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10/18: American Software's growth story is not developing as expected.

American reported June quarter earnings (adjusted) of $0.07 per share, $0.02 below analyst forecasts, and down from year-ago $0.10. Revenues up 2% to $27.4 million. License revenues down 58% to $1.702 million. Subscription revenues up 98% to $3.168 million. Services revenues up 6% to $11.008 million. Maintenance revenues up 6% to $11.521 million. Disappointing numbers from American Software. No forward guidance in press release.

Expected FY 4/2019 EPS Growth: -3% 2018 P/E: 35

Background
Founded in 1970, American is a small ($460 million market-cap) company that produces software targeted to the retail and manufacturing industries. American is in the process of transforming its strategy from leasing software to users who must install and implement the applications themselves, to “software as a service,” whereby AMSWA fully develops customer applications and essentially rents the working programs to its users.

Quarterly Reports

April '18: EPS (adjusted) $0.06 vs. year-ago $0.09. Revenues up 12% to $29.4 million. License revenues down 24% to $2.924 million. Services revenues up 30% to $15.501 million. Maintenance revenues u 4% to $10.938 million

January '18: EPS (adjusted) $0.17 vs. year-ago $0.09. Revenues up 14% to $30.1 million. License revenues up 50% to $5.955 million. Services revenue up 9% to $12.926 million. Maintenance revenues up 5% to $11.236 million.

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7/1/12: We added American Software to the portfolio exactly one year-ago. Since then, it has reported strong revenue and earnings growth in every quarter. But American hasn't seen fit to raise its dividend and its share price is down, leaving our total return stuck at breakeven. We're giving up on American Software.

Expected FY 4/2012 EPS Growth: 55% Div/EPS Ratio: 83%

Background
American makes software used by manufacturers and distributors to manage back-office operations. Its software manages supply chain (materials coming from suppliers), purchasing, warehouse, and transportation (outbound) activities. American also offers IT staffing and consulting services. American carries no long-term debt, but with a market-cap below $250 million, it falls into the "micro-cap" category, which is riskier than larger stocks.

Quarterly Reports

April '12: EPS $0.13, up 30% vs. year-ago. Total revenues up 11% to $27.9 million. Software license fee revenues down 9% to $7.29 million. Service revenues up 29% to $12.29 million. Maintenance revenues up 9% to $8.36 million. Gross margin 55.4% vs. 55.1%. Operating margin 16.3% vs. 4.4%.

January '12: EPS $0.10, up 47%. Total revenues up 25% to $25.4 million. Software license fee revenues up 62% to $6.80 million. Service revenues up 18% to $10.29 million. Maintenance revenues up 11% to $8.31 million. Gross margin 53.2% vs. 50.8%. Operating margin 13.0% vs. 8.8%.

October '11: EPS $0.11, up 83%. Total revenues up 22% to $25.6 million. Software license fee revenues up 65% to $7.05 million. Service revenues up 11% to $10.5 million. Maintenance revenues up 11% to $8.02 million. Gross margin 57.2% vs. 52.5%. Operating margin 18.4% vs. 8.5%.

July '11: EPS (adjusted) $0.10, up 56%. Total revenues up 24% to $23.7 million. Software license fee revenues up 139% to $9.27 million. Service revenues even at $9.27 million. Maintenance revenues up 10% to $7.75 million. Gross margin 55.6% vs. 53.4%. Operating margin 15.2% vs. 10.6%. At June 30, cash and investments $42.5 million ($1.59/share) and no long-term debt.

April '11: EPS $0.10, double year-ago. Total revenues up 33% to $25.2 million. Software license fee revenues up 151% to $7.98 million. Service revenues up 8% to $9.55 million. Maintenance revenues up 11% to $7.64 million. Gross margin 55.1% vs. 54.7%. Operating margin 14.4% vs. 7.1%. At April 30, cash and investments $44.6 million ($1.68/share) and no long-term debt.

January '11: EPS $0.08. Total revenues up 3% to $20.4 million. Software license fee revenues down 9% to $4.20 million. Service revenues up 4% to $8.71 million, and maintenance revenues up 8% to $7.46 million. Gross margin 50.8% vs. 55.8%. Operating margin 8.8% of sales vs. 14.0%. Higher costs cut margins and earnings.

Broadcom

Quartesrly Reports

January '21: EPS 6.61, up 26%. Total revenues up 14% to $6.655 billion. Semiconductor revenues up 17% to $4,908 million. Infrastructure software revenues up 5% to $1,747 million. Operating cash flow $3.113 billion ($7.21 per share) vs. $2.322 billion ($5.45 per share). In December, dividend up 11% to $3.60.

October '20: EPS $6.35, up 5%. Total revenues up 12% to $6.467 billion. Semiconductor revenues up 6% to $4,830 million. Infrastructure software revenues up 36% to $1,637 million. Operating cash flow $3.348 billion ($7.86 per share) vs. $2.479 billion ($5.96 per share). Expected January quarter revenues up around 13% from year-ago to $6.6 billion.

July '20: EPS (adjusted) 5.40, up 5%. Total revenues up 6% to $5.821 billion. Semiconductor revenues down 4% to $4,219 million. Infrastructure software revenues up 41% to $1,602 million. Operating cash flow $3.178 billion ($7.53 per share) vs. $2.419 billion ($5.79 per share). Expects October quarter revenues around $6.4 billion, up 10% over July.

April '20: EPS (adjusted) $5.14, down 1%. Total revenues up 4% to $5.742 billion. Semiconductor revenues down 2% to $4,027 million. Infrastructure software revenues up 21% to $1,715 million. Operating cash flow $3.213 billion ($7.71 per share) vs. $2.667 billion ($6.35 per share).

January '20: EPS (adjusted) $5.25, down 5%. Total revenues up 1% to $5.850 billion. Semiconductor revenues down 4% to $4,191 million. Infrastructure software revenues up 19% to $1,667 million. Operating cash flow $2.322 billion ($5.52 per share) vs. $2.132 billion ($5.09 per share). In December, dividend up 23% to $3.25.

October '19: EPS (adjusted) $5.39, down 8%. Revenues up 6% to $5.776 billion. Semiconductor revenues down 8% to $4,553 million. Infrastructure software revenues up 134% to $1,200 million. Intellectual property licensing $23 million vs. $57 million. Operating cash flow $2.479 billion ($5.96 per share) vs. $2.635 billion ($6.23 per share). Agreed to acquire the enterprise security business of Symantec Corporation for $10.7 billion in cash. Completed acquisition of Symantec's Enterprise Security business.

April '18: EPS (adjusted) $4.88, up 32%. Revenues up 19% to $5.017 billion. Wired infrastructure revenues up 6% to $2,298 million. Wireless communications revenues up 13% to $1,294 million. Enterprise storage revenues up 63% to $1,162 million.

Cisco Systems

6/1/17: The Cisco Systems turnaround that we expected isn't happening. Time to jump ship. We're advising selling Cisco Systems.

Expected FY 7/2017 EPS Growth: 1% CF Payout Ratio: 38%

Background
Although by far the largest supplier of servers, routers, and other communications and networking products required to connect to the Internet, Cisco had been losing market share to nimbler competitors. Now, however, the tables appear to be turning and Cisco is poised to start taking back market share and resume its growth path.

Quarterly Reports

April '17: EPS (adjusted) $0.60, up 5% vs. year-ago. Revenues down 1% to $11.9 billion. Product revenues flat at $8.89 billion. Service revenues down 2% to $3.05 billion. Operating cash flow $3,367 billion ($0.67/share) vs. $3,065 billion ($0.61/share). Agreed to pay $610 million for privately-held communications software maker Viptela. Paid $3.5 billion to acquire privately held AppDynamics, which makes software that helps customers implement "cloud" applications. In February, dividend up 12% to $0.29.

January '17: EPS (adjusted) $0.57, even. Revenues down 2% to $11.58 billion. Product revenues down 6% to $8.49 billion. Service revenues up 5% to $3.09 billion. Operating cash flow $3.772 billion ($0.44/share) vs. $3.922 billion ($0.77/share).

October '16: EPS $0.61, up 3%. Revenues up 1% to $12.4 billion. Product revenues down 1% to $9.30 billion. Service revenues up 7% to $3.05 billion. Operating cash flow $2.730 billion ($0.54/share) vs. $2.766 billion ($0.54/share). Acquired privately-held ContainerX, a supplier of data center software.

