Friday, June 21, 2019

The 110 Largest San Francisco/Silicon Valley Area Technology Cos Suffered Total Pretax Income Declines of 24% in the First Quarter 2019 and of 1% in the Fourth Quarter 2018, After Posting an Increase of 23% in the Third Quarter 2018

Democratic Presidential Candidate Pete Buttigieg Will Be Making Many Stops in the Key San Francisco/Silicon Valley Area, Especially Since California Has So Many Forward-Thinking Progressives and is also one of the 12 Super Tuesday US States Holding Their 2020 Democratic Presidential Early Primary on March 3, 2020.  Thus as an Introduction, I Think It Might Be Helpful to Research Just How the San Francisco/Silicon Valley Area Technology Companies Have Performed on the Pretax Earnings Front in the Most Recent Three Quarters.
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 From a review of SEC filings and Google Finance, I found 110 San Francisco/Silicon Valley Area Technology Companies with stock markets caps of above $1 bil sometime since the beginning of 2018 and which have reported their earnings for all of the three most recent quarters to the SEC.

My Focus is on Pretax Income rather than on After-Tax Net Income because Income Taxes are simply a transfer of financial wealth between US Corporations and the US Federal, US State and Foreign Governments.  It has nothing whatsoever to do with company operating performance.

From SEC filings, the chart below shows the Gold-Standard US GAAP Pretax Income (Loss) From Continuing Operations for the First Quarter of both 2019 and 2018 (February, March or April Quarter Ends), for the Fourth Quarter of both 2018 and 2017 and for the Third Quarter of both 2018 and 2017 for each of these 110 San Francisco/Silicon Valley Area Technology Companies.

