Avid Technology, Inc. (NASDAQ:AVID)

Avid Technology, Inc. (NASDAQ:AVID) Q3 Earnings Beat Estimates

Avid Technology, Inc. (NASDAQ:AVID)

Shares of Avid Technology, Inc. (NASDAQ:AVID) gained 26.24% after the global media technology company reported better than expected Q3 2017 financial results. Revenues and bookings exceeded guidance in the quarter. Strong improvement in adjusted EBITDA allowed the company to post a fourth consecutive quarter of positive cash flow.

Avid Technology, Inc. (NASDAQ:AVID)

AVID Investors Reaction

Investors reacted to the stellar financial results by pushing the stock from this year’s lows to $5.10 a share. The stock is up by more than 10% for the year. Avid Technology, Inc. (NASDAQ:AVID) faces resistance at the $5.50 mark above which it could make a to this year’s highs of $6 a share.

Renewed investor interest in the stock is as a result of the company exceeding guidance in all its key metrics. According to Chief Executive Officer, Louis Hernandez, Jr., completion of transformation should allow Avid technology to drive profitable growth as well as increase revenue visibility and cash flow.

AVID Q3 Results

For the three months ended September 30, 2017, Avid technology bookings came above the upper end of guidance at $102.8 million. Constant currency bookings totaled $107.9 million which were in line with guidance. GAAP Revenue was $105.3 million above the upper end of guidance. Gross margin came in at 57.3%.

Net income in the quarter came in at $72,000 as adjusted free cash flow came in at $0.5 million at the upper end of the guidance. Adjusted free cash flow for the first nine months rose to $55.7 million,

According to the Chief Executive Officer, customers ranging from the largest media enterprise continue to adopt Avid Technology, Inc. (NASDAQ:AVID)’s innovative solutions.

“With our cloud-enabling MediaCentral platform, enterprises are unlocking greater strategic value from their Avid partnership as we help them to achieve new economies of scale while they work to engage audiences on any device with increasing amounts of content,” said Mr. Hernandez.

Q4 Outlook

During the quarter, Avid Technology, Inc. (NASDAQ:AVID) signed several multi-year enterprise deals with large customers, including Viacom and NHK. Total licenses for the MediaCentral platform increased 27% year-over-year to 51,000. Direct digital bookings with individual creative professionals increased 35% year-over-year.

For the fourth quarter Avid Technology, Inc. (NASDAQ:AVID) expects bookings to range between $118 and $132 million. Revenue, on the other hand, should range between $103 and $113 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $AVID and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Tintri Inc. (NASDAQ:TNTR) Appoints Michael Lombardo

Tintri Inc. (NASDAQ:TNTR)

Tintri Inc. (NASDAQ:TNTR) shares jumped 7.44% after the storage management solutions provider announced the appointment of Michael Lombardo as the Vice President of Channel Sales. His appointment follows the launch of EC6000 all-flash series and the Tintri Cloud.

Tintri Stock Performance

Analyst sentiments on Tintri Inc. (NASDAQ:TNTR) have turned sour ever since it became a public company. The stock is already down by more than 50% from its IPO price as investors continue to question its long-term growth prospects.

Tintri Inc. (NASDAQ:TNTR)

Fuelling the sell-off wave are reports that the company might have provided misleading statements in the run-up to its Initial Public Offering. According to a number of complaints lodged by law firms, the management team is accused of failing to disclose that the company was experiencing sales attrition as well as distraction and disruption in the business.

Tintri Sales Growth

Sales in the quarter coming in at the lower end of expectations and guidance appears to support concerns that the company might have withheld information from shareholders. Tintri Inc. (NASDAQ:TNTR) has sought to quash the concerns by unveiling new products and reiterating that it is on course to meet its growth targets.

The appointment of Leonardo is seen by observers as a move by Tintri to affirm its commitment to accelerating sales growth. He joins the company with over 20 years’ experience which the company believes will be crucial as he moves to oversee national account teams and sales channels.

“Tintri is continuing to expand on its channel commitment—through training and certifications we’ve helped our partners build their cloud businesses. Now Michael, especially through his experience with national partners, will play a critical role in refining our channel strategy and driving channel sales forward,” said Tom Ellery, Senior Vice President of Americas and Federal at Tintri.

