Earnings reports
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T-Mobile sells 500,000 iPhones in less than a month
T-Mobile announced its earnings for the opening quarter of 2013 and confirmed it has sold 500,000 iPhone handsets since it started selling the phone on April 12. That's a half a million iPhones in a little over three weeks, which is very good for a phone that's been on sale for eight months at competing US wireless carriers. We were expecting strong sales as T-Mobile Chief Marketing Officer Mike Sievert hinted that the launch was "gangbusters." In Q1 2013, T-Mobile also kicked off its Simple Choice cellular plans that drop the contract requirement on the cellular service and offer customers the option to pay for their phone outright or through monthly installments. It also launched its 4G LTE network in seven major metropolitan areas. As a result of these initiatives, T-Mobile added 3,000 net branded customers. This is the first time the carrier has reported branded customer growth since Q1 2009.
Toshiba Q2 results: profit of $722 million, whole-year forecast cut by $500 million
Toshiba has managed to pick itself up this quarter, recording $17.8 billion in sales, making for an operating profit of $722 million over the past three months. The "social infrastructure" segments recorded a healthy profit ($518 million), while income from digital products, home appliances and electronic devices fell due lower than expected demand. Forecasts for the year have been cut for the full year by approximately $500 million to $3.26 billion, as Toshiba expects lowers sales and operating profits due to the uncertain global economic situation. Individual segments are expected to continue their distinct trends, with the social infrastructure business pulling in more while its other arms bear the brunt of the economic slowdown. [Image credit: Wikimedia Commons]
AT&T activated 4.7 M iPhones in Q3 2012, gains iPhone subscribers
AT&T announced its quarterly earnings on Wednesday and confirmed that it activated 4.7 million iPhones in the third quarter of 2012; 18 percent of these iPhone owners are new to the company. This figure closely matches the 4.8 million iPhones that the carrier activated in the same quarter last year and is up from the 3.7 million it activated in Q2 2012. In the quarter, the carrier sold a total of 6.1 million smartphones and reported a 6.6 percent increase in wireless revenues.
Netflix Q2 2012 earnings: 530,000 more US subscribers and a return to profitability
Netflix recently let it drop that its users clocked in more than one billion hours of content-viewing in the month of June alone, although the big question for CEO Reed Hastings is how that relates to the company's subscriber base. The results are in from its Q2 2012 earnings report, and it's claiming 27.56 million streaming subscribers worldwide, up from 26 million last quarter. In the US alone that includes 23.94 million customers, after it reported 23.4 million in Q1, while DVD customers dropped by 850k to 9.24 million. While the number of new subscribers wasn't as high as some had hoped, the good news is the company is finally back in the black, with $889 million in revenue providing $6 million in net income. On the flip side, a plan to launch service in an "additional attractive European market" in Q4 is expected to result in temporary losses, but we'll find out more about those plans later in Q3. One other issue that has been resolved is the search for a new Chief Marketing Officer resulting in the hiring of Kelly Bennett, formerly a marketing executive with Warner Bros. This morning Verizon and Redbox began to carefully pull back the cover on their competing offering, and Amazon has also been making significant waves in the space. However in response, Netflix says Amazon and Hulu Plus have yet to gain meaningful traction in relation to its viewing hours, and it expects Redbox Instant to face a "big challenge" to break into the existing top 3. Its current content deal with Epix will lose online exclusivity "shortly" although it will still offer those titles, we'll see if any of the competition joins in. Their biggest competition however, is expected to come from efforts like Comcast's new X1 and Sky's Now TV, while for HBO, the possibility of cooperation is actually raised (again). We'll see if that happens or if there are any more juicy details revealed on the investor call in a few minutes.
DirecTV adds 81,000 subscribers during Q1 in the US, increases revenue by 12 percent
Unlike with Comcast, Wall Street experts weren't surprised by DirecTV's latest Q1 results -- in fact, they were quite disappointed. The satellite provider only managed to add 81,000 subscribers in the US of A during the quarter, which is more than a 50 percent decrease compared to last year's Q1 (184,000). Meanwhile, DirecTV did see a 12 percent increase in revenue, pushing the total to about $7.05 billion. That last bit thanks in large part to landing over 590,000 new customers in Latin America, though that didn't keep its current share price from dropping about 2.7 percent to $46.60. Nonetheless, DirecTV CEO, Mike White, says his company "delivered another strong quarter [..] highlighted by double-digit revenue, EPS and cash flow growth." Us? Well, we're wondering why those "roadside ditch" commercials aren't luring more Stateside folks away from cable...