July '16: EPS (adjusted) $0.63, up 9%. Revenues up 2% to $12.638 billion. Product revenues up 1% to $9.55 billion. Service revenues up 5% to $3.09 billion. Operating cash flow $3.818 billion ($0.75/share) vs. $4.118 billion ($0.80/share). Agreed to pay $293 million to acquire privately-held security software provider Cloudlock.

April '16: EPS $0.57, up 6%. Revenues up 3% to $12.0 billion. Product revenues down 5% to $8.875 billion. Service revenues up 11% to $2.811 billion. Operating cash flow $3.064 billion ($0.60/share) vs. $3.040 billion ($0.59/share). Agreed to pay $320 million to acquire networking chip designer Leaba, and $260 million to acquire clound software maker CliQr Technologies. In February, dividend up 24% to $0.26.

January '16: EPS (adjusted) $0.57, up 8%. Revenues up 2% to $11.8 billion. Product revenues down 1% to $8.983 billion. Service revenues up 3% to $2.944 billion. Operating cash flow (OCF) $3.922 billion ($0.77/share) vs. $2.883 billion ($0.56/share). Acquired Jasper Technologies, a communications systems startup.

October '15: EPS (adjusted) $0.59, up 9%. Revenues up 4% to $12.682 billion. Product revenues up 4% to $9.844 billion. Service revenues up 1% to $2.838 billion. OCF $2.766 billion ($0.54/share) vs. $2.491 billion ($0.48/share). Acquired privately held Lancope, which made network security software. Announced a joint marketing deal with Ericsson.

July '15: EPS (adj) $0.59, up 7%. Revenues up 4% to $12.843 billion. Product revenues up 4% to $9.911 billion. Service revenues up 4% to $2.932 billion. OCF $9.512 billion ($1.85/share) vs $7.134 billion ($1.38/share). Acquired privately held security company OpenDNS. Sold TV set-top box unit to Technicolor. CEO, John Chambers retired. Replaced by Chuck Robbins, Senior VP of Worldwide Operations. Chambers continued as Board Chairman.

April '15: EPS (adj) $0.54, up 6% Revenues up 5% to $12.137 billion. Product revenues up 6% to $9.326 billion. Service revenues up 3% to $2.811 billion. OCF $3.040 billion ($0.59/share) vs. $3.198 billion ($0.62/share). In February, dividend up 10% to $0.21.

January '15: EPS (adj) $0.53, up 13%. Revenues up 7% to $11.936 billion. Product revenues up 8% to $9.078 billion. Service revenues up 5% to $2.858 billion. OCF $2.883 billion ($0.56/share) vs. $2.571 billion ($0.48/share).

October '14: EPS (adj) $0.54, up $0.01. Revenues up 1% to $12.245 billion. Product revenues flat at $9.44 billion. Service revenues up 5% to $2.810 billion. OCF $2.491 billion ($0.48/share) vs. $2.649 billion ($0.49/share).

July '14: EPS (adj) $0.55, up 6%. Revenues flat at $12.36 billion. Product revenues down 2% to $9.53 billion. Service revenues up 5% to $2.825 billion. OCF $4.0 billion ($0.74/share) vs. year-ago $3.1 billion ($0.58/share).

April '14: EPS (adjusted) $0.51, even. Revenues down 6% to $11.545 billion. Product revenues down 8% to $8.82 billion. Service revenues up 3% to $2.725 billion. Operating cash flow $3.20 billion vs. $3.09 billion. Total orders up 1%. In February, dividend up 12% to $0.19.

January '14: EPS (adjusted) $0.47, down 8%. Revenues down 8% to $11.155 billion. Product revenues down 11% to $8.42 billion. Service revenues up 3% to $2.732 billion. Operating cash flow $2.87 billion ($1.04/share). Acquired a developer of data center infrastructure products, and a solid state memory systems maker.

Cogent Communications

6/1/15: Cogent Communications reported disappointing March quarter numbers and concerns about how the U.S. Government's new "net neutrality" rules might affect Cogent's outlook have also pressured its share price. Cogent is a good company, but there's too much uncertainty here. We're selling.

Cogent reported a March quarter loss of -$0.04 per share, $0.04 below analyst forecasts and $0.04 below the year-ago quarter. Revenues rose 5% to $97.242 million. The operating margin (OM) dropped to 10.8% of sales from year-ago 13.9%. Operating cash flow $18.372 million ($0.41/share) vs. $10.636 million ($0.23/share). Total customer connections up 13% to 47.411.

Cogent raised its quarterly dividend by 3% to $0.33 per share.

In February, Cogent declared a $0.32 dividend, $0.01 above previous, but down 18% vs. year-ago, when it paid a $0.16 regular plus $0.23 special dividend.

Expected FY 12/2015 EPS Growth: 99% CF Payout Ratio: 70%

Background
Established in 1999, Cogent offers global high-speed, high bandwidth Internet connectivity services, and also operates 41 data centers. Customers, which include Apple and Netflix, are evenly divided between corporate users and Internet Service Providers. Cogent markets itself as the low-priced leader for Internet connectivity. Cogent paid its first regular dividend, $0.10 per share, in August 2012. It hiked that payout by 40% in its first year and by 114% in its second year. Cogent recently adopted a policy of allocating $10.5 million (about $0.23 per share) each quarter for special dividends or share buybacks. In line with that policy, it paid a 0.22 per share special payout in November 2013, and a $0.23 per share payout in March 2014.

Quarterly Reports

December '14: EPS loss -$0.01 vs. year-ago +$0.05 (excluding income tax benefit). Excluding currency translation adjustment, EPS was +$0.06. Revenues up 8% to $96.7 million. Operating margin (OM) 13.5% of sales vs. year-ago 13.4%. Operating cash flow $17.941 million ($0.40/share) vs. $29.288 million ($0.60/share). Total customer connections up 15% to 46,222. Higher expenses hurt EPS and cash flow. In November, dividend up 3% to $0.31.

September '14: EPS $0.00 vs. $0.05. Revenues up 9% to $95.691 million. Operating margin (OM) 14.2% vs. 14.3%. Operating cash flow $16.074 million ($0.35/share) vs. $14.898 million ($0.32/share). Total customer connections up 16% to 44,630. Increased minimum return of capital to shareholders to $12.0 million from $10.5 million per quarter, but elected to use the cash to buy back stock instead of paying a special dividend. In August, dividend up 77% to $0.30.

June '14: EPS 0.03 vs. $0.03. Revenues up 10% to $94.623 million. Operating margin (OM) 15.1% vs. 13.5%. Operating cash flow $94.623 million vs. year-ago $85.803 million. Total customer connections up 17% to 43,287. In May, dividend (regular) up 6% to $0.17.

March '14: EPS 0.00 vs. year-ago $0.01. Revenues up 10% to $92.937 million. OM 13.9% vs. 11.7%. Operating cash flow $10.636 million vs. $14.962 million. Total customer connections up 17% to 41,947. Committed to pay $10.5 million per quarter to fund special dividends and/or share buybacks.

Computer Programs & Systems

Sell Computer Programs
Computer Programs & Systems develops and markets information technology systems to small hospitals. Computerizing hospitals has been a good business so far, but it now appears that growth is slowing, which, we fear, will trigger sales and earnings shortfalls for the next few quarters.

Expected FY 12/2012 EPS Growth: 19% Div/EPS Ratio: 66%

Background
Computer Programs & Systems develops, installs and supports financial and clinical information management systems for small and mid-sized hospitals. Client base includes more than 650 community and small specialty hospitals in 46 states. CP&S stands to benefit from the Obama administration's programs to automate the nation's healthcare systems.

Quarterly Reports

September '12: EPS 0.63, up 17% vs. year-ago. Revenues up 7% to $45.17 million. Systems sales up 10% to $17.5 million. Support & Maintenance revenues up 6% to $18.2 million. Business management services revenues up 7% to $9.4 million. Gross margin 44.5% of sales vs. year-ago 46.3%. Operating cash flow $6.413 million ($0.58/share) vs. year-ago $7.059 million ($0.64/share).