Separately, Tintri Inc. (NASDAQ:TNTR) will be showcasing its newly launched solutions EC6000 series at the Microsoft Corporation (NASDAQMSFT) Ignite conference in Orlando, Florida. The company will also demonstrate its deep integration with the Microsoft ecosystem as it seeks to help joint customers automate storage management and enable a number of enterprise cloud benefits.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TNTR and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

QuickLogic Corporation (NASDAQ:QUIK)

QuickLogic Corporation (NASDAQ:QUIK) Stock Trades Higher

QuickLogic Corporation (NASDAQ:QUIK)

QuickLogic Corporation (NASDAQ:QUIK) stock traded higher after the company announced it had increased the number of engagements with wearable companies, expected to support the growth of EOS S3 Sensor Processing platform. The stock was up by 12.50% in Wednesday’s trading session to end the day at $1.71 a share.

QuickLogic’s Stock Performance

Wednesday’s rally helped strengthen a bullish run on QUIK stock that began in June. The stock has since bounced back from lows of $1.20 a share, to current highs of $1.71 per share. It awaits to be seen if the stock will continue to edge higher especially after closing above the $1.64 level, which traders believe acts as a key resistance level.

QuickLogic Corporation (NASDAQ:QUIK) still has a long way to go given that it is still trading in a downtrend after dropping from this year’s highs of $2.40 a share. The stock is down by more than 20% for the year, compared to a 24.6% overall industry growth. However, a bevy of positive news has brought to light the company’s growth prospects thereby reinvigorating investor’s sentiments.

QuickLogic Corporation (NASDAQ:QUIK
One month ARGS stock price chart

In a bid to support robust growth of the entire EOS S sensor processing platform, QuickLogic Corporation (NASDAQ:QUIK) has filled three senior positions for product management, hardware solutions architecture, and system engineering. The company expects the new appointees to expand the total sensor processing team bandwidth, which should lead to an increase customer engagements.

QuickLogic Corporation (NASDAQ:QUIK) has also renewed its credit line with Silicon Valley Bank paving way for it to gain access to $6 million in line of credit. Under the terms of the agreement, the company will have to maintain unrestricted cash or cash equivalent at the bank at all times.

QUIK Q2 Earnings Report

Separately, the Sunnyvale California Company reported a net loss of (-$3.6) million or (-$0.05) a share for the second quarter, compared to a net loss of (-$5.6) million reported last year. Revenues were up by 11.4% to come in at $3 million – meeting analysts’ consensus estimates. Gross margin increased to 46.3% from 44.4% in the first quarter and 30.3% from the corresponding quarter last year.

QuickLogic management lowered the third and fourth quarter guidance on concerns of certain key design wins. However, the company remains confident of growth drivers in the wearable hearable and IOT applications leading to new product revenue in the fourth quarter.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $QUIK and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Applied Optoelectronics, Inc. (NASDAQ:AAOI) Completes the Turn

Applied Optoelectronics, Inc. (NASDAQ:AAOI)

Applied Optoelectronics, Inc. (NASDAQ:AAOI) started out as a manufacturer and supplier of products to the cable television market. In 2013 the company took a deliberate turn to transform itself into a producer of products that market to data centers. Any time a company makes a strategic turn there is risk, but it appears that three years later the results are in – and Applied Optoelectronics came out a winner.

In 2014 Applied Optoelectronics, Inc. (NASDAQ:AAOI) reported total revenue growth at 66% over 2013 revenues and attributed that growth to their rapid expansion into the data center optical market. That growth was impressive enough to get the firm the 374th spot in the Deloitte’s 2014 Technology Fast 500. The growth continued in 2015 as Total Revenues grew 46% and GAAP Net Income more than doubled the 2014 figure.

Yesterday Applied Optoelectronics, Inc. (NASDAQ:AAOI) posted their full-year 2016 results. They did not disappoint – again. The Sugarland, TX company reported 2016 revenues up 37% over 2015. GAAP net income increased to $31.2 million, or $1.76 per diluted share, compared with net income of $10.8 million, or $0.65 per diluted share in 2015.

