Post by christopher on Oct 28, 2016 10:04:25 GMT -5
This is from my favorite poster on the Yahoo message board, Arturo
" Surprise return to profitability led by new product momentum,
From Raymond James by Steve Smigie, Melissa Fairbanks, Vincent Celentano,
Recommendation: We reiterate our Strong BUY Rating on Applied Micro and $9.00 price target following a solid F2Q17, highlighted by a return to profitability. The quarter was characterized by strong progress in new product initiatives in Connectivity partially offset by continued decline in the legacy Power PC business with the favorable mix-shift sharply impacting profitability- and illustrating the strong operating leverage inherent within the company's new business model. Additionally the company continues to make progress with the family of ARM based X-Gene processors, with the third-generation taped out and on track to sample in early 2017 and the first two generations finding an expanded channel of workloads as demonstrated at this week's ARM TechCon, including for enterprise serverstorage (HPE StoreVirtual 3200) and a general purpose, configurable PCIe accelerator. While legacy headwinds continue to dilute top-line growth, accelerating momentum in new products gives us increasing confidence in a mid-2017 trigger for an uptick in sales and profits."
The last sentence above is the reason why we are all here! Hold your shares!
Last Edit: Oct 28, 2016 10:19:50 GMT -5 by christopher
Post by christopher on Oct 28, 2016 15:54:24 GMT -5
Here is a quote that caught my attention during the second Quarter 2017 conference call:
Analyst Cory Grady of Oppenheimer asked about "incremental R&D going forward"
CFO Marty McDermut responded: "we're aiming to keep the R&D spend pretty stable, except for that variable that depends on our new product activity. I think from what we've talked about, we have alot of new products that are going to come onboard for the next year."
I will take this as a positive going forward. New products mean added revenue.
Last Edit: Oct 28, 2016 16:31:37 GMT -5 by christopher
Post by christopher on Oct 29, 2016 10:20:35 GMT -5
Q2 conference call, AMCC stated per share earnings guidance for Q3 at $0.00-0.04 whereas Thomson Reuters consensus earnings per share estimate was $0.00
Also,
AMCC also issued revenue guidance on Q3 at $42.5-43.5 million whereas consensus revenue estimate was $42.61 million.
Reality is beginning to set in as the revenue ramp looks to have finally begun!
Very ODD how when you read the story above, the second paragraph shows Zacks Investment Research cutting shares of Applied Micro from a hold rating to a sell. This is ODD because of the fact that Zacks, on August 17, 2016 released a story speaking rather highly of Applied Micro. and at the same time had a HOLD rating(story below) With the latest Q2 earnings release and many others, one must question Zacks rating decision.