on Amazon Web Services: 
  • Reached 88 Percent of Billings from Subscription: Nutanix continued its transition to a subscription-based business model, with subscription billings up 29% year-over-year to $341 million, representing 88% of total billings, and subscription revenue up 46% year-over-year to $285 million, representing 87% of total revenue.


“I am thrilled to report strong results to close the year, a performance all the more impressive given the uncertainty of the global market environment we are facing today,” said Dheeraj Pandey, Chairman, Co-Founder and CEO of Nutanix. “We have demonstrated growth in the midst of a pandemic and have now generated $1.6 billion in annual billings. In addition, the $750 million investment from Bain Capital Private Equity validates the market opportunity in front of us and positions us well with enhanced financial flexibility and resources to further scale, gain share and remain at the forefront of innovation in our industry. The strategic value of IT is clear as customers increasingly value our software and solutions in a rapidly changing work environment. Our biggest product news of the quarter was launching our solution on bare metal with AWS, creating a new type of HCI: hybrid cloud infrastructure.”

Nutanix also announced that Bain Capital Private Equity will make an investment of $750 million in convertible notes. Nutanix plans to use the investment to support the company’s growth initiatives.


VMware posts Q2 revenue of $2.88 billion, up 9% yoy

VMware reported Q2 revenue of $2.88 billion, an increase of 9% from the second quarter of fiscal 2020. GAAP net income for the second quarter was $447 million, or $1.06 per diluted share, compared to $5.30 billion1, or $12.47 per diluted share, for the second quarter of fiscal 2020. Non-GAAP net income for the second quarter was $766 million, or $1.81 per diluted share, up 18% per diluted share compared to $650 million, or $1.53 per diluted share, for the second quarter of fiscal 2020.

“In light of these uncertain times, we delivered solid execution and financial performance in Q2 FY21,” said Pat Gelsinger, VMware CEO. “With our Any Cloud, Any Application, Any Device strategy, we are helping customers solve their hardest technology challenges and meet and exceed their business objectives.”

“Our performance in Q2 reflected strength in our Subscription and SaaS product offerings, which grew 44% year-over-year,” said Zane Rowe, executive vice president and CFO, VMware. “We plan to accelerate certain product initiatives through the remainder of the year, which will further support customers’ digital transformations and grow our Subscription and SaaS product offerings.”



  • The combination of subscription and SaaS and license revenue was $1.35 billion, an increase of 11% from the second quarter of fiscal 2020.
  • Subscription and SaaS revenue for the second quarter was $631 million, an increase of 44% year-over-year, representing 22% of total revenue.
  • The combination of subscription and SaaS and license revenue plus sequential change in unearned subscription and SaaS and license revenue grew 12% year-over-year.
  • VMware made available the second generation of VMware Cloud on Dell EMC, a VMware service that delivers simple, more secure and scalable infrastructure as-a-service to customers’ on-premises data center and edge locations.
  • Google Cloud announced the general availability of Google Cloud VMware Engine, an integrated first-party offering with end-to-end support to migrate and run the VMware environment in Google Cloud.
  • Microsoft previewed the next generation of Azure VMware Solution, a first-party solution designed, built and supported by Microsoft and endorsed by VMware.
  • VMware announced new capabilities designed to further improve the economic value of VMware Cloud on AWS while meeting an evolving set of requirements for application modernization, business continuity and resiliency, and cloud migration.
  • Oracle unveiled worldwide availability of Oracle Cloud VMware Solution, a dedicated, cloud-native VMware-based environment that enables enterprises to easily move their production VMware workloads to Oracle Cloud Infrastructure.
  • DISH has chosen VMware Telco Cloud to help deploy the world’s first 5G, cloud-native Open Radio Access Network. The platform will help bring to life the first network in the U.S. to combine the efficiency of the distributed telco cloud, public cloud and private cloud environments while delivering consistent, low-latency edge computing.
  • Intel and VMware announced they are collaborating on an integrated software platform for virtualized Radio Access Networks to accelerate the rollout of both existing LTE and future 5G networks.

