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Dropbox was profitable for the first time since going public
Dropbox brought in $455 million last quarter, an increase of 18 percent compared to the same period last year.
Uber expects to be profitable by the end of 2020
Uber's year-end earnings show the company is still losing money, but it expects to turn things around by the end of 2020. In an earnings call today, Uber CFO Nelson Chai said the company plans to be profitable in the final quarter of this year. "We recognized the significant work remaining to get to this milestone, and our teams are focused on executing our plan," Chai said.
LG vows to make its failing mobile unit profitable by the end of 2021
LG hasn't made a profit from its smartphone division for years, but it reckons the tide is about to turn. Speaking at a press conference at CES, the company's chief executive Kwon Bong-seok said, "LG Electronics mobile business is going to be profitable by 2021. I can say we can make that happen as LG Electronics will expand our mobile lineup and steadily release new ones attached with some wow factors to woo consumers."
Amazon's search could push customers toward in-house products
Amazon reportedly tweaked its product-search algorithm to favor products that are more profitable to the company. People who worked on the algorithm say the change could give Amazon's own brands a boost, The Wall Street Journal reports. If Amazon is intentionally using search to promote its own goods, it will likely draw more criticism from antitrust regulators.
GameStop to close up to 200 stores
Just two months after GameStop announced ambitious plans to breathe new life into its stores, the company has announced that between 180 and 200 stores around the world will be closing their doors for good before the year is out -- and more closures are coming.
Tesla's Model 3 leads it to another profitable quarter
Sometimes it's best to come out and say things won't be as good as they were last quarter. That's what Tesla CEO Elon Musk did on January 18th and today's fourth-quarter results are pretty much on par with that post from two weeks ago.
HTC's June sales highlight the need for its recent layoffs
HTC can't catch a break. The company has announced that in June its sales fell "nearly 68 percent," according to Reuters. Earlier this week, the company revealed it would cull some 1,500 employees from its Taiwan manufacturing division in its chase for profitability. The last several years haven't been kind to the company, rife with reorganizations (including one earlier this year), key staff members resigning and desperate efforts to put money in the bank by seemingly any means possible -- including selling its Pixel team to Google for $1.1 billion. Recently, the company combined its virtual reality and mobile divisions in an effort to refocus. Given this week's news, and the Pixel sale as evidence, it wouldn't be surprising if, in a last-ditch effort to return to profitability, HTC sold its Vive team to Valve. The two worked closely on the device, and it's not like Valve's coffers will run dry anytime soon. Where would that leave HTC though, like BlackBerry? Vive is the company's last stand, from the looks of it, and selling it off sounds like a Hail Mary. More than that, pulling a BlackBerry only works if the handsets HTC produces capture the market, something that hasn't happened in years. And unlike BlackBerry's keyboards, HTC doesn't have one defining feature, let alone two (a reputation for enterprise-grade security). The new reduction in headcount probably won't have the same financial benefits of the Pixel sale, but we'll have to wait for HTC's next earnings report to know for sure.
LG would make more money if it wasn't for smartphones
You know it's bad when your mobile business gets trounced by the rival that sold a smartphone that actually blew up in its customers pockets. That's the situation over at LG, whose mobile communications division contrived to lose $389.4 million across the last three months. In the company's latest financials, it's revealed that LG shipped 13.5 million devices and saw US sales increase by 14 percent quarter-on-quarter. But that's pretty much the same thing the company achieved in every quarter since the start of 2014, and that plan stopped making a profit partway through 2015.
Samsung's Note 7 crisis will cost at least $2.34 billion
Do you know what's really bad for your business? Selling a smartphone with a tendency to explode in your customer's pockets. That's why Samsung has revised its quarterly profit guidance, suggesting that it'll lose out on $2.34 billion in the current three-month period. That loss is all down to the Note 7 and its propensity for self-immolation that has so baffled the company's engineers.
When will LG's smartphone patience run out?
LG is happy to announce that, thanks to its home appliance and entertainment divisions, it's made a record quarterly profit. But the company is less delighted to concede that its mobile division has suffered another weak quarter, ostensibly due to lukewarm sales of the LG G5. But LG's problems run a lot deeper than just an underwhelming flagship: It hasn't booked a profit since the second quarter of 2015. Even then, it was making a measly 1.2 cents in profit on every handset it sold, which wasn't much to brag about.
