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Intel reports record $11.1 billion revenue, brings home $3 billion in bacon
Looks like Intel's having its best quarter ever all over again: this time, the company's reporting $3.0 billion in profit on a record $11.1 billion in revenue. Chipzilla attributes the surplus to three percent increases in laptop and server chips sales respectively, but none to Atom-based netbooks -- sales of Atom chips actually decreased by four percent. That may be more than you needed or wanted to know about the booming processor business, but humanitarians will be pleased to know it's not all about the silicon; Intel also hired 1,300 new flesh-and-blood employees last quarter to keep the machines running.
Lenovo sees $54.9 million net profit in Q1 earnings, hits double digits in global market share
Look out, world -- Lenovo's on a serious tear, and it doesn't look to be stopping anytime soon. In the company's latest earnings report, it proudly announced its first-ever double digital market share of 10.2 percent. As if that milestone wasn't enough to make upper management grin, the outfit also nailed down just under $55 million in net income (a pre-tax income of $75 million) on sales of $5.1 billion. This quarter also marks the third in a row that it has been the fastest growing of the top five PC makers, and the fifth consecutive quarter that it outgrew the industry. Specifically, the outfit's PC shipments increased some 48.1 percent year-over-year, and consolidated sales for its fiscal Q1 saw an insane 49.6 percent uptick from last year. As of now, things are looking mighty rosy for Lenovo, and it just seems logical for the company to revive the Skylight in celebration. Who's with us?
Dell's Q2 2010 sees 16 percent increase in net income, flat revenue from Consumer unit
First with HP, and now with Dell. The PC maker (and occasional phone dabbler) posted its second quarter fiscal 2010 report, which actually gives a good perspective on the relative position of each company in the global PC market. Whereas the House that Hurd once ran reported a $30.7 billion revenue and $2.3 billion operating profit, Dell posted $15.5 billion (up 22 percent) in revenue and $745 million operating income. Like we said earlier, operating income shouldn't be confused with net income, which deducts those massive corporate taxes. Looking at net, the company profited $545 million, up an impressive 16 percent year-over-year. Focusing on the Consumer unit, revenue was flat at $2.9 billion, while at the same time operating income incurred a $21 million loss. According to the press release, the company "remains confident that initiatives underway will improve operating margins for the segment." Is all this enough to quell irate shareholders? Chances are slim, but hey, it's a start.
HP reports Q3 2010 earnings, posts $2.3 billion operating profit
And to think -- that $2.3 billion figure might have been a few million higher if not for the absurd Golden Parachute that Mark Hurd will continue to float on for centuries to come. All jesting aside, HP published its Q3 2010 financials today, reporting a healthy $2.3b in operating profit (not to be confused with net income, which deducts those massive corporate taxes) and a five percent increase year-over-year. All told, third quarter revenue was listed at $30.7 billion (an 11.4 percent uptick from last year), with a "record" amount of services signings. Interestingly, a whopping 63 percent of total HP revenue came from outside of America, though we're struggling to find any specific mentions of Hurd or Palm in the release (embedded after the break). We'll be checking in on the press call shortly -- we'll let you know if anything crazy goes down.
Sony Ericsson posts second consecutive profitable quarter
Sony Ericsson managed to keep the good times rolling in the second quarter of 2010, posting its second consecutive razor-thin net profit -- this time of €12 million (about $15.6 million) on sales of €1.757 billion ($2.284 billion). In its earnings report, the company specifically calls out the Xperia X10 and the Vivaz -- yes, the Vivaz of all things -- as devices that helped propel it into the black over the past three months, going on to say that the X10 mini and mini pro have now positioned it for "long term growth." Of course, in an industry where fortunes can turn from week to week and from product to product, these guys certainly can't declare victory just yet.
