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Apple announces Q1 earnings, sets quarterly record with $46.33 billion in revenue
It's that time folks: time for the quarterly running of the spreadsheets. Today Apple, one the most anticipated of all, is revealing its earnings for the past three months and let's just say things are lookin' pretty good for the Cupertino crew. The company set a new record for quarterly revenue and profit in Q1 of 2012, netting $46.33 billion in total with $13.06 billion earnings -- the latter number representing about half of the company's annual profit. That's nearly twice what Apple announced for the same (at the time record-setting) period last year -- $26.74 billion and $6 billion, respectively. In total the company shipped 15.4 million iPads, 15.4 million iPods and 5.2 million Macs this quarter. That last number is particularly surprising since it represents a growth of 26 percent over last year, bucking trends that indicated PC growth would remain flat. Even the Apple TV enjoyed a record quarter, selling 1.4 million units.Perhaps more importantly, though, the company sold just over 37 million iPhones -- a 128 percent increase over the same quarter last year and greatly exceeding industry estimates. This also moves Apple back into the number one slot, ahead of Samsung which sold a stunning 35 million units this last quarter. Sales of iPhones and accessories accounted for 24.4 billion of the quarter's revenue. Apple also anticipates to have a strong Q2, though maybe not a record-breaking one, thanks to "some amazing new products in the pipeline." But even if Q2 turns out to be a slow one, Cupertino should be perfectly fine thanks to its $97 billion in cash on hand. Check out the complete PR after the break.
Acer, Lenovo looking to release Tegra 3-equipped tablets in early 2012
For now ASUS' Transformer Prime is the lonely king of the quad-core tablet hill, but as we'd heard a few weeks back, it looks like it'll have company soon enough. Insider sources have reported to DigiTimes that you'll be able to snag a nifty Android tablet with a quad-core GPU for between $459 and $599 in 2012. Acer and Lenovo are apparently set to target Apple's iPad tablet as well as ASUS with NVIDIA's quad-core Tegra 3 GPU tablets running Android 4.0 (Ice Cream Sandwich) in the first quarter of 2012. These sources also stated that since neither Acer nor Lenovo have a direct advantage over Apple or Amazon's tablet devices, they'd only be competing for about 10 to 15 percent of the total PC tablet market. And yes, there are mathematical formulas that prove that owning a reasonably priced tablet with a quad-core GPU does make you the coolest kid on the block.
Lenovo nearly doubles net profits in Q1 earnings report, not so certain about 'mainstream' Ultrabooks by end of year
Lenovo's enjoying a bright and sunny Thursday in Hong Kong today, where the company has just unveiled a Q1 2011 / 2012 earnings report that's full of rosy news. According to the report, Lenovo's revenues jumped to $5.92 billion during the fiscal quarter, representing a 15 percent increase over last year's figures, while net profits nearly doubled to $108 million (compared to $54.9 million last year). Global PC sales, meanwhile, nudged upward 23 percent -- even at a time when most other manufacturers are seeing relatively sluggish growth. During an earnings conference call this morning, COO Rory Read provided a little insight into his company's approach to the growing Ultrabook sector, while hinting at future price reductions. Speaking to reporters, Reed assured that Lenovo would "invest in innovation to be a leader" in the Ultrabook market, adding that prices for its MacBook Air competitors may reach "mainstream" (sub-$1,000) levels by 2012: "I wouldn't say by the end of the year necessarily but...that's definitely going to happen." Head past the break for Lenovo's financial summary, along with the full PR. [Original photo by Cory Grenier]
Take-Two profits down in first quarter of Red Dead-free fiscal year
Take-Two's net revenue for its first quarter of fiscal 2012 (which ended June 30) represents a downturn year-over-year -- $334.4 million versus fiscal 2010's $375.4 million (Take-Two shifted its fiscal calendar since then, in case you're wondering why we're comparing Q1 2012 with Q3 2010), with a net loss of $8.7 million instead of profits of $26.3 million. Last year around this time, of course, everyone on Earth was buying Red Dead Redemption, pushing Take-Two's profits into the stratosphere. With the game sold to all of Earth's residents to date, that leaves only babies born in the interim as the audience for new copies of the game; that market of babies has done well enough for the company to count RDR and its Undead Nightmare expansion as one of the leading products in this quarter, with 2 million retail copies of Undead Nightmare shipped life-to-date and 9 million Red Dead Redemptions. Other leaders include Duke Nukem Forever, LA Noire, NBA 2K11 and Carnival Games: Monkey See, Monkey Do.
