Takeaways from Texas Instruments and the affects on Anadigics

To my knowledge, Texas Instruments is not a client for Anadigics. In the past, several executives from Texas Instruments went on to Anadigics, only to eventually leave.  Reason? Anadigics used growth from it's long ago largest client RIMM to upgrade it manufacturing process to some of the most complex and sophisticated anywhere in the world. These manufacturing upgrades will hopefully be a competitive advantage for Anadigics as it has positioned itself for the coming business semi business cycle.  Here is what they have done:

1. Placed emphasis in connecting automobiles to the internet.
2. Placed emphasis in getting on board with Qualcomm.
3. Placed emphasis in wireless infrastructure.
4. Placed emphasis in working with Huawei and ZTE.

TI said on the call that wireless infrastructure is very strong. Almost as strong as Q3 of 2011. TI also said industrial business is strong as well (Auto). TI said WCDMA business was very strong. Just weeks ago, Anadigics reported supporting Huawei's Honor phone. Anadigics has won design wins at Qualcomm. They have been designed into several new ZTE phones.

From Anadigics most recent conference call, Anadigics said they guided conservatively for Q2. They mentioned revenue from RIMM will only be $500k. Q2 might be the last of business from RIMM. Anadigics reduced cost by $8 million and said they will resume R&D beginning second half to support long term revenue streams.

I believe this one is a canary in the coal mine, and looks like the bottom might be in as we get ready for economic expansion beginning this July.

jWells  

$MMM 3M Takeaways at Deutsche Bank Global Industries Conference Bullish for Tech

"June is a big month for us and we have not seen anything yet that would result in a significant change for us". In China, right now we do see signs of a recovery in electronics.  We participate broadly in the electronics industry as we are a major supplier into that industry , and what we have seen,recently, is an uptick in semi fab utilization. Semi Fab utilization is a leading indicator that we monitor and higher utilization suggests growth within the electronics industry.

The S&P 500 turned strongly north at 954am est. A few minutes after 3M made comments on the call that business is doing well.

some small caps with excellent growth potential

3M's comments are:

Very Bullish for FSII, TQNT, ANAD

Bullish for OCLR, ENTR  

jWells

Updates on Ciena news and its Possible Affects on Supplier Oclaro $OCLR

Ciena reported today that Sprint is upgrading its network with Ciena Coherent Optical Technology.  This news is bullish for Oclaro as Ciena is one of Oclaro's top 3 clients.

Jwells

$TQNT Triquint Semi Takeaways from the Texas Instruments Call

After listening to Texas Insturments Conference Call, I am confident that business at Triquint is doing as least as expected, if not better.  Triquint gets 30% of revenue from Defense and Wireless basestation business.  Texas instruments said these two areas grew sequentially with wireless basestation very good. TI said wireless chipsets were not growing as there is still too much inventory. But, TI doesn't have Apple as a customer. Last year Triquint said that they had to withdraw some of the designs at Apple because triquint couldn't guarantee they could deliver on the higher end of Apple's unit assumptions.  Since then, Triquint expanded available capacity and thus, has mentioned that they are getting design wins- but will not say if it is Apple. But, they did say their largest customer (Foxconn) will remain the largest customer as far as they can tell. Triquint says that utilization is their largest component of margin expansion which suggests that they are serious about ramping it out!!

I'm still liking this one. This is a good price to be buying (if Europe doesn't fall apart).

Jwells

$OCLR OCLARO Takeaway's from Finisar's Conference Call

Having listened to every conference call and every roadshow webcast for the past 3 years, I deduce that what Alain Coulder said months ago about losing share to competition was "what we have been told is that customers will return to the normal runrates around and before the flood". This means that share was temporarily lost due to Oclaro's inability to fill orders and in 3rd quarter they will be at or near preflood revenue levels. Finisar's guidance suggests this to be true. When europe's crisis is solved, and I think we are close, spending will resume from AT&T and Oclaro along with Finisar should resume sequential revenue growth. Oclaro's common stock has the most to gain as it has been much more severely punished.

Jwells

FSI International $FSII Texas Instruments Guidance Bullish for FSI

Texas Instruments affirmed 2Q guidance last night.  This is bullish for FSI International as TXN is one of their larger accounts.