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HTC finances improve over last quarter, but show just $41.6 million profit in Q2 2013
Though HTC has fallen shy of the $65 million in earnings investors were looking for in Q2 2013, at least it's a marked improvement over last quarter's disaster. It managed to improve profits to $41.6 million from a mere $2.8 million last quarter, based on unaudited figures. Likely reflecting demand for the flagship One and HTC's ability to finally produce that handset in significant numbers, revenue also jumped to $2.4 billion -- that's bad in the sense that it's a 20 percent drop relative to the same quarter last year, but it's slightly better than the 33 percent year-on-year revenue shortfall we witnessed last quarter. Overall, these figures still pale in comparison to HTC's historical performance and there's no immediate prospect of things getting better. According to Reuters, the most serious problems occurred towards the end of the quarter, as sales for June swooned 26.4 percent versus Q2 2012 -- a trend that puts a lot of pressure on the little shoulders of the HTC One Mini.
HP Q2 2013 financials: $1.1 billion in profits on revenue of $27.6 billion, earnings down 32 percent
HP just posted its Q2 financial report, and despite somber news of falling profits and revenue, the company managed to beat consensus estimates and the stock has jumped more than 10 percent in after-hours trading. As for concrete figures, HP pulled in $1.1 billion in profit, which is down 32 percent from just one year ago. Revenue of $27.6 billion reveals a similar story, which is down 10 percent year over year. With respect to HP's Personal Systems group, the company is pulling in a 3.2 percent margin, where revenue is down 20 percent year over year. Here, total unit shipments are down 21 percent, with an 18 percent decline for desktops and a 24 percent hit for notebooks. Just three months ago, company CEO Meg Whitman promised a bright future for HP with plans to bring "a number of new programs and disruptive innovations to market in the coming quarters," which likely includes such products as the Split x2. Whether consumers will respond remains to be seen, but for the moment, HP is keeping investors happy by returning $1.1 billion to shareholders through dividends and stock repurchases. Meanwhile, in a move to further set expectations, Whitman reiterated her confidence for the rest of the year, but followed with, "As I have said many times before, this is a multi-year journey." The future remains just that, but for the moment, you can hit up the source link for a peek into the current financial health of HP.
Disney Interactive down $54 million in Q2
By the end of the second quarter of its fiscal year, Disney Interactive was once again the media conglomerate's only unprofitable sector, reporting a $54 million operating income (read: pre-tax) loss for the three month period ending March 31, 2013. This is, however, a 22 percent year-over-year improvement when compared to Q2 2012's reported operating income loss of $70 million. Disney contributes the loss to "growth at our Japan mobile business from a licensing agreement that started in February 2012 and lower acquisition accounting expense at our social games business." No mention is made of Junction Point Studios, which Disney closed in January after lackluster sales of Epic Mickey 2: The Power of Two, or of the company's forthcoming game/toy platform Disney Infinity.
Qualcomm Q2 2013 earnings: revenue up to $6.12 billion, profit reaches $2.07 billion
Qualcomm is having an easy time riding the growing wave of mobile devices. Case in point: its very healthy second quarter earnings. Revenue at the San Diego outfit climbed 24 percent year-over-year to $6.12 billion, while the chip designer's net profit grew a similarly brisk 17 percent, to $2.07 billion. The figures were respectively up a modest 2 percent and down 6 percent versus last quarter, but that's to be expected given the usual post-holiday lull. Qualcomm still shipped a more than ample 173 million units of its MSM chips, and it expects to return $431 million to shareholders for their trust. The company also has a rosy-cheeked vision of the future -- it expects its third quarter revenues and profits to climb by at least 25 percent and 14 percent each, even with shipments down to as little as 163 million. When Qualcomm is at the heart of the HTC One, many Galaxy S 4 models and the Optimus G Pro, there's a good chance the company is being realistic about its prospects.