Motorola Solutions reports Q1 2012 sales of $2 billion, expects jump in Q2
Motorola Solutions (MSI) -- the less familiar Motorola that makes radios, barcode scanners and such for government and enterprise sectors -- just posted sales of $2 billion for the first quarter of 2012. This is a seven percent boost over Moto's results from the same period last year, and that growth reflects an 11 percent jump in government sales. It wasn't all rosy for Motorola this quarter, though: Profit was down two-thirds to $157 million, and sales to large businesses slipped two percent. MSI (not that MSI) expects second-quarter sales to grow six percent compared to last year's earnings, so it doesn't look like government clients will be dropping those wearable displays any time soon.
Sprint sold 1.5 million iPhones to new customers in Q1
Sprint announced its quarterly earnings on Wednesday and the results were disappointing as expected. The carrier posted a net loss of US$863M and cash reserves are now at a razor thin $7.6 billion. In the midst of this doom and gloom, one bright spot for Sprint was the iPhone. The carrier said in its earnings report that it sold 1.5 million iPhones in the opening quarter. It's a slight drop from the 1.8 million it sold in Q4 2011, but this dip is expected after a holiday quarter. Sprint still trails Verizon Wireless which sold 3.2 million iPhones and AT&T which sold 4.3 million. Of those buying an iPhone with Sprint, 44 percent were new customers. Sprint said in its earning conference call that 40% of those new Sprint iPhone users reportedly broke a contract to switch to the carrier. About 60% would not have switched if Sprint didn't have the iPhone. The iPhone is not only increasing sales, it's helping Sprint keep customers, too. The carrier said that iPhone churn rate is low, with significantly less iPhone users asking for support or returning their phone when compared to other smartphone users. Sprint didn't come out and say it, but it's becoming increasingly obvious that the cornerstone of Sprint's smartphone business is the iPhone.
Apple's Q2 2012 earnings call scheduled for April 24
Apple confirmed on its investor website that it will disclose its Q2 2012 financial results on Tuesday, April 24 at 2:00 pm PT (5:00 pm ET). Just like it has done in the past, Apple will provide an audio webcast of the earnings conference call.
HTC's 2011 Q4: good summer, bad winter
HTC's big 2011 was limited to those warm summer months, when everyone wanted a smartphone for the beach. Now the accountants have confirmed HTC's initial statement: fourth quarter revenues were down 2.49 percent (year on year). It made 101.42 billion Taiwanese dollars (just under $3.5 billion) in the last three months of the year, which looks worse than it is because of the blockbuster 135.8 Taiwanese dollar takings in Q3. Overall year on year revenue was up by 67.09 percent, but profits were down 11.88 percent, with the company saying the outlook won't get any better in the first quarter, but should pick up when it begins the process of shedding a few pounds phones.
Intel reports record 2011 earnings, bests Q4 estimates
Intel just released its fiscal year-end numbers, including its Q4 report, and things are indeed looking up for the company. After revising its final quarter estimate late last December on the heels of supply chain reductions, the chipmaker posted $13.9 billion in revenues on the strength of its PC client and data center group, beating its prior goal of $13.7 billion, but still falling well under its initial $14.7 billion target. As for its full year performance, well it appears this is one for the books, considering revenues grew to $54 billion -- a $10 billion plus year over year boost -- with profits coming in at $12.9 billion, leading 2011's statement to "[eclipse] all annual revenue and earnings records." And with Ultrabooks lingering just on the horizon, the company expects business to continue to boom well into 2012. Need a more detailed look at Intel's bottom line? Then click on past the break for the official PR.
T-Mobile USA Q3 2011 earnings: income and smartphone subscribers rise, net income at $332m
T-Mobile USA issued its third quarter financials, and things are looking up over last quarter -- if only just slightly. The carrier posted service revenues of $4.67 billion -- that's a modest 0.1 percent increase over the second quarter, but down 0.9 percent over this time last year. Net income, meanwhile is at $332 million -- up 57-percent from Q2 2011 and four-percent from Q3 2010. The quarter also saw the addition of 126,000 customers (includes postpaid and prepaid users)-- a marked improvement from the loss of 50,000 last quarter. The only major US carrier without an iPhone is currently host to 33.7 million customers -- 10.1 million of whom own a 3G/4G smartphone, the latter of which is a 40 percent jump over this time last year.
Samsung to offer flexible displays in 2012, challenges Nokia to a twist contest
Flexible displays? Samsung's got 'em, too. A few days after Nokia showed off its Kinetic Device prototype under the blue lights of Nokia World, Samsung made mention of its own plans to unleash some bendy mobile devices on the world. A spokesperson for the company was scarce on details, but noted that the flexible displays are targeted for 2012. The technology, which was showcased at this year's CES, will initially be incorporated into handsets, with tablets following down the road.