Tuesday, August 25, 2020

HPE reports growing "as-a-service" revenue

Hewlett Packard Enterprise reported revenue of $6.8 billion for its fiscal 2020 third quarter, ended July 31, 2020, down 6% from the prior-year period or 4% when adjusted for currency. Revenue grew 13% sequentially or 14% when adjusted for currency driven by solid execution in clearing historic backlog by approximately $500 million during the quarter. Gross profit was $2.1 billion, up 8% sequentially, which the company credits to strong operation execution.

“Our Q3 results are marked by strong execution and sequential growth,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “We significantly improved operational and supply chain execution and advanced our innovation agenda with the introduction of HPE GreenLake cloud services solutions, our new HPE Ezmeral software portfolio, and our planned acquisition of SD-WAN leader Silver Peak.”

“We gained momentum in key areas of differentiation and accelerated our as-a-service pivot with strong ARR growth and a record number of HPE GreenLake services orders,” he continued. “Navigating through the pandemic and planning for a post-COVID world have increased customers’ needs for as-a-service offerings, secure connectivity, remote work capabilities and analytics to unlock insights from data that are aligned to our strategy. We see a tremendous opportunity to help our customers drive digital transformations as they continue to adapt to operate in a new world.”

Highlights

  • Intelligent Edge revenue was $684 million, down 12% year over year or 11% when adjusted for currency, with 8.6% operating profit margin, compared to 6.8% from the prior-year period. Revenue grew 3% sequentially demonstrating continued momentum.
  • Compute revenue was $3.4 billion, flat year over year or up 1% when adjusted for currency, with 8.5% operating profit margin, compared to 12.9% from the prior-year period. Revenue grew 28% sequentially or 29% when adjusted for currency as we executed against the backlog and improved supply chain execution.
  • High Performance Compute & Mission Critical Systems (HPC & MCS) revenue was $649 million, up 3% year over year, with 5.5% operating profit margin, compared to 8.1% from the prior-year period. Revenue grew 10% sequentially as installations and customer acceptance of systems improved.
  • Storage revenue was $1.1 billion, down 10% year over year or 9% when adjusted for currency, with 12.9% operating profit margin, compared to 16.5% from the prior-year period. Revenue grew 4% sequentially driven by improved operational execution and reduction of backlog.
  • Advisory & Professional Services (A&PS) revenue was $226 million, down 7% year over year or 5% when adjusted for currency, with (1.8%) operating profit margin, compared to (3.7%) from the prior-year period. Revenue was down 5% sequentially.
  • Financial Services revenue was $811 million, down 9% year over year or 6% when adjusted for currency and down 3% sequentially or 2% when adjusted for currency, with 8.0% operating profit margin, compared to 8.7% from the prior-year period. 

Wednesday, August 19, 2020

Intel announces $10 billion stock buyback

Intel plans to repurchase an aggregate of $10 billion of its common stock.

Once this tranche is completed, Intel will have repurchased a total of approximately $17.6 billion in shares as part of the planned $20 billion share repurchases announced in October 2019.

“We achieved record financial results in the first half of 2020 and raised our full-year outlook as customers rely on Intel technology for delivering critical services and enabling people to work, learn and stay connected. As the ongoing growth of data fuels demand for Intel products to process, move and store, we are confident in our multiyear plan to deliver leadership products,” said Intel CEO Bob Swan. “While the macro-economic environment remains uncertain, Intel shares are currently trading well below our intrinsic valuation, and we believe these repurchases are prudent at this time.”

Thursday, August 13, 2020

Deutsche Telekom posts flat Q2 revenue at home, some COVID impact

Deutsche Telekom reported Q2 revenue of 27.0 billion euros, up 37% yoy after the inclusion of Sprint but down 0.6 percent in organic terms as the coronavirus pandemic impacted Systems Solutions and roaming revenues.

"The merger in the United States is a historic step for the Group”, said Tim Höttges, CEO of Deutsche Telekom. “Our figures are formidable and our strong business operations in Germany and the rest of Europe also play a part in this."