Clearwire promises Clear-branded HTC and Samsung WiMAX phones this year
Without going into much detail, Clearwire mentioned on its first quarter earnings call today that WiMAX-capable phones bearing the Clear name from both Samsung and HTC are "expected" to be available before 2010's out, which is a pretty optimistic affirmation of comments the company made earlier this year. It describes the Sammy as "an Android-based 3G/4G/WiFi device optimized for heavy video and video communications use," while the HTC's language leaves out the platform -- it's just called "a 3G/4G/WiFi enabled phone," leading us to believe that this puppy could very well be running Windows Phone 7. If that's the case, we can understand why HTC wouldn't want Clearwire spilling the beans since they've yet to officially announce any plans for jumping into the WinPho 7 game. In fact, Clearwire went so far as to say on the call that the HTC device would not be the EVO 4G, so yeah, we can totally buy that there's some Microsoft action going on behind the scenes here. As for Clearwire's health, it has seen a 94 percent year-over-year boost in total WiMAX subscribers for a total just shy of a million -- and interestingly, the overwhelming majority of those are retail, not wholesale, meaning that folks are running Clear-branded equipment. We expect that to change dramatically once Sprint's Overdrive gets a little more penetration and the EVO comes into play, but for now, some 814,000 customers are familiar with the Clear logo. They lost a hair over $94 million in the quarter, but hey, in the scheme of things, that's peanuts -- building out networks isn't a cheap endeavor, after all.
Motorola posts another tiny quarterly profit, phone division not yet pulling its weight (update)
Moto's earnings for the first quarter came out today, and they pretty much echo what the company managed to do in the fourth quarter of 2009 -- pull a small profit thanks to performance from the Home, Enterprise Mobility, and Network groups in the face of an operating loss from the Mobile Devices (read: phones) division. Unfortunately, all of the numbers are just a little bit worse across the board; Motorola didn't have any Droid-style blockbuster launches or major gift-giving holidays to help it along this quarter, and ended up dropping $192 million in the hole compared to $132 million in the quarter prior. Co-CEO Sanjay Jha still seems upbeat, though -- and he'd better, considering that he'll lead the spun-off phone division after the breakup -- pointing out that shipments actually increased in the quarter with the release of six new handsets. When you throw all the numbers together, the combined company posted $69 million in earnings, down from $142 million in the fourth quarter; hey, that's still better than a loss, especially considering that it's estimating considerably higher earnings in the current quarter. Follow the break for Motorola's release. Update: Despite the slight profit, poor phone sales may have finally cost Motorola the stateside mobile crown. The Associated Press is reporting that with 8.8 million iPhones sold in Q1, Apple has edged out Motorola as the largest phone maker in the US.
Sprint halves its quarterly customer loss, increases revenue for the first time in ages
If you can find the silver linings, the news is finally getting a little better over at the number three largest carrier in the States after countless quarters of brutal numbers. Sprint still isn't turning a profit or earning net customer adds, but it's continuing to stem losses by posting its first sequential rise in revenue in almost three years, clocking just under $8.1 billion for the quarter; that's still less than the revenue it posted a year ago, but hey, at least it's an improvement over Q4 2009's roughly $7.8 billion. All told, that works out to a net loss of $865 million, which is also better than Q4's $980 million. Net wireless customers fell by 75,000 -- considerably better than Q4's 148,000 -- but net postpaid customers fell by a much larger 578,000, suggesting that Boost Mobile's aggressive marketing is probably working. That's all well and good, but it also likely means that ARPU is on a downward trend; Sprint claims it was flat sequentially and down a dollar from $56 to $55 year-over-year. All told, it seems the company's fortunes are improving by baby steps -- but is it fast enough? And how much is the EVO 4G going to mix things up?
Verizon posts first quarter numbers, gets bested by AT&T's
Verizon may have nearly six million more wireless customers in total than its closest rival, AT&T -- 92.8 million to 87.0 million, to be exact -- but that doesn't necessarily mean it's got the healthiest financials, as evidenced by the Q1 '10 numbers posted this week by the two companies. AT&T came through yesterday with $2.5 billion in income that would've actually been $3.1 billion had it not been for a one-time charge related to employee healthcare; Verizon, meanwhile, clocked just $400 million on revenue of $26.9 billion after $962 million in various charges (including one related to -- you guessed it -- healthcare). That compares to $1.6 billion in income in the same quarter last year, but it's still admittedly a good deal rosier than the net operating loss it posted in the last quarter after charges had been applied. For what it's worth, Big Red is quick to accentuate the positive by pointing out its 1.5 million organic net wireless adds and a significant increase in data revenue year over year -- 26.4 percent, in fact, a number for which it probably has the Droid to thank.
