q2 2011
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Microsoft announces Q2 earnings: record $20.89 billion in revenue, $6.62 billion net income
Microsoft has just announced its second quarter earnings, and it's touting a record $20.89 billion in revenue, up five percent year-over-year. Net income came in at $6.62 billion, which isn't far off at all from the $6.63 billion it netted in the same quarter a year ago. Breaking things down further, the company's Business Division saw a 3 percent increase in revenue to $6.28 billion, its Server & Tools business jumped 11 percent to $4.77 billion, its Windows and Windows Live Division dropped 6 percent to $4.74 billion, its Online Services business was up 10 percent to $784 million and, last but not least, its Entertainment & Devices Division jumped a full 15 percent to $4.24 billion. On that last bit, the company also reminded folks that it's now sold 66 million Xbox 360 consoles and 18 million Kinect sensors, and that its Xbox Live user base now stands at 40 million worldwide. As for Windows, while the division saw a dip in revenue, Microsoft continues to move plenty of Windows 7 licenses -- those now stand at 525 million, up from 400 million in July of last year.
Take-Two earns $107m in second fiscal quarter, thanks to L.A. Noire
Take-Two Interactive recently released its financial figures for the second quarter of the 2012 fiscal year, boasting "better-than-expected" net revenue of $107 million. That figure -- driven largely by L.A. Noire and MLB 2K11 sales -- pales in comparison to the company's $245 million in earnings from the same period last year. Of course, that period last year had Civilization 5, Mafia 2 and Red Dead Redemption on the docket, so there's that. Despite the surprise upswing, Take-Two didn't revise its expectations for the entire fiscal year, during which it hopes to earn around $1 billion in revenue. Though they didn't explicitly say so, we're assuming they've revised expectations for whichever quarter Grand Theft Auto V will launch in to "three bajillionty dollars."
THQ's sales 'exceeded expectations' in Q2, Space Marine sold 1.2 million
THQ has announced financial figures for the second quarter (July through September) of its 2012 fiscal year. Despite having a release schedule that any company would consider light, it managed to bring in net sales of $146 million. That's a pretty significant increase over the $77.1 million it brought in during the same period last year. Of course, its losses nearly doubled year-over-year as well. Easy come, easy go. The top performer was Warhammer 40K: Space Marine, which managed to sell 1.2 million units across all platforms during the quarter, a little under half of which were sold in North America. Brian Farrell, THQ's CEO, explained during a conference call that older catalog titles also sold well, specifically mentioning Saints Row 2. We guess people are eager to get back into the swing of (blowing up) things. Farrell added, "We are encouraged that our second quarter performance exceeded our expectations, particularly in a quarter with a light release schedule." We imagine he'll be pretty darn encouraged next quarter, which sees the release of the ridiculous Saints Row: The Third, and the somehow even more ridiculous WWE '12.
Sony posts $350 million loss in Q2 earnings report, forecasts full-year loss
Sony's Q2 earnings have just come in and, as you might guess, they're not particularly glowing. A few days after announcing plans to buy out Ericsson's stake in Sony Ericsson, the manufacturer posted a quarterly loss of ¥27 billion ($346 million) today, compared with a net income of ¥31.1 billion during the same quarter last year. Last quarter, the firm posted a net loss of ¥15.5 billion, or about $200 million. Sony attributed much of this decline to a stronger yen, lower TV sales and recent flooding in Thailand, which has disrupted its supply chain. On this basis, the company lowered its full year forecast, predicting a net loss of ¥90 billion ($1.2 billion), compared with a net profit of ¥60 billion that it had previously expected. It appears, then, that Sony's TV division is primed to post an annual loss for the 8th straight year, which would certainly explain those plans for a forthcoming shakeup. Find the full report at the source link, below.
Netbooks slip under tablet shipments, achieve has-bEeen status
Still unconvinced we're headed towards a post-PC future? We can at least conclusively say we've entered a post-netbook present, as Q2 2011 marks the first time their numbers have been eclipsed by tablets, according to ABI Research. 13.6 million slates were shipped in the quarter, besting the 7.3 million the diminutive laptops were able to clock in. When compared to the prior quarter, that works out to 112 percent or 7.2 million increase (!) for the former, and a 1.1 million decline for the latter. Cost apparently isn't a driving factor, as the firm notes that tablets pack an average price of $600 -- nearly double that of their trackpad-toting brethren. Oh, and in case you were wondering, 68 percent of tablets shipped were of Cupertino's flavor. More cold hard facts await you in the PR after the break.
