Thursday, March 4, 2010

Intra-day action 3/4/2010 Ciena suffers from "implementile" dysfunction (DIS, TIVO, CIEN)

US indexes are just slightly positive three hours into the trading day. The DJIA is up 23points to 10,419, with the biggest mover being Disney(DIS), up 2.4% on an upgrade from BofA/Merrill Lynch.

The biggest gainer today is Tivo(TIVO), up 47% or almost FIVE DOLLARS, to a new multi-year high. The shares have exchanged hands 37million times today already, versus it's average trading volume of about 1.8million shares. Tivo
released a statement regarding the US Court of Appeals that will result in a $300million award to Tivo. $300million is a decent payday when you've got just 109million shares outstanding...

"We are pleased that the United States Court of Appeals for the Federal Circuit fully affirmed the district court's finding of contempt against EchoStar, including both the disablement and infringement provisions. Additionally, this ruling paves the way for TiVo to receive the approximately $300M in damages and contempt sanctions awarded to us for EchoStar's continued infringement through July 1, 2009. We will also seek further damages and contempt sanctions for the period of continued infringement thereafter. We will continue our efforts to protect our intellectual property from further infringement."

Among losers is networking gear firm Ciena (CIEN), down 8.5% on a weak quarter and weak forward guidance. CEO Gary Smith pointed out that the industry outlook is great, and their own execution is what led to the sales shortfall. I'd imagine Ciena's "implementation" folks are getting the silent treatment from other employees today, as the misstep has knocked about $122million off the company's market value overnight...

“Revenue recognition delays associated with initial deployments of new platforms with certain customers adversely impacted fiscal first quarter revenue,” said Gary Smith, Ciena’s CEO and president. “However, with strong order flow in the quarter we remain encouraged by continued signs of an improving market environment.”


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