Quarter 2 2017 Guidance is projected to be $41M- $42M which is = to where we are now. CFO Marty is stating that increased revenue is expected to occur in the backhalf of fiscal year 2017.
CEO Gopi did sound very positive about where AMCC is headed, especially over the next couple of quarters leading into the next couple of years.
CFO Marty was also very positive and stated "there is excellent backlog coverage. Quarter one of fiscal year 2017 achieved the highest number and dollar amount of design wins that were seen over the past two years and closed five times the total dollar amount of design wins in first quarter of 2017, compared to first quarter of fiscal year 2016 (relative to base business and excludes X-Gene.)"
Since next Quarter (Q2) is expected to show limited to no growth from where we are now, I expect tomorrow (7/28/17) to sell off and most likely pull-back sub $7.00. It would be nice to say good bye to anything below $7. Patience!
Last Edit: Jul 27, 2016 20:44:17 GMT -5 by christopher
Post by christopher on Jul 28, 2016 9:08:59 GMT -5
Here is a good post!
This is from the poster "Arturo" from the Yahoo message board
" Patience is the word. I knew it when I bought the stock. Do You? From H.Mosesman Raymond James-------While June quarter results were consistent with expectations and execution in all strategic areas remains solid, an accelerated wind-down of legacy PowerPC sales presents a near-term headwind to top-line growth. Absent the legacy headwinds, we continue to believe the significant untapped leverage in the operating model will be unlocked with only modest top-line growth, and all new ARM-based products are on track for accelerating momentum moving into 2017. Notably, X-Gene is on target to ship 50,000-100,000 units by mid-2017. Additionally, the PAM4 opportunity-where the company maintains a 12+ month time-to-market advantage-presents a significant optionality component to the thesis, yet to be factored into valuation."
Last Edit: Jul 28, 2016 9:10:31 GMT -5 by christopher
The connectivity business is a great way to sell processors. I think CAVM may have come to understand that with their purchase of Qlogic.
The more turn-key you can be, the better (the more you can sell). This has been INTC's strategy for years. I'm not sure INTC gets the whole connectivity thing though (especially in datacomm/telecomm). INTC may not be toast, but ARM's superior business model will make all the difference. There are only so many fires that INTC can put out at any one time.
Q3 results (first half of H2) should be out at the end of January. Let's see what happens.
You're right Chris. We should see the guidance for Q3 at the end of Q2. Also, if we are fighting a headwind from shrinking PowerPC revenues, then new parts should quickly eclipse legacy, as the new parts quickly become the lion's share of total sales. A real warning sign would be if revenues do not budge through fiscal 2017, or decline. I stand corrected. Thank you.
Post by christopher on Jul 30, 2016 17:03:35 GMT -5
phobos,
I realize from OUR past investment experience, that any sense of time must always have an extra year or two added! at least!
The edited transcript above was a very interesting read, much better than listening to. CEO Gopi and CFO Martin had pretty much all but positive to go on, except for a legacy product headwind, that is soon to be a past problem!
The most exciting portion of the call was noted that the first quarter of fiscal 2017 showed an achievement of highest number and dollar amount of design wins that was seen over the past two years.
I also believe that the growth in revenue guidance that was to be looked upon at the Q1 CC, is now to be looked upon at the Q2 CC.
All meaning that Q3 of 2017 would be showing a quarter of significant revenue
Mr. Gopi: we are all waiting, patiently waiting, waiting patiently, waiting, waiting and waiting
Last Edit: Jul 30, 2016 19:49:24 GMT -5 by christopher
it looks like the plan is for the share price to be pushed well above $7.00 after next week. ??(one can hope)??
8/5/16, Friday, we finished the day at $6.95 share. The entire day was spent bouncing between $6.97 and $7.00
Read a remark on a site that follows AMCC trading patterns:
"if this can break above $7.25 meaningfully...it will see $8.00, if not back down to $6.00 it goes".
My thoughts on this are: this all depends on how successful the upcoming Investor Conferences are, because over the last week we rose up to $7.00 ALL on low volume. We need Investors to come in to purchase shares! Without the volume we will definitely be going back down to $6.00!
Maybe now is a good time for AMCC to begin to promote the company!
AMCC management, it is YOUR responsibility to gain shareholder value. We are in need for new institutions(anybody with $$) to gain an interest and invest in Applied Micro Circuits.
Last Edit: Aug 6, 2016 19:32:51 GMT -5 by christopher