This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Tech CEOs: Here's Where the Growth Lies

Stocks in this article: TXN STX FFIV LSI CVLT FIRE MDSO

NEW YORK ( TheStreet) -- "Caution" is the word in this technology earnings season, with heavyweights such as Intel (INTC), Texas Instruments (TXN), IBM (IBM) and Seagate (STX) lamenting spending softness and currency losses. Silicon Valley CEOs and CFOs, however, say there's no need to panic.

Texas Instruments CFO Kevin March said investors shouldn't be overly concerned about uncertain and sometimes unstable global economies, which informed its third-quarter guidance.

"It's not like we're heading for a global decline or anything," he said in an interview. "The important thing is that we're still growing, and we're likely to grow."

Texas Instruments, which is seen as a key barometer for the broader tech sector, nonetheless said customers are cautious about placing new orders.

Hard-drive specialist Seagate echoed this sentiment in its fiscal fourth-quarter results, released on Monday. "As we were exiting the quarter, there were a lot of macro headwinds that made it difficult to predict revenue," said Seagate CFO Pat O'Malley during an interview. "Our OEMs original equipment manufacturers are in this mode of 'let's go slow and cautiously.' "

O'Malley pointed, in particular, to a slowdown in China, the looming U.S. fiscal cliff and recessions in Europe as factors hurting spending.

"I don't think that anybody's predicting a 2008," he said, referring to the beginning of the biggest recession in eight decades. "It's not that the roof's coming in, but people are being prudent."

Seagate, despite wrestling with a supplier snag, still posted record revenue and unit shipments in the June quarter. "We're still putting up really solid numbers," said O'Malley.

Semiconductor specialist LSI (LSI), which counts Seagate as a customer, posted strong second-quarter results last week, thanks partly to demand for its Flash-related products.

Nonetheless, LSI CEO Abhi Talwalkar reflected Seagate's comments. "There's definitely a cautious orientation out there," he said. "We're still growing in all the areas where we expected growth, but less than we expected three months ago -- wireless infrastructure capital equipment spending is still a bit slow."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs