VMware and These 2 Tech Stocks Attract High Trade Volume After Earnings
Texas Instruments Inc. (NYSE:TXN) reported its results for the fourth quarter. Net income for the semiconductor company fell to $298 million (25 cents per share) vs. $942 million (78 cents per share) a year earlier. This is a decline of 68.4% from the year earlier quarter. Revenue fell 3% to $3.42 billion from the year earlier quarter. TXN fell short of the mean analyst estimate of 39 cents per share. It beat the average revenue estimate of $3.25 billion.
“Revenue in the fourth quarter was higher than expected across all our major product lines, reinforcing our belief that we’re at the bottom of this downturn. I’m pleased to say that despite the downturn and the lower factory utilization that came with it, cash flow from operations was strong and well above levels as compared with similar points in prior downturns. Our strategic focus on our core businesses and efficient investment in capacity are key to our strong generation of cash,” said Rich Templeton, chairman, president and chief executive officer. “As we move into 2012, we enter the final phase of our planned exit from the baseband market, and thus further tighten our focus on Analog, Embedded Processing and Wireless.”
Competitors to Watch: National Semicond. Corp. (NYSE:NSM), Analog Devices, Inc. (NYSE:ADI), Intersil Corporation (NASDAQ:ISIL), Linear Technology Corp. (NASDAQ:LLTC), ON Semiconductor Corp. (NASDAQ:ONNN), Intel Corporation (NASDAQ:INTC), STMicroelectronics N.V. (NYSE:STM), Maxim Integrated Products Inc. (NASDAQ:MXIM), Broadcom Corporation (NASDAQ:BRCM), and Marvell Tech. Group Ltd. (NASDAQ:MRVL).
Western Digital Corporation (NYSE:WDC) posted a decrease in profit as revenue declined. Net income for the data storage devices company fell to $145 million (61 cents per share) vs. $225 million (96 cents per share) a year earlier. This is a decline of 35.6% from the year earlier quarter. Revenue fell 19.2% to $2 billion from the year earlier quarter. WDC reported adjusted net income of $1.51 per share. By that measure, the company beat the mean estimate of 72 cents per share. It beat the average revenue estimate of $1.84 billion.
“We have made substantial progress in restoring WD’s manufacturing capabilities in the aftermath of the historic flooding in Thailand, and this is reflected in our second quarter financial results and in the resumption of our operations there,” said John Coyne, president and chief executive officer. “While much work remains to be done over the next several quarters to reach our pre-flood manufacturing capabilities, the progress thus far is significantly ahead of our original expectations and is a tribute to the dedicated and effective actions of our employees, contractors and Thai government agencies, the efforts of our supply partners and the support of our customers. We are grateful to all involved in this extraordinary effort.”
Competitors to Watch: Seagate Technology PLC (NASDAQ:STX), EMC Corporation (NYSE:EMC), STEC, Inc. (NASDAQ:STEC), SanDisk Corporation (NASDAQ:SNDK), Dot Hill Systems Corp. (NASDAQ:HILL), Overland Storage, Inc. (NASDAQ:OVRL), Hutchinson Technology Inc. (NASDAQ:HTCH), Quantum Corporation (NYSE:QTM), ADPT Corporation (ADPT), and OCZ Technology Group Inc. (NASDAQ:OCZ).
VMware Inc. (NYSE:VMW) reported net income above Wall Street’s expectations for the fourth quarter. Net income for the technical and system software company rose to $200.4 million (46 cents per share) vs. $119.9 million (28 cents per share) in the same quarter a year earlier. This marks a rise of 67.2% from the year earlier quarter. Revenue rose 26.9% to $1.06 billion from the year earlier quarter. VMW reported adjusted net income of 62 cents per share. By that measure, the company beat the mean estimate of 43 cents per share. Analysts were expecting revenue of $1.05 billion.
“The quarter’s strong performance further signals that virtualization is the foundation for simplifying and automating IT,” said Paul Maritz, chief executive officer, VMware. “As customers continue to drive significant IT transformation, our task remains in providing solutions that go beyond cost reduction, yielding business and competitive value.”
Competitors to Watch: Citrix Systems, Inc. (NASDAQ:CTXS), Intl. Business Machines Corp. (NYSE:IBM), Microsoft Corporation (NASDAQ:MSFT), EMC Corporation (NYSE:EMC), Symantec Corporation (NASDAQ:SYMC), Oracle Corporation (NASDAQ:ORCL), Quest Software, Inc. (NASDAQ:QSFT), Hewlett-Packard Company (NYSE:HPQ), Google Inc. (NASDAQ:GOOG), and LogMeIn, Inc. (NASDAQ:LOGM).