June '12: EPS (continuing) $0.59, down 18% vs. year-ago. Counting income tax benefit, EPS $0.75. Revenues down 6% to $45.73 million. Systems sales down 24% to $17.8 million. Support & Maintenance revenues up 14% to $18.4 million. Business management services revenues up 5% to $9.5 million. Gross margin 44.0% of sales vs. year-ago 49.5%. Operating cash flow $2.991 million ($0.27/share) vs. year-ago $2.850 million ($0.26/share).

January '12: EPS $0.51, up 4%. Revenues up 10% to $44.49 million. Systems sales up 9% to $17.0 million. Support & Maintenance revenues up 12% to $18.1 million. Gross margin 43.3% vs. 42.4%. Operating cash flow $8.551 million ($0.77/share) vs. $14.290 million ($1.30/share). In January, dividend up 28% to $0.46, the first dividend hike since 2005.

December '11: EPS $0.59, down $0.02. Revenues down 2% to $42.2 million. Systems sales down 20% to $15.4 million. Support & Maintenance revenues up 15% to $18.0 million. Gross margin 44.2% vs. 45.3%. Operating cash flow $9.341 million ($0.84/share) vs. $5.746 million ($0.52/share).

September '11: EPS $0.54, up 20%. Revenues up 3% to $42.0 million. Gross margin 46.3% vs. 41.7%. Operating cash flow $6.724 million ($0.61/share) vs. $5.335 million ($0.49/share).

June '11: EPS $0.72, up 85%. Revenues up 30% to $48.8 million. Gross margin 50.2% vs. 42.1%. Operating cash flow $2.85 million ($0.26/share) vs. $2.80 million ($0.26/share).

March '11: EPS $0.49, up 81%. Revenues up 28% to $40.4 million. Gross margin 42.4% vs. 38.4%. Operating cash flow $14.29 million ($1.30/share) vs. $5.79 million ($0.53/share).

December '10: EPS (continuing) $0.58, up 76%. Counting tax credit, EPS $0.61. Gross margin 45.3% vs. 40.0%. Operating cash flow $5.746 million ($0.52/share). Revenues up 28% to $43.1 million.

September '10: EPS $0.45, up 22%. Operating cash flow $5.335 million ($0.49/share). Revenues up 24% to $40.9 million.

June '10: EPS $0.39, up 22%. Operating cash flow $2.8 million ($0.26/share) vs. $3.7 million$(0.34/share). Revenues up 22% to $37.7 million.

March '10: EPS 0.27 vs. $0.37. Operating cash flow up 58% to $5.79 million ($0.53/share). Revenues up 5% to $31.5 million. Gross margin 38.4% of sales vs. 22.2%.

December '09: EPS $0.33 vs. $0.45. Revenues +5% to $33.75 million. Gross margin 40.0% vs. 45.5%. Earnings call transcript.

September '09: EPS $0.37, -$0.01. Revenues +9% to $33.0 million. Gross margin 41.2% vs. 43.8%. Operating margin 18.5% vs. 20.2%. Operating cash flow negative.

June '09: EPS $0.32, +14%. Revenues +11% to $30.8 million.

March '09: EPS $0.37, +16%. Revenues +2% to $30.14 million. Operating cash flow -14% to $3.7 million.

December '08: EPS $0.45, +25%. Revenues +14% to $32.04 million.

September '08: EPS $0.38, +27% vs. year-ago. Revenues +8% to $30.35 million.

June '08: EPS +33% to $0.28. Revenues -1% to $27.75 million.

Cypress Semiconductors

10/19: Sell

In May, Cypress agreed to be acquired by German chipmaker Infineon for $23.85 per share in cash. Cypress will continue to pay its cash dividends until the deal closes late this year or early 2020.

Background
Founded in 1982, Cypress has traditionally focused on producing programmable computer systems-on-chip, memory products, plus a variety of additional analog and digital chips. In March 2015, Cypress merged with Spansion, Inc., a leading flash memory producer as well as a major player in the industrial and auto markets, most significantly a leader in advanced driver assistance systems. Then, in July 2016, Cypress acquired Broadcom’s Wireless 'Internet of Things' business, a segment that produces consumer products including wearable electronics and home and business automation systems. In August 2016, Cypress named a new CEO, Hassane El-Khoury, who is implementing a strategy of focusing development on the fastest growing market segments, specifically, advanced automotive, industrial automation, and Internet of Things.

Quarterly Reports

June'19: EPS (adjusted) $0.25, down $0.02 vs. year-ago. Total revenues down 1% to $532.2 million.

March '19: EPS (adjusted) $0.27, even with year-ago. Total revenues down 7% to $539.00 million. Microcontroller revenues down 8% vs. year-ago to $310.4 million. Memory Products revenues down 7% to $228.6 million. Gross margin (adjusted) 47.4% vs. 45.9%.

December '18: EPS $0.35, up 25%. Total revenues up 1% to $604.47 million. Microcontroller revenues even at $355.8 million. Memory Products revenues up 3% to $248.6 million. Gross margin (adjusted) 47.8% vs. 45.4%.

September '18: EPS (adjusted) $0.40, up 48%. Total revenues up 11% to $673.0 million. Microcontroller revenues up 11% to $413.4 million. Memory Products revenues up 12% to $259.6 million. Gross margin (adjusted) 47.0% vs. 43.0%.

June '18: EPS (adjusted) $0.33, up 57%. Total revenues up 5% to $624.1 million. Microcontroller revenues up 2% to $368.5 million. Memory Products revenues up 10% to $255.6 million. Gross margin (adjusted) 46.3% vs. 40.9%.

March '18: EPS (adjusted) of $0.27, up 108%. Revenues up 10% to $582.2 million. Gross margin (adjusted) 36.5% of sales vs. year-ago 29.5%.

December '17: EPS (adjusted) $0.28, up 87%. Revenues up 13% to $597.5 billion. Gross margin (adjusted) 44.5% of sales vs. 38.1%.

September '17: EPS (adjusted) $0.27, up 80%. Revenues up 14% to $604.6 million. Gross margin (adjusted) 43.0% of sales vs. 40.5%.

June '17: EPS (adjusted) $0.21, up 75%. Revenues up 32% to $593.8 million. Gross margin (adjusted) 40.9% vs. 37.8%.

March '17: EPS (adjusted) $0.13, up 86%. Revenues up 25% to $531.9 million. Gross margin (adjusted) 39.3% vs. 36.9%.

December '16: EPS (adjusted) $0.15, up 15%. Revenues up 18% to $530.2 million. Gross margin (adjusted) 40.1% vs. 39.8%. Operating cash flow $89.787 million ($0.28/share) vs. $42.094 million ($0.13/share).

September '16: EPS (adjusted) $0.15, up 25%. Revenues (adjusted) up 16% to $530.1 million. Gross margin (adjusted) 40.5% vs. 37.8%.

June '16: EPS (adjusted) $0.12, down 20%. Revenues down 7% to $450.1 million. Gross margin 37.8% vs. 41.0%.

March '16: EPS (adjusted) $0.07 vs. -$0.45. Revenues up 103% to $425.2 million. Gross margin (adjusted) 36.9% vs. 1.3%.

HP, Inc.

9/19: HP, Inc has reported little or no revenue growth for both of the last two quarters and forecast more of the same for its current (October) quarter. Meanwhile its 3D printers sale didn't materialize as we expected. We're giving up on HP, Inc.

HP reported July quarter earnings (adjusted) of $0.58 per share, $0.03 above analyst forecasts, and up 12% vs. year-ago. Revenues even with year-ago at $14.60 billion. Notebook computer revenues even with year-ago at $5,560 million. Desktop computer revenues up 8% to $3,111 million. Workstations revenues up 4% to $609 million. Printing supplies down 7% to $3,164 million. Commercial printing hardware up 3% to $1,160 million. Consumer printing hardware down 10% to $588 million. Operating cash flow $2.23 billion ($1.48/share) vs. year-ago $1.5 billion ($0.98/share). Good EPS and cash flow growth, but all around disappointing revenue growth numbers. Expects more of the same for the October (current) quarter.

HP, Inc. said that its CEO, Dion Weisler is resigning for family health reasons. Enrique Lores, the head of HP's imaging, printing and solutions business, takes over the CEO job on November 1, but Weisler stays on as a consultant through January.

Background
Founded in Palo Alto in 1939, Hewlett Packard, the first major high-tech firm in Silicon Valley, split into two separate companies in November 2015. HP Inc. retained HP’s traditional computer and printer businesses, while Hewlett Packard Enterprise Company (HPE), took over networking, security and software services and products businesses. In December 2016, HP Inc. introduced a new line of "Jet Fusion" 3D printers that can produce products “ten times faster” and at half the cost of existing 3D printers.

