Pre-Market Tech Shares Negative Movements Update: Advanced Micro Devices, Inc (NASDAQ:AMD), FireEye Inc (NASDAQ:FEYE)
On Tuesday, Advanced Micro Devices, Inc (NASDAQ:AMD), lost -24.38% to $10.30 & FireEye Inc (NASDAQ:FEYE), dropped – 2.16% to $12.21.
During the last trading session Advanced Micro Devices the minimum price at which share is traded was $ 10.30 and peak price of the day was $ 11.76. AMD reported Q1 results in line with expectations as desktop processor and graphics processor sales increased 29% relative to Q1 2016 and the company began shipments of premium versions of its Ryzen desktop processors. Non-GAAP gross margin increased to roughly 34% from 32% in the year-ago-quarter and was 100 basis points above guidance. However, Q2 non-GAAP gross margin was guided back to 33%, a contentious topic on the earnings call. While we do not find lumpy gross margin performance all that surprising as AMD transitions into a number of new product launches, we do understand investor disappointment with a step back given the buzz around Ryzen. We expect more clarity on the company’s longer-term gross margin target range at AMD’s analyst meeting in two weeks. The report and outlook did not change anything fundamental to the AMD story, in our mind. We continue to view the company’s new product families positively but, for now, we think that the shares, trading at a 2.2x EV to 2018E sales multiple, are fairly valued.
On the other hand, FireEye Inc (NASDAQ:FEYE), provides intelligence-based cybersecurity solutions that allow organizations to prepare for, prevent, respond to and remediate cyber-attacks. The Company has 177.86M shares outstanding while EPS in next five years is expected to reach 15.00 % while EPS growth in past 5 year was -8.20 %. On May 2, 2017, FireEye, Inc. (FEYE), declared financial results for the first quarter ended March 31, 2017.
“We made continued progress on our path to profitability in the first quarter, improving operational efficiency while managing transitions on multiple fronts,” said Kevin Mandia, FireEye chief executive officer. “We met or exceeded our guidance ranges on all financial metrics, and achieved noteworthy milestones on our product roadmap, counting the general availability of the FireEye Helix platform and a new release of our next generation HX endpoint solution.”
“We continue to drive innovation in the security industry — leveraging our unique combination of technology, intelligence, and expertise — and this has facilitated us to move forward with a product strategy that is aligned with our customers’ priorities, counting cloud migration, endpoint upgrades, and improved analytics for more efficient security operations,” added Mandia. “The Helix platform combines our network and endpoint detection and prevention technologies, our award-winning MVX engine, FireEye iSIGHT intelligence and cloud-based analytics in an end-to-end detection and response platform designed to simplify, integrate, and automate security operations. This new offering — combined with our progress expanding our customer base, improving our channel relationships, and strengthening our administration team — creates a solid foundation for the future. I believe we have the focus and the resources necessary to achieve our targets for renewed growth in the second half of 2017 and balanced growth and profitability in the future.”
First Quarter 2017 Financial Results
- Revenue of $173.7 million, a boost of 3 percent from the first quarter of 2016 and above the guidance range of $160 to $166 million.
- Billings of $152.4 million, a decrease of 18 percent from the first quarter of 2016 and above the guidance range of $130 to $150 million.
- GAAP gross margin of 63 percent, contrast to 57 percent in the first quarter of 2016.
- Non-GAAP gross margin of 73 percent, contrast to 70 percent in the first quarter of 2016 and above the guidance of about 70 percent.
- GAAP operating margin of negative 41 percent, contrast to negative 93 percent in the first quarter of 2016.
- Non-GAAP operating margin of negative 7 percent, contrast to negative 44 percent in the first quarter of 2016 and better than the guidance range of about negative 24 percent to negative 26 percent of revenue.
- GAAP net loss per share of $0.48, contrast to a GAAP net loss per share of $0.98 in the first quarter of 2016.
- Non-GAAP net loss per share of $0.09, contrast to a non-GAAP net loss per share of $0.47 in the first quarter of 2016 and better than the guidance range of $0.26 to $0.28.
- Cash flow from operations of negative $17.0 million, contrast to cash flow from operations of negative $22.5 million in the first quarter of 2016 and better than the guidance range of negative $30 to negative $40 million.