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Nintendo posts Q1 loss on strong Yen and lower DS prices
Although foreshadowed, it's hard to believe that the once mighty Ninty, a company with unshakable profits even during last year's global economic downturn, just recorded a Q1 net loss of ¥25.22 billion ($288 million) compared to a net profit of ¥42.32 billion during the same 3-month period a year earlier. Revenues dropped from ¥253.50 billion to ¥188.65 billion. Lower DS portable gaming machine prices coupled with a strong Yen (86.5 percent of its sales were outside of Japan) helped pull Nintendo into the red. Regardless, Nintendo continues to forecast a full year net profit of ¥200 billion on revenue of ¥1.4 trillion. We'll see.
Gameloft Q2 sales up 15% (thanks, Apple!)
Reporting its second quarter financials for 2010, the unassailable Gameloft appears to remain unassailed. The company reports sales of €33.6 million ($43.6 million) for the second quarter, a gain of nearly 15 percent over the same period last year, which saw sales of €29.3 million ($38 million). Taking the first half of 2010 as a whole, sales have reached the devilish amount of €6.66 million ($8.65 million), an 11 percent increase over the €60.1 million ($78.1 million) earned in the first half of 2009. Gameloft pins the increase in sales on "increased market share in traditional Java and Brew phones as well as by the massive success enjoyed by Smartphones around the world." More specifically, the company's sales in the Apple App Store increased by a staggering 113 percent. With more smartphones (and devices like the iPad) on the way, and with digital distribution becoming more popular, Gameloft expects to sustain its growth through the end of 2010.
ARM beats revenue forecasts, swims in piles of gold coins
Mobile chip wunder-company and recent Microsoft BFF ARM Holdings has released its financial results for the second quarter, and the news is good. Real good. Revenues are up about 50 percent compared to the same period a year before and profits jumped a whopping 167 percent. ARM indicates its strong presence in the mobile market is the primary reason for this growth, citing an average of 2.6 ARM-based chips in every cellphone. New licensing deals, like the one with Microsoft, also buoyed that result. What's next for the company? 2.6 ARM-based chips in every baby, puppy, and kitty.
Atari sales down in Q1, online is the glimmer of hope
Atari announced that revenues were down 65 percent to €19.3 million ($25M) in the first quarter of its fiscal year ending June 30, 2010. The company didn't reveal any profit or loss data, but given its loss during the previous fiscal year, it's pretty safe to guess that Atari isn't doing so hot. Last year's Q1 included Ghostbusters and The Chronicles of Riddick: Assault on Dark Athena, while this year had, according to the company, "only one major game" ... Sandlot Sluggers. A small piece of "good news" during the quarter, which also included another major executive shuffle at the publisher, was that online revenues were up 320 percent to €8.4 million ($10.9M). The much-needed money injection was thanks to digital distribution sales and subscriptions for Star Trek Online and Champions Online. Some of the hopes Atari has for the rest of the year include the reboot of Haunted House in September, The Witcher 2 next spring and "numerous casual and social online game releases based upon Atari's classic video game brands."
Verizon posts $198m net loss, picks up healthy amount of new wireless subs
Verizon Communications, the majority shareholder of Verizon Wireless, just tossed out its Q2 2010 earnings, and unlike the majority of the other big boys we've seen, this company actually lost money over the past few months. All told, the mega-corp posted a $198m net loss compared to a $1.48b net profit this time last year, but if you were to exclude "special charges" for a workforce reduction, Verizon as a whole would've seen net profits of $0.58 per share. When focusing strictly on mobile, Verizon Wireless managed to pick up 1.4 million net customer additions, which is 200,000 shy of the 1.6 million that AT&T recently picked up. What's crazy is that one carrier has the iPhone while the other doesn't, and it doesn't take the imagination of Peter Pan to figure out how those numbers would shift if Apple's smartphone somehow picked up a CDMA radio and headed over to Big Red. Other fun facts about VZW's second quarter include a 3.4 percent uptick in total revenues year-over-year, a 5.2 percent increase in service revenues and a staggering 28.3 percent boost in data revenues. With all that cash flowing in, is there really a need for these newfangled caps? Consumers say "no," but Sir Capitalism says "yes." Update: We've been pinged by Verizon and given some clarification to the awful mess known as filing quarterly reports in accordance with GAAP with varying shares of ownership. We also learned that Verizon Wireless added 665,000 new net wireless customers under contract in the prior quarter, whereas AT&T added 496,000 contract customers. It's pretty easy to make these numbers say whatever you want them to, apparently.
