Updates

II-VI CFO Departure

November 6, 2013

This morning IIVI announced the resignation of CFO Craig Creaturo, which we view as a surprise and perhaps indicative of some turmoil among the senior management team with regard to the current strategic direction at IIVI (eg purchase of OCLR assets).  It may not be coincidental that last week telecom executive Chuck Metera, a likely [...]

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TMT Earnings/Implications MTSI Z CHTR DTV

November 6, 2013

  I won’t lie, reading the headline that solid, sensible highly profitable MTSI (Long 2) was set to buy the shaky, reckless money losing MSPD (no current view, former long and short), my heart skipped a beat.  Alas, in keeping with the view of MTSI’s solid sensibility, they are selling off the wireless small cell [...]

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Optical Sector- FN Earnings/Implications OCLR FNSR

November 4, 2013

  No Change FN Short 2 OCLR Long 3 FNSR Long 3 FN reported results and guidance well above expectations after the close on Monday, with revenue of $170M up 7% and ahead of $160M estimates and EPS of $0.40 vs $0.33 estimates.  Optical communications revenue (73% of total) was even stronger, up 12% sequentially, [...]

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ALU TWC Earnings/Implications

October 31, 2013

Increased Conviction  ALU Long 2 CHTR Short 3  Foreshadowed by yesterday’s JDSU report, strength in optical networking, specifically 100G line card shipments, turned out to be a key driver in ALU’s solid Q3 report and outlook this AM.  ALU reported solid sequential and solid y/y (constant currency) revenue growth, outpacing peers such as ERIC and [...]

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ARRS MXL Earnings/Implications COMM BRCM

October 31, 2013

  Position changes  ARRS +1 to short 1 MXL -1 to flat  Less according to script was the ARRS Q3 report and guide, which featured in line (top line) to solidly better (bottom line) results and more critically guidance in line with the expected ramp on the top and bottom line into Q4.  Mid range [...]

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JDSU Earnings/Implications FNSR OCLR ALU FN

October 30, 2013

Increased Conviction< JDSU short 2 FNSR long 3 OCLR long 3 ALU Long 2 No Change FN Short 2 We could not have written the script to the JDSU report and call any better with regard to our view and positioning heading in- in short, overall bad news for JDSU as a slight top and [...]

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Comm/Optical Earnings Follow Up FNSR JDSU Comcast, Sprint Earnings Implications S ARRS BRCM MXL COMM

October 30, 2013

Position Changes  CALX +1 to flat S -1 to short 2 Increased Conviction  JDSU Short 2 FNSR long 3 No Change  ARRS Short 2  Stuck as we are in a surreal vortex where stocks that have beat and raised all year long and very recently can sell off 8% on no news at valuations of [...]

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TMT Earnings/Implications Tech/Semis- IPHI CYNI Position Changes

October 30, 2013

Position Changes CYNI -2 to flat IPHI + 1 to long 3 Another TMT earnings day, another absolute instant replay of Monday and really the last two weeks.  Those tech companies, including substantially every chip company we have seen with the almost sole exception of IPHI (discussed below) and AMD, with actual measurable and valuation [...]

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II-VI Earnings/Implications

October 29, 2013

Increased Conviction IIVI Short 2 With 5,500 shares traded thus far on a massive earnings guide down for December quarter and June fiscal year, we suspect we are among the few paying attention to the IIVI earnings report this morning, much less advocating shorting the shares (short 2) and make no mistake we would be [...]

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NOK Earnings/Implications ALU ERIC- Closing Out NOK lnog

October 29, 2013

  Position Changes  NOK -1 to flat Increased Conviction ERIC short 3 MSFT long 3 ALU long 2  We are selling the last of our NOK long into upside from this AM’s earnings report and outlook, feeling like we are seeing fair value for NSN and the company’s mapping and IP assets.  NOK’s smartphone results [...]

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