Nice job!!! Sometimes it is great to be in the right place at the right time to catch those.
"Operationally, they seem to be making the right moves, "
I don't know about the validity of that statement. They failed to bring on line the latest products without considerable costs and loses. I thought they were good at controlling these costs but this last quarter they must have really messed up. There is a fine line between making and losing money and hopefully they have priced the new business as to be a positive contributor rather than a possible slow bleed of money and resources.
I couldn't imagine what would be a better call. Sales up 25% YOY and EPS even higher beating estimates. Seasonal slow down is less than I expected for Q4. Lots of new products starting to ship early in 2015 and throughout the year. What better can you expect???
You must be a glutton for punishment. This is too much like HIMX. One of these in a portfolio is enough! :)
I am sitting here keeping busy while waiting for the CC. The thing is that I don't know how to react to what is said on the call. If it is bad it is bad. If it is good, I don't know if I can believe any optimistic remarks. Management has lost some credibility with me so I guess I can only believe bad news which make the call somewhat pointless for me.
Google "oculus rift teardown". No mention of HIMX in the latest teardown:
If you're inclined, you can open up a Rift headset using a standard Phillips #0 screwdriver, tweezers, and some other tools. One interesting discovery is that the display is the front panel of a Samsung Galaxy Note 3 smartphone, iFixit said. That element seems to point to Oculus already taking advantage of its partnership with Samsung, which plans to bring Oculus' technology into mobile devices, CNET recently reported. With tens of thousands of the prototype expected to ship, iFixit postulated that the production numbers were still too small to merit a custom display quite yet.
Also, using an infrared camera, the iFixit team was able to capture a picture of the 40 infrared LEDs inside the headset.
The device uses chips from Toshiba, STMicroelectronics, Cypress Semiconductor, and Texas Instruments to run, iFixit found. Less
Unfortunately, we heard the EXACT same thing when they bought the metal manufacturing company. It was supposedly opening the door to many new opportunities. So far sales and earnings dropped. We did not even hear anything about the progress or lack thereof from that metal acquisition which I think was supposed to be accretive.
Before that, we were supposed to be seeing organic growth from folks bringing business back to North America which obviously didn't happen. Also, they seemed to imply that the major customer slow down was near the bottom but that also seems to be still dropping and is both of the major customers.
Of course, this time may be different. I still own a good deal of shares but at this point it may be a "show me the results" situation before I can believe any predictions or outlook.
Good question. There are many things that just don't add up. I think they may be talking too much in generalities when everything is in fact a unique case.
My concern is whether the margins in the new business will hit targets. There is a fine line between making money on a product or losing money, especially when the target margins are so low to begin with.
That is an interesting point and one that I wondered about. Originally they were supposed to have the review completed before Q3 earnings. Now it is at the same time and the press release said "update" on LTC. I am hoping the review is complete or they at least give some solid numbers.