XBLM sales surpassed Live subscriptions as Microsoft Xbox Div. income grew in fiscal year
Microsoft has posted financial results for its fiscal fourth quarter and year, which ended June 30. The Entertainment and Devices Division (EDD), of which the Xbox 360 and PC gaming business are a part of, posted revenues of $1.6 billion for the quarter, up from $1.25 billion during the same period last year. Revenue exclusive to the Xbox and PC gaming business was up to $228 million, a 30 percent increase. EDD also posted an operating loss of $172 million, which grew for the $141 million recorded during the same quarter last year. Factors contributing to the loss included increased marketing costs, increased third-party sales on Xbox Live Marketplace and the discontinuation of the KIN phone. Microsoft's full fiscal year 2010 report paints a brighter picture, with the EDD posting an operating income of $679 million, up from $108 million in fiscal 2009, an increase of 528 percent. The increased income was due primarily to reduced operating expenses. Revenue costs also decreased $528 million, thanks largely to lower Xbox 360 production costs. Fiscal 2010 revenues were essentially flat at just over $8 billion. Additionally, Microsoft moved 1.5 million Xbox 360 consoles during the quarter, compared to 1.2 million during the fourth quarter of fiscal 2009. In all, 10.3 million consoles were sold in fiscal 2010, down from 11.2 million the previous year. Meanwhile, Xbox Live now has 25 million members, and our cohorts at Engadget report that Xbox Live Marketplace revenue has exceeded Xbox Live subscription revenue for the first time.
Kin listed as at least $240 million writeoff in Microsoft earnings report
Here's a tidbit in today's Microsoft quarterly earnings that we previously overlooked: a $240 million cost of revenue "primarily... resulting from the discontinuation of the Kin phone, offset in part by decreased Xbox 360 console costs." In other words, the company took at least a quarter billion hit due to manufacturing, distribution, and support costs of the Kin (according to Microsoft's definition of "cost of revenue"). We don't know how much Xbox 360 offset, unfortunately, but we can add this figure to the $500 million Danger acquisition and the full marketing cost for the product (which we also don't know, but anecdotally, it was on par with other major campaigns) to reach... well, at least $800 million in regret for the folks in Redmond.
Ubisoft fiscal Q1 sales up 94% over last year
Ubisoft has released a preliminary report on its fiscal first quarter, which ended June 30, revealing that software sales totaled €161 million ($207.8M). The company recorded a 94 percent revenue increase over the same period last year thanks to sustained sales of Assassin's Creed 2, Just Dance and Avatar. The company also reported "solid performance" from Splinter Cell: Conviction and shipped 1.9 million units of the game during the quarter. Ubisoft will reveal actual profit (or loss) figures for the quarter at a later date. The company expects sales in the second quarter, which concludes at the end of September, to be flat year-over-year at an estimated €83 million ($107M). The company's Q2 releases are "highlighted" by plans to ship HAWX 2, Racquet Sports and R.U.S.E. -- although the strategy game has been known to live up to its name when it comes to sticking to a release date.