RIM's Q2 earnings report: $329 million in net income, not enough to fend off critics
The first quarterly earnings report post-Wake Up Call have just been published for Canada's own Research in Motion, and while the cash is still flowing, investors and analysts alike aren't feeling too rosy about the future. Despite Q2 revenue of $4.2 billion and a GAAP net income of $329 million, RIM's stock plummeted nine percent following the news. Why? That reality was at the lowest end of estimates, and as we've seen, it takes a blowout quarter to please the folks on Wall Street. Nevertheless, the company's touting a subscriber base that ballooned 40 percent year-over-year (surpassing 70m total), and while it's quick to trumpet the rollout of seven new smartphones, not a one of them managed to astound the QNX-desiring critics. The report also notes that 10.6 million handsets were moved in the quarter, around $780 million was invested as "part of a consortium of companies that successfully bid to acquire intellectual property assets from Nortel," and it's forecasting that BlackBerry smartphone shipments in Q3 will grow between 27 percent and 37 percent compared to Q2. Sadly, the company only "shipped" 200,000 PlayBook tablets, with the prevailing thought being that it actually sold far fewer. Moreover, nary a forecast was given for future PlayBook sales.As for thoughts from the head honcho(s)? Jim Balsillie, Co-CEO, stated that "overall unit shipments in the quarter were slightly below our forecast due to lower than expected demand for older models," further noting that his firm will "continue to build on the success of the BlackBerry 7 launch to drive the business as we focus our development efforts on delivering the next generation, QNX-based mobile platform next year." Next year is a long, long way away, though, and there's no doubt whatsoever what kind of competition will be in place by the time 2012 rolls around. We'll be hopping on the analyst call here in a few, and you can look beyond the break for any notable mentions.
Acer loses $234 million in worse-than-expected Q2
It may be the second largest computer manufacturer in the world, but things are not looking good for Acer. The Taiwanese company lost 6.79 billion New Taiwan Dollars (TWD), about $234.1 million, in Q2, far more than the already sizable anticipated shortfall of 3.3 billion TWD (around $114.7 million). That's a dramatic drop off from the 1.19 billion TWD profit the company posted in Q1. Things are expected to improve in Q3, but Acer still expects to operating in the red until at least Q4. Some of the problems can be blamed on recent restructuring that has the vendor increasingly focused on mobile devices and less on netbooks, which were successful for the company but have quickly declined in popularity. The extremely brief PR can be found after the break.
Dell's Q2 earnings fall short of estimates: $890 million net income, $15.66 billion revenue
Shares of Dell were down nearly eight percent in after-hours trading after the Texas-based PC maker posted lower-than-expected second-quarter results. Still, the company's revenue was up one percent over last year, totaling $15.66 billion, compared to $15.5 billion in Q2 2010. Net income jumped 63 percent, from $545 million to $890 million, over the year-ago quarter. Corporate and government orders were responsible for the jump in income, according to an AP report, but new sales predictions hint that orders may not be coming in as often as anticipated. Dell expects modest growth of one to five percent for the full year -- citing "a more uncertain demand environment" -- compared to previous estimates of five to nine percent growth. Jump past the break for the full rundown from Dell.
Apple now the world's largest smartphone manufacturer, Samsung checks in at number two
We make our own truth. That's how IDC can come up with roughly the same numbers as fellow research firm Canalys and crown Apple the king, when its rival called Android top dog -- it's all about how you slice it. See, where as Canalys bundled all Android handset makers together, IDC has broken them up, which leads to a rather interesting twist -- the largest smartphone maker in the world is now Apple. Cupertino's growth of 141.7-percent in shipments year over year was enough to push it past Nokia (which slipped to number three) and Samsung (which climbed two spots to take the silver medal), while RIM and HTC rounded out the top five. That being said, no one is running away with the lead here, and Sammy's continued stratospheric rise should keep Apple on guard. Check out the full report after the break.
T-Mobile loses 50,000 customers in Q2 2011, revenue dips slightly
T-Mobile USA issued its Q2 earnings statement today and, while the outlook isn't quite as bleak as it was during the first quarter of this year, there's still some cause for concern up in Bellevue. According to the report, the carrier lost a total of 50,000 customers last quarter, which is actually an encouraging sign, considering it dropped a whopping 99,000 during Q1, and 93,000 during the second quarter of 2010. Total revenues, however, dipped slightly to $5.1 billion from the $5.2 billion reported for the previous quarter, with service revenues holding firm at $4.6 billion -- a 1.7 percent decrease from Q2 2010. President and CEO Philipp Humm blamed the numbers on a "challenging market," but was quick to point out the brighter aspects of T-Mobile's statement, including the carrier's expanded 4G coverage, and the fact that a full 29 percent of its customers are using 3G or 4G smartphones -- an "all-time high." Skip past the break for more numbers and acronyms.