Namco game sales increase in Q1, income on the rise
Namco Bandai has released the financial results (PDF) for the first quarter of its fiscal 2012, which ended June 30. Worldwide game sales – accounting for a total of eleven new titles – rose to 3.38 million units, up from 3.15 million units during the same period last year. With the help of growing arcade machine and amusement facility business, Namco's net income reached ¥3.25 billion ($42.1 million), a big improvement over last year's ¥1.64 billion ($21.3 million) loss. The 3DS proved to be a top performer for the company, with its four titles for the new handheld moving a combined 622,000 units. In particular, 3DS titles One Piece: Unlimited Cruise SP and Tales of the Abyss sold 170,000 and 150,000 copies, respectively. Meanwhile, the US release of Ridge Racer 3D moved 90,000 copies. Get a full breakdown at the Source link.
1.8 million PS3, 1.8 million PSP units sold from April-June
Sony announced that it sold 1.8 million PS3s worldwide between April 1 and June 30 (Q1 for Sony), a drop of around 600K from Q1 of FY 2010. Though numbers may have slipped, Sony is still predicting an uptick in sales for the whole of FY 2011: 15 million PS3s as compared to 14.3 in the year prior. On the games side, Sony fared a little better with 26.1 million PS3 games sold versus 24.8 in last year's first three months. The real success story for Sony's console business is the PSP, which moved 1.8 million systems in the first quarter. That's compared to 700K during the same time period for the Nintendo 3DS and the 1.2 million PSPs sold in Q1 FY 2010. In closing: Nintendo really needs a Monster Hunter game on 3DS.
Capcom sales fall in 1st fiscal quarter, income rises
Capcom has reported financial results for its first fiscal quarter of 2011, which ended June 30. The company reported sales of ¥11.95 billion ($153.7 million), down from ¥19.04 billion ($244.91 million) during the same period last year -- a 37 percent decrease. Despite the dip in sales, Capcom managed to pull in a net income of ¥338 million ($4.35 million), up by 58 percent from ¥213 million ($2.74 million) during the same period last year. Sales of "consumer online games" fell sharply, with Capcom stating that Super Street Fighter 4 Arcade, Resident Evil: The Mercenaries 3D, Monster Hunter Freedom 3 and Monster Hunter Frontier Online Forward "basically" met sales projections. Specifically, The Mercenaries 3D – available since June 2 in Japan and since June 28 in the US – moved 400,000 units. Super Street Fighter IV Arcade, only available as DLC for a few days in June, sold 300,000. Monster Hunter Freedom 3 still managed to move 100,000 copies despite being released all the way back in December. Meanwhile, Capcom's arcade sales were up eight percent despite the difficulties faced after Japan's earthquake earlier this year. Social games are also doing quite well for the company, cresting 19 million downloads largely on the back of Smurf's Village.
Nintendo cuts profit forecast by 82%
If it wasn't clear already: the 3DS has not been a home run for Nintendo. In its revised earnings forecast for the fiscal year ending March 2012, the company dropped its estimated profit to ¥20 billion ($257M), an 82 percent drop from the ¥110 billion ($1.41B) it expected. The company stated the modification had been done to reflect "trends of stronger-than-expected yen appreciation and sales performance, the decided price reduction of the Nintendo 3DS hardware, and the sales outlook for the holiday season." A similar cut in Japan (effective August 11) will take the system from ¥25,000 (around $317) to ¥15,000 ($190). The steep profit reduction isn't Nintendo's only glaring concern, as the company couldn't regain investor confidence after announcing the Wii U at E3 and its stock currently sits at five-year lows. For the first quarter ending June 30, Nintendo saw its net sales cut by half from the same period last year to ¥93 billion ($1.2B), causing a ¥38 billion ($489M) loss in operating income, with a net loss for the quarter staying relatively even to last year's at ¥26 billion ($334M).
Logitech CEO steps down after money losing Q1, Revue price slashed to $99
This is becoming a trend. After a disappointing Q4 saw Logitech reduce the price of its Revue it revealed today that after a net loss of $29.6 million for the first quarter it is cutting the price of the Revue to $99, as well as saying goodbye to CEO Gerald P. Quindlen. Quindlen had been an outspoken supporter of the Google TV box (see the video after the break) but according to Logitech this price cut and corresponding $34 million hit to its finances are necessary to "remove price as a barrier to broad customer acceptance." In the midst of these results -- as well as lowered sales in several regions and key products like Harmony remotes -- Chairman and former CEO Guerrino De Luca will assume the role of acting CEO while a long term replacement is sought. Until then, and before the Google TV Honeycomb update arrives, does anyone think the Revue will be more appealing for one Benjamin than it was for two, or three?