Intel earnings beat company records: $14.3 billion revenue, $3.7 billion net income
Apple may not have fared as well as expected in its own Q4, but just up the road in Silicon Valley Intel managed to exceed analyst predictions, posting record revenue of $14.3 billion -- up $3.2 billion, or 29 percent year-over-year. The company also set new records for microprocessor units shipped, and expects further growth over the next quarter, with notebook computer sales driving $14.7 billion in predicted Q4 revenue. Jump past the break for an in-depth look at the company's Q3, along with its outlook for the next quarter.
Sony Ericsson's Q1 profit falls 48 percent on weak sales, low supplies
We knew Sony Ericsson's supplies were tight following the recent natural disasters in Japan, but in retrospect it's clear the phone maker was already having a rough quarter. The company released its Q1 earnings today, and reported that its profit fell 48 percent to €11 million ($15.8 million) due to weak sales -- a shortfall compounded by higher taxes and quake-related supply constraints. To be fair, at this time last year, the company earned money after a sweet tax benefit, so its profit wasn't completely built on strong sales. All told, it sold 8.1 million phones in the most recent quarter -- down 23 percent from the same period a year ago, though the average selling price for handsets ticked up 5 percent. In particular, smartphones accounted for 60 percent of the company's sales, though by the company's own estimate, it's only snagged 5 percent of global market share. And, it seems, Sony Ericsson's management team isn't getting too ambitious -- it forecast just a "modest" uptick in overall phone sales in 2011.
Redbox passed 30,000 kiosks in Q4 2010, but still missed financial expectations
Redbox may be a red-logoed stepchild compared to industry darling Netflix, but according to its parent company Coinstar's Q4 earnings call, it still managed to pass the 30,000 kiosk milestone, increase market share to 30 percent and grow DVD revenue by 38 percent to $319.6 million. Combined with blowing by one billion rentals back in September and avoiding a lawsuit with Fox, the news would have culminated in champagne and karaoke for Coinstar shareholders... except for one thing: new releases underperformed during the last quarter along with Blu-ray rentals. Coinstar CEO Paul Davis was quick to bolster investor concerns on the call, however, stating company management had taken "definitive steps to correct the issues" and was ready to "leverage the First-sale doctrine" -- which refers to a Supreme Court ruling limiting the control of copyright holders over the re-selling of its property -- should studios get sassy in future distribution negotiations. More updates on the company's streaming plans didn't materialize, though, so you'll have to chuck those dreams of instant rental gratification for a buck back in the deep freeze at least in the near term. Otherwise, hit up the source links below to ogle data tables to your heart's content.
AT&T activates 4.1 million iPhones in Q4 2010
AT&T announced its quarterly earnings and confirmed that it activated 4.1 million iPhones in the final quarter of 2010. This number is down 1.1 million from the 5.2 million activated in Q3 2010. The wireless carrier posted its best-ever quarterly growth with the addition of 2.8 million net subscribers. Yearly, the company added 8.9 million net subscribers. The wireless carrier overtook Verizon Wireless as the nation's largest wireless carrier last year, with 95.5 million subscribers versus Verizon's 94.1 million. In its last pre-iPhone quarter, Verizon added only 955,000 subscribers, almost one third less than its rival AT&T. With the iPhone 4 slated to land on Verizon in February, the two carriers may jockey for this #1 position over the next few months. Tablets were also a strong performer for AT&T in Q4 2010. The carrier activated 442,000 tablets in Q4 2010, which include both the Apple iPad and Android tablets such as the Dell Streak and the Samsung Galaxy Tab. Both the iPhone and iPad contributed to AT&T's 27.4 percent growth in wireless data revenues, up $1.1 billion from the year-earlier quarter. Looking ahead, AT&T expects continued subscriber gains and strong smartphone sales. AT&T admits that reliable projections may be difficult to make due to volatility from the Verizon iPhone. While iPhone activations may decline, the carrier expects Android, BlackBerry and Windows Phone handsets as well as tablet devices, like the iPad, to pick up the slack.