AT&T's Q1 results: earnings down thanks to one-time charge, NYC seeing 'solid improvements'
AT&T's first quarter results posted this morning look generally quite positive for the company -- it saw its highest first-quarter net wireless adds in history (1.9 million) and both postpaid and total churn are at their lowest levels ever, suggesting that subscribers are happier with their service than they have been in recent months, the thought of tantalizing hardware is keeping them around, they're too worn down to bother switching, or some combination of the above. Net income of $2.5 billion was down a bit year over year -- $600 million, to be exact -- thanks to a one-time charge related to some tax craziness that only accountants would fully comprehend, but had it not been for that, they'd be looking at having banked $3.5 billion. In other words, the numbers are looking good. At least the financial numbers are looking good, but what about those dropped calls? AT&T claims that Manhattan -- one of the hardest-hit areas in the country, if not the hardest -- saw a 6 percent improvement in the first quarter, with the New York metro area improving 9 percent overall. The promised third carrier rollout is claimed to be well underway, and as proof of all this noise, AT&T helpfully provides a pair of graphs -- graphs with no perceptible Y-axis units, mind you -- showing bigger bars and higher lines in the first quarter than in last. Of course, we still don't appreciate AT&T bringing its extensive WiFi network into the equation here; it's still totally non sequitur to the matter at hand, as far as we're concerned, since even the most extensive WiFi coverage is a drop in the bucket against WWAN footprint. Besides, if these guys can actually meet their proclaimed goal of offering both the fastest and the most reliable 3G data around, it's a moot point, right?
RIM's earnings just shy of expectations, expects boost next quarter
The latest quarter of earnings reported by RIM today was a bevy of pretty good news sprinkled in around one moderately negative piece -- quarterly revenue -- which missed the consensus estimate of $4.31 billion by about $230 million. Otherwise, though, the company set a new record for quarterly BlackBerry activations, raking in 4.9 million new accounts to bring the total to 41 million, and annual revenue grew 35 percent to $15 billion versus the year prior. Notably, co-CEO Jim Balsillie chimed in to say that the company is "off to a great start in fiscal 2011 and expect strong shipments, revenue, subscriber and earnings growth in Q1" to the tune of somewhere between $1.31 and $1.38 a share, which beats analyst estimates, so these guys must really like what they've got in store for the all-BlackBerry, all-the-time WES show in Orlando next month. That said, the company still closed down a little over a percent in trading today, so the bottom line -- missing your numbers for the quarter -- clearly counts for something.
Sprint turns in larger loss in fourth quarter, subscribers still leaving
Though you'd have to argue that Sprint is a leaner, smarter company than it was a couple years ago, it's not out of the woods yet. The company's fourth quarter earnings show that it's still losing money to the tune of $980 million -- a $502 million decline from the quarter prior -- and net wireless subscribers declined by some 148,000, though there's a lot of hand-waving here (iDEN lost 504,000 subs, for example, while the CDMA network actually gained 3,000, and there were a couple big acquisitions thrown into the mix). Churn decreased slightly against both the third quarter and the fourth quarter of '08 -- a good sign, to be sure -- and ARPUs were generally up, though prepaid ARPU specifically took a hit as a result of the Virgin Mobile buy; who knew that Virgin customers had lower ARPUs than Boost's? To end on a high note, Sprint says it's working with the highest free cash flow in company history and it saw its first net gain in CDMA subs (however small that gain might be) in six quarters, so there's reason to keep the faith -- and maybe this Supersonic can work some more magic, right?
