Actually Oclaro has roughly 108 million shares, and according to management it might reach break even by the end of the calendar year but only in EBITDA terms and if sales grow to $110M per quarter... By the end of the calendar year, because of continued cash drain the tangible book value will have declined to about $1.5/ sh....
Juat a tongue and cheek question.
"Okay. Lastly, how many times a month does Roche call you?
I couldn’t really answer that on this call, but again I wouldn’t want to give you expectation by suggesting that they call us an awful lot. If you don’t mind, I think that’s a tongue in cheek question..."
Results were inline and already baked in the share price. If new products sell well and FDA approvals are obtained on schedule, the share price will move much higher but this will take few quarters.
Since you are posting here gross misinformation, I'll repost my assessment of OCLR based on its latest Form10-Q. Actual annual revenues of OCLR are less than $440 M. Share count is 107.7 M. Cash by now is much less than $141 M. The company is and will be unprofitable for at least a year. HLIT is profitable, has fewer shares outstanding, has more cash and growing, and it is getting more and more into software and services. OCLR is in a cutthroat hardware component business.
Cash: ended 2013 with $142M but "Regarding our cash, we expect further cash usage this calendar year in the following four areas. One, to fund our remaining restructuring; two, to fund negative adjusted EBITDA; three, to normalize our AP post-divestiture, which we expect we will require $25 million to $30 million in cash; and four, to fund normal CapEx and capital lease payments of approximately $4 million to $5 million per quarter." What this means? Unless there is another asset sale, Oclaro will likely end 2014 with $40 to $50M and still not profitable.
Share count: in the earnings release the share count was stated as 93.2M. In reality, the current share count is 107.7M. "As previously announced we exchanged our convertible debt on December 19th. In exchange for $25 million of notes, we issued 13.5 million shares of common stock and paid a make-whole provision of $8.3 million for the remaining four plus years of interests. As a result of the exchange at the end of the quarter, we had shares outstanding of 107.7 million."
"E. Floyd Kvamme
E. Floyd Kvamme has been a director since 1990. From 1984 to 2008, Mr. Kvamme was a General Partner, and since 2008 has been a Partner Emeritus,of Kleiner Perkins Caufield & Byers, a venture capital firm. Mr. Kvamme is also a director of Power Integrations, Inc., as well as two private companies. Mr. Kvamme holds a B.S.E.E. from the University of California, Berkeley and an M.S.E. from Syracuse University."
Raymond James upgraded Baker Hughes two notches to Strong Buy from Market Perform with a price target of $80. The firm upgraded shares and raised estimates to reflect the beginning of a pressure pumping pricing recovery as the increase in natural gas prices drives an accelerating in North American spending.
Is that all to your life? A pestiferous self-absorbed old man crying out for attention by staying on the yahoo message boards days and nights. Condescending pompous and venomous toward anyone not as pollyannaish. Demonstrating stupidity, poor analysis and poor investing skills.
Needham has been a bullish on EXTR since it initated it with a "Buy" on nov 26 2013 with a price target of $9 when EXTR traded at $6.3. As a reminder Needham said then the following:
"We believe Extreme Networks' acquisition of Enterasys Networks creates considerable value through streamlining, cross-product and cross-customer selling synergies, and through hard-nosed cost cutting," analyst Alex Henderson said. "We think Extreme can reach a run-rate earnings level of $0.90-1.00/share over 12-18 months, even assuming virtually no top-line growth. Based on these conservative assessments, we think EXTR can reasonably be valued at 9.5x earnings. If the company can prove better growth rates, we believe it may be able to push the valuation higher."
On Feb 10, Henderson opined the following:
“Extreme tempered the enthusiasm of the Street when it reported by offering guidance that was less than analysts had modeled.” “However, what Extreme offered up was essentially a “base-case” model. We see numerous upsides that are not included in the ‘Operating Model Guidance.’ While we recognize the value of setting a low bar, our Buy recommendation is predicated on our belief in these added upsides.” Henderson sees “several significant opportunities in cross selling, wireless, resale through Ericsson, and most significantly reselling Lenovo”:
I would add that the guidance that EXTR provided in the recent earnings release tempered a lot the market enthusiasm regarding EXTR's growth prospects and the timeline to achieve them.
HLIT has been a financial disaster to its long term investors. The current CEO has been as poor as his predecessors. In his 8 years tenure, the stock (on the average) has gone nowhere. It is imperative that a new CEO is put in place, preferably from outside the company.
$7.00 in 1995 had the same buying power as $10.90 in 2014.
Annual inflation over this period was 2.36%.
No surprises. Growth is mid single digit and as is the operating margin. This amounts to poor profitability and little shareholder value generation.
The rumors I'm aware of occurred over 3 years ago---
Nov 26, 2010 - Unconfirmed Rumors circulate Vishay Intertechnology Inc. (VSH) will be acquired by Texas Instruments Inc. (TXN) at $22.00 a share.
It did not run after the earnings because it did not exceed the expectations. It will not be profitable until sometimes in 2015 (if turnaround is successful, management executes well, and telecom/ data- center is on the up-cycle). While revenues have stabilized, the growth outlook for Oclaro in 2014 is still tepid. A company like Oclaro is not worth much beyond its tangible book value. The current stock price is above the tangible book value. (Research what TLAB was sold for...)
Hey, simpleton. Before calling me a liar you better read my many postings over the years on the EXTR message board, not only the recent ones. I've been holding this stock because I have expected the company to be acquired , not to acquire another one. I neither bash nor pump it. I express my view as I see it. It is not a " mess" but it is not "ridiculously undervalued here". It is a speculative stock that has yet to prove its worth.
IMO, the stock reacted correctly to the earnings and especially the outlook. I'm saying this with sadness and disappointment because I've been holding a large position for a long time. Time will tell whether the stock is "ridiculously" undervalued here or the new Extreme is just the sum of the stagnating old EXTR and Enterasys, now having a tangible book value of only 20 cents.
"There are so many positives". So was the case in each of the last 3 years. The share price actually held up quite well considering the poor outlook given by management for the next couple of quarters. Atmel faces stiff competition in all of its segments and most of its products are low dollar products facing rapid ASPs decline. Atmel brazenly talked about return of capital to its shareholders via stock repurchase while using most of it for stock-based compensation which is conveniently not included in the non-GAAP earnings. That said, the stock is not expensive but it might fall further if the NASDAQ weakens.
The ratio of total liabilities to stockholders' equity is very meaningful for historically stagnating companies like EXTR which has been operating at only slightly than breakeven. This ratio is now well over 2 which is very risky should EXTR fail to live up to its CEO's hype regarding the new EXTR. The stock is now down sharply from its recent peak because a) the new balance sheet just released is poor, b) EXTR's quarterly results came short, c) the outlook for next quarter is poor, indicating little or no accretive earnings from Enterasys, and d) integration expenses continue while meaningful results are only hoped for a year hence. In order to regain market confidence, EXTR will have to exceed estimates from now on.
From the 10-Q:
Total stockholder's equity: $184.393M. (Of which $109.146M and $57.922M are intangibles and goodwill)
Total liabilities and stockholders equity: $517.455M
So, in reality, EXTR is now highly leveraged and can not afford to acquire businesses. EXTR will have to succeed as it is now.
The forward p/e is for 2015. There are not necessarily as many buyers as sellers because, for example, one can sell 10000 shares to 10 buyers each buying 1000 shares. The stock is down, for a good reason, in an up- market today.