THQ disappointed in Red Faction performance, thinks fiscal Q3 could be its best ever
Despite the fact that net sales were up year-over-year in THQ's fiscal Q1 (which ended June 30), from $149.4 million to $195.2 million, CEO Brian Farrell still wasn't satisfied. "We are disappointed in our first quarter financial performance," he said in the earnings release. "Sales of Red Faction: Armageddon and our licensed kids titles were below our expectations, and the late release of UFC Personal Trainer also adversely impacted the quarter." Of course, that disappointment is probably due to the fact that even with increased net sales, the company came out negative, with a net loss of $38.4 million. Most of the "losses" are from "deferred revenue" -- revenue that the company isn't counting now, because it'll go toward ongoing online services for its games. However, Farrell is looking forward to a profitable Q3 (October through December) -- so profitable, in fact, that he said THQ expects it to be "the biggest third quarter, both in revenue and earnings per share, in our company's history," thanks to Saints Row: The Third, WWE 12, and the PS3/Xbox 360 versions of the uDraw tablet, all scheduled for November releases.
EA sees dip in physical sales for Q1 2012, increase in digital
Thanks to a somewhat limited release line-up which included Portal 2, Alice: Madness Returns, Shadows of the Damned and Darkspore, EA saw sales in its packaged goods division slip during the first quarter of its 2012 fiscal year. The four titles (among other back catalog releases) raked in a net non-GAAP revenue of $195 million, a decrease from the $298 million packaged games pulled in during the same period last year. However, a steady increase in digital sales softened the blow to the company's bottom line, pulling in a total non-GAAP revenue of $524 million, down from $539 million from last year's first quarter. EA's counting on both digital sales and packaged goods (supported by big-name releases like Battlefield 3 and the back-on-track Madden 12) to continue to grow as the year goes forward, and has increased its net revenue guidance for the entire fiscal year by nearly $100 million.
Crysis 2 ships 3 million
The most memorable sales numbers we've heard about an EA game recently were not good (see: Shadows of the Damned's disappointing debut). EA has some much happier numbers to report (about other games) in its latest quarterly earnings report. According to the report, Crysis 2 has "sold in" (shipped) "approximately three million units" since its March release, adding another million since last quarter. You want some more big numbers? How about 15 million FIFA 11 shipments (including various mobile and downloadable versions), and 9 million of Battlefield Bad Company 2? The document is full of large numbers in various denominations; we'll talk about some of the others soon.
Google announces Q2 earnings: $9.02 billion in revenue, $2.51 billion in net income
It's everybody's favorite time of year. Yup, the Q2 earnings results are coming in, and Google's leading the pack, reporting $9.02 billion in gross revenue for the second quarter of 2011: a 32 percent increase over the same period in 2010. CEO Larry Page notes, that's a "record breaking over $9 billion of revenue," with net income reaching $2.51 billion, up from $1.84 billion in Q2 2010. Google's various sites apparently made up 69 percent of the $9.02 billion in revenue, generating $6.23 billion -- 2010 numbers were $4.50 billion. Operating expenses saw a notable increase over 2010, cutting into profits by $2.97 billion, up from $1.99 billion. Larry Page has just announced some Android usage numbers, pointing out that 550,000 devices, rocking the little green robot, are being activated per day. That's up from the 500,000 announced late last month. Android Market numbers are also up, with six billion total downloads.
IDC: tablet shipments drop 28 percent in Q1 2011
Whether you believe we're living in a post-PC world or not, there's no denying the overwhelming growth of tablets in the past few years. Just this March, IDC put out figures saying 2010 saw the sale of 18 million tablets, but despite the recent boom, the outfit's now reporting a 28 percent drop in tablet shipments in Q1 2011, bringing first quarter worldwide shipments to 7.2 million. IDC's latest report points to "slower consumer demand, overall economic conditions, and supply-chain constraint," but nonetheless estimates that total tablet sales will reach 53.5 million by year's end, up from IDC's original estimate of 50.4 million. Once again, Apple's come out on top of the slate game, with the iPad 2 leading the market, despite its own dip in shipments. E-readers have apparently also seen a decline in the first quarter, with shipments dipping to 3.3 million units. Despite a slow start to the year, however, IDC's optimistic about future sales, but you don't have to take our word for it -- full PR awaits you after the break.
NCsoft profits decline, limited marketing blamed
MMORPG publisher NCSoft has reported a year-over-year decline in both revenue and profit during the first quarter of 2011. The company's revenues fell 7 percent from the same period a year ago to 155.4 billion Korean Won (about $143 million), despite increased sales from Lineage 2. Profits showed an even sharper decline, dropping 30 percent to 40.8 billion KRW ($37.5 million). The company chalked up the losses to "soft sales promotions" of its other two key games, the original Lineage and Aion -- or, as we like to call them, "the one with all the castles" and "the one with all the angels." That's ... about all we know about the two games. You know, ahem, because of their limited marketing budgets.
Activision Blizzard banks $503 million in first quarter profits
Beneath the Southern California headquarters of Activision Blizzard there lies a zeppelin-sized vault