While AAOI shares gained less than 1% during Thursday’s regular session, the market responded to the earnings release by sending AAOI up over 12% in after-market trading to their highest-ever levels ($42.20) on moderate volumes. The growth in the stock has been jaw-dropping for a $600 million company. AAOI threatened to break below $8 in May of 2016 and today is sitting above $40, that is 500% growth in 1.5 years in a highly competitive industry that includes investor darlings such as Lumentum (LITE), Oclaro (OCLR), and ARRIS International (ARRS).

Throughout the transformation, one man remained at the helm. Dr. Thompson Lin is the founder, CEO, and Chairman of the Board of Applied Optoelectronics, Inc. (NASDAQ:AAOI). He founded the firm in 1997 after receiving a Ph.D. in Electrical Engineering from the University of Missouri. Dr. Lin has been awarded over ten patents and has authored over 200 technical papers. While those are impressive achievements, there is little doubt that his greatest achievement has been the skilled stewardship of Applied Optoelectronics, Inc. (NASDAQ:AAOI) through a highly competitive global market.

2/23/2017
Ticker Symbol AAOI
Last Price a/o 7:59 PM EST  $                    41.80
Average Volume                    511,380
Market Cap (mlns)  $                  619.00
Sales (mlns) $228.80
Shares Outstanding (mlns) 16.52
Share Float (mlns) 16.35
Shortable Yes
Optionable Yes
Inside Ownership 2.40%
Short Float 12.75%
Short Interest Ratio 4.08
Quarterly Return 42.96%
YTD Return 59.85%
Year Return 134.65%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20 year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

 

Vuzix Corporation (NASDAQ:VUZI) Could Break to Upside on New Product Launch

Vuzix Corporation (NASDAQ:VUZI)

In January, Founder and CEO Paulk Travers purchased $18,000 worth of VUZI shares. However despite the confidence of upper management, the market seems to take a different view. VUZI shares have dropped around 30% from their highs. Vuzix Corporation (NASDAQ:VUZI) yesterday announced an update on its M300 Smart Glasses rollout to Enterprise clients and certain aspects of its general business. The M300 is now certified to ship into Europe, the USA, Canada, Australia, India and New Zealand with certifications in all our global target markets expected by the end of the quarter.

Vuzix Corporation (NASDAQ:VUZI) is a leading supplier of Smart-Glasses, Augmented Reality (AR) and Virtual Reality (VR) technologies and products for the consumer and enterprise markets. The Company’s products include personal display and wearable computing devices that offer users a portable high quality viewing experience, provide solutions for mobility, wearable displays and virtual and augmented reality. Vuzix Corporation (NASDAQ:VUZI) holds 49 patents and 43 additional patents pending and numerous IP licenses in the Video Eyewear field.

The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2017 and several wireless technology innovation awards among others. Founded in 1997, Vuzix Corporation (NASDAQ:VUZI) has its offices in Rochester, NY; Oxford, UK; and Tokyo, Japan.

In January 2015, Vuzix received a $24.8 million investment from Intel Corporation to be used as general working capital to accelerate the introduction of the next generation of Vuzix fashion-based wearable display products for the consumer marketplace. The major shareholders of Vuzix are the founding management team and Intel Corporation, which collectively own approximately 38% of Vuzix Corporation (NASDAQ:VUZI).

Three firms follow of Vuzix Corporation (NASDAQ:VUZI). All three rate VUZI shares as a “Strong Buy” with a consensus price target of $10. The $10 price target would represent almost a doubling of the current price. The rollout of the M300 Smart Glasses will, no doubt, be key. Vuzix reported sales of $4.8 million in 2011 but only $2.7 million in 2015. Since 2011, EPS has been negative for VUZI shareholders. The worst loss was in 2013 (-$1.69) and in 2015 the reported loss was $0.97.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/14/2017
Ticker Symbol VUZI
Last Price a/o 1:59 PM EST  $                      5.43
Average Volume                    328,700
Market Cap (mlns)  $                  109.68
Sales (mlns) $2.00
Shares Outstanding (mlns) 18.62
Share Float (mlns) 15.9
Shortable Yes
Optionable Yes
Inside Ownership 8.60%
Short Float 20.48%
Short Interest Ratio 9.91
Quarterly Return -15.11%
YTD Return -13.24%
Year Return 13.46%

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