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STEC, AŞ Message Board

  • rogerabcd100 rogerabcd100 Feb 27, 2013 1:50 AM Flag

    STEC Is Ripe For A Takeover At These Levels ( article)

    STEC Is Ripe For A Takeover At These Levels
    Nov 12 2012, 07:13 | about: STEC, includes: STX, WDC
    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)

    STEC (STEC), an independent developer of enterprise-level flash memory solutions, tumbled hard on its 3Q results as well as its disastrous 4Q guidance. To give the reader of just how bad of shape STEC is in, let us quickly analyze the most recent earnings call.

    The Earnings Results - Terrible, But What's New?

    STEC reported a net loss of -$0.24/share and revenues of $42.1M (down 41.9% Y/Y). Interestingly, this was a beat of $0.04 and $1.3M on the bottom and top lines, respectively - this indicates just how low the expectations were.

    While the Street seemed to be okay with the current quarter's results (shares were initially up 3.7% in the after-hours), it was the guidance that sent shares dropping over 20% in the trading session following the report. The firm projected revenue of $36M - $40M and net loss of $0.31 to $0.35 per share, below street consensus of $44.1M and -$0.22 , respectively.

    STEC has been underperforming for quite a while, with 2012 being the year of negative year-over-year growth in each quarter:

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