HTC sales fell off a cliff over the past year
All is not well at HTC. It today posted another difficult earnings report detailing its fourth consecutive quarter of losses. The Taiwanese manufacturer, which has just released its latest flagship smartphone, the HTC 10, lost roughly $148 million between January 1st and March 31st. More worrying still is the drop in revenues when compared to 2015: HTC brought in 41.5 billion Taiwanese dollars this time last year (and broke even), versus 14.8 billion this year. That's a 64-percent drop in revenues.
Toshiba CEO quits after company lied about $1.2 billion profits
We knew it was coming, but Toshiba's CEO and president Hisao Tanaka is no longer at the company. As the electronics giant attempts to recover from the fallout following the disclosure that it declared $1.2 billion in false profit, Tanaka and two other executives have announced their resignations to take responsibility for the scandal. An independent investigation found that management lied about operating profits for over six years in a bid to meet internal targets, starting just after the financial crash seven years ago.
WSJ: YouTube isn't making money, even with a billion viewers
Despite "Gangnam Style" having over two billion views, hosting countless other viral clips and netting over a billion users per-month, YouTube can't seem to turn a profit. How's that? Well, after paying for the infrastructure that makes Google's video empire possible (and its content partners), The Wall Street Journal says that YouTube didn't contribute to Mountain View's earnings. The culprit, apparently, is that most users arrive at videos via links, rather than daily visits to the YouTube homepage where Google could charge a premium for ads. WSJ also reports that the site's reach isn't very wide either, with one source's estimate that nine percent of viewers account for a whopping 85 percent of online-video views. That makes it a much less appealing audience for advertisers than traditional TV programming, despite the outfit's increasing investment in original content.
Activision Blizzard earnings bolstered by Destiny and World of Warcraft
Another financial quarter is fading into memory, and that means it's time for another earnings call for Activision. The financials tell a fairly bright story for this particular quarter, with the continued sales of Destiny, overall success of Hearthstone, and the subscriber bump for World of Warcraft pushing the company up in revenue compared to the same quarter last year. Destiny, Activision says, has now racked up 9.5 million registered users. As a result of these figures, the company has increased its overall earnings forecast by two percent, with the upcoming phone releases for Hearthstone, a new Call of Duty title, and the Warlords of Draenor release accounting for the increased profits. You can read the whole thing yourself if you want to take a closer look at the company's financial workings.
Take-Two reports slight bump in revenue for Q2
Take-Two reported $126.3 million in revenue for the second quarter (ending September 30), a slight increase compared to the $125.4 million in revenue the publisher reported last quarter. It also represents a 15.1 percent decline compared to the same quarter last year, a period that itself didn't benefit from the launch of GTA 5, but rather The Bureau: XCOM Declassified and Borderlands 2 GOTY. By comparison, Take-Two didn't have many releases in the past quarter, save for three mobile games: Civilization Revolution 2, BioShock and WWE SuperCard. The company also reported a net loss of $41.4 million for the quarter, representing a 66.7 percent improvement year-over-year, yet a 16.9 percent decline from its net losses for the last quarter ($35.4 million). With games like NBA 2K15, WWE 2K15, Borderlands: The Pre-Sequel and Civilization: Beyond Earth arriving during the following quarter, Take-Two increased its non-GAAP (Generally Accepted Accounting Principles) net revenue projections from $745 million to $760 million for Q3 2015. [Image: Take-Two]
Nintendo sales jump as Smash Bros. 3DS sells over 3 million
Nintendo posted a profit of 24.2 billion yen ($224 million) in the last quarter, ending September 30, a sizable resurgence for the company following its 9.9 billion yen loss in the previous quarter. The company also reported 96.7 billion yen in net sales ($895 million), a 29.5 percent jump compared to the last quarter. Nintendo's sales increases are thanks in no small part to Super Smash Bros. for 3DS, which sold 3.22 million copies worldwide since its mid-September launch in Japan. Smash Bros. sales coupled well with the 1.27 million 3DS systems shipped for the quarter, bringing the total number of 3DS systems shipped to 45.4 million to date. Nintendo also reported an increase in Wii U hardware shipments to the tune of 100,000 units (610,000 for the quarter), a 19.6 percent boost over the previous three months. That brings the life-to-date shipments of Wii U systems to 7.29 million consoles worldwide. Despite the positive showing for the quarter, Nintendo did not make any adjustments to its forecasts for the fiscal year. [Image: Nintendo]
