For Immediate Release
Chicago, IL – January 28, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: QLogic Inc. (QLGC), Intel Corp (INTC), VMWare Inc. (VMW), Microsoft Corp (MSFT) and SAP AG (SAP).
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Here are highlights from Wednesday’s Analyst Blog:
QLogic Boosted by Enterprise Side
QLogic Inc. (QLGC) reported third quarter earnings that beat the Zacks Consensus Estimate by 2 cents. Revenue beat the consensus by 5.0%.
Revenue
Revenue of $149.1 million was up 13.4% sequentially and down 8.9% year over year. This was slightly better than the preliminary revenue of $147-149 million announced on Jan 12, and significantly better than the original guidance of $134-140 million.
The company benefited from stronger enterprise spending and should continue to do well in 2010, driven by improved IT spending, the ongoing server refresh cycle, the transition to Intel Corp’s (INTC) Nehalem products, adoption of solutions from VMWare Inc. (VMW) and the transition to Microsoft Corp’s (MSFT) Windows Server 2008 R2.
Revenue by Segment
Host products generated 74% of revenue, increasing 17.5% sequentially and declining 1.5% from the year-ago quarter. This was the most important driver of business in the last quarter, as both the revenue share and the sequential increase was the most significant in the last quarter.
Network products, which generated 18% of revenue, grew 11.9% sequentially and 20.3% year over year.
Silicon products (6% of total revenue) declined 9.7% sequentially and 47.5% from the year-ago quarter.
Royalty & Service revenue comprised the remaining 2%, declining 22.3% sequentially and growing 17.3% from the year-ago quarter.
SAP Matches Estimates
SAP AG (SAP) reported fourth quarter 2009 earnings per share from continuing operations of 93 cents, matching the Zacks Consensus Estimate.
For the quarter, U.S. GAAP software and software-related service revenues were euro 2.57 billion, a decrease of 4%. U.S. GAAP total revenues were euro 3.19 billion ($4.71 billion), a decrease of 9% over the corresponding prior year quarter. U.S. GAAP software revenues were euro 1.12 billion, a decrease of 15%
In the fourth quarter of 2009, SAP closed major contracts in several key regions including Achmea and Rabobank Nederland, Aeroflot Russian Airlines, AOK, Credit Agricole S.A., Deutsche Bank AG, Hilti AG, NMBS-SNCB Group, and Talanx AG in EMEA; 3M Company, Baker & McKenzie, Dairy Farmers of America, Inc., Pfizer Inc., Servicios Nacional de Chocolates S.A., Sybase Inc., Verizon Services Corporation, and W.W. Grainger, Inc. in the Americas.
U.S. GAAP operating margin was 33.1% (2008: 36.6%), a decrease of 3.5 percentage points. U.S. GAAP income from continuing operations was euro 0.75 billion (2008: euro 0.86 billion), a decrease of 13%.
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