Quarterly Reports

April '19: EPS (adjusted) of $0.53 per share, $0.02 above analyst forecasts, and up 10% vs. year-ago. Revenues even with year-ago at $14.04 billion. Notebook computer revenues down 1% to $5,099 million. Desktop computer revenues up 7% to $2,940 million. Workstations revenues up 6% to $569 million. Printing supplies down 3% to $3,331 million. Commercial printing hardware up 3% to $1,179 million. Consumer printing hardware down 8% to $606 million.

January '19: EPS (adjusted) $0.52, up 8% vs. year-ago. Revenues up 1% to $14.71 billion. Notebook computer revenues up 6% to $66.919 billion. Desktop computer revenues down 3% to $2.857 billion. Workstations revenues up 3% to $562 million. Printing supplies down 3% to $3.267 billion. Commercial printing hardware up 5% to $1.090 billion. Consumer printing hardware up 2% to $699 million. Operating cash flow $862 million ($0.55 per share) vs. year-ago $996 million ($0.60 per share). In November, dividend up 15% to $0.1602.

October '18: EPS $0.54, up 23%. Revenues up 10% to $15.37 billion. Notebook computer revenues up 14% to $6.165 billion. Desktop computer revenues up 6% to $2.991 billion. Workstations revenues up 10% to $577 million. Printing supplies up 7% to $3.385 billion. Commercial printing hardware up 16% to $1.248 billion. Consumer printing hardware up 7% to $667 million. Operating cash flow $968 million ($0.61 per share) vs. $680 million ($0.40 per share). Introduced "HP Metal Jet," a 3D printer for high volume manufacturing of production-grade metal parts.

July '18: EPS (adjusted) 0.52, up 21%. Revenues up 12% to $14.3 billion. Notebook computer revenues up 13% to $5.634 billion. Desktop computer revenues up 12% to $2.869 billion. Workstations revenues up 11% to $588 million. Printing supplies up 8% to $3.405 billion. Commercial printing hardware up 24% to $1.170 billion. Consumer printing hardware up 4% to $613 million. Operating cash flow $0.93 per share vs. $1.09.

April '18: EPS (adjusted) $0.48, up 20%. Revenues up 13% to $14.00 billion. Notebook computer revenues up 15% to $5.153 billion. Desktop computer revenues up 16% to $2.752 billion. Workstations revenues up 9% to $538 million. Printing supplies up 8% to $3.434 billion. Commercial printing hardware up 27% to $1.186 billion. Consumer printing hardware up 3% to $621 million. Operating cash flow $0.67 per share vs. $0.30.

January '18: EPS $0.48, up 26%. Revenues up 14% to $14.5 billion. Notebook computer revenues up 14% to $5.391 billion. Desktop computer revenues up 17% to $2.995 billion. Workstations revenues up 11% to $543 million. Printing supplies up 10% to $3.351 billion. Commercial printing hardware up 28% to $1.070 billion. Consumer printing hardware up 11% to $655 million. Operating cash flow $0.60 per share vs. $0.45. In November, dividend up 4.5% to $0.1393.

October '17: EPS (adjusted) $0.44, up 36%. Revenues up 11% to $13.93 billion. Notebook computer revenues up 16% to $5.391 billion. Desktop computer revenues up 10% to $2.821 billion. Workstations revenues up 8% to $526 million. Printing supplies up 10% to $3.132 billion. Commercial printing hardware up 1% to $1.119 billion. Consumer printing hardware up 2% to $626 million. Operating cash flow $0.40 per share vs. $0.41. Announced a new device, called "FitStation," for shoe stores that does a 3D scan of a person's foot, and then uses a 3D printer to produce a custom insole.

July '17: EPS (adjusted) $0.43, down 10%. Revenues up 10% to $13.06 billion. Notebook computer revenues up 16% to $5.008 billion. Desktop computer revenues up 5% to $2.566 billion. Workstations revenues up 11% to $530 million. Printing supplies up 10% to $3.120 billion. Commercial printing hardware down 2% to $986 million. Consumer printing hardware up 3% to $592 million. Operating cash flow $1,775 million ($1.06 per share) vs. $1,071 million ($0.64). Introduced new product line, retail "point-of-sale" (POS) systems that re-imagines "how technology can transform the in-store experience for customers."

April '17: EPS (adjusted) $0.40, down $0.01. Revenues up 7% to $12.39 billion. Notebook computer revenues up 17% to $4.493 billion. Desktop computer revenues down 1% to $2.378 billion. Workstations revenues up 7% to $495 million. Printing supplies up 2% to $3.157 billion. Commercial printing hardware up 3% to $982 million. Consumer printing hardware up 4% to $604 million. Operating cash flow $455 million ($0.27 per share) vs. $1,579 million ($0.91).

January '17: EPS (adjusted) $0.38, up 6%. Revenues up 4% to $12.684 billion. Notebook computer revenues up 16% to $4.890 billion. Desktop computer revenues flat at $2.534 billion. Workstations revenues up 11% to $491 million. Printing supplies down 3% to $3.007 billion. Commercial printing hardware down 8% to $886 million. Consumer printing hardware up 2% to $328 million. Operating cash flow $767 million vs. year-ago -$102 million. In December, first production 3D printing system.

October '16: EPS (adjusted) $0.36, up 20%. Revenues up 2% (4% excluding currency) to $12.512 billion. Notebook computer revenues up 6% to $4.636 billion. Desktop computer revenues up 2% to $2.572 billion. Workstations revenues up 4% to $483 million. Printing supplies down 12% to $2.835 billion. Commercial printing hardware up 2% to $1.395 billion. Consumer printing hardware down 9% to $328 million. Operating cash flow $698 million vs. $2,609 million. HP agreed to pay $1.05 billion to acquire Samsung Electronics' printer (advanced design copier) business.

July '16: EPS (adjusted) $0.48, up 37%. Revenues down 4% (down 1% excluding currency) to $11.892 billion. Notebook computer revenues up 8% to $4.303 billion. Desktop computer revenues down 9% to $2.455 billion. Workstations revenues down 6% to $476 million. Printing supplies down 18% to $2.840 billion. Commercial printing hardware down 3% to $1.290 billion. Consumer printing hardware down 22% to $293 million. Operating cash flow $783 million vs. $854 million.

KLA, Inc.

7/29/22: Based on its weakening outlook, we're advising selling KLA Corp.

KLA said it plans to increase its September quarterly dividend by 24% to $1.30 per share, but didn't actually declare that payout. .

Background
With a 50%+ market share, KLA is the biggest producer of process control and yield management systems needed to manufacture semiconductor chips.

Quarterly Reports

March '22: EPS (adjusted) $5.13, up 32% vs. year-ago. Revenues up 27% to $2.289 billion. Free cash flow $718.6 million ($4.75 per share) vs. $585.0 million ($3.77 per share).

December '21: EPS (adjusted) $5.59, up 73% vs. Revenues up 43% to $2.35 billion. Free cash flow $745.9 million ($4.90 per share) vs. $501.9 million ($3.23 per share).

September '21: EPS (adjusted) $4.64, up 53%. Revenues up 35% to $2.08 billion. Free cash flow $794.8 million ($5.18 per share) vs. $456.2 million ($2.92 per share). In August, dividend up 17% to $1.05.

June '21: EPS $4.43, up 62%. Revenues up 32% to $1.925 billion. Free cash flow $410.2 million ($2.66 per share) vs. $411.1 million ($2.63 per share).

March '21: EPS (adjusted) 3.85, up 56%. Revenues up 27% to $1.804 billion. Operating cash flow $646.2 million ($4.16 per share) vs. $442.0 million ($2.81 per share).

December '20: EPS (adjusted) $3.24, up 22%. Revenues up 9% to $1.651 billion. Operating cash flow $561.1 million ($3.61 per share) vs. $2.44 per share.

September '20: EPS (adjusted) $3.03, up 22%. Revenues up 9% to $1.54 billion. Product revenues up 8% to $1.146 billion. Service revenues up 11% to $393.1 million. Operating cash flow $512.171 million ($3.27 per share) vs. $496.2 million ($3.10 per share). In August, dividend up 6% to $0.90.