Microsoft fiscal 2013, Q2: Xbox still on top, Entertainment revenue down
Microsoft's financial statement for the three month period ending December 31, 2012 (aka Q2 fiscal 2013) has been released, and amid the breakdowns of the Windows Division's revenue increase and the Server & Tool division's year-over-year whatever is some information our readers actually care about.Specifically, the Entertainment and Devices Division, which includes everything Xbox, experienced an 11 percent year-over-year decrease in revenue as compared with 2011; $3.77 billion versus $4.23 billion, respectively. Still, the Xbox 360 was the best-selling console in the United States, as it has been for the last 22 months.As a whole, Microsoft's Q2 revenue (read: gross income) rang up at $21.45 billion, up three percent when compared to 2011, but its operating (read: net) income went down by three percent to $7.77 billion, which is only enough to buy about 26.7 billion mechanical pencils.
Lenovo Q2 earnings reveal record high sales of $8.7 billion, highest-ever PC market share
PC maker Lenovo has reported its earnings for Q2, and there was plenty of good news: $8.7 billion in sales, a record high, a PC market share of 15.6 percent, it's largest ever and operating profit of $206 million, 24 percent higher than the same period last year. The only bad news is that profit growth is slower than previous quarters, mostly due to Lenovo's reaching into new markets like tablets, smartphones and connected TVs. for now however, Lenovo can claim the crown as world's largest laptop PC maker, while desktop sales were also up five percent from last year. Its mobile internet division reported sales of $718 million, and is the second largest seller in China of smartphones and tablets. It's also China's number one PC vendor with sales outpacing the next four vendors combined and racked up double digit market share in the EMEA region for the first time. Check the press release after the break for all of the details, we'll be back in a few months to find out how all that new Windows 8 hardware sold.
Ubisoft posts 32.3 million euro loss for first half of fiscal 2012, expects big Q3
Ubisoft has released its earnings for the first six months of fiscal 2012, which ran from April 1, 2012 through September 30, 2012. In that time, the publisher garnered overall initial profits of €192.7 million (about $246.8 million), which is a 21 percent increase over the €158.4 million ($202.9 million) Ubisoft had accrued by this time last year.After deducting research and development costs and SG&A expenses, however, that figure drops to a loss of €32.3 million, or $41.3 million. That loss is less substantial than the €37.1 million loss Ubisoft posted at the end of the first half of fiscal 2011, to the tune of 14.8 percent.Ubisoft CEO Yves Guillemot attributes the year-over-year increase in gross profits to Ghost Recon: Future Soldier (its performance in the digital segment, specifically) and Just Dance 4, while also claiming that the operating loss reported for this period was due to "large-scale marketing campaigns for Assassin's Creed 3 and Far Cry 3."Looking forward, Guillemot predicts a "record" second half for fiscal 2012, based on the anticipated performance of Assassin's Creed 3, Far Cry 3 and Ubisoft's stable of upcoming Wii U titles. As such, the company's year-end target for sales has been increased from a range of €1.16 - €1.20 billion to €1.20 - €1.26 billion. Similarly, Ubi's target range for operating income has been raised slightly, from €70 - €90 million to €70 - €100 million.
THQ explores 'strategic alternatives' with private equity broker
THQ's second quarter earnings conference call today totaled 12 minutes. Executives rattled through the financial quarter, noted game delays and CEO Brian Farrell concluded that the company had been "advised not to conduct a [question and answer] session" following prepared remarks. Since these calls usually last about an hour, this was unusual.THQ's sudden case of tongue-biting has to do with it "exploring strategic alternatives" with a company called Centerview Partners LLC. This company's job is to evaluate financing alternatives to improve THQ's overall cash. The company notes that it does not plan to disclose developments or progress until the board deems it appropriate.We spoke to sources with knowledge of companies like Centerview Partners and their take is THQ is attempting to go private. Centerview Partners is a broker for private equity deals, which means THQ's shareholders would preferably be out of the picture. THQ's stock is currently trading at $3.02, following drastic measures to retain its listing; it should also be noted after hours trading has been suspended.
