Tag Archives: emc

Chipmaker Intel Prods Symantec, EMC Market With Authentication Tie

SAN FRANCISCO — No. 1 chipmaker Intel ( INTC ) is diving deeper into the red-hot cybersecurity sector by partnering with U.K.-based credentials manager Intercede to eradicate usernames and passwords, the companies announced Tuesday. Intel stock lifted 2.6% on the stock market today , outperforming a respective 2.1% and 2.9% recovery on the Dow Jones and Nasdaq. The announcement stemmed from the annual RSA Conference in San Francisco, where Intel is presenting the technology. Intel introduced a bevy of strategic initiatives and some alliances at the RSA Security Conference on Tuesday in San Francisco. (Allison Gatlin/IBD) Intercede’s mini-driver and virtual-reader software — pieces of the private company’s MyID platform — will be integrated into Intel Authenticate, a hardware-based multifactor-authentication system. The system runs on Intel’s sixth-generation processor. Authenticators Go Head-To-Head Multifactor authentication is a growing sector under the cybersecurity umbrella, with offerings from EMC ( EMC ) and Symantec ( SYMC ) on the public side and SecureAuth, Okta and Vasco Data Security International on the private side. But SecureAuth Chief Technology Officer Keith Graham told IBD that the enterprise industry is moving beyond mere multifactor authentication which uses at least two pieces of data to confirm a user’s identity. SecureAuth recently unveiled behavioral biometric authentication — a first, they say. Behavioral biometric authentication involves analyzing a user’s typical keystroke and mouse-movement patterns to verify identity. “It’s about adaptive access control,” Graham said. “Multifactor is great but it still hinders user experience and users don’t want to be hindered. . . . So good luck to Intel, but they may have some catching up to do.” The Intel-Intercede program could involve a biometric, however, Intercede products manager Iain Wotherspoon told IBD. Upon a first logon attempt, the user will be prompted to enter a PIN number managed via Intel Authenticate. Intercede’s MyID allows that logon to take place in any Microsoft ( MSFT ) Windows system or domain, Wotherspoon said. From there, an enterprise can opt to add other factors for authentication. “It could be something you have, the computer; something you know, the PIN number; and something you are, a fingerprint,” Wotherspoon said. Collaborating Against Insecurity MyID was the first electronic personification system to achieve FIPS 201 compliance, according to a press release from Intel and Intercede. The federal standard is required for technology used by federal employees and contractors. Intercede CEO Richard Parris praised the combined tech as a “cost-effective, easy to deploy” system for global enterprises. “It’s becoming widely recognized that passwords are insecure and no longer a viable nor effective solution to combat cyber attacks in the enterprise sector,” Parris said in an email. “Collaborations like this are a necessity to create more robust and secure solutions to address one of the most pressing business issues of our time.” Tom Garrison, vice president and general manager of Intel’s business client division, noted the advancements in the Authenticate tech. “We’re excited to advance our work on Intel Authenticate, working with premier security companies like Intercede,” he said in the release. “Together, we’re empowering enterprise to not only dramatically improve identity security, but to do so in a way that improves the ease of use and experience for the business professional.”

Allergan Q4 Earnings Beat, But M&A Dance Card Challenges Comps

Big Pharma player Allergan unveiled what it expects to be its final full year of operation as an independent drug maker before merging into Pfizer, reporting fourth-quarter 2015 earnings that beat expectations and revenue that barely topped Wall Street estimates. Before the market open, Allergan ( AGN ) said non-GAAP earnings rose 33% to $3.41 per share on a revenue gain of 74% to $4.2 billion. Both metrics exclude discontinuing operations, notably Allergan’s Global Generics business that it agreed to sell in July. The Global Generics unit carries the old Actavis name and generic drugs lines of business. Actavis had purchased specialty drug and Botox maker Allergan, a deal that closed in March, and renamed itself Allergan. Shares jumped 2.8% to 283.07  in early trading in the stock market today . Allergan had closed down 0.8% on Friday to 275.75, 18% off its all-time high of 340.34, touched July 29. Pfizer ( PFE ) was up  1.4% to 29.93  in early trading Monday, 17% below a nearly 12-year high set July 31 at 36.46. Analysts polled by Thomson Reuters expected Q4 EPS of $3.34 minus items, down 14.6% from $3.91 in 2014, on revenue of $4.192 billion, up 3.4% from Q4 2014’s $4.057 billion, although analyst numbers apparently were not uniformly adjusted for discontinuing operations. Allergan presented the pro forma year-earlier numbers as adjusted EPS of $2.57 and revenue of $2.4 billion. For the full year, Allergan said non-GAAP EPS from continuing operations increased 78% to $13.43 on revenue from continuing operations up 124% to $15.07 billion. With varying adjustments, for the full 2015 analysts expected $15.43 per share minus items, up 66% from $9.29 in 2014, on sales of $18.206 billion, up 117% from $8.380 billion in 2014. Allergan reported a Q4  GAAP loss from continuing operations of $2.13 per share, compared to a GAAP loss from continuing operations of $4.48 per share in the prior-year period. It said full GAAP results were impacted by amortization and acquisition expenses, license agreements, impairments, and severance related mainly to the acquisition of Allergan on March 17,  and Kythera on Oct. 1, as well as research and development expenses resulting from the purchase of R&D assets of Mimetogen. Allergan had declined to freshen its guidance upon issuing its Q3 performance Nov. 4, citing early merger discussions with Pfizer back then. But Monday it guided 2016 revenue to about $17 billion, with “no material changes to gross margins” from current levels and a non-GAAP tax rate “normalized” to about 14%. Management didn’t specify EPS for the year nor offer Q1 guidance other than suggesting Q1 performance would be the weakest of the year and fall below Q4 2015 results. Allergan’s 2015 results were an analyst’s challenge, influenced by its extraordinary M&A dance card. In Q3, it began discontinuing operations of the renamed Actavis generic lines, which it agreed to sell to Teva Pharmaceutical ( TEVA ) in July for $40 billion. By Nov. 23, Allergan’s board agreed to Pfizer’s offer of 11.3 Pfizer shares for each Allergan share, then valuing Allergan at $363.63 a share, or $160 billion for the entire deal, expected to take nine months to close. CEO Brent Saunders told analysts in a conference call following the Q4 earnings release that he still expects the Pfizer buyout to close in the second half of 2016. It would be the second-largest acquisition ever, after the sale of Vodafone AirTouch in 1999 to Mannesmann for $202 billion. Dell’s October offer to buy EMC ( EMC ) is valued at $67 billion. The Pfizer acquisition of Allergan is another in a thinning number of tax inversion deals that allow American companies to domicile in Ireland, Allergan’s home base, where the buyer may enjoy a lower tax base. The Obama administration has criticized the practice and thrown up speed bumps, if not road blocks. On Feb. 8,  Pfizer said it plans to reorganize its two broad lines of business into three  after the merger with Allergan is complete. Allergan CFO Tessa Hilado told analysts that debt stood at $42.7 billion on Dec. 31 and that $8 billion would be paid down after the close of the Teva sale. She put revenue from top-seller Botox at $656 million in Q4, with eye drug Restasis at $365 million, and Namenda XR at $190 million.  She said the CVS ( CVS ) purchase of Target ( TGT ) pharmacies “had an effect in Q4” on revenue, but that it didn’t and wouldn’t impact earnings.