Some highlights:

  • In Germany, Deutsche Telekom recorded its most successful quarter in broadband business in two years, measured in terms of net customer additions. 
  • Between April and June, the number of broadband customers increased by 87,000, thus outperforming all competitors. 
  • 386,000 customers switched to fiber-optic-based lines (FTTH, FTTC/vectoring). A total of 15.2 million of these lines now exist, which is 1.8 million more than a year earlier.
  • In mobile business, roaming revenues lost on account of the travel restrictions had an impact. As a result, mobile service revenues were down 1.1 percent year-on-year in the second quarter. 
  • Excluding the negative effects of the coronavirus restrictions, mobile service revenues increased by around 2 percent.
  • Despite the negative effect of the pandemic on roaming revenues, total mobile revenue in the Germany operating segment increased by 1.1 percent in the second quarter compared with the prior-year period to 5.4 billion euros. 
  • At the same time, adjusted EBITDA AL grew 3.0 percent to 2.2 billion euros. 
  • In Europe, total mobile revenue decreased by 2.0 percent in the second quarter in organic terms to 2.8 billion euros. Strict cost discipline helped to prevent this trend being reflected in earnings. Adjusted EBITDA AL increased by 1.1 percent year-on-year in organic terms to 1.0 billion euros, marking the tenth quarter of growth in succession. DT's national companies recorded 174,000 mobile contract net additions. The broadband customer base grew by 69,000 between April and June. In addition, the companies gained 265,000 new users of converged fixed-mobile products, a year-on-year increase of more than 30 percent in the FMC customer base.
  • As a result of the pandemic, T-Systems saw a slowdown in new deals closed with corporate customers. Many new IT projects were suspended or stopped. Customers are focusing on securing the continuity of their business and preparing for the period after the pandemic. Below the line, order entry declined by 24.0 percent year-on-year in the second quarter to 1.4 billion euros. The growth areas public cloud and security each recorded substantial double-digit growth.

Tuesday, August 11, 2020

Lumentum posts quarterly sales of $368 million

Lumentum reported net revenue for its fiscal fourth quarter of 2020 was $368.1 million, with GAAP net loss attributable to common stockholders of $(4.6) million, or $(0.06) per diluted share. This compares with revenue of $402.8 million in the preceding quarter and revenue of $404.6 million for the same period a year earlier.

"Strong market demand and solid execution drove better than projected results across all financial metrics in our fourth quarter, especially gross margin and EPS," said Alan Lowe, President and CEO. "We head into fiscal 2021 with demand increasingly driven by new products and technologies, strengthened market positions, and an improving financial model with accruing benefits from acquisition synergies. We became a standalone public company five years ago and since then have significantly improved our financial performance every year. While we have accomplished a lot over the past five years, I believe our future is brighter than ever."

Key new product areas for Lumentum include:

  • Contentionless MxN and high-port count ROADMs to enable network capacity scaling
  • PIC based components and DCO modules to enable scaling to even higher network bandwidths
  • PAM4 and high-speed EMLs and DMLs to enable next generation datacenters and 5G networks
  • Highly-efficient VCSEL arrays for next generation contact-less biometric authentication,
  • computation photography, LiDAR, and other computer vision applications
  • Ultra-fast solid-state lasers for demanding semiconductor and display manufacturing applications 

Viavi clocks revenue of $266.6 million, down 8% year-over-year

VIAVI reported revenue of $266.6 million for its fourth fiscal quarter, ended June 27, 2020. GAAP net income was $26.7 million, or $0.12 per share. Non-GAAP net income was $40.8 million, or $0.18 per share. This compares with net revenue of $256.2 million for the preceding quarter and revenue of $289.7 million for the same period last year.

"In fiscal fourth quarter our Wireless Lab equipment business delivered a record revenue quarter driven by 5G and we also saw overall NSE demand stabilizing," said Oleg Khaykin, VIAVI's President and Chief Executive Officer.  "For the full fiscal year 2020, revenue and non-GAAP EPS grew despite the business impact from the COVID-19 pandemic in the second half. Although near-term macroeconomic uncertainty is expected, we remain positive on the secular demand drivers for increased network capacity that drive 5G Wireless and Fiber and the continued penetration and adoption of 3D Sensing technology in mobile applications."