THQ's Q2 sees $107 million in net sales, needs more money for delays
THQ posted net sales of $107 million and an operating loss of $19 million in fiscal 2013's second quarter, which ended September 30. This is compared with 2012's Q2 results of $146 million in net sales, and an operating loss of $97 million.In a bid to stay afloat, in 2012 THQ has undergone corporate reshuffling, has closed studios, laid off staff, rearranged its product line and enacted a reverse stock split. THQ's most recent mainstream launch was Darksiders 2, which sold 1.4 million copies in Q2 2013. THQ CEO Brian Farrell said these sales were "below our expectations."THQ delayed South Park: The Stick of Truth, Company of Heroes 2 and Metro: Last Light today, citing a need for more time to realize the games' full potentials. This means THQ may seek more money from outside investors and through internal shake-ups in the interim, the fiscal report said."The calendar movement for the release of games will likely create a need for additional capital. THQ has engaged Centerview Partners LLC to assist the company in evaluating strategic and financing alternatives intended to improve THQ's overall liquidity, including raising additional capital, preserve the company's ability to bring the best possible games to market during the most advantageous release windows and to help address the $100 million 5% convertible senior notes due August 2014."
Sharp expects to post $1.94 billion operating loss for the year, score a meager Q2 operating profit
Sharp hasn't quite laid out its Q2 2012 financials, but it has laid down some bittersweet projections. According to Reuters, the Japanese firm hopes to post an operating profit for the current term, but will take a $1.94 billion loss for the year as a whole. This prediction is a tad more dismal then its earlier forecast, which predicted a $1.25 billion loss for 2012. The TV maker also cut its predicted net loss from ¥240 billion to ¥450 billion ($5.6 billion). Sharp still is hoping its cuts, layoffs and mortgages weren't in vain -- and a short term profit for Q2 could be all it needs to vindicate the $4.6 billion loan it took out in September. Sharp also said it was penning in $1.1 billion for restructuring expenses in Q2, hopefully helping it stay on track for its 2014 profitability goal.
Resident Evil 6, Dragon's Dogma propel Capcom to record first half of fiscal 2013
Capcom reported operating income of 6.5 billion yen ($81.6 million) for the first half of its fiscal 2013 (April 1 through September 30), up 134.2 percent from last year. Overall, Capcom claimed that "sales and income for this 6 months period broke the record at all levels for the first half."The success is attributed to two games which have done better in sales than in reviews, one being Resident Evil 6, of which Capcom had already shipped 3.7 million units to retailers by the end of the half, in advance of its October release date. Yes, one of the best-selling games of the period, from Capcom's perspective, had not yet been released during the period. That's why we're always clear to identify "shipped" versus "sold," if you're playing along at home.The other big seller is Dragon's Dogma, which became a million seller in Capcom's "more profitable domestic market" of Japan despite less success outside of Japan.Capcom's social games, including a Monster Hunter card game, Resident Evil Outbreak Survive, and the Beeline games The Smurfs' Village and Snoopy's Street Fair also contributed.
Take-Two revenue up 155% during Q2, outlook removes $600 million following GTA 5 delay
Take-Two had a great second quarter (ending September 30), with revenues of $273.1 million, a 155 percent increase from the $107 million in the previous Q2. At the end of the day, however, the company did have a net loss of $12.5 million, which is still significantly better than the $123.3 loss from the same period last year.The big gun during the quarter was Borderlands 2, which shipped over 5 million units, along with catalog sales of Grand Theft Auto 4 and Red Dead Redemption. Revenue from digital distribution was up 108 percent year-over-year, with "strong digital sales" (i.e. non-retail) mentioned for new releases Borderlands 2 and XCOM: Enemy Unknown.With Grand Theft Auto 5 officially given a spring 2013 release window, it should be noted that Take-Two reduced its "financial outlook" for the fiscal year ending March 31, 2013, removing $600 million in forecasted sales. That extra $600 million raised our eyebrows when it appeared in the company's projections at the beginning of the fiscal year, as the math would only really work out if Take-Two was planning GTA 5 before April 1, 2013. That is, obviously, no longer the case and the company has reduced its outlook to "reflect its revised assumed release schedule."