Microsoft reports $4.5b in profit, a record $16.04b in revenue
This time last year, almost to the day, Microsoft saw its first annual sales decline in history. Things are looking much better now, with the company reporting a record $16.04 billion in revenue, a 22 percent year-over-year increase for its Q4 revenue ending June 30th. In fact, revenue is up across all divisions, with Windows and Windows Live seeing the biggest uptick (43.5 percent to $4.55 billion) followed by Entertainment and Devices (27.3 percent to $1.6 billion). Operating income, on the other hand, paints a different picture of E&D, showing a $172 million loss for this quarter (compared to $141 loss in Q4 last year), but looking over the entire fiscal year, the home of Xbox and Zune this year did $679 million in operating income -- a sizable jump to the $108 million from 2009. The overall operating income for the company is $5.93 billion this quarter (net income $4.52 billion), a 49 percent increase over last Q4, and $20.36 billion for the year (18 percent compared with fiscal 2009). We know you're interested in comparisons, so we'll just go ahead and break it down for ya: the gang in Redmond is still beating Apple in both revenue ($16.04 billion vs. $15.7 billion) and profit ($4.52 billion vs. $3.25), but that margin feels smaller than it used to. Enough to keep the rumored pressure off Ballmer? Frankly, we don't even think biplanes could knock the man off the top of a tower, but Windows Phone 7 has a lot to prove, and fast. Microsoft is hosting a webcast of its report later today -- usually much ado about nothing, as far as we're concerned, but we'll listen in and let ya know if anything interesting pops up. Update: Some interesting Xbox 360 statistics. 1.5 million consoles were sold this last quarter. Xbox Live has 25 million members, and for the first time since its inception, the revenue from the Marketplace exceeded subscription revenue.
Nokia quarterly profits drop 40 percent year-on-year as CEO says speculation must end 'one way or another'
Olli-Pekka Kallasvuo was already a man in a hot seat and these latest numbers will do little to lower the temperature. Nokia's net profit for Q2 2010 was €221 million, which most companies would be happy with were it not for the fact that this company pulled in €380 million in the same quarter last year -- and that's with 2009, as Nokia's own report indicates, representing an economically tougher environment. Average selling prices for Nokia handsets used to be €64 back then, which dipped to €62 in the first quarter of this year, and is now at €61. Nokia says this has been caused by price pressures, "particularly in certain high-end smartphones," and though the change may appear small, a Euro's difference tends to be amplified when you're shifting upwards of 111 million units each trimester. For his part, OPK has said that the speculation about him being replaced isn't doing Nokia any good and he's determined that it "must be brought to an end one way or another." Guess we better keep an eye on this one then.
Apple posts record $3.25b profit in first full quarter of iPad sales, says more 'amazing products' coming this year
Apple just posted up its third quarter earnings -- its first full quarter selling the iPad -- and, well, it's raining cash in Cupertino. The company posted a record profit of $3.25b on record revenues of $15.7b, which is up from $1.83b and $9.73b from a year ago. The big stat? Apple sold 3.27 million iPads, nearly matching the 3.47 million Macs sold -- and Mac sales were up 33 percent from a year ago to set a new quarterly record. Yeah, damn. iPhone sales -- including the first few weeks of the iPhone 4 -- were up 61 percent from a year ago to 8.4 million, and the iPod continued its slow decline, down eight percent to 9.41 million units sold. Over half of the Apple's sales -- 52 percent -- were international, and Jobs is quoted saying "we have amazing new products still to come this year." Not a bad way to head into back-to-school and the holidays, we suppose -- we've got a feeling those iPad numbers are just going to go up. The conference call to discuss all this is at 5pm ET, we'll be covering it live right here. Update: The call is all done -- the full liveblog is after the break. We didn't learn too much apart from the fact that Apple's selling every iPhone and iPad it can make (Tim Cook repeated this over and over), and that Apple's setting aside $175 million in revenue to cover the free iPhone 4 cases. Of course, given that Apple added an additional $4.1 billion in cash to its warchest this quarter for a total of $45.8 billion, that's pretty much pocket change, but there's the number.
AMD has record $1.65B second quarter, still loses a little money
First, the good news: AMD pulled in $1.65 billion in revenue -- a record for the second quarter! Now, the bad news: the company still lost money. Just a (relatively) little bit, though, with a net loss of $43 million or $.06 per share. That's five percent more revenue than the first quarter of 2010, and a massive 40 percent boost over the second quarter of 2009, in which it lost $330 million net. What changed? Sales of graphics hardware in particular, up eight percent over last quarter and a huge 87 percent from last year, driven by success of the Radeon HD 5000 series graphics cards. Likewise, sales of mobile processors were up 18 percent over last quarter. Net profitability? Keep this up, AMD, and it's not far off.
