Needham Growth Conference Commentary for Covered Named: Part II - STEC, SNX, TECD & TTMI
Tweet
Share
E-mailGet Alerts STEC Hot Sheet
Price: $1.53 --0%
Rating Summary:
0 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Needham Growth Conference Summary/ CES 2012 Thoughts: Trends In IT Hardware Part II
Analyst Richard Kugele's company specific commentary for covered names
STEC, Inc. (Nasdaq: STEC): After a challenging 2011 characterized by a missed product cycle, competitive pressures at key customers, and an SEC investigation, the company looks to 2012 for a change in fortunes. By 2Q, the company hopes to have most of its new products (ASIC-based Zeus, Mach 16-ASIC, PCIe and its enhanceIO software suite) qualified by OEMs. We will be closely monitoring the company for just how competitive these offerings (many initially designed in 2010) are relative to the more aggressive pricing environment once they arrive.
SYNNEX Corp (NYSE: SNX): It was another strong quarter out of SNX on Tuesday night, with robust GM driven by mix and (to some degree) higher HDD pricing. The company continues to execute well in the challenging overall environment, diversifying its business and achieving industry-leading margins and ROIC. For those seeking to avoid exposure to the potential recession in EMEA, SNX represents a compelling alternative.
Tech Data asdaq: TECD): Not much incremental from TECD but always good for investors to be in front of such a quality management team. TECD continues to focus on higher margin business opportunities and streamlining its operations (including the previously announced trimming of Brazil’s in-country business). The company reiterated its long-standing 1.5% OM target for F13, which we believe is likely to be achieved earlier.
TTM Technologies (Nasdaq: TTMI): Prior to the conference, one of our competitors cut estimates on TTMI and implied that a negative preannouncement was possible. Instead a noticeably annoyed TTMI indicated “it saw no reason to alter guidance for the December quarter at this time” and that its North American business was strong in the quarter, Asia softer (as expected) and that its book-to-bill had returned to north of 1.
Analyst Richard Kugele's company specific commentary for covered names
STEC, Inc. (Nasdaq: STEC): After a challenging 2011 characterized by a missed product cycle, competitive pressures at key customers, and an SEC investigation, the company looks to 2012 for a change in fortunes. By 2Q, the company hopes to have most of its new products (ASIC-based Zeus, Mach 16-ASIC, PCIe and its enhanceIO software suite) qualified by OEMs. We will be closely monitoring the company for just how competitive these offerings (many initially designed in 2010) are relative to the more aggressive pricing environment once they arrive.
SYNNEX Corp (NYSE: SNX): It was another strong quarter out of SNX on Tuesday night, with robust GM driven by mix and (to some degree) higher HDD pricing. The company continues to execute well in the challenging overall environment, diversifying its business and achieving industry-leading margins and ROIC. For those seeking to avoid exposure to the potential recession in EMEA, SNX represents a compelling alternative.
Tech Data asdaq: TECD): Not much incremental from TECD but always good for investors to be in front of such a quality management team. TECD continues to focus on higher margin business opportunities and streamlining its operations (including the previously announced trimming of Brazil’s in-country business). The company reiterated its long-standing 1.5% OM target for F13, which we believe is likely to be achieved earlier.
TTM Technologies (Nasdaq: TTMI): Prior to the conference, one of our competitors cut estimates on TTMI and implied that a negative preannouncement was possible. Instead a noticeably annoyed TTMI indicated “it saw no reason to alter guidance for the December quarter at this time” and that its North American business was strong in the quarter, Asia softer (as expected) and that its book-to-bill had returned to north of 1.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Singularity Future Technology closes $5M registered direct offering
- Breeze Acquisition Corp. II gets Nasdaq notice for late 10-Q filings
- reAlpha completes $8.5M InstaMortgage acquisition
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Needham & CompanySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