June '20: EPS (adjusted) $2.73, up 53%. Revenues up 47% to $1.460. billion. Product revenues up 17% to $1.075 billion. Service revenues up 13% to $384.5 million. Operating cash flow $452.846 million ($2.90 per share) vs. $325.461 million ($2.01 per share). Impressive growth numbers from KLA.

March '20: EPS (adjusted) $2.47, up 37%. Revenues up 30% to $1.42 billion. Product revenues up 33% to $1.05 billion. Service revenues up 23% to $365 million. Operating cash flow $442.028 million ($2.81 per share) vs. $163.594 million ($1.04 per share).

December '19: EPS (adjusted) $2.66 per share, up 9%. Revenues up 34% to $1.509 billion. Product revenues up 17% to $1.14 billion. Service revenues up 36% to $365 million. Operating cash flow $397.731 million ($2.51 per share) vs. $282.172 million ($1.85 per share). In October, dividend up 13% to $0.85.

June '18: EPS (adjusted) of $2.22, up 37%. Revenues up 14% to $1.070 billion. Product revenues up 14% to $840.5 million. Service revenues up 14% to $229.5 million. Operating cash flow $373.513 million ($2.38 per share) vs. $462.637 million ($2.93 per share).

March '18: EPS $2.02, up 25%. Revenues up 12% to $1.021 million. Product revenues up 11% to $797.8 million. Service revenues up 16% to $201 million. Operating cash flow $352.607 million ($2.24 per share) vs. 224.838 million ($1.43 per share). Agreed to pay $3.4 billion to acquire Orbotech, that markets advanced processes for manufacturing printed circuit boards, flat panel displays and semiconductor devices. Expected deal to increase exposure to 5G, AR/VR, smart mobile, OLED, and automotive markets. Expected deal to close by year's-end. In February, dividend up 27% to $0.75, up 39% vs. year-ago.

December '17: EPS $1.97, up 30%. Revenues up 11% to $976 million. Product revenues up 11% to $761.6 million. Operating cash flow $129.371 million ($0.83 per share) vs. 222.413 million ($1.42 per share).

September '17: EPS (adjusted) $1.80 per share, up 55%. Revenues up 29% to $970 million. Product revenues up 35% to $760.8 million while service revenues up 11% to $208.8 million. Operating cash flow $373.629 million ($2.37 per share) vs. 169.777 million ($1.08 per share).

June '17: EPS (adjusted) down 7% to $1.64. Revenues up 2% to $938.7 million. Product revenues up 1% to $737.4 million, service revenues up 7% to $201.2 million. Dividend up 3% to $0.54.

March '17: EPS (adjusted) up 41% to $1.62. Revenues up 28% to $913.8 million. Product revenues up 36% to $721.0 million, service revenues up 6% to $192.8 million.

Maxim Integrated Products

2/1/19: With analysts forecasting zero EPS and revenue growth this year, Maxim will probably underperform the market.

Maxim reported December quarter earnings (adjusted) of $0.60 per share, $0.02 below analyst forecasts, and down 8% vs. year-ago. Revenues down 7% vs. year-ago to $576.9 million. Operating cash flow $224.250 million ($0.80/share) vs. $229.875 million ($0.81/share). Expects March Q revenues around $540 million and around $0.57 EPS. Disappointing numbers from Maxim.

Expected FY 12/2019 EPS Growth: 0% 2019 P/E: 17

Background
Headquartered in San Jose, but with design centers and factories around the world, Maxim is a leading maker of analog semiconductor chips. Unlike digital, analog chips are used to process real world information such as sound, light, temperature, etc. For instance, in cell phones, analog chips convert your voice to digital signals. The current hot semiconductor markets include automotive, factory automation, and controlling household items (Internet of Things) and all require analog chips.

Quarterly Reports

September '18: EPS (adjusted) $0.75, up 25% vs. year-ago. Revenues up 11% to $638.5 million. Operating cash flow $207.2 million ($0.73/share) vs. $219.7 million ($0.77/share). Okay Sept. Q numbers, but expects December quarter EPS down 15% ($0.58/share) vs. year ago on 5% lower sales ($590 million). In July, dividend up 10% to $0.46.

June '18: EPS (adjusted) $0.73, up 16%. Revenues up 5% to $633.2 million. Operating cash flow $146.559 million ($0.52/share) vs. $236.928 million ($0.82/share).

March '18: EPS (adjusted) $0.73, up 12% . Revenues up 12% to $648.6 million. Operating cash flow $223.225 million ($0.78/share) vs. $220.697 million ($0.77/share). In January, dividend up 17% to $0.42.

December '17: EPS (adjusted) $0.65, up 41%. Revenues up 13% to $622.6 million. Consumer products (26% of sales), Industrial (29%), Communications & Data Centers (20%), and Automotive (21%) were biggest market sectors. Industrial, with sales up 29%, was the fastest growing. Operating cash flow $229.875 million ($0.82/share) vs. $192.630 million ($0.67/share).

September '17: EPS $0.60, up 25%. Revenues up 3% to $575.676 million. Gross margin 64.9% vs. 61.6%. Operating cash flow $219.705 million ($0.77/share) vs. $123.402 million ($0.43/share). Consumer products (28% of sales), Industrial (28%), Communications & Data Centers (20%), and Automotive (20%) were biggest sectors. Automotive, with sales up 13%, was the fastest growing. Consumer Products, down 8%, was the laggard. In July, dividend up 9% to $0.36.

June '17: EPS (adjusted) $0.63, up 13%. Revenues up 6% to $602.0 million. Gross margin 65.4% vs. 60.8%. Operating cash flow $236.928 million ($0.82/share) vs. $254.071 million ($0.88/share). Consumer products (25% of sales), Industrial (29%), Communications & Data Centers (21%), and Automotive (20%) were the biggest market sectors. Industrial, with sales up 18%, was the fastest growing. Consumer Products, down 10%, was the laggard.

March '17: EPS $0.56, up 37%. Revenues up 5% to $581.3 million. Gross margin 63.1% vs. 57.4%. Operating cash flow $220.697 million ($0.77/share) vs. $67.986 million ($0.58/share). Consumer products (26% of sales), Industrial (28%), Communications & Data Centers (21%), and Automotive (21%) were the biggest market sectors. Automotive, with sales up 26%, was the fastest growing.

December '16: EPS $0.46, up 92%. Revenues up 8% to $551.0 million. Gross margin 67.9% vs. 57.2%. Operating cash flow $192.630 million ($0.67/share) vs. $182.489 million ($0.63/share). Consumer products (31% of sales), Industrial (25%), Communications & Data Centers (21%), and Automotive (19%) were the biggest market sectors. Automotive, with sales up 18% year-over-year, and Consumer, up 16%, were the fastest growing.

September '16: EPS $0.48, up 50%. Revenues flat at $561.4 million. Operating cash flow $123.4 million ($0.43/share) vs. $117.3 million ($0.41/share).

June '16: EPS $0.32, down $0.02. Revenues down 3% to $566.1 million. Operating cash flow $254.1 million ($0.88/share) vs. $221.8 million ($0.77/share).

Microchip Technology

12/12: Microchip Technology makes chips that are used in many different electronic devices. Unfortunately, too many of them are used in desktop and laptop computers, which are suffering declining market share, and too few in smartphones and tablets, which is where all the growth is happening.

Expected FY 3/2013 EPS Growth: -6% Div/CF Ratio: 106%

Background
Microchip makes microcontrollers, memory products, Wi-Fi chips, and other devices used in automobiles, network controllers, and in consumer, industrial and medical computers. Microchip acquired flash memory maker Silicon Storage Technology in 2010.

Quarterly Reports

September '12: EPS (adjusted) $0.48, up 0.02 vs. year-ago. Revenues up 13% to $383.3 million. Gross margin 50.7% of sales vs. year-ago 57.8%. Revenue rise due to recent acquisition.

Previous Quarterly Reports

June '12: EPS (adjusted) $0.48, down 13%. Revenues down 6% to $352.1 million. Gross margin 57.7% vs. 58.7%. Earnings call transcript. Agreed to acquire privately held Roving Networks of Los Gatos, California. Completed acquisition of Standard Microsystems (SMSC). In April, dividend up $0.001 to $0.35. In June, dividend up 0.3% to $0.351.

