Tim Luke
Tim Luke
Timothy W. Lukeis University Distinguished Professor of Political Science in the College of Liberal Arts and Human Sciences as well as Program Chair of the Government and International Affairs Program, School of Public and International Affairs at Virginia Polytechnic Institute and State University in Blacksburg, Virginia...
acquiring establish helps shows
It's strategically important because it shows that they're acquiring a leader, and it helps establish them in that market.
earnings encouraged guidance increased increasing inventory investors levels likely low management percent revenue rose share
While inventory levels rose in the first quarter, investors are likely to be encouraged that management increased its revenue guidance from the low 50s to the 50-60 percent range, with earnings per share guidance increasing by 2-to-5 cents.
absence believe cautious current estimates given gross guidance higher inventory last likely lower margins mid moved offer ongoing percent point prior range retain sales softness stance support towards versus week widely
We had lowered our estimates last week and some softness had been widely expected, however, a new sales range with a mid point of -12.7 percent quarter-over-quarter versus -8 percent prior is towards the lower end of whispered expectations. While valuation (20x new CY06) may offer some support given the absence of guidance on inventory levels, which we believe are likely to have moved materially higher at Intel, and given ongoing uncertainty on the gross margins outlook, we would retain our cautious stance at current levels.
additional believe business division few further improvement include management next ongoing options prompt sale seen strategic weakness widely
We believe that ongoing weakness in Ericsson's handset business has been widely anticipated by investors, and it may also prompt management to give further consideration to additional strategic options for the handset division, ... These options could include the sale of the division if some improvement is not seen in the next few quarters.