Americas, Asia-Pacific and EMEA customers represented 38.8%, 27.7% and 33.5%, respectively, of total net revenue for the quarter ended June 27, 2020. Americas, Asia-Pacific and EMEA customers represented 36.5%, 32.4% and 31.1%, respectively, of total net revenue for the year ended June 27, 2020.

https://investor.viavisolutions.com/home/default.aspx


Sunday, August 9, 2020

Intelsat: 75% average fill rate for its satellite transponders

Intelsat reported revenue of $482.0 million and net loss of $405.4 million for the three months ended June 30, 2020.

Intelsat’s Chief Executive Officer, Stephen Spengler, said, “Our business demonstrated resiliency in a challenging operating environment, highlighted by a sequential quarterly increase in revenue and Adjusted EBITDA largely from the successful execution of a new agreement with Speedcast in our network services business. Financial results, when compared to the same period last year, reflect the ongoing challenges in our network services business due to the impacts of COVID-19 in the cruise maritime and aeronautical mobility, despite booking new business in merchant maritime and enterprise network applications. The decline in the media business was driven by ongoing secular headwinds that we have experienced over several quarters. Finally, the government services business delivered year-over-year growth in revenues resulting from strong uptake of third-party services and growth in our new FlexGround managed services."

Spengler concluded, “During the period we filed our initial C-band transition plan with the FCC, detailing our roadmap to meet their accelerated spectrum clearing deadlines. The final transition plans are due to be filed with the FCC on August 14, 2020. We will consult with the FCC and continue to refine our plan as that date approaches. Ongoing engagement with our supply chain, vendors, and customers gives us a high degree of confidence that we can execute our transition plan and ensure that the U.S. maintains its 5G leadership position."

Some highlights:

  • Network services revenue was $176.7 million (or 37 percent of Intelsat’s total revenue) for the three months ended June 30, 2020, a decrease of 5 percent compared to the three months ended June 30, 2019
  • Media revenue was $202.6 million (or 42 percent of Intelsat’s total revenue) for the three months ended June 30, 2020, a decrease of 9 percent compared to the three months ended June 30, 2019.
  • Government revenue was $96.1 million (or 20 percent of Intelsat’s total revenue) for the three months ended June 30, 2020, an increase of 3 percent compared to the three months ended June 30, 2019.
  • Intelsat’s average fill rate at June 30, 2020 on our approximately 1,675 36 MHz station-kept wide-beam transponders was 75.1 percent, as compared to an average fill rate at March 31, 2020 of 78.5 percent on the company's approximately 1,675 transponders. 
  • As of June 30, 2020, the Intelsat fleet included approximately 1,225 36 MHz equivalent transponders of high-throughput Intelsat Epic capacity, reflecting no change from the prior quarter.



I

Wednesday, August 5, 2020

Infinera posts Q2 revenue of $331.6 million, up 8% YOY

Infinera reported Q2 GAAP revenue of $331.6 million compared to $330.3 million in the first quarter of 2020 and $296.3 million in the second quarter of 2019.

GAAP gross margin for the quarter was 29.4% compared to 23.3% in the first quarter of 2020 and 20.7% in the second quarter of 2019. GAAP net loss for the quarter was $(61.6) million, or $(0.33) per share, compared to $(99.3) million, or $(0.55) per share, in the first quarter of 2020, and $(113.7) million, or $(0.64) per share, in the second quarter of 2019. Non-GAAP net loss for the quarter was $(17.2) million, or $(0.09) per share, compared to a net loss of $(49.4) million, or $(0.27) per share, in the first quarter of 2020, and net loss of $(42.0) million, or $(0.24) per share, in the second quarter of 2019.

The company said it has 5 new 600G customers (16 total), including 1 major ICP. Infinera also noted that it is pleased with the result of field trials of its ICE6 (800G) technology, which is
on track for delivery this year.

“I am pleased with our execution in the quarter from a financial, operational and technical perspective, making advances on all fronts. We are managing the operational impacts of COVID-19 and are continuing to take the necessary measures to reduce costs and improve working capital utilization as macroeconomic uncertainty in our industry continues,” said Tom Fallon, Infinera CEO. "Importantly, I am encouraged by the opportunity we believe will be created by our ICE6 solution as the industry readies for a new technology cycle driven by ever increasing demand for bandwidth.”

https://investors.infinera.com/presentations/default.aspx

Tuesday, August 4, 2020

Arista posts Q2 sales of $541M, down 11% yoy

Arista Networks reported Q2 revenue of $540.6 million, an increase of 3.4% compared to the first quarter of 2020, and a decrease of 11.1% from the second quarter of 2019.