March '12: EPS (adjusted) $0.46 vs. $0.57. Revenues down 11% to $338.9 million. Gross margin 57.2% vs. 59.4%.

December '11: EPS $0.38, down 34%. Revenues down 11% to $329.2 million. Gross margin 55.8% of sales vs. 58.8. Earnings call transcript. In October, dividend up $0.001 to $0.348.

September '11: EPS (adjusted) $0.46, down -26%. Revenues down 11% to $340.6 million. Gross margin 57.2% vs. 58.9%. Earnings call transcript. In August, dividend up $0.001 to $0.347.

June '11: EPS $0.49, up $0.02 vs. year-ago. Revenues up 5% to $374.5 million, but down 1% from March. Gross margin 58.7% vs. 58.1. Earnings call transcript.

March '11: EPS (continuing) $0.62, up 55%. Revenues up 37% to $380.0 million. Gross margin 59.4% vs. 60.6%. Earnings call transcript. Concerned that taxes on dividends might increase in 2011, Microchip paid its March 2011 dividend in December. Dividend was $0.345, up $0.001 over regular December '10 payout.

December '10: EPS (continuing) $0.52, up 41%. Counting discontinued, EPS $0.51, up 38%. Gross margin 58.8% vs. 58.4%. Revenues up 47% to $367.8 million. In November, dividend up 0.3% ($0.001) to $0.344. Earnings call transcript.

September '10: EPS (continuing) $0.56, up 133%. Revenues up 69% to $382.3 million. In August, dividend up 0.3% ($0.001) to $0.343.

June '10: EPS $0.47 vs. $0.15. Revenues up 66% to $320.8 million. Silicon Storage acquisition accounted for growth. Earnings call transcript. In April, completed acquisition of memory chip maker Silicon Storage Technology for $3.05/share ($292 million) in cash. Acquisition gave it access to "SST’s SuperFlash technology and patent portfolio, which are building blocks for advanced microcontrollers." In May, dividend up 0.3% ($0.001) to $0.342.

March '10: EPS $0.46 vs. $0.15. Revenues up 61% to $278.0 million. Acquired ZeroG Wireless, a developer of low-power Wi-Fi chips. In February, dividend up 0.3% ($0.001) to $0.341.

December '09: EPS (continuing) $0.38, up 65%. Revenues +30% to $250.1 million. Gross Margin 58.3% vs. 54.5%. In November, dividend +0.3% to $0.34 per share.

September '09: EPS $0.24 vs. $0.40. Revenues -16% to $226.7 million. Gross margin 54.4% vs. 60.9%. Earnings call transcript.

June '09: EPS (operating) $0.15 vs. $0.44. Gross margin 50.0% vs. 61.0%. Revenues -28% to $192.9 million. Acquired privately held developer of integrated circuits focusing on security and life-safety applications. Also acquired provider of development software for Microchip products based in Australia.

March '09: EPS $0.12 vs. $0.40. Excluding non-recurring, EPS $0.15 vs. $0.35. Revenues -34% to $173.3 million. Gave up bid to acquire competitor Atmel.

December '08: EPS (continuing) $0.23, -42%. Including non-recurring, EPS +5% to $0.40. Revenues -24% to $192.2 million. Earnings call transcript. Acquired maker of large-format touch screen controllers. In October, dividend up $0.001 to $0.339.

September '08: EPS $0.41, up 52%. Revenues up 4% to $269.7 million. Expects December quarter sales 8% to 16% below September. Earnings call transcript. In July, dividend up 2% to $0.338.

June '08: EPS 0.40, up 11%. Revenues +2% to $268 million. Earnings call transcript. In April, dividend +3% to $0.33.

March '08: EPS (operating) $0.42, +14%. Including taxes and other non-recurring, EPS $0.40 vs. $0.57. Paid $0.06 per share income taxes vs. $0.13 year-ago credit. Revenues 1% to $260.4 million. Earnings call transcript. In January, dividend +3% to $0.32.

December '07: EPS $0.38 per share ($0.39 operating), +15%. Revenues +1% to $252.6 million. In October, dividend +5% to $0.31.

September '07: EPS (continuing) $0.38, even. Revenues -4% to $258.6 million. Microchip was added to the S&P 500 Index on September 10. In July, dividend +5% to $0.295.

June '07: EPS $0.36, +3% over year-ago. Rev +1% to $264.1 million. In April, dividend +5.5% to $0.28.

March '07: EPS (continuing) $0.37, +6%. Rev +4% to $258.2 million. In January, dividend +6% to $0.265.

December '06: EPS $0.36, +9%. Rev +7% to $234.9 million. In October, dividend +6% to $0.25.

September '06: EPS $0.36, +16%. Rev +18% to $267.9 million.

Microsoft

Quarterly Reports

December '20: EPS 2.03, up 34%. Revenues up 17% to $43.1 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues up 13% to $13.4 billion. Intelligent Cloud revenues up 23% to $14.6 billion. Personal computing revenues up 14% to $15.1 billion.

September '20: EPS 1.82, up 32%. Revenues up 12% to $37.2 billion. Productivity and Business Process (MS Office, Linkedin, Dynamics) revenues up 11% to $12.3 billion. Intelligent Cloud revenues up 20% to $13.0 billion. Personal computing revenues up 6% vs. year-ago to $11.8 billion. Agreed to pay $7.5 billion to acquire ZeniMax Media, owner of videogame developer Bethesda Softworks. Videogame spending totaled $29.4 billion in 12-months ending August 31, up 23% vs. year-ago. In September, Microsoft dividend up 10% to $0.56.

June '20: EPS (adjusted) $1.46, up 7%. Revenues up 13% to $33.72 billion. Productivity and Business Process (MS Office, Linkedin, Dynamics) revenues up 6% to $11.8 billion. Intelligent Cloud revenues up 17% to $13.4 billion. Personal computing revenues up 14 to $12.9 billion.

March '20: EPS $1.40, up 23%. Revenues up 15% to $35.02 billion. Productivity and Business Process (MS Office, Linkedin, Dynamics) revenues up 15% to $11.7 billion. Intelligent Cloud revenues up 27% to $12.3 billion. Personal computing revenues up 3% vs. year-ago to $11.0 billion.

December '19: EPS (adjusted) $1.51, up 37%. Revenues up 14% to $36.9 billion. Productivity and Business Process (MS Office, Linkedin, Dynamics) revenues up 17% to $11.9 billion. Intelligent Cloud revenues up 27% to $11.9 billion. Personal computing revenues up 3% vs. year-ago to $13.2 billion. In October, dividend up 11% to $0.51.

June '18: EPS (adjusted) $1.13, up 15%. Revenues up 17% to $30.085 billion. Productivity and Business Process revenues up 13% to $9.67 billion. Intelligent Cloud revenues up 22% to $9.61 billion. Personal computing revenues up 17% to $10.81 billion. Upped emphasis on digital games by acquiring game developers Ninja Theory, Playground Games, Undead Labs and Compulsion Games. Paid $7.5 billion in stock to acquire GitHub, a software development platform with around $300 million in annual revenues that is used by more than 28 million developers. Media reports said Microsoft was developing a technology that would eliminate cashiers and checkout lines from stores, similar to Amazon's automated grocery store by tracking what shoppers add to their carts.

March '18: EPS $0.95, up 36%. Revenues up 16% to $25.8 billion. Productivity and Business Process revenues up 17% to $9.0 billion. Intelligent Cloud revenues up 17% to $7.9 billion. Personal computing revenues up 13% to $9.9 billion.

December '17: EPS (operating) $0.96, up 20%. Revenues up 12% to $28.92 billion. Productivity and Business Process revenues up 25% to $9.0 billion. Intelligent Cloud revenues up 15% to $7.8 billion. Personal computing revenues up 2% to $12.2 billion. Bought Avere Systems, which produced high-capacity semiconductor data storage systems for cloud applications.

September '17: EPS $0.84, up 17%. Revenues up 12% to $24.5 billion. Productivity and Business Process revenues up 28% to $8.2 billion. Intelligent Cloud revenues up 14% to $6.9 billion. Personal computing revenues flat at $9.4 billion. In September, dividend up 8% to $0.42.

June '17: EPS (adjusted) of $0.98, up 42%. Revenues (adjusted) up 9% to $24.700 billion. Productivity and Business Process revenues up 21% to $8.4 billion. Intelligent Cloud revenues up 11% to $7.4 billion. Personal computing revenues down 2% to $8.8 billion.