EA reports 18% drop in revenue, increased projections
Electronic Arts reported $990 million in net revenue for the three-month period ending September 30, the publisher revealed in its second quarter of fiscal 2015 financial results. That represents an 18.5 percent decline from the $1.21 billion in revenue reported in the last quarter, though it's also a 42.4 percent increase year-over-year. EA also posted a net income of $3 million, a massive improvement compared to its $273 million loss reported at the same time last year. While EA's digital revenue slipped 5.2 percent from $536 million to $508 million in the past quarter, it still represents a 12.9 percent increase year-over-year. EA stated back in August that it hopes to earn $1 billion from add-on content this year, and its Ultimate Team sales in the NHL, FIFA and Madden series may continue to help with that. EA reported a 96 percent increase in revenue on a non-GAAP basis (Generally Accepted Accounting Principles) from those three series' Ultimate Team modes over the past year. The publisher also adjusted its expectations for the fiscal year (ending March 31, 2015), adding $75 million to its projections to total $4.375 billion. As for the next quarter, EA expects an increase in net revenue during the holiday season to $1.1 billion. EA also revealed the release date for its popular military shooter in the financial report: Battlefield Hardline will launch on March 17, 2015. [Image: EA]
EVE Evolved: Has the industry revamp worked?
When I was first introduced to EVE Online back in 2004, a big part of the attraction for me was the promise of a huge player-run economy in which the only real laws were those of supply and demand. With only a handful of tech 1 ships and modules available to build and everything made out of the same basic minerals, science and industry were pretty easy for new players to figure out. Over the years, more complexity has slowly been added to industry via features like Starbases, Salvaging, Capital Ships, Tech 2 Invention, Planetary Interaction and Tech 3 Reverse Engineering. Today's industrialists have to contend with hundreds of different items that are often arranged in sprawling component manufacturing chains, which can make it hard to figure out exactly how to make a profit. The recent industry revamp attempted to solve this problem with a full user interface overhaul and a revamp of material costs and manufacturing prices. All of the relevant information for using a blueprint was packed into a slick new combined Industry UI, allowing new players to find the info they're looking for in-game rather than through websites or opening dozens of item info windows. It's now been almost two months since the industry revamp went live, and while the market for many items is still going to take several months to fully stabilise, the dust has finally begun to settle. So what's the verdict? Has the industry revamp worked? In this edition of EVE Evolved, I consider whether the industry revamp has been successful, how easy it is to make a profit in the new system, and whether it's worth setting up your own industrial starbase.
Samsung sees its lowest profit in two years as smartphone sales languish
When Samsung took the time to update investors ahead of its upcoming quarterly earnings report, it warned 'weak demand' for phones and an increased marketing spend could hit the company hard. That report hit today, and it's as bleak as the company expected. In its second quarter, Samsung posted profit of 6.25 trillion won ($6.1 billion), down from 7.77 trillion won ($6.96 billion) last year, its lowest quarterly profit in two years. Smartphone sales contributed the majority of its revenue, but the Samsung's flagship phone, the Galaxy S5, languished as the iPhone continues to fly of shelves and Chinese brands cut directly into its low-end business.
Samsung admits 'weak demand' for its phones is damaging profits
Samsung's marketing budget has always been vast, but in the last quarter it was far larger than even the manufacturer itself would have liked. The company admits that it's been forced to spend extra money on promotions for older and lower-end devices that have been filling up its warehouses due to "weak demand." This dip in trade, combined with the extra spend on publicity, is causing the company's recent, gradual profit decline to quicken: it now expects to earn around 24 percent less this quarter than it did a year ago, with underlying sales down by an estimated 8-11 percent.
