Micron’s Misery

On December 23, Micron Technologies, with annual revenue of $5.8 billion, reported results for the first quarter of fiscal 2009. Results were mixed, with stronger-than-expected sales and a wider-than-expected loss as DRAM and NAND ASP declines outpaced cost reductions. >>>

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3Com Excels in China

Amidst the gloomy economic background, there is a bright spot in the form of 3Com, a major networking player with annual revenue of $1.3 billion. Last month, on December 18, in its Q209 results, the company reported another strong quarter that beat estimates. This is the second consecutive quarter that 3Com has reported a profit and beat estimates. In my recent Networking Sector Overview, we explored how 3Com, with its Chinese cost structure, could give Cisco a run for its money. >>>

Outsourcing: View From Accenture

The New Year doesn’t seem to be bringing any cheer to the market. Though the $20 billion consulting giant, Accenture, continued to beat the market’s expectations with its Q1 results, the company lowered its outlook for the coming year. >>>

Paychex Reflects Dismal Broader Economic Outlook

Right before the holidays, on December 17, Paychex, the leading payroll and personnel services provider with annual revenue of $2.06 billion, reported second quarter earnings that fell below analyst expectations. But what is even more telling is the gloomy snapshot Paychex provides of the economy. Let’s take a closer look. >>>

Oracle Will Shop SaaS in 2009

Oracle (NASDAQ:ORCL) reported its Q209 results on December 18. Revenue was up 6% to $5.6 billion, missing analyst estimates of $5.84 billion. However, as the company cut costs aggressively across the board, non-GAAP EPS of $0.34 met analyst estimates for earnings. Operating margin improved 166 basis points to 35% versus 34% last year. GAAP net income was down 1% to $1.3 billion. >>>

Sector Overview: Handsets

An IDC report released last week said that the mobile phone market will slow down in 2009, with mobile phone volumes expected to decline 1.9% due to the global economic crisis. However, the converged device market is still expected to grow, although at a slower pace of 8.9% in 2009. IDC expects the handset market to recover by 2010, with the converged device market expected to return to 24% growth and mobile phones to about 5% growth. Let’s take a closer look. >>>

Adobe Delivers Solid Results

This Tuesday, Adobe Systems Incorporated (NASDAQ: ADBE), the leading maker of creative applications, reported its Q4 and FY08 results. Earnings matched the top end of the company’s lowered forecast from earlier this month. >>>

Sector Overview: Semiconductors

The atmosphere is gloomy in the semiconductor sector: preliminary findings from research firms Gartner and iSuppli show decline in chip sales of 4.4% and 2% respectively. Earlier TI, Broadcom, and NSM cut back their respective outlooks. And according to Gartner, 2009 is going to be worse than this year. But there is a silver lining for investors looking to buy: stocks of star performers like Qualcomm and Broadcom are going for very cheap. Let’s take a look. >>>

Sector Overview: SaaS

The SaaS sector has been relatively unaffected by the weak economy. Since the SaaS business model helps cut costs, business has been good, with most companies beating estimates quarter after quarter. However, the stock prices have taken a beating in the later half of the year. This presents a great opportunity for the stronger players to consolidate and investors looking for a bargain to buy. Let’s take a look at which companies should best be able to withstand the recession. >>>

Semiconductor Infrastructure Sector Overview

2008 was a particularly bad year for many industries, and for the already failing semiconductor infrastructure industry the recession could not have come at a worse time. Here is a quick discussion of how semiconductor infrastructure stocks fared during the year. >>>