Motorola Mobility reports $56 million net loss in Q2, $3.3 billion in revenue, Bionic debut in September
Back in the last quarter of 2010, Motorola Mobility predicted a rocky road for future business, and its Q2 earnings seem to be right on track. The company reported total net revenues of $3.3 billion in the second quarter, up 28 percent year-over-year, but saw a net loss of $56 million, compared to earnings of $80 million in the second quarter of 2010. Mobile Devices saw an operating loss of $85 million, compared to the previous year's earnings of $87 million. Moto's not all doom and gloom however, as it predicts profitability in mobile devices by Q4. In terms of sales, the company reportedly shipped 11 million mobile devices, including 4.4 million smartphones and 440,000 Xoom tablets. Here's hoping Motorola's powers of prediction remain strong.Full PR after the break. We'd heard that the Droid Bionic was "coming soon," but up until today, we still didn't have a firm date for the LTE Android phone. Well, the cat is sort of out of the bag, as Mobility CEO Sanjay Jha has just announced that the long-awaited handset will hit stores in September. When in September is still anyone's guess, but we'll keep you posted as we learn more.
Sprint posts Q2 2011 earnings: net subs up, contract subs down, net loss of $847 million
It's another mixed bag worth of earnings for the folks in Overland Park. Sprint just announced its Q2 2011 earnings prior to the market's open today, and while it's obviously doing its darnedest to paint a rosy picture, the raw numbers show a somewhat different backdrop. Despite having its third consecutive quarter of adding more than one million total net new wireless subscribers, the vast majority of those are coming from the (admittedly less lucrative) prepaid side. In fact, the company lost 101,000 postpaid subscribers in the period, and we're guessing that the one-two punch of WiMAX hitting the expansion skids while VZW built out LTE at a breakneck pace didn't help matters. 674,000 prepaid subs were added to the mix (through Virgin Mobile, Boost Mobile, etc. arms), and despite seeing quarterly sequential and year-over-year growth in wireless service revenue, the carrier still reported a net loss of $847 million. In a way, it's the same story on a different day for The Now Network, and while the just-announced LightSquared partnership may end up bolstering things in time, it'll take something a bit more jarring to turn things around by Q3. Or Q4... right, Dan?
LG turns it around, reports profits back in the green
After six months of knuckle-crunching losses, LG can finally wind the window down and turn the radio on to Seoul FM. The electronics giant just reported a net profit of ₩108 billion ($100 million) in the last quarter, primarily thanks to sales of LED and Cinema 3D TVs. Its handset subsidiary, which has been pushing into the Android high end with devices like the Optimus 2X, is still bleeding cash -- but losses were halved compared to last quarter, so perhaps the wound is finally scabbing over. Meanwhile, the LG Home Appliance Company posted "record-high" sales, but it'll have to Thinq even harder in future because profits were held back by higher material costs, currency fluctuations and greater competition. Definitely too soon for cruise control.
Rogers reports bountiful profits, lays offerings at feet of munificent Master Smartphone
We've just had a string of happy earnings missives from AT&T, Verizon and ARM, so it's not really surprising that the dollar-drenched smartphone effect continues to rage over in Canada too. Rogers Communications just reported Q2 operating profits up 4 percent on the same period last year, amounting to over CA$1.2 billion ($1.3 billion). It won 135,000 new wireless subscribers thanks to a "record number of new smartphone customers", who now make up half of all postpaid subscribers, compared to just 35 percent in June 2010. The carrier also revealed that its smartphone customers tend to be twice as profitable as voice-only types, which tells us there's the scope for it to listen even harder to its customers.
ARM alchemy turns ubiquity into gold, profits up 25 percent
A 25 percent rise in profits might look modest compared to the 167 percent explosion announced at the end of Q2 last year, but we doubt anyone at ARM's UK HQ will be moaning. A typically understated earnings report highlighted 1.1 billion ARM-based chips shipped into mobiles and tablets, plus another 800 million chips into other types of devices in Q2. Other tidbits included two new signings for next-gen Cortex-A15 chips, plus two more for Mali graphics chips, which ought to help the mobile chip king maintain its dominance into next year. If you had an extra sausage with your fry-up this morning, ARM, then you deserved it.