GAAP gross margin of 63.7%, compared to GAAP gross margin of 64.7% in the first quarter of 2020 and 64.1% in the second quarter of 2019. Non-GAAP net income was $167.0 million, or $2.11 per diluted share, compared to non-GAAP net income of $198.6 million, or $2.44 per diluted share in the second quarter of 2019.

"I am definitely pleased with our quarterly performance and proud of the tenacity shown by the Arista team in the face of the challenging pandemic era we live in," stated Jayshree Ullal, President & CEO of Arista Networks. "Arista's market position has been reinforced as we were placed in the leader’s category by two renowned market analyst firms."

In a conference call, Arista said it has won 50 customers for 400G so far, in various stages of deployment.



NeoPhotonics posts strong Q2, revenue of $103M, up 26% yoy

NeoPhotonics reported Q2 revenue of $103.2 million, up 6% quarter-over-quarter and up 26% year-over-year. Gross margin was 32.5%, up from 30.5% in the prior quarter and from 19.2% in the prior year. Diluted net income per share was $0.11, in comparison to $0.12 in the prior quarter and to a net loss per share of $0.16 in the same period last year.

“The second quarter was another strong quarter, with revenue up 26% compared to last year and continued gross margin expansion to 32.5%. This was our fourth straight quarter of profitability. Non-GAAP EPS was 16 cents and GAAP EPS was 11 cents per share,” said Tim Jenks, Chairman and CEO of NeoPhotonics. “With increasing momentum in 400G and above product design wins across almost all of the major network equipment manufacturers globally, and with increasing momentum in 400ZR opportunities, we remain optimistic about the growth prospects for NeoPhotonics,” concluded Mr. Jenks.

https://ir.neophotonics.com/static-files/6ce8797b-88ee-46f6-b8ee-7be80c30f65f


Inphi reports record Q2 revenue of $175M, strong data center sales

Inphi reported Q2 rvenue of $175.3 million, up 103.2% year-over-year, compared with $86.3 million in the second quarter of 2019. The increase was due to higher demand for Cloud and Telecommunications products as well as the inclusion of eSilicon revenues as a result of the acquisition that closed on January 10, 2020.

Gross margin under GAAP in the second quarter of 2020 was 53.0%, compared with 56.9% in the second quarter of 2019. GAAP operating loss in the second quarter of 2020 was $4.3 million or (2.4%) of revenue, compared to GAAP operating loss in the second quarter of 2019 of $14.2 million or (16.5%) of revenue. Non-GAAP net income in the second quarter of 2020 was $50.9 million, or $0.95 per diluted common share. This includes the one-time tax benefit referred to above which represents approximately $0.10 per diluted share as part of the $0.95 per diluted common share for the second quarter of 2020. 

“In Q2 our product offerings were firing on all cylinders.  On a year-over-year basis, our Cloud revenue grew 92% driven by our PAM4 products inside data centers and our COLORZ solution between data centers.  Our Telecom revenue grew 119% driven by both our new ASIC and PAM4 for 5G and our coherent solutions for long haul and metro,”  said Ford Tamer, President and CEO of Inphi Corporation. “We continue to invest in resources both organically and through strategic acquisitions that can scale Inphi to larger opportunities ahead. Although we are cautious with regard to the macro uncertainties, we believe our continued success and breadth of product cycles will drive sequential growth in the third quarter.”

Sunday, August 2, 2020

Nokia now has 83 5G deals and a 27% RAN marketshare

Citing the effects of COVID-19 as well as a sharp decline in China, Nokia reported Q2 net sales of EUR 5.092 billion, down 11% from the EUR 5.694 billion a year earlier. However, Nokia reduced the volume of low margin services business, resulting in better-than-expected profitability and significant improvement in cash generation. There was a net profit of EUR 85 million, compoared with a loss of EUR 191 million a year ago.

