John's Feed
Nov 3, 2010

Garmin’s PND unit drags profit down; cuts FY outlook

BANGALORE, Nov 3 (Reuters) – Slow growth at newer business
lines and a steeper-than-expected fall in revenue from portable
navigation devices (PND) prompted Garmin Ltd (GRMN.O: Quote, Profile, Research, Stock Buzz) to cut
its full-year forecast, sending its shares down 8 percent.

“One has to dig pretty deep to find the silver linings in
this print,” Oppenheimer analyst Yair Reiner said in an email.

Nov 1, 2010

Cognizant Q3 beats, but growth lags main rivals

BANGALORE, Nov 1 (Reuters) – Cognizant Technology Solutions
Corp (CTSH.O: Quote, Profile, Research, Stock Buzz) trailed its main rivals even as it posted a
second straight quarter of double-digit sequential revenue
growth, knocking its shares down 3 percent.

But Chief Financial Officer Gordon Coburn predicted
Cognizant, whose clients include 3M (MMM.N: Quote, Profile, Research, Stock Buzz) and Harris Corp
(HRS.N: Quote, Profile, Research, Stock Buzz), would outpace the market — main rivals include
Infosys Technologies (INFY.BO: Quote, Profile, Research, Stock Buzz) and Tata Consultancy Services
(TCS.BO: Quote, Profile, Research, Stock Buzz) — this year.

Oct 29, 2010

Sure to beat on Q3, but will Cognizant top rivals?

BANGALORE, Oct 29 (Reuters) – Cognizant Technology
Solutions Corp (CTSH.O: Quote, Profile, Research, Stock Buzz) should post strong quarterly results
and raise its 2010 outlook for the third straight quarter, as
it gains market share and benefits from a rebound in financial
services. Analysts want to see if the economic recovery has sustained technology spending on financial services, which contributed 43 percent to Cognizant's revenue in the second quarter. Investors will focus more on whether the New Jersey-based IT services provider -- which competes with India's Tata Consultancy Services (TCS.BO: Quote, Profile, Research, Stock Buzz) and Infosys Technologies (INFY.BO: Quote, Profile, Research, Stock Buzz) as well as U.S. rivals Accenture (ACN.N: Quote, Profile, Research, Stock Buzz), Hewlett-Packard (HPQ.N: Quote, Profile, Research, Stock Buzz) and IBM (IBM.N: Quote, Profile, Research, Stock Buzz) -- beats estimates by a big margin, especially on revenue, as they look for double-digit sequential growth. While Wall Street analysts on average predict sequential revenue growth of 6 percent, investors expect 12-15 percent, according to some analysts. The company faces a stiff comparison on two counts. Its second quarter was a record, and the September quarter is historically strong for its Indian rivals. TCS posted 12 percent sequential growth based on U.S. GAAP, while Infosys saw quarter-on-quarter growth of 10.2 percent. "Cognizant's expectations have been heightened by strong growth results recently reported by Infosys and TCS," Sanford C. Bernstein analyst Rod Bourgeois said, adding sequential growth of 10 percent is feasible for Cognizant. In the second quarter, Cognizant posted sequential revenue growth of 15 percent, outperforming its peers, and recording $1 billion in a quarter for the first time. The stock is up 22 percent since its second-quarter results, topping a 5 percent rise in the broader S&P 500 index .SPX. RAISING THE BAR The general sentiment is that a beat alone is not enough to push up the shares, but the sell-side is increasingly conscious of the bar being raised again and again. "I'm seeing investors increasingly concerned about higher expectations facing Cognizant," said Bourgeois. In the last four quarters, Cognizant shares have risen an average of 6 percent when it reported results. The company has beaten profit estimates for the last six straight quarters. "They'll do enough to keep the stock in their current range," said UBS analyst Jason Kupferberg. The stock, valued at around $20 billion, this week touched $68.87, its highest since it went public in 1998. The market will also be looking for signs of demand and growth next year -- though Cognizant typically begins budget talks with clients in November and unveils its full-year outlook only in February. "With budgets for next year still not set, visibility on 2011 top-line growth is going to be low. But we like Cognizant's momentum," said Bryan Keane, analyst at Credit Suisse. With revenue expected to grow about 36 percent this year, according to analysts, growth is likely to settle at more moderate levels in 2011. Analysts predict 2011 revenue growth of 23 percent, according to Thomson Reuters I/B/E/S. ------------------------------- Q3 2010 Q3 2009 Pct change ------------------------------- EPS $0.60 $0.45 +33 Revenue (bln $) 1.18 0.85 +38 Gross margins 42.44 44.28 -4 (Reporting by S. John Tilak in Bangalore, Editing by Ian Geoghegan)

Oct 21, 2010

Polycom profit tops estimates on robust voice growth

BANGALORE, Oct 21 (Reuters) – U.S. video conferencing
company Polycom Inc (PLCM.O: Quote, Profile, Research, Stock Buzz) beat quarterly profit estimates,
helped by strong growth at both its voice and video businesses,
showing it was holding on to its turf in an increasingly
crowded market.

