Tech Business Recap: Netflix Gets Slashed, HP Earnings
Netflix’s (NASDAQ:NFLX) list for its latest $400M bond and stock offering says it expects to make a net loss in 2012. Netflix had previously said it might lose money for the only first few quarters of 2012. However, subscriber cancellations are falling.
Shanda Interactive (NASDAQ:SNDA) enters into a definitive agreement for CEO Tianqiao Chen to take the company private for $41.35/share. Shares halted $39.39 yesterday.
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H-P (NYSE:HPQ) is down, but FY12 guidance was soft. Weakness in high-margin areas such as printing supplies (-14% Y/Y) and high-end servers (-23%) are weighing on EPS. In addition, CC comments about “competitive pricing” and increasing costs along with expected remarks about macro uncertainty, might be troubling investors.
Nokia’s (NYSE:NOK) Lumia offer discouraging initial sales data, with Pac Crest predicting fewer than 1M shipments in Q4. Sales fell below a prior forecast of 2M. They are but selling a tiny fraction of the ~30M iPhones analysts expect Apple (APPL) to ship. It’s still early, and new carrier partners and phone releases could bolster Nokia’s standing, but the company definitely faces an uphill battle challenging Android (NASDAQ:GOOG) and iOS.
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Brocade Communications Systems Inc. (NASDAQ:BRCD): Brocade is up 6% after beating FQ4 estimates. It is guiding for FQ1 revenue of $530M-$550M and EPS of $0.12-$0.14, compared with a consensus of $535.3M and $0.11. Brocade rose 10% Q/Q, which was better than expected even though its storage switch revenue fell 4% Y/Y, partly due to competition from CSCO’s FCoE switches. Brocade also saw 14% Q/Q growth in Ethernet switch sales.
Fusion-io (NYSE:FIO) sells off, and is issuing 3M new shares as part of the previously-announced follow-on offering at $33/share. Existing shareholders are selling 5.8M-7.1M shares. The company’s IPO lockup begins to expire on Dec. 6. A full expiration doesn’t occur until mid-February.
Qualcomm (NASDAQ:QCOM) announces Kyobo is launching the first e-reader to use Qualcomm’s Mirasol display technology. Kyobo is a bookseller in South Korean. Qualcomm has invested heavily in Mirasol. It touts Mirasol as combining the low power draw and readability of the e-ink screens found on most e-readers with color support. Amazon (NASDAQ:AMZN) has tested Mirasol for use in its Kindles, and it remains seen whether it will adopt the Mirasol.
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