Intel has its best quarter ever, brings in $2.9b profit
Sure, smartphone and tablets might be the Next Big Thing, but desktop computing ain't dead yet -- just ask Intel, which just reported its best-ever quarter with a $2.9b profit on $10.8b in revenue. That's an increase of $445m in profit from last quarter and a whopping $3.3b from last year, all driven by record laptop and server chip revenue, as well as a 16 percent increase in Atom revenue. What's more, the average sale price of all those chips went up, and selling more chips at a higher price is always good for business. Intel's got a call to discuss these numbers in depth at 5:30PM ET, we'll let you know if we hear anything good.
HTC quarterly profits improve by a third, beat even its own lofty expectations
We were impressed with HTC back in April when it forecast a record $1.6 billion revenue for itself over the second quarter, but lo and behold, the Taiwanese superphone maker has gone and outdone that with a $1.88 billion income over the period between April and June. Reporting a very solid 33 percent improvement in profits year-on-year -- $268 million versus $202 million 12 months ago -- the company points to strong sales (no doubt catalyzed by Android's growing popularity) as the chief culprit for its newly increased tax bill. Guess that shows that having a wide catalog of high-end devices doesn't preclude raking in the cash, provided they're all desirable enough to garner mind and market share.
Atari reduces losses in fiscal year, increases online revenue
Atari has posted its financial results for its fiscal year 2009 (ending March 31), and, while the company still reported a loss, it's a definite improvement over last year. The company managed an operating loss of €22 million ($26.84 million) for the fiscal year, a substantial improvement over the previous year's operating loss of €68.9 million ($84.05 million). Overall, net losses for last fiscal year totaled just €19.4 million ($23.66 million), a huge improvement over the previous year's net loss of €221.9 million ($270.68 million). (It should be noted, however, that the sale of Atari's European distribution business to Namco Bandai was responsible for €90.8 million ($110.76 million) of the previous year's loss.) For fiscal 2009, Atari posted overall revenues of €115.7 million ($141.13 million), down from €136.4 million ($166.38 million) the previous year. Revenue was fueled by growth in digital distribution sales and online game subscriptions, totaling €12.5 million ($15.28 million); a jump of some €9.9 million ($12.08 million) over last year. Star Trek Online and Champions Online were specifically name-dropped as driving forces in this area. Meanwhile, Atari's new focus on fewer, more profitable titles caused retail revenues to fall to €103.2 million ($125.88 million), a decline of €30.6 million ($37.33 million) over the previous year. Atari hopes to show "considerable improvement" in operating income in fiscal 2010 (Apirl 2010 – March 2011), which will be led by new installments of Backyard Sports (one out this week and one this holiday), Test Drive Unlimited 2 (in September) and The Witcher 2 (next spring). Additionally, the company plans to release "a series of retail, XBLA, PSN and PC download releases based upon Atari's classic video game brands in the second half of the year." Atari will also release "numerous casual and social online game releases" based on its well-known brands. [Via Big Download] Source - Atari Second Half and Full Year 2009/2010 consolidated results (PDF)
New game sales up in GameStop's fiscal Q1
GameStop reported earnings for its fiscal first quarter (February–April). Sales are up five percent over the first quarter of 2009, to $2.08 billion. Some of that growth is no doubt due to strong sales of new games. The retailer announced that new software sales increased 13.3 percent in the quarter -- a trend that the GameStop should be happy to see, now that EA and THQ are taking aim at the used games business. The company identified five games in particular that drove revenue growth: Battlefield Bad Company 2, God of War 3, Final Fantasy XIII, Pokemon HeartGold and SoulSilver, and BioShock 2. We all love buying sequels at GameStop, apparently.