  • Nokia's Optical business experienced COVID-19 supply constraints in Q2 but these are expected to ease in Q3
  • Nokia currently has 83 5G commercial deals and 32 live 5G networks
  • Nokia estimates its  4G+5G mobile radio market share at 27% excluding China
  • Nokia Enterprise confirmed 180 private 4G and 5G deals to date, an 18% yearly growth

Rajeev Suri, Nokia's outgoing CEO, states:


"At the start of the year, we said we would have a sharp focus on our Mobile Access business and improving cash generation. In both areas we continue to make good progress. Free cash flow in the quarter was positive €265 million, versus negative €1.0 billion one year ago, and Nokia ended Q2 with €1.6 billion of net cash, and €7.5 billion in total cash. Given our strong first-half improvement, we now expect free cash flow for full-year 2020 to be “clearly positive” compared to our earlier guidance of “positive”.

"In Mobile Access, we saw healthy improvements in our radio portfolio, where roadmaps are strengthening, costs are coming down, and product performance is rising. We have a particularly powerful portfolio in mid-band mobile radio, with proven products deployed with 55 customers, and the first live C-Band network demonstrated in the U.S. during the quarter. Pleasingly, our “5G Powered by ReefShark” shipments continue to increase and we believe we remain on track to reach 35% or better by year end. And, we now have 83 5G deals."

"Our continued momentum was demonstrated by the progress we announced after the quarter ended. These included the availability of a software upgrade that allows millions of Nokia 4G/LTE radios deployed to more than 350 customers to be migrated seamlessly to 5G; and plans to accelerate leadership in Open RAN. Nokia is the only global supplier fully committed to O-RAN with commercial 5G Cloud-RAN networks. We also announced an expansion of our IP routing business into the data center market and highlighted that Apple was deploying our technology at its data centers."

"This is my last quarterly announcement as CEO of Nokia and I want to close with a note of thanks: thanks to our shareholders, thanks to our customers, thanks to our many other stakeholders, and a particular thanks to the great employees of Nokia. You have constantly made me proud and I expect that you will continue to do so in the many years to come. Thank you all. It has been a pleasure and an honor."

Thursday, July 30, 2020

Xilinx sees strength in data center product and some order acceleration

Xilinx reported revenues of $727 million for the first quarter of its fiscal year 2021,  exceeding initial guidance and in-line with revised guidance. GAAP net income for the quarter was $94 million, or $0.38 per diluted share. Non-GAAP net income was $160 million, or $0.65 per diluted share.

The company noted record Data Center Group (DCG) revenue, with 10% sequential and 104% annual growth. Wireless Group (WWG) revenue increased 27% sequentially.

“Our fiscal Q1 revenue was well above the initial guidance despite ongoing business challenges from COVID-19 and global trade issues,” said Xilinx president and CEO Victor Peng. “Results were driven by strength in the Data Center Group (DCG), Wired and Wireless Group (WWG), and the Industrials market, offsetting expected headwinds in consumer-oriented end markets, including Automotive and Broadcast. The outperformance was due to a combination of strength in multiple end markets, as well as some order acceleration driven by recent additional U.S. government trade restrictions on sales of certain Xilinx products to some customers based, or with operations, in China.”

http://investor.xilinx.com/

NETSCOUT reports steady revenue, growing EPS

NETSCOUT reported total revenue (GAAP and non-GAAP) for its first quarter of fiscal year 2021 of $183.8 million, compared with $186.0 million (GAAP) and $186.1 million (non-GAAP) in the same quarter one year ago. A reconciliation of GAAP and non-GAAP results is included in the attached financial tables.

Product revenue (GAAP and non-GAAP) for the first quarter of fiscal year 2021 was $71.7 million, which was approximately 39% of total revenue. This compares with first-quarter fiscal year 2020 product revenue (GAAP and non-GAAP) of $75.7 million, which was approximately 41% of total revenue.

Service revenue (GAAP and non-GAAP) for the first quarter of fiscal year 2021 was $112.1 million, or approximately 61% of total revenue versus service revenue (GAAP) of $110.3 million, or approximately 59% of total revenue, for the same period one year ago. On a non-GAAP basis, service revenue for the first fiscal quarter of fiscal year 2020 was $110.4 million, also approximately 59% of total non-GAAP revenue.