Polycom, which mainly competes with Cisco Systems Inc
(CSCO.O: Quote, Profile, Research, Stock Buzz) unit Tandberg, has beaten or matched profit estimates
for the last eight quarters. (Graphic:
r.reuters.com/duk69p)

Sep 21, 2010
via MediaFile

MetroPCS boasts first U.S. LTE service, phone

Photo
Ninety percent of MetroPCS customers have been using its handsets for data services. More than half of them rely on MetroPCS handsets as their primary means to accessing the Internet. On Tuesday, the pay-as-you-go company become the first carrier to launch commercial high-speed wireless long term evolution services in the United States. LTE is a fourth-generation technology that Verizon Wireless and AT&T plan to support. “We think this is going to serve the sweet spot for consumers who want more, who want the next best thing and who are willing to pay a little more for the handset,” Chief Operating Officer Tom Keys said. MetroPCS launched the world’s first commercially available LTE handset, the Samsung Craft. The service is first available in Las Vegas and is expected to most markets it serves by the first quarter of 2011, Keys said. The company is offering 4G LTE services under two service plans – $55 or $60. Under its plans, customers pay a monthly fee in advance for unlimited phone calls without committing to a long-term contract. MetroPCS is offering the Samsung Craft for $299, after $50 instant rebate, plus tax. MetroPCS plans to launch another 3-5 handsets in the next 12 months, Keys said. “2012 will probably have a larger roadmap in terms of handsets for the entire LTE ecosystem,” Keys said. The company is also considering offering tablet-like devices, he added.

On Tuesday, MetroPCS  said it has become the first US carrier to launch commercial high-speed wireless Long Term Evolution (LTE) services and and an handset, beating its biggest rival Verizon Wireless to the post.  LTE is a next-generation technology Verizon Wireless and AT&T plan to support.

Verizon has promised  by the end of this year to offer LTE services for laptop users in 25 to 30 US markets with a population of about 100 million people. But the top US mobile provider has said that it does not expect to start selling its first LTE handsets until 2011.

Aug 27, 2010

IT consultant Presidio could go public in 18 months

BANGALORE (Reuters) – IT consulting and engineering services firm Presidio Inc could go public in the next 18 months depending on market conditions, but is also open to a sale of itself, its chief executive said.

Founded in 2003, the Greenbelt, Maryland-based company deploys and manages technology for customers ranging from retailers to hospitals by partnering with companies such as Cisco Systems (CSCO.O: Quote, Profile, Research, Stock Buzz), EMC (EMC.N: Quote, Profile, Research, Stock Buzz) and VMware (VMW.N: Quote, Profile, Research, Stock Buzz).

Aug 27, 2010

EXCLUSIVE: IT consultant Presidio could go public in 18 months

BANGALORE, Aug 27 (Reuters) – IT consulting and
engineering services firm Presidio Inc could go public in the
next 18 months depending on market conditions, but is also
open to a sale of itself, its chief executive said.
Founded in 2003, the Greenbelt, Maryland-based company
deploys and manages technology for customers ranging from
retailers to hospitals by partnering with companies such as
Cisco Systems (CSCO.O: Quote, Profile, Research), EMC (EMC.N: Quote, Profile, Research) and VMware (VMW.N: Quote, Profile, Research).

Presidio can go public as early as January, CEO Joel
Schleicher said, depending on liquidity in the market.

Aug 26, 2010

Aruba profit tops estimates, Q1 forecast above Street

BANGALORE, Aug 26 (Reuters) – Aruba Networks Inc (ARUN.O: Quote, Profile, Research, Stock Buzz)
reported quarterly earnings above Wall Street estimates on
strong revenue growth as it grabbed market share with its
highest-ever quarterly customer additions.

However, concerns of higher expenses to support the
expanding client base could limit future bottom line, say
analysts.

Aug 19, 2010

Marvell up on revenue outlook, easing inventory

BANGALORE, Aug 19 (Reuters) – Chipmaker Marvell Technology
Group Ltd (MRVL.O: Quote, Profile, Research, Stock Buzz) forecast strong revenue growth in the third
quarter, despite a tough hard-drive market, as it came out of
an inventory overhang, sending its shares up 11 percent.

The company, whose chips are used in devices from hard
drives to smartphones, more than tripled its second-quarter
earnings, which met Wall Street estimates as strength at its
wireless market offset the recent weakness in the hard-drive
industry.

Aug 13, 2010

Harman chases growth in emerging markets

BANGALORE, Aug 13 (Reuters) – Harman International
Industries Inc (HAR.N: Quote, Profile, Research) is aggressively pursuing contracts with
Chinese automakers and speeding up hiring as the audio products
maker targets $1 billion in annual revenue there by 2015.

The company is also talking to top car makers elsewhere in
Asia, Europe and the United States for multi-million dollar
contracts, its chief executive told Reuters in an interview.