March '17: EPS (adjusted) $0.73, up 16%. Revenues (adjusted) up 6% to $23.557 billion. Productivity and Business Process revenues up 22% to $8.0 billion. Intelligent Cloud revenues up 11% to $6.8 billion. Personal computing revenues down 7% to $8.8 billion. Acquired Simplygon, a maker of software used to implement 3D game programs, and Maluuba, a Toronto startup focused on using deep learning (software technique that increases accuracy of speech and image recognition programs) for natural language processing.

December '16: EPS (adjusted) $0.83, up 9%. Revenues (adjusted) up 2% to $26.066 billion. Productivity and Business Process revenues up 10% to $7.4 billion. Intelligent Cloud revenues up 8% to $6.9 billion. Personal computing revenues down 5% to $11.8 billion. Completed acquisition of social networking site LinkedIn.

September '16: EPS (adjusted) $0.76, up 9%. Revenues (adjusted) up 3% to $22.334 billion. Productivity and Business Process revenues up 8% to $6.7 billion. Intelligent Cloud revenues up 8% to $6.4 billion. Personal computing revenues down 2% to $9.3 billion. Operating cash flow $11.549 billion ($1.47 per share) vs. $8.876 billion ($1.10). Sold mobile phone factory (came with Nokia) for $22 million. In September, dividend up 8% to $0.39.

June '16: EPS 0.69, up 11%. Revenues up 2% to $22.642 billion (adjusted). Productivity and Business Process revenues up 5% to $7.0 billion. Intelligent Cloud revenues up 7% to $6.7 billion. Personal computing revenues down 4% to $9.0 billion. Operating cash flow $8.464 billion ($1.07 per share) vs. $6.849 billion ($0.85).

March '16: EPS (adjusted) $0.62, even. Revenues (adjusted) up 2% to $22.076 billion. Productivity and Business Process revenues up 6% (ex-currency) to $6.5 billion. Intelligent Cloud revenues up 8% to $6.1 billion. Personal computing revenues up 3% to $9.5 billion.

December '15: EPS (operating ) $0.78, up 11%. Revenues (ex currency) down 2% to $23.693 billion. Productivity and Business Process revenues up 5% to $6.7 billion. Intelligent Cloud revenues up 11% to $6.3 billion. Personal computing revenues down 2% to $12.7 billion. Opened first flagship retail store in New York City.

September '15: EPS (operating) $0.67, up 3%. Revenues (excluding currency) down 7% to $21.660 billion. Productivity and Business Process revenues up 4% to $6.3 billion. Intelligent Cloud revenues up 14% to $5.9 billion. Personal computing revenues down 13% to $9.4 billion. Microsoft and China Electronics Technology announced a joint venture to provide system technology services to Chinese government institutions and state owned enterprises. In September, dividend up 16% to $0.36.

June '15: EPS (operating) $0.62, up 11%. Revenues (ex currency) down 5% to $22.180 billion.

Qualcomm

11/17: Things that could go wrong with Qualcomm include: 1) deal to acquire NXP Semiconductors could fall through, 2) litigation with Apple could have a bad outcome, 3) acquisition by Broadcom doesn't happen, and 4) litigation between U.S. and/or Korean governments could have bad outcomes. Given all those risks, this is a good time to sell Qualcomm.

Broadcom offered to acquire Qualcomm for $70 per share consisting of $60 in cash and $10 in Broadcom stock, and Qualcomm rejected the offer. On 12/4, Broadcom notified Qualcomm (QCOM) that it intends to nominate a slate of 11 individuals for election to Qualcomm's Board of Directors. If elected, the Broadcom slate would presumably accept Broadcom's offer to acquire Qualcomm.

In April, Qualcomm said Apple would not pay royalties owed to Qualcomm, for sales made in the first quarter of 2017. Qualcomm also said that Apple would withhold further payments until the ongoing legal dispute with Qualcomm is resolved. Apple sued Qualcomm in January accusing Qualcomm of overcharging for chips and refusing to pay some $1 billion in promised rebates.

Expected FY 12/2017 EPS Growth: -18% CF Payout Ratio: 55%

Background
Qualcomm, based in San Diego, California, functions mainly in two separate business segments. Qualcomm CDMA Technologies manufactures integrated circuits and system software used in communications, networking, application processing, multimedia, and global positioning system products. Qualcomm Technology Licensing offers rights to use its designs to produce wireless products.

Quarterly Reports

December '20: EPS (adjusted) $2.17, up 119%. Revenues up 63% to $8.226 billion. Operating cash flow $3,175 million ($2.75 per share) vs. $1,118 million ($1.96 per share).

September '20: EPS $1.45, up 86%. Revenues up 35% to $6.502 billion. Operating cash flow $1,741 million ($1.52 per share) vs. year-ago $1,227 million ($1.01 per share).

June '20: EPS (adjusted) $0.86, up 8%. Revenues even with year-ago at $4.89 billion. Operating cash flow $1,872 million ($1.64 per share) vs. $4,909 million ($3.99 per share). In April, dividend up 5% to $0.65.

March '20: EPS (adjusted) $0.88, up 14% vs. year-ago. Revenues up 7% to $5.21 billion. Operating cash flow $1,083 million ($0.94 per share) vs. year-ago $794 million ($0.65 per share).

December '19: EPS $0.99 vs. $1.20. Revenues up 5% to $5.077 billion. Operating cash flow $1,118 million ($0.96 per share) vs. year-ago $356 million ($0.29 per share).

September '19: EPS $0.78, down 12%. Revenues down 17% to $4.8 billion. Operating cash flow $1.2 billion vs. $0.4 billion. Completed acquisition of 5G communications equipment maker RF360 Holdings.

June '19: EPS $0.42 vs. -$0.36. Revenues down 17% to $4.8 billion. Operating cash flow $1.2 billion vs. $0.4 billion.

September '17: EPS (adjusted) $0.92 vs. year-ago $1.28. Revenues down 3% to $6.0 billion. Semiconductor and other product revenues up 13% to $4.650 billion. Semiconductor, etc. pre-tax earnings $0.973 billion (21% of revenues). Licensing revenues down 36% to $1.213 billion. Licensing pre-tax earnings $0.829 billion (68% of revenues). Announced joint venture with Himax Technologies to develop high-resolution 3D camera that could be used for a broad range of applications including face recognition in Smartphones. Acquired Scyfer B.V., a firm affiliated with the University of Amsterdam that focuses on cutting-edge machine learning techniques. Media report said Qualcomm developed ultrasonic fingerprint sensor for use in smartphones that could work under metal or glass surfaces, including the screen display glass.

June '17: EPS (adjusted) $0.83, down 28%. Revenues (adjusted) down 12% to $5.3 billion. Semiconductor and other product revenues up 5% to $4.052 billion. Semiconductor, etc. pre-tax earnings $0.575 billion (14% of revenues). Licensing revenues down 42% to $1.172 billion. Licensing pre-tax earnings $0.854 billion (73% of revenues). In April, dividend up 8% to $0.57. Media reports said that major NXP Semiconductors' shareholders were pressuring NXP to renegotiate its agreement to sell out to Qualcomm for $110 per share. Basically, those shareholders thought NXP was worth more.

March '17: EPS (adjusted) $1.34, up 29%. Revenues up 8% to $6.00 billion. Semiconductor and other product revenues up 10% to $3.676 billion. Semiconductor, etc. pre-tax earnings $0.475 billion (13% of revenues). Licensing revenues up 5% to $2.249 billion. Licensing pre-tax earnings $1.959 billion (87% of revenues). Apple sued Qualcomm for $1 billion saying that QCOM overcharged Apple for chips and refused to pay around $1 billion in promised rebates. In January, The Federal Trade Commission filed a complaint charging QCOM with using anticompetitive tactics to maintain its monopoly in the supply of a key semiconductor devices used in cell phones and other consumer products. NXP Semiconductors' shareholders approved Qualcomm's takeover of NXP, which is a major producer of chips for autos market.

