H-P, Brocade and Analog Devices Generate Trading Demand After Earnings

Hewlett Packard Co. (NYSE:HPQ) reported its results for the fourth quarter. Net income for the diversified computer systems company fell to $239 million (12 cents per share) vs. $2.54 billion ($1.10 per share) a year earlier. This is a decline of 90.6% from the year earlier quarter. Revenue fell 3.5% to $32.1 billion from the year earlier quarter. HPQ reported adjusted net income of $1.17 per share. By that measure, the company beat the mean estimate of $1.13 per share. It fell exactly in line with the average revenue estimate of $32.1 billion.

“HP has a great opportunity to build on our strong hardware, software, and services franchises with leading market positions, customer relationships, and intellectual property,” said Meg Whitman, HP president and chief executive officer. “We need to get back to the business fundamentals in fiscal 2012, including making prudent investments in the business and driving more consistent execution.”

Competitors to Watch: Dell Inc. (NASDAQ:DELL), Apple Inc. (NASDAQ:AAPL), Oracle Corporation (NASDAQ:ORCL), Microsoft Corporation (NASDAQ:MSFT), Cisco Systems, Inc. (NASDAQ:CSCO), Intl. Business Machines Corp. (NYSE:IBM), EMC Corporation (NYSE:EMC), Super Micro Computer, Inc. (NASDAQ:SMCI), RadiSys Corporation (NASDAQ:RSYS), and Silicon Graphics Intl. Corp (NASDAQ:SGI).

Brocade Communications Systems Inc. (NASDAQ:BRCD) dropped to a fourth quarter loss, but results topped expectations. Reported a loss of $4.3 million (one cent per diluted share) in the quarter. Brocade Communications Systems Inc. had a net income of $22.2 million or 5 cents per share in the year earlier quarter. Revenue rose slightly to $550.5 million. BRCD reported adjusted net income of 16 cents per share. By that measure, the company beat the mean estimate of 6 cents per share. It beat the average revenue estimate of $527.1 million.

“Brocade achieved outstanding results in Q4 that were led by record revenues for our Ethernet business, fast adoption of our 16 Gbps Fibre Channel products, improvements in profitability, and a record cash flow quarter from operations,” said Michael Klayko, CEO of Brocade. “These strong performances demonstrate that we are executing well on our long-term strategy. Looking at FY 12, we plan to leverage this momentum along with our highly differentiated innovation strategy, expanding product portfolio, and our strong routes to market.”

Competitors to Watch: EMC Corporation (NYSE:EMC), Emulex Corporation (NYSE:ELX), NetApp Inc. (NASDAQ:NTAP), Hewlett-Packard Company (NYSE:HPQ), Cisco Systems, Inc. (NASDAQ:CSCO), Western Digital Corp. (NYSE:WDC), QLogic Corporation (NASDAQ:QLGC), Dot Hill Systems Corp. (NASDAQ:HILL), Overland Storage, Inc. (NASDAQ:OVRL), and Quantum Corporation (NYSE:QTM).

 Analog Devices Inc. (NYSE:ADI) reported its results for the fourth quarter. Net income for the semiconductor company fell to $183.5 million (60 cents per share) vs. $225 million (73 cents per share) a year earlier. This is a decline of 18.4% from the year earlier quarter. Revenue fell 7% to $716 million from the year earlier quarter. ADI fell short of the mean analyst estimate of 63 cents per share. Analysts were expecting revenue of $730 million.

“We are very pleased with our fiscal year 2011 performance as ADI delivered record annual revenue and profitability, with revenue of approximately $3 billion, operating profit of approximately $1.1 billion, or 35.8% of revenue, and diluted EPS from continuing operations of $2.79. In addition, we generated strong free cash flow of $778 million, or 26% of revenue,” said Jerald G. Fishman, President and CEO. “In the fourth quarter, our results declined, consistent with a general slowdown in the semiconductor industry, particularly in the industrial and communications markets. Nevertheless, during this period, the consumer end market showed seasonal growth and the automotive sector continued to be strong. During the fourth quarter, we also reduced production levels, which reduced both our internal and channel inventories despite lower revenue, and resulted in lower gross margins. In addition, we took steps to reduce discretionary spending, allowing us to produce strong profitability while continuing to invest in our key strategic programs.”

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), National Semicond. Corp. (NYSE:NSM), Intersil Corporation (NASDAQ:ISIL), Linear Technology Corp. (NASDAQ:LLTC), Maxim Integrated Products Inc. (NASDAQ:MXIM), ON Semiconductor Corp. (NASDAQ:ONNN), Silicon Laboratories (NASDAQ:SLAB), Cirrus Logic, Inc. (NASDAQ:CRUS), Broadcom Corporation (NASDAQ:BRCM), and Micrel, Incorporated (NASDAQ:MCRL).