NETSCOUT’s loss from operations (GAAP) was $14.5 million in the first quarter of fiscal year 2021, compared with a loss from operations (GAAP) of $24.4 million in the comparable quarter one year ago.

“We delivered strong earnings per share growth on a relatively consistent level of revenue in the first quarter of fiscal year 2021, compared with the same period last year,” stated Anil Singhal, NETSCOUT’s president and chief executive officer. “Our enterprise business was strong given our ability to provide service assurance, with real-time, pervasive visibility and insight, and security solutions that mitigate disruption for our customers regardless of their underlying infrastructure.

Wednesday, July 29, 2020

MACOM posts revenue of $137 million, up 27% yoy

MACOM reported revenue of $137.3 million, an increase of 26.7% compared to $108.3 million in the previous year fiscal third quarter and an increase of 8.6% compared to $126.4 million in the prior fiscal quarter. Gross margin was 51.6%, compared to 31.2% in the previous year fiscal third quarter and 50.1% in the prior fiscal quarter. Net loss was $25.0 million, or $0.37 loss per diluted share, compared to net loss of $324.7 million, or $4.95 loss per diluted share, in the previous year fiscal third quarter and net loss of $10.2 million, or $0.28 loss per diluted share, in the prior fiscal quarter.

“We remain focused on engineering excellence, financial performance and execution,” said Stephen G. Daly, President and Chief Executive Officer.\

Tuesday, July 28, 2020

Juniper posts Q2 sales of $1.086 billion

Juniper Networks reported better than expected Q2 financial results with revenue and EPS of $1,086M and $0.35 both exceeding the mid-point of the guidance range. Revenue was down 1% YOY, primarily due to ongoing supply constraints related to the COVID-19 pandemic, and up 9% sequentially. GAAP net income was $61.2 million, an increase of 32% year-over-year, and an increase of 200% sequentially, resulting in diluted earnings per share of $0.18.

"We experienced solid demand during the June quarter, as our combination of technological differentiation and go- to-market execution drove a second consecutive quarter of positive order growth,” said Juniper’s CEO, Rami Rahim. “While the global macro environment remains uncertain, the strategic importance of the global network has never been clearer and we remain confident regarding the long-term outlook for our business. We delivered better than expected results during the June quarter, with both revenue and non-GAAP earnings per share exceeding the mid-point of our guidance,” said Juniper’s CFO, Ken Miller. “We are entering Q3 with healthy backlog and are optimistic regarding our ability to navigate COVID-19 related supply chain challenges and deliver improved profitability during the upcoming quarter."

Some highlights:

  • Orders grew 6% year over year (YOY) and exceeding expectations. 
  • Juniper secured 400G wins in every geography and vertical it serves,.
  • In cloud, revenue increased 9% on a sequential basis, growing modestly for the fifth consecutive quarter, despite being flat YOY. Juniper’s largest cloud customer in Q2 was different as compared to Q1. Juniper expects modest growth for the cloud business in 2020, with some seasonality during Q3.
  • The Enterprise business increased 1% in revenue on a sequential basis, exceeding initial expectations in Q2, but had a slight 2% decline YOY. Juniper continues to see strong momentum with Mist, driving confidence in its ability to gain enterprise share and return to growth once the pandemic subsides. Software revenue declined in Q2 and accounted for less than 10% of sales, though software orders grew 7% YOY due to a combination of strong Mist and Security subscriptions.
  • The service provider business modestly declined YOY during Q2, as it was most impacted by COVID-19-related supply chain challenges. However, it experienced a second consecutive quarter of positive growth with a 16% increase in revenue. Much of the service provider order strength is attributable to diversification efforts across customers and products over the last few years. Based on current trends and conversations, the service provider business is likely to see a modest decline in 2020.
  • Mist, which is the centerpiece of the company’s AI strategy, reported another record quarter with orders rising more than 170% on a YOY basis and new logos increasing by more than 100% YOY. Mist has now secured 4 Fortune 10 accounts and saw a material increase in demand generation from the channel, reflecting the true differentiation of the product. 