Nintendo report hints at new Wii titles, Other M release
Nintendo is one of a few companies to release its earnings report earlier this week, and a supplemental report released today has some surprises and new information for Wii owners. Not only does it finally list a target date for Metroid: Other M (you can expect it as soon as summer of this year if all goes according to plan), but there are two brand new names in the list as well: Xenoblade and The Last Story. Xenoblade is listed for a Spring 2010 release, so we should be hearing about that one soon, and The Last Story is listed for sometime this year, with both slated for release on the Wii in Japan. There's reason to believe these are just new names, as both Monado: Beginning of the World and Cosmic Walker are missing from the report, and Monado was being developed by Monolith Soft, known most notably for another Xeno- title you may have heard of. But Monado is still listed for a release in the US this year, so who knows? Other than that, the report lists some titles we expected to see soon: A new Kirby Super Star title, Super Mario Galaxy 2, the Wii's Legend of Zelda, Golden Sun for DS, and a few other releases scheduled in 2010. Full list of Japanese Wii releases is after the break.
Motorola files another small profit in fourth quarter
Moto appears to be continuing its long, arduous road toward recovery on news of its financial results for the fourth quarter of '09 -- or, at the very least, it's not losing any ground. Overall, the company posted a meager profit of $142 million for the quarter on revenue of $5.723 billion, $14 million better than a quarter prior and a staggering $3.799 billion better than the same quarter a year ago. Breaking it down by division, Mobile Devices is still in the red, but not by terribly much -- it did $1.8 billion in sales with an operating loss of $132 million, while Home and Networks Mobility (the guys responsible for wireless infrastructure and set-top boxes) made $91 million on sales of $2 billion. Some 12 million handsets were shipped in the quarter alongside 3.4 million set-tops; that marks a downtick of 1.4 million phones from the third quarter, but as the company shifts focus to smartphones, it makes sense that would happen to a certain extent -- provided the company can keep margins high. The company expects to lose somewhere between 1 and 3 cents per share in the first quarter of 2010, so the recovery isn't complete yet -- but stemming the bleeding was an important first step.
Ericsson to cut 1,500 more jobs than expected in wake of nightmarish Q4 '09 earnings call
Just when you thought that infrastructure firms would be banking ridiculous quantities as carriers around the world kick off LTE trials and full-scale network upgrades, it looks like we're actually still stuck in a bearish period on Ericsson's news that its profit fell a whopping 92 percent to $43.4 million from the same period a year prior. Analysts probably thought the same, too, seeing how they'd reached a consensus estimate of 2.5 billion kronor (about $346 million) in profit, generally making this a quarter Ericsson would like to forget as quickly as possible. That'll be difficult, though, because it's currently on the path to cut several thousand jobs, which is where the other shocking half of this news comes into play: they've now bumped the total cuts from 5,000 to about 6,500, perhaps a side effect of the fact that new CEO Hans Vestberg sees the dead-in-the-water market "staying the same" so far against the fourth quarter. So c'mon, carriers of the world -- let's drop a few hundred billion into 4G upgrades right this second, shall we?
Sony Ericsson stems -- but doesn't stop -- losses in fourth quarter
Sony Ericsson still has a hell of a trek to get back on its feet, but by all appearances, it's taking baby steps toward that goal on news of its fourth quarter '09 earnings. The joint venture did €1.75 billion (about $2.47 billion) in sales in the most recent reported quarter -- an improvement of €131 million over the quarter prior -- and posted an operating margin of -2 percent, an improvement of 10 percent against the third quarter and the closest Sony Ericsson has come to turning a profit since 2008. Here's the problem, though: that operating margin reflects data before €150 million in restructuring charges. Once you factor that little problem into the equation, its net income is actually just as bad as it had been earlier in '09. So yeah, a mixture of good and bad news; maybe this X10 can make a dent, eh?
Palm loses $85.4 million in latest reported quarter -- hey, it's an improvement
We don't know just how quickly Palm (or Elevation Partners, for that matter) thought it'd become profitable following the release of webOS, but it's not there quite yet -- the company is in the process of outing its earnings for the second quarter of fiscal year 2010 right now, and in a word, they're still in the red. The good news is that it's a marked improvement from last quarter -- they've gone from a $164.5M GAAP net loss to an $85.4M one this time around. On a non-GAAP gross basis, they actually made $5.5M, which is up from $2.8M a quarter earlier. They've got $590 million in cash and other "short-term investments" on the book right now, which seems like it should be enough to keep the company going without a profit or additional cash infusion for at least a few additional quarters, but then again, burn rate is going to vary with just how much hardware and software R&D they're doing and the kinds of carrier deals they're scoring. We bet they're looking forward to this Verizon business going down, eh? Update: Palm's specifically saying that they're looking to grow carrier and geographic coverage right now -- a good plan, if we say so ourselves. Update 2: They've sold 784,000 phones in the quarter, which compares to 823,000 in the last -- a 5 percent drop. That's up 41 percent from the same quarter a year ago... but yeah, of course it's going to be way up from the pre-webOS days. Update 3: Over 800 apps in the catalog so far, once they graduate from the Early Access Program exclusivity, Palm foresees a "flood" of apps. No plans right now to change SDK strategy to a more native development environment.
