Your email address:

Powered by FeedBlitz

Or add to your news reader: Add to My Yahoo! Add to Google

Monday, August 4, 2008

STEC beats, raises

Current quarter beats consensus coming in at 56.2 mil with street at 53.1 mil. EPS beat by a penny, coming in at 9 cents. Gross margins came in above consensus at 35.3% with the street closer to 34.4%. Operating income was 6.7 mil, street was looking for ~5.3 mil. Guidance of 61-63 mil and 10-11 cents, street is at 59.4 mil and 10 cents. Inventory jumped to 78 mil from 39 mil q/q. The company had raised 35 mil to build inventory for anticipated growth and new design wins -- they say in their press release they expect inventory days to trend down over the next several quarters. The company indicates they had a second major enterprise OEM win. They have been qualified at several notebook vendors and expect to begin shipment into that market next quarter.

All in all, a beat on most metrics. One could hope for more leverage but there's a few moving parts in the business. It's unclear from the release how much SSD is contributing to results -- I'll need to hear the call.

Still long.

No comments:

Blog Archive