Panasonic shows $613 million operating profit for Q2, but lowers full year projections
The good news for Panasonic in its Q2 earnings release is that it managed to record a 48.8 billion yen ($613 million) operating profit, higher than last year. The bad news however is word of falling sales in its TV business, although we're not hearing any confirmation of changes in its plans for mobile phones. New CEO Kazuhiro Tsuga is working a new restructuring plan that should help return divisions like its one for TV to profitability, but there will be costs upfront. The company revised its operating profit prediction for the year to 140 billion yen ($1.76 billion) based on the slower sales, and still is looking at a net loss for the year of 765 billion yen ($9.6 billion) due to deferred tax assets. Hopefully any cost-cutting doesn't affect the quality of its Viera HDTV brand, but Panasonic will have to figure out some way to turn those stellar reviews into overall profits, even as the market continues to shrink. Our suggestion? Get some of those 8K Super Hi-Vision plasmas to market, ASAP.
HTC announces Q3 2012 financials, net profit down again to $137 million
HTC has released its third quarter financials, with the same trend continuing from the last quarter: lower net revenue. The company said it gained NT$70.2 billion total ($2.4 billion), with pre-tax net income at NT$4 billion ($137 million), a nearly 50 percent drop from the $250 million it earned last quarter. All that is a far cry from its salad days last year, and the company will have to hope that its new Windows Phone 8X launch along with a new flagship One X+ will reverse its fortunes.
RIM posts Q2 earnings: $2.87 billion in revenue, softer $235 million loss
RIM may have given us hope that its transition to BlackBerry 10 has turned a corner, but that doesn't mean the dark clouds have entirely broken just yet. The company's second fiscal quarter saw it generate $2.9 billion in revenue, a slight gain over last quarter, while it posted a net loss of $235 million -- again better than expected, but not the best news it could deliver. Waterloo's main challenge was holding on to its smartphone base. While RIM did expand the total BlackBerry user base to 80 million, its phone shipments dropped from 7.8 million to 7.4 million and were braced by shipments of just 130,000 PlayBooks, or half as many tablets as were delivered in the spring. The sunshine is mostly found in the total picture. RIM says it's still on track to deliver the first BlackBerry 10 phones in early 2013; while the smartphone maker is bracing for an operating loss in its ongoing third quarter, the higher revenue and reduced losses suggest to CEO Thorsten Heins that RIM is getting its fiscal house in order before BlackBerry 10 (hopefully) renews interest. Full details of the company's financial performance are available after the break.
IDC: iPhone wait cuts Apple's China phone share by nearly half, Lenovo seizes the opportunity
There's a lot of talk of a new iPhone coming soon, and the Chinese know it. IDC researchers estimate that Apple's share of smartphones in the country was sliced almost in half during the second quarter, to 10 percent, as expectations and rumors led the local population to wait for the big update. Better competition also played a part in denting iPhone shipments, although it's not Apple's chief rival Samsung who's responsible. Rather, it's China's own Lenovo that had the most impact. It broke into the double digits with a second-place 11 percent share thanks to recently started indirect sales of its Android-dominated lineup, while Samsung saw its own share dip slightly to 19 percent. Chinese companies ZTE and Huawei bracketed Apple at third and fifth. We wouldn't be surprised if the balance of power shifts in about a month, but the impacts to Apple and Samsung alike show just how tough it can be to stay on top in one of the fastest-growing markets on Earth -- especially one with so many local brands.