US US US US US US
GAAP GAAP GAAP GAAP GAAP GAAP
Pretax Pretax Pretax Pretax Pretax Pretax
San Fran/Silicon Valley Area Income Income Income Income Income Income
Technology Cos (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)
With February, March or April Quarter Ends First First Fourth Fourth Third Third
Reporting 1Q 2019, 4Q 2018 and 3Q 2018 Earnings California Quarter Quarter Quarter Quarter Quarter Quarter
Market Caps Above $1 Bil City HQs 2019 2018 2018 2017 2018 2017
mils $ mils $ mils $ mils $ mils $ mils $
Software and Services 
Alphabet Mountain View       8,146     10,543     10,072       8,018     10,083       7,979
Visa San Francisco       3,677       3,217       3,630       3,239       3,538       3,099
Facebook Menlo Park       3,482       5,610       7,971       7,462       5,912       5,236
Oracle Redwood City       3,088       3,191       2,774       2,826       2,540       2,500
Intuit Mountain View       1,797       1,603          235          193          (14)          (37)
PayPal Holdings San Jose          717          548          686          864          533          451
Adobe San Jose          702          703          699          643          701          541
eBay Inc San Jose          673          547          516          561          948          694
VMware Palo Alto          540       1,175          591          625          345          413
Salesforce.com San Francisco          482          385          239          221          128          146
Netflix Los Gatos          400          300          119          131          379          116
Check Point Software San Carlos          225          228          267          280          237          219
Electronic Arts Redwood City          219          754          265          (16)          276          (38)
Synopsys Mountain View          134          119          147          120            52          100
Cadence Design Systems San Jose          128            78          109            77          100            87
Twitter San Francisco            97            64          207            94            87          (18)
Veeva Systems Pleasanton            77            46            69            42            68            44
Symantec Mountain View            52          (65)            97          705            28          (69)
Fair Isaac Corp San Jose            40            39            37            31            72            54
Qualys Inc Foster City            16            10            15            10            19            12
Autodesk San Rafael              9          (64)            33        (198)            12        (111)
Zoom Video Communications San Jose              3            (1)              6              0            (0)              0
Yelp Inc San Francisco              1            (2)            17          172            14              8
Glu Mobile San Francisco              1            (7)            (1)          (39)            (0)          (13)
Five9 San Ramon            (2)            (1)              4            (1)            (1)              1
Stitch Fix San Francisco            (3)            10            17            17            12            19
Chegg Inc Santa Clara            (4)            (2)              5              4          (13)          (11)
Upwork Mountain View            (5)            (7)            (5)            (5)            (7)            (0)
RingCentral Inc Belmont            (9)            (3)            (6)            (0)            (9)              0
Roku Saratoga          (10)            (7)              7              7          (10)          (46)
Fastly San Francisco          (10)            (9)            (7)            (9)            (8)          (11)
Eventbrite San Francisco          (10)              9          (13)          (18)          (36)          (12)
ServiceNow Santa Clara          (11)            (7)              2          (13)              7          (20)
PagerDuty San Francisco          (12)            (6)            (6)            (8)          (15)            (8)
Zscaler San Jose          (12)            (8)            (3)            (6)            (7)          (11)
Guideware Software Foster City          (13)          (28)            (1)              3              2          (31)
Dropbox San Francisco          (13)        (464)            (7)          (39)            (6)          (14)
Quotient Mountain View          (13)          (11)            (5)              3            (8)          (11)
New Relic San Francisco          (17)            (7)          (10)            (8)            (8)          (15)
SVMK (Survey Monkey) San Mateo          (18)          (14)          (26)          (12)        (102)          (12)
Talend SA Redwood City          (18)          (10)          (13)          (10)            (9)            (5)
Coupa Software San Mateo          (20)          (15)          (16)            (8)          (12)          (11)
Zuora San Mateo          (20)          (17)          (20)          (13)          (18)          (10)
LendingClub Corp San Francisco          (20)          (31)          (13)          (91)          (23)            (7)
Proofpoint Sunnyvale          (28)          (26)          (20)          (20)          (36)          (19)
8X8 Inc San Jose          (28)          (13)          (24)          (18)          (21)            (4)
Elastic NV Mountain View          (31)          (20)          (22)          (13)          (27)            (7)
Pivotal Software Palo Alto          (31)          (33)          (39)          (44)          (34)          (39)
Anaplan San Francisco          (36)          (26)          (31)          (19)          (37)          (11)
Box Inc Redwood City          (36)          (36)          (19)          (32)          (40)          (43)
Square San Francisco          (38)          (24)          (28)          (16)            21          (17)
Pinterest San Francisco          (41)          (53)            47              4          (19)          (36)
DocuSign San Francisco          (44)        (270)          (65)            (4)          (59)          (14)
Zendesk San Francisco          (44)          (33)          (38)          (26)          (36)          (26)
Okta San Francisco          (53)          (26)          (29)          (23)          (30)          (34)
LiveRamp Holdings San Francisco          (74)          (27)          (38)          (27)          (38)          (38)