December '16: EPS (adjusted) $1.19, up 23%. Revenues up 4% to $6.0 billion. Semiconductor and other product revenues flat at $4.101 billion. Semiconductor, etc. pre-tax earnings $0.724 billion (18% of revenues). Licensing revenues up 13% to $1.811 billion. Licensing pre-tax earnings $1.532 billion (85% of revenues). Agreed to pay $38 billion to acquire Netherlands-based NXP Semiconductors, a maker of high-performance semiconductors used in automotive, mobile security, and 'Internet of Things' products, expects to close deal by end of 2017. Korea Fair Trade Commission found Qualcomm's business practices violated Korean law, intended to fine Qualcomm $850 million and force it to amend trade practices.

September '16: EPS (adjusted) $1.28, up 41%. Revenues up 14% to $6.2 billion. Semiconductor and other product revenues up 10% to $4.124 billion. Semiconductor, etc. pre-tax earnings $0.687 billion (17% of revenues). Licensing revenues up 6% to $1.885 billion. Licensing pre-tax earnings $1.584 billion (84% of revenues).

June '16: EPS (adjusted) $1.16, up 17%. Revenues up 3% to $6.0 billion. Semiconductor and other product revenues even at $3.853 billion. Semiconductor, etc. pre-tax earnings up 26% to $0.365 billion. Licensing revenues up 6% to $2.038 billion. Licensing pre-tax earnings up 6% to $1.749 billion. In April, dividend up 10% to $0.53.

March '16: EPS (adjusted) $1.04, down 26%. Revenues down 20% to $5.5 billion. Semiconductor and other product revenues down 25% to $3.337 billion. Semiconductor, etc. pre-tax earnings down 77% to $0.170 billion. Licensing revenues down 12% to $2.135 billion. Licensing pre-tax earnings down 14% to $1.857 billion.

Seagate Technology

6/30/22: Based on its diminishing outlook, we're selling Seagate.

Background
Founded in 1979, Seagate developed the first 5.25" hard disk drive in 1980. Currently, Seagate and competitor Western Digital dominate the data storage market. Although incorporated in Ireland, Seagate's main offices are in Fremont, California. For U.S. residents, Seagate's dividends are not subject to Ireland's income tax withholding as long as you fill out the required paperwork with your broker.

Quarterly Reports

March '22: EPS (adjusted) $1.81, up 22% vs. year-ago. Revenues up 3% to $2.80 billion. Free cash flow $363 million ($1.64 per share) vs. $274 million ($1.16 per share).

December '21: EPS (adjusted) $2.41, up 87% vs. year-ago. Revenues up 19% to $3.116 billion. Free cash flow $426 million ($1.89 per share) vs. $314 million ($1.25 per share). In October, dividend up 4% to $0.70.

September '21: EPS (adjusted) up 153%. Revenues up 35% to $3.12 billion. Free cash flow $379 million (1.64 per share) vs. $186 million ($0.72 per share).

June '21: EPS (adjusted) $2.00, up 67%. Revenues up 20% to $3.01 billion. Free cash flow $354 million (1.52 per share) vs. $274 million ($1.05 per share).

March '21: EPS (adjusted) 1.48, up 7%. Revenues up 0.5% to $2,731 million. Operating cash flow $378 million (1.59 per share) vs. $390 million ($1.48 per share).

December '20: EPS (adjusted) $1.29, down 4%. Revenues down 3% to $2.623 billion. Operating cash flow $473 million (1.88 per share) vs. $480 million ($1.81 per share).

Texas Instruments

Quarterly Reports

December '20: EPS (adjusted) $1.64, up 46%. Revenues up 22% to $4.08 billion. Analog revenues up 6% to $10.89 billion. Embedded Processing revenues down 13% to $2.57 billion. Operating cash flow $2,125 million ($2.28 per share) vs. $1,754 million ($1.88 per share).

September '20: EPS $1.45, down 3%. Revenues up 1% to $3.82 billion. Operating cash flow $1,442 million ($2.14 per share) vs. $1,992 million ($2.10 per share). In September, dividend up 13% to $1.02.

June '20: EPS (adjusted) $1.15, down 15%. Revenues down 12% to $3.24 billion. Operating cash flow $1,720 million ($1.86 per share vs. $1.83 per share.

March: EPS (adjusted) $1.14, 10%. Revenues down 7% to $3.329 billion (Analysts expected $3.14 billion). Operating cash flow $651 million ($0.69 per share) vs. $1,112 million ($1.11).

December '19: EPS (adjusted) $1.11, down 12% vs. year-ago. Revenues down 10% to $3.35 billion. Operating cash flow $1.85 per share vs. $2.21.

September '19: EPS (adjusted) 1.40, down 11% vs. year-ago. Revenues down 11% to $3.77 billion. Analog chip revenues down 8% to $2,674 million. Embedded processing chip revenues down 19% to $724 million. Operating cash flow $1,992 million ($2.10 per share) vs. $1,722 million ($1.71 per share). In September, dividend up 17% to $0.90.

June'19: EPS (adjusted) $1.29 per share, down 8%. Revenues down 9% to $3.67 billion. Analog chip revenues down 6% to $2,638 million. Embedded processing chip revenues down 16% to $791 million. Operating cash flow $1,796 million ($1.88 per share) vs. $1,826 million ($1.83 per share).

March '19: EPS (adjusted) $1.22, down. Revenues down 5% to $3.59 billion. Analog chip revenues down 2% to $2,638 million. Embedded processing chip revenues down 14% to $791 million. Operating cash flow $1,107 million ($1.16 per share) vs. $1,112 million ($1.11 per share).

December '18: EPS (adjusted) $1.26, up 4% (adjusted). Revenues down 1% to $3.717 billion. Analog chip revenues up 4% to $2,638 million. Embedded processing chip revenues down 12% to $791 million. Operating cash flow $2,145 million ($2.21 per share) vs. $1,929 million ($1.92 per share).

September '18: EPS $1.58, up 25%. Revenues up 4% to $4.261 billion. Analog chip revenues up 8% to $2,907 million. Embedded processing chip revenues down 4% to $894 million. Operating cash flow $2,106 million ($2.13 per share) vs. $1,722 million ($1.71 per share). In September, dividend up 24% to $0.77.

June '18: EPS (adjusted) $1.37, up 33%. Revenues up 9% to $4.02 billion. Analog chip revenues up 12% to $2,690 million. Embedded processing chip revenues up 9% to $943 million. Operating cash flow $1,826 million ($1.83 per share) vs. $917 million ($0.90) per share).

March '18: EPS (adjusted) $1.21, up 25%. Revenues up 11% to $3.79 billion. Analog chip revenues up 14% to $2.586 billion. Embedded processing chip revenues up 15% to $926 million. Operating cash flow $1,112 million ($1.11 per share) vs. $795 million ($0.78 per share).

December '17: EPS (operating) $1.09, up 25%. Revenues up 10% to $3.750 billion. Analog chip revenues up 11% to $2.535 billion. Embedded processing chip revenues up 20% to $896 million. Operating cash flow $1,929 million ($1.92 per share) vs. $1,387 million ($1.43 per share).

September '17: EPS (adjusted) $1.24, up 27%. Revenues up 12% to $4.116 billion. Analog chip revenues up 16% to $2.698 billion. Embedded processing chip revenues up 17% to $931 million. Operating cash flow $1,722 million ($1.71 per share) vs. $1,465 million ($1.43 per share). In September, dividend up 24% to $0.62.

June '17: EPS $1.03, up 30%. Revenues up 13% to $3.693 billion. Analog chip revenues up 18% to $2.41 billion. Embedded processing chip revenues up 15% to $868 million. Operating cash flow $917 million ($0.90 per share) vs. $1,020 million ($1.09 per share).

March '17: EPS (adjusted) $0.89, up 29%. Revenues up 13% to $3.40 billion. Analog chip revenues up 20% to $2.26 billion. Embedded processing chip revenues up 10% to $803 million. Operating cash flow $795 million ($0.78 per share) vs. $653 million ($0.64 per share).

December '16: EPS $1.02, up 28%. Revenues up 7% to $3.41 billion. Analog chip revenues up 10% to $2.29 billion. Embedded processing chip revenues up 6% to $744 million. Operating cash flow $1.387 billion ($1.36 per share) vs. $1.446 billion ($1.43 per share). In November, dividend up 32% to $0.50.

September '16: EPS $0.94, up 24%. Revenues up 7% to $3.68 billion. Analog chip revenues up 6% to $2.32 billion. Embedded processing chip revenues up 10% to $795 million. Operating cash flow $1.413 billion ($1.39 per share) vs. $1.409 billion ($1.36 per share).