SouthPeak made a molehill of profit last quarter
SouthPeak Interactive bounced back from a quarterly net loss of a couple million dollars, pocketing $192,000 in profit for the third quarter (January–March) of its fiscal year ending June 30 -- time to splurge on Charmin for the executive bathrooms! Despite the profit, net revenues during the quarter were down to $7.5 million, compared to $13.5 million during the Q3 last year. Total revenue for the first nine months of the fiscal year was reported to be $34 million, also down compared to the $39 million during the same period in fiscal 2009. With its legal issues apparently over, hopefully SouthPeak can focus on making its My Baby franchise grow up big and strong. The company also plans to build a better kingdom, announcing that it has acquired the rights to Firefly Studios' Stronghold 3.
HP says webOS coming to slates and web-connected printers
We joked about HP printers running webOS almost the second we learned about the Palm acquisition, but it turns out that's actually part of the plan: HP CEO Mark Hurd told analysts that webOS would hit a "variety of form factors, including slates and web-connected printers" on the company's Q2 financial results call today. webOS tablets were obviously a no-brainer, but printers are slightly more intriguing, in a way: while we're not overly surprised HP wants to leverage webOS on its line of advanced touchscreen printers, we're very curious to see what that actually looks like in practice -- a printer with Synergy-level Facebook integration for easy photo printing? A printer that can play 3D games like Need for Speed? A printer that can... multitask? The possibilities are amusingly endless, if you think about it -- and HP's printing and imaging division is a $6.4 billion dollar business, so the money and motivation to push this idea into strange new places are certainly there. Speaking of money, HP's doing just well on that front in general: profits were up 25 percent this quarter to $2.9 billion on total revenues of $30 billion, so yeah -- Palm certainly has the money and resources it's desperately needed. Now it just needs some new products and sharper execution.
Square Enix announces FY2009 results, revenue up 42%
Square Enix was riding high on the sales chocobo in its latest fiscal year results (ending March 31, 2010), with ¥192 billion ($2.07 billion) in revenue, up an impressive 42 percent from last year -- especially in this global economy. Profit was up over 50 percent, adding ¥9.5 billion ($102.7 million) to the guild bank. The top-selling games during the fiscal year were Final Fantasy XIII, Dragon Quest IX and The Batman's adventure in Arkham Asylum. Naturally, the company's games division brought in the big bucks with ¥109.9 billion ($1.18 billion) in sales, up 128 percent. Surprisingly, the mobile phone division, despite having high-profile games, including Final Fantasy I & II, saw revenues drop seven percent to ¥10.1 billion ($110 million), but operating income was up by eight percent to ¥4.6 billion ($49.7 million). Squeenix expects to have sales drop 17 percent this fiscal year to ¥160 billion ($1.73 billion), but profits to increase to ¥12 billion ($130 million).
Ubisoft reports $76.2 million operating loss in fiscal year 2009-10
Ubisoft today released its financial earnings report to investors for fiscal year 2009-10 (ending March 31), reporting sales of €871 million ($1.1 billion) with an operating loss of €60 million ($76.2 million). CEO Yves Guillemot softened investor reaction by saying: "The global economic crisis had a pronounced impact on the video game industry in 2009, which contracted by nearly 10 percent year-on-year. Ubisoft's sales were hit particularly hard, falling 18 percent over the full year despite a stabilization in the second half of the year." Ubi's Q4 sales were up 1.9 percent year-over-year to €210 million ($266.7 million), outpacing internal guidance by €10 million ($12.7 million). The company says the inflated numbers are due partially to "a strong increase in sales of Just Dance," the "ongoing exceptional performance delivered by Assassin's Creed 2 which sold-in nearly 9 million units during the year," and higher-than-expected sales of both Red Steel 2 and Avatar. And Guillemot predicts a sunnier 2010-11. "We forecast a return to profitable growth in 2010-11 with positive cash flow generation, driven by a games line-up that is more closely tailored to growth segments based on strong franchises." He also notes his excitement for new technology driving increased sales, saying, "Lastly, the upcoming launches of new consoles, including Natal and Sony Move, should enable us to capitalize on the technology investments that we have undertaken in recent years and re-energize the casual games segment." Source -- Ubisoft FY2009-10 Sales & Earnings Report (warning: PDF link)