HP exceeds Q3 expectations: rakes $29.7 billion in revenue, still posts a loss
To say that HP is in a bit of a transitional period would probably be an understatement. As expected, the $8 billion hit it took over the EDS purchase severely impacted its bottom line. While revenue was down year-over-year to $29.7 billion, that five percent drop equated to a 568 percent decline in income as the company posted a loss of $8.9 billion. If not for the combined $10.8 billion in charges it was forced to absorb this quarter, the company's net-income would have stood at $2 billion -- which would have been a significant improvement over Q2's $1.6 billion in profit. While such a staggering loss does appear bad, the non-GAAP results should give investors some hope, as the merger and layoff related charges are a one-time deal. Still, the outlook continues to be grim at the Personal Systems Group which has seen revenue drop 10 percent over the last year. The lone bright spot in the company's line up appears to be its software division, where revenue has grown 18 percent year-over-year. CEO Meg Whitman issued a statement alongside the Q3 2012 earnings report looking to assuage nervous investors' fears. "HP is still in the early stages of a multi-year turnaround, and we're making decent progress despite the headwinds," she asserts and assures that better days lie ahead. For more financial fun, check out the PR after the break and all the tables and charts you can handle at the source.
Dell reports Q2 earnings: rakes in $14.5 billion of revenue, nets $732 million in profit
After a couple of down quarters in a row, Dell needed to come out strong in Q2 of fiscal year 2013. Well, it's probably not as glowing a quarter as the company was hoping for, but a slight rebound in profits from last quarter should give it something to smile about. Revenue was up roughly $100 million sequentially, which translated into an equal amount of additional profit. After netting just $635 million in income during Q1, Dell banked $732 million in Q2 of 2013. Year-over-year, however, things are a little less rosy. Revenue was down eight percent and net income a worrisome 18 percent. Still, while its consumer arm continues to struggle (where revenue is down 22 percent), its enterprise services division continues to grow, raking in $4.9 billion this quarter -- up six percent from the same time last year and matching its previous record. The company expects revenue to continue to fall next quarter, but expects good things from it Enterprise Solutions, Services and Software division going forward. For more financial particulars check out the PR after the break. Update: Dell's slide deck -- partially shown above -- unsurprisingly points out that Windows 8-based Ultrabooks, all-in-one desktops and tablets are on deck, but it also mentions a mysterious "converged device" segment as well. Hmm.
IHS iSuppli: Apple iPad takes 69.6 percent of tablet brand market share in Q2, reader tablets take a bruising
An earlier portrait of the second quarter's tablet market share made it quite clear that the iPad was on a rebound, if it was ever in a slump to start with. All those numbers focused on platforms and not brands, however -- we didn't know how the individual makers were doing. If IHS iSuppli's figures are on the ball, there's even more of a discrepancy if you break down the period's results by manufacturer. The iPad staked out 69.6 percent of tablet shipments in the spring. That wasn't just an 11-point jump over a year earlier; it was a level of share Apple hasn't had since the Motorola Xoom was just cutting its teeth early in 2011. As for the rest? Transformer Pads kept ASUS growing, but it's not a pretty sight if you're making an Android reader tablet; both Amazon and Barnes & Noble shed roughly a point and a half each, which is no small amount relative to their size. Samsung also lost share by this after its deliveries of Galaxy Tabs mostly stayed flat. We'd add that there's some wiggle room as to real performance knowing that units shipped and sold aren't always one and the same. Most of these companies are leaving clues regarding upcoming tablet refreshes that might level the playing field, some not so subtle, but it's currently Apple's game to win.
NVIDIA Q2 earnings bounce back through Tegra: $119 million profit on $1.04 billion in revenue
NVIDIA's fiscal performance in its second quarter shows the rewards of patience in the mobile sphere. It just saw its profit double versus a glum first quarter to $119 million, even though the company only slightly edged ahead in revenue to $1.04 billion. In explaining the success, the company is quick to point to a confluence of events that all worked in favor of its bank account: a slew of Tegra 3 phones and tablets like the Transformer Pad TF300 made NVIDIA's quarter the brightest, but it could also point to a much-expanded GeForce 600 line on the PC side and the shipments of the first phones with NVIDIA-badged Icera chips. The graphics guru expects its revenue to climb more sharply in the heat of the third quarter as well -- between the cult hit Nexus 7 tablet and a role as a major partner for Windows RT, NVIDIA has at least a temporary license to print money.