Verizon has best quarter since 2008, thanks largely to iPhones and LTE
Hot on the heels of AT&T's happy earnings tidbits yesterday, VZW's latest figures also show that it's raking the money in nice and regular. Total operating revenues in Q2 were $27.5 billion -- that's up half a billion on Q1 2011 and 6.3 percent on Q2 2010 (on a non-GAAP basis). The Big Red claims 2.2 million net additions to its wireless customer base, contributing to a 6.6 percent year-on-year increase in wireless service revenues and a 22.2 percent increase in wireless data revenues. Company execs were especially pleased with the sale of 2.3 million iPhones during the spring, despite the iPhone 5 "being delayed by more than a quarter." Unfortunately they didn't clarify whether the next iPhone was really delayed, or just likely to arrive later than they expected. LTE phones and dongles also proved popular, shifting 1.2 million units and helping to boost Verizon's average revenue per unit. Together, LTE and iPhone devices accounted for 69 percent of new additions. Chairman and CEO Ivan Seidenberg summed it all up as "one of Verizon's best quarters since the 2008 economic downturn." You'll find the full earnings report after the break.
Nokia Q2 2011: 'clearly disappointing' results as challenges prove 'greater than expected'
With Nokia still yet to fully dive in to the Windows Phone swimming hole, you had to know it was going to be another ugly quarter's worth of results. And it is. The company just posted its Q2 2011 numbers and there's a definite downward trend. Operating profits declined 44 percent since Q1, 391 million Euro compared to 704, and net sales of mobile devices are down 23 percent over the same period -- 20 percent compared to Q2 last year. CEO Stephen Elop quite naturally tried to spin this thing in the right direction: The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011. However, even within the quarter, I believe our actions to mitigate the impact of these challenges have started to have a positive impact on the underlying health of our business. Most importantly, we are making better-than expected progress toward our strategic goals. But, he can't deny the obvious, calling the results "clearly disappointing." Looking forward, Elop expects "competitive pressures to continue," but indicates the company has a "clear strategy" to improve things. He says those who have seen the company's early Windows Phone devices (really, who hasn't) are "very optimistic" about their potential and that they hope to launch this year with a "sequence of concentrated product launches. Very expensive launches, we hear. Update: Elop just wrapped up his portion of the company's earning call. A summary and a few choice quotes are available below.
Intel delivers record earnings yet again in Q2 -- let the boardroom bragging begin
We know, you've heard it all before, but the chip maker's once again reporting record revenues, reaching a whopping $13.1 billion in Q2 2011. If you're keeping track, that's up $2.3 billion, or 22 percent, from Q2 2010, and bests last quarter's earnings of $12.9 billion by 2 percent. Net income was up 10 percent year-over-year, but down three percent from last quarter, ringing in at $3.2 billion. As Intel humbly points out, this is the outfit's fifth consecutive quarter of record revenue. So, perhaps a little bit of gloating is in order.
IDC and Gartner: US PC sales still sluggish, Apple, Toshiba see jumps in market share
IDC and Gartner have once again released dueling reports on the state of the PC market and, according to their numbers, the landscape's looking a little different. Gartner estimates that overall PC shipments during Q2 of this year increased by 2.3 percent from the same period last year, more or less concurring with the 2.6 percent global increase that IDC found. Things are looking a bit bleaker in the US, however, where quarterly year-to-year shipments are down (5.6 percent for Gartner, 4.2 percent for IDC), but have increased from Q1 of this year. On the corporate level, HP continues to dominate global shipments according to both reports, followed by Dell and Lenovo, which overtook Acer for third place. Stateside statistics, on the other hand, show a bit more severe shuffling among the top five, with Apple's US market share jumping to nearly 11 percent (good for third place) and Acer tumbling to fifth, thanks to a greater than 20 percent year-to-year decline in market share (see the table, above). In fact, among the top five, only Apple and fourth-place Toshiba increased their market share from Q2 of 2010 -- something that both research firms attributed, in part, to a weak consumer PC market and the rising popularity of tablets, led by the iPad. For a more thorough statistical breakdown, head past the break for a pair of comprehensive press releases.
HTC does the whole record profit thing again for Q2
Another day, another record profit from the folks at HTC. Surely even the Taiwanese handset manufacturer must be bored of reporting this endless stream of good news, right? Yeah, probably not. The company happily announced this week an impressive second quarter net income of NT$17.5 billion ($608 million), more than double what it reported for the same time period the year prior. Overall revenue for the quarter hit NT$124.4 billion, thanks to the ever-present demand for Android handsets. And revenue from the company is expected to keep on growing in Q3 -- maybe boredom isn't so bad after all.