Thursday, July 23, 2020

AT&T: COVID-19 impacted revenues

Citing the impact of COVID-19 across all its business segments, AT&T reported Q2 revenues of $41.0 billion versus $45.0 billion in the year-ago quarter.

The COVID-19 impact included 338,000 mobile accounts which ceased paying their monthly bill and for which the company continues to provide service under the Keep America Connected programs but which are now considered "disconnects" for accounting. AT&T also saw lower content and advertising revenues at WarnerMedia, drops in domestic video and legacy wireline services, and currency exchange pressure in Latin America.

“Our solid execution and focus in a challenging environment delivered significant progress in the quarter, most notably the successful launch of HBO Max, resilient free cash flow and a strengthened balance sheet,” said John Stankey, AT&T chief executive officer. “Our resilient cash from operations continues to support investments in growth areas, dividend payments and debt retirement. We are aggressively working opportunities to sharpen our focus, transform our operations and continue investing in growth areas, with the customer at the center of everything we do.”

Highlights:

  • Mobile service revenues were down 1.1% due to decline in international roaming; equipment revenues up year over year.
  • 17.7 million premium TV subscribers – 886,000 net loss; 91,000 attributed to Keep America Connected programs.
  • 225,000 AT&T Fiber net adds
  • Operating expenses were $37.4 billion versus $37.5 billion in the year-ago quarter, essentially flat. 
  • Operating income was $3.5 billion versus $7.5 billion in the year-ago quarter


https://investors.att.com/~/media/Files/A/ATT-IR/financial-reports/quarterly-earnings/2020/q2-2020/att-2q2020-earnings.pdf

Intel hits Q2 revenue of $19.7B, Data Center Group up 43% yoy

Citing strong demand for cloud services and work-from-home and study-from-home upgrades, Intel reported Q2 revenue of $19.7 billion, up 20 percent year-over-year (YoY). GAAP earnings-per-share (EPS) was $1.19, up 29 percent YoY. However, the company warned of slower growth in the second half of the year and production delays with its next-gen 7-nm CPU manufacturing, which will be delayed by six months.

“It was an excellent quarter, well above our expectations on the continued strong demand for computing performance to support cloud-delivered services, a work- and learn-at-home environment, and the build-out of 5G networks,” said Bob Swan, Intel CEO. “In our increasingly digital world, Intel technology is essential to nearly every industry on this planet. We have an incredible opportunity to enrich lives and grow this company with a continued focus on innovation and execution."

Data-centric revenue grew 34 percent, accounting for 52 percent of total revenue; PC-centric revenue grew 7 percent YoY.

Some highlights:

  • Data Center Group (DCG) revenue was up 43 percent YoY driven by broad strength including 47 percent YoY growth in cloud service provider revenue. 
  • In Q2, the company introduced its 3rd Gen Intel Xeon Scalable processors and new additions to its hardware and software AI portfolio for data center, network and intelligent-edge environments. 
  • Intel's memory business (NSG) set a new revenue record in the quarter. 
  • Intel's portfolio for 5G network infrastructure gained customer momentum, most notably the 10nm-based Intel Atom P5900 for wireless base stations. 
  • Mobileye continued to win new ADAS designs in a challenging economic environment for automotive, and Intel acquired Moovit, a mobility-as-a-service (MaaS) solutions company.
  • The PC-centric business (CCG) was up 7 percent YoY in the second quarter on notebook strength driven by the continued work- and learn at home dynamics of COVID-19, which also contributed to a volume decline in desktop form factors as demand shifted to notebooks. 
  • Intel's first 10nm-based server CPU “Ice Lake,” which remains planned for the end of this year. In the second half of 2021, Intel expects to deliver a new line of client CPU’s (code-named “Alder Lake”), which willinclude its first 10nm-based desktop CPU, and a new 10nm-based server CPU (code-named “Sapphire Rapids”).
  • Intel said its 7nm-based CPU product timing is shifting approximately six months relative to prior expectations due to the yield of its 7nm process, which based on recent data, is now trending approximately twelve months behind the company's internal target.