Twilio San Francisco          (88)          (24)          (47)          (19)          (27)          (23)
Cloudera Palo Alto        (100)          (51)          (84)          (35)          (25)          (56)
Workday Pleasanton        (116)          (75)        (105)          (88)        (156)          (84)
Zynga Inc San Francisco        (139)              9              5            13            10            23
Splunk San Francisco        (152)        (120)            14            33          (54)          (30)
Atlassian Corporation PLC San Francisco        (202)            (8)            27          (12)        (240)          (20)
Nutanix San Jose        (207)          (87)        (121)          (61)          (98)          (59)
Uber Technologies San Francisco        (997)       4,324     (1,211)     (1,298)        (993)     (1,373)
Lyft San Francisco     (1,137)        (234)        (249)        (240)        (249)        (194)
Total 65 Tech Software and Services Cos     20,844     31,540     26,607     23,909     23,598     19,094
……….  % Change From Prior Year's Qtr -34% 11% 24%
Apple Cupertino     13,793     16,168     23,906     27,030     16,421     13,917
……….  % Change From Prior Year's Qtr -15% -12% 18%
Semiconductors
Intel Santa Clara       4,547       5,011       5,635       6,035       7,142       5,930
Applied Materials Santa Clara          759       1,261          888       1,183          998       1,074
Broadcom Inc San Jose          657       1,099          278          795       1,422          645
NVIDIA Corp Santa Clara          389       1,311          324       1,078       1,081          896
Xilinx San Jose          260          160          257          167          239          194
Maxim Integrated Products San Jose          160          222          183          198          234          181
Mellanox Technologies Ltd Sunnyvale            53            11            44            (8)            41              6
Monolithic Power Systems San Jose            25            22            33            27            36            25
Cypress Semiconductor San Jose            19            14          (64)          (37)            56            18
SMART Global Holdings Newark            17            43            39            24            33            (6)
FormFactor Livermore              8              2            12              4              9            14
Power Integrations Inc San Jose              7            15              9            15            19            17
Advanced Micro Devices Sunnyvale              3            89              3          (31)          114            83
Ultra Clean Holdings Hayward              3            27              5            22            (2)            23
Viavi Solutions Inc Milpitas              1            (8)            26            (2)          (10)            (6)
Ceva Mountain View            (2)            (2)              2              4              3              7
Synaptics San Jose            (9)          (18)            20          (29)              4          (23)
Finisar Corp Sunnyvale          (13)          (30)            (2)          (12)            (7)              5
Ambarella Santa Clara          (16)            (9)          (11)              2            (8)            15
Inphi Corp Sunnyvale          (22)          (31)          (21)          (12)          (23)          (59)
Rambus Sunnyvale          (26)          (39)            (0)            12          (15)            14
Xperi San Jose          (34)          (36)            99            17          (24)          (17)
Marvell Technology Group Santa Clara          (41)          132          (69)            59          (44)          156
SunPower San Jose          (99)        (145)        (181)        (756)        (110)          (76)
Total 24 Tech Semiconductor Cos       6,646       9,101       7,509       8,755     11,188       9,116
……….  % Change From Prior Year's Qtr -27% -14% 23%
Other Technology Manufacturing Cos
Cisco Systems San Jose       3,615       3,253       3,343       3,232       3,909       2,962
HP Inc Palo Alto          883            83          900          905       1,007          848
Lam Research Fremont          586          772          660          734          591          688
Hewlett Packard Enterprise Palo Alto          440        (116)          655        (657)          576        (301)
NetApp Sunnyvale          384          328          319          504          293          222
KLA-Tencor Milpitas          221          366          416          347          428          336
Seagate Technology Cupertino          215          393          398          371          468          188
Arista Networks Inc Santa Clara          207          143          198          142          189          142
Fortinet Sunnyvale            60            37            92            45            71            38
Juniper Networks Sunnyvale            45            41          188          200          152          226
Logitech Intl SA Newark            45            39          122          101            33            32
Coherent inc Santa Clara            25            91            44          100            77          101
Omnicell Inc Mountain View            11            (2)            17            15            15              9
Electronics For Imaging Fremont          (19)            (6)              1              0            (2)              4
Palo Alto Networks Santa Clara          (21)          (43)              2          (24)          (42)          (55)
ForeScout Technologies San Jose          (34)          (27)          (17)          (34)            (8)            (1)
FireEye  Milpitas          (73)          (71)          (47)          (69)          (48)          (68)
Fitbit San Francisco          (78)          (81)            13          (15)          (21)          (27)
Pure Storage Mountain View          (99)          (63)          (25)          (14)          (30)          (28)
Western Digital San Jose        (477)        (128)            81          774          583          710
Total 20 Other Tech Manufactiring  Cos       5,936       5,009       7,360       6,657       8,241       6,026
……….  % Change From Prior Year's Qtr 19% 11% 37%
Total all 110 Largest Technology Cos     47,219     61,818     65,382     66,351     59,448     48,153
Total Pretax Income % Change From Prior Year's Qtr -24% -1% 23%



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