Amazon Customers Confirm: Cloud Transition Still Biggest Trend

After tracking down top tech execs of 10 Amazon Web Services customers and nine AWS “premier consulting partners” for interviews, Deutsche Bank analysts came away convinced that the migration to the cloud is still “the biggest and most disruptive trend in the enterprise IT market today.” Aside from “assessing macroeconomic risks to 2016 IT budgets (as) the topic du jour,” many tech execs are slowing their IT spending as they prepare to move their enterprises to the cloud, said Deutsche Bank analyst Karl Keirstead in a research note Tuesday. Keirstead questioned whether the macro headwinds that many blame for the current softness in tech spending are really at fault. “Even Tableau Software ( DATA ) cited this phenomenon,” he wrote. Tableau stock notoriously gapped down 49.5% Feb. 5, spooking investors and dragging many software stocks with it, after offering 2016 guidance that missed Wall Street expectations. Tableau stock, down a fraction, near 40, in afternoon trading in the stock market today , is more than 50% off its Feb. 4 close and 70% below its all-time high above 131 set last July. Amazon ( AMZN ) stock was up 2.5% in afternoon trading Tuesday, near 520 and 25% off its all-time high of 696.44 set in December. The runway is still enormous for cloud migration. Amazon’s AWS, Microsoft’s ( MSFT ) Azure and Alphabet’s ( GOOGL ) Google Cloud Platform combined have grown revenue to about $10 billion annually, a “tiny penetration” of the $500 billion to $1 trillion spent annually on tech services and products, Keirstead said. “The trend to AWS is clear … as more and more large enterprises are shuttering private data centers in a quest to become ‘data center independent’ and younger and smaller customers are piggy-backing on AWS as a faster and cheaper way to scale up in new geographies,” he wrote. Neutral Toward Oracle, Security Vendors The big legacy IT infrastructure vendors are feeling the brunt of the migration, he said. Those interviewed were “cautious” toward managed hosting and colocation data center vendors, neutral toward enterprise software developer Oracle ( ORCL ) and neutral (not negative)  toward security vendors because “most” customers won’t rely only on AWS security, Keirstead says. “It was a mixed  bag for Red Hat ( RHT ), as several of the ‘all-in’ customers seemed content to move to Amazon’s own Linux distribution,” he wrote. He said feedback was “bullish” on software-as-a-service companies  Salesforce.com ( CRM ) and Workday ( WDAY ). “We now wonder if AWS is creating a tailwind for the SaaS (Software as a Service) vendors … and if the IT services vendors could get a lift as enterprises look to move or re-platform workloads to make them more cloud-friendly,” Keirstead mused. Deutsche Bank maintains buy ratings on Microsoft, Salesforce and Amazon.  Salesforce is expected after the close Feb. 24 to report earnings up 36% for the January quarter. Salesforce stock was down a fraction Tuesday afternoon, near 59 and 29% off a Nov. 19 all-time high at 82.90. Rival Workday stock was up 2.5% Tuesday afternoon, near 50.50, still 48% off nearly two-year high set in October 2014. It’s scheduled Feb. 29 to report an adjusted loss of 4 cents per share for its fiscal Q4 ended in January, vs. 6 cents lost in Q4 a year earlier. Keirstead said he doesn’t doubt that macro pressure is “keeping a lid on infrastructure IT spending,” but big legacy players Cisco Systems ( CSCO ), IBM ( IBM ) and EMC ( EMC ) “have cited a ‘tough macro’ seemingly every quarter for 12-plus months, he says. “It is entirely plausible that the ongoing weakness in technology capex, private data center build-outs and hardware refresh activity is also due to ongoing structural shifts as large enterprises rethink their IT infrastructures to prepare for a transition to the public cloud model.”