Square Enix summons Earnings Report; Final Fantasy XIII Sales Projections evade attacks
Square Enix recently chose to attack with its annual earnings report, and among the 12-page PDF file's barrage of numbers, things look pretty good for the company. Net sales for the six months ending September 30, 2009 were up 33 percent over the same period last year to 91 billion yen ($1 billion), while operating income was also up by 39 percent to 13 billion yen ($144.5 million) over the same period last year. It's not all roses and Dragon Quest IX sales, however -- net income was down almost 58 percent to 2.7 billion yen ($30 million). The statement also talks about the acquisition and assimilation of Eidos in direct proportion to Square Enix's games group division -- which includes video games across all platforms and online games for personal computers. Through the aid of titles like Batman: Arkham Asylum, Kingdom Hearts 358/2 Days and the aforementioned Dragon Quest IX, the games division rose its net sales and operating income by 117 percent and 63 percent to 4.8 billion yen ($53 million) and 1.0 billion yen ($11 million), respectively. As for the company's upcoming darling, Final Fantasy XIII, Square Enix prez Yoichi Wada spoke about concern regarding the title's projected domestic sales. Basically, he's not concerned at all! "PS3 sales continue to increase. We're bundling PS3 and FFXIII, and can expect even further sales increases. Orders for FFXIII are definitely not bad," he said. While he didn't reiterate anything as bold as six million, Wada did claim that the game is expected to sell in the millions. Source - Square Enix earnings (PDF) [Via andriasang] Source - Wada comments on FFXIII sales
Sprint slows (but doesn't stop) subscriber loss in third quarter
Sprint's sort of the Motorola of the carrier world right now -- a once-great force in the industry that may or may not have recognized its shortcomings too late, and the drama is still unfolding before our very eyes. Its results for the third quarter of the year are a mixed bag, because on the one hand, it's nothing but red ink and fleeing subscribers -- but on the flipside, analysts seem to be pleased that the numbers are better than feared. Some 801,000 postpaid customers sought greener pastures in the quarter -- less brutal than the nearly 1 million lost the quarter prior -- and $478 million went flying out of the coffers; chief executive Dan Hesse says he expects customer retention to be a prettier (albeit still net negative) picture in the fourth quarter, so at least these guys are headed in the right direction and we imagine the Pixi will only help with that overall. The big question remains, though: will they turn it around in time to avoid a takeover?
Motorola posts small 3Q profit, picks new CFO
For Motorola, any profit at all is a Good Thing right now, so we're sure there are a lot of smiling faces out in Schaumburg today on news that the company managed just a smidge of black ink in the third quarter. The Mobile Devices division specifically turned in $1.7 billion in revenue (about $100 million less than the quarter prior) and accounted for a $183 million loss, which was offset by wins in the company's other divisions ultimately resulting in $12 million in bankable profit. The company says that it expects to push fewer handsets in the fourth quarter as it scales back "unprofitable" devices in favor of its new Android-based gear -- which is just fine by us -- and yes, indeed, it still intends to split the company into two entities when the time is right. In the meantime, the company has announced a permanent CFO -- Edward Fitzpatrick, who was conveniently already appointed to the position on an interim basis -- putting to bed some of the drama to bed that's surrounded Paul Liska, who vacated the post months ago on bad terms. All told, the DROID and CLIQ launches have cast a rosy glow on Moto's current situation, so now it's time to put the nose to the grindstone and see if these guys can deliver financially through the end of the year. Read - Earnings Read - CFO announcement