Qualcomm has best quarter ever, teases a host of Snapdragon tablets
If you've got a speedy Snapdragon in your smartphone, Qualcomm's the one to thank -- but considering the raw earnings figures shared yesterday, your dollars have applauded the firm enough already. Qualcomm reported record earnings of $3.35 billion for its first fiscal quarter of the year, up 25 percent since Q1 2010, and it raked in a nice fat $1.17 billion of that in profit, 39 percent more than last year. That's thanks to shipping 118 million of those Mobile Station Modem (MSM) chips that power mobile devices, as well as other ventures, and the company expects revenues to continue their upward bent as 2011 progresses -- thanks to new devices on the way. Qualcomm EVP Steve Mollenkopf told investors that "we currently have more than 150 Snapdragon devices in development, including more than 20 tablets," and that the dual-core 1.2GHz MSM8660 in particular was picking up steam, with over 60 devices slated to use the dual-mode chipset with HSPA+ and EV-DO Rev. B. What of a groundbreaking deal with Apple to power new iPhones and iPads? CEO Paul Jacobs wouldn't say: "We're happy to see the Verizon iPhone announcement since it's been the subject of intense speculation, but we have no other comments on that topic." Guess we'll have to wait and see.
Bloggers and analysts predict Apple's Q1 2011 performance
Independent financial bloggers have traditionally been closer to the mark in predicting AAPL revenue and earnings than professional analysts, and one day away from the Apple earnings call, the differences are quite large -- about $2 billion dollars large. The professional analyst word on the street expects Apple to report earnings of US$5.38 per share for the first fiscal quarter of 2011, up from $3.67 per share for the same quarter last year. Revenue is expected to increase by a whopping 55 percent to $24.3 billion, with an increase in growth across the board on all Apple products except the iPod. This time the gap is the largest difference on record according to Fortune's Apple 2.0. In a survey of 10 amateurs and 44 professional analysts, the difference is quite dramatic. The consensus of the amateurs prognosticates that Apple will come in with revenues of $26.4 billion, a gap of $2.1 billion dollars or 8.6 percent. The difference in earnings per share (EPS) is even larger; it's forecasted by the bloggers as $1, or a full 18 percent higher than street estimates. Our old friend Gene Munster, senior analyst for Piper Jaffray, comes in on the low end, predicting that revenue will be reported to be $23.3 billion with an EPS of $5.06. It's not inconsequential to note: in light of Steve Jobs' medical leave of absence (get well soon, Steve), none of this has anything to do with Apple stock price tomorrow since I would expect the price to jump all over the place. This is despite German AAPL trading down 6 percent on the unfortunate news. A down opening of AAPL is expected by all, but by how much is anyone's guess. Please join us tomorrow at 5 PM Eastern for our live blog of the earnings call. Note: The author is an Apple shareholder, and this post should not be construed as financial advice.
AMD sees a tablet chip in its future, and an end to the core-count wars
AMD told us that it wasn't terribly interested in the iPad market, and would wait and see if touchscreen slates took off, but CEO Dirk Meyer changed the company's tone on tablets slightly after reporting a $118 million net loss (on $1.62 billion in revenue) in a Q3 2010 earnings call this afternoon. First revealing his belief that tablets will indeed cannibalize the notebook and netbook markets, he later told investors that he actually expects AMD's netbook parts to start appearing in OEM slates in the next couple of years, and that AMD itself would "show up with a differentiated offering with great graphics and video technology" when the market becomes large enough to justify an R&D investment. Elsewhere, AMD CTO of servers Donald Newell prognosticated that the number of individual CPUs on a chip won't go up forever: "There will come an end to the core-count wars," he told IDG News. Just as the megahertz race was eventually defeated by thermal restrictions, so too will the number of cores on a chip cease to increase. " I won't put an exact date on it, but I don't myself expect to see 128 cores on a full-sized server die by the end of this decade," he said. So much for our Crysis-squashing terascale superchip dreams, we suppose.
It's the iPod touch's time to shine
The iPod touch is like that really hot cheerleader you already wanted to talk with, but were a little too afraid to approach. It shines on its own by simply existing. It's the iPhone without the phone, a competent gaming platform, has the capacity its iPhone sibling dreams of, and it's extremely popular. But, now the iPod touch has come into its own. During September's media event, Steve Jobs revealed that the touch is Apple's top-selling iPod. But, as Fortune magazine points out, the company has never shared the number of iPod touch units sold with investors. Will this change with Monday's quarterly earnings? It's hard to say, but Fortune polled a number of analysts who gave it their best guesstimate of the number of iPods units (classic, shuffle and nano included) sold. The numbers range from a little over 8 million to slightly above 11 million for the third quarter of 2010. Other bloggers estimate that roughly 38 percent of iPods sold are iPod touches. The iPod touch hasn't ever had the glitz or glamor of its older iPhone and iPad brothers, but it's a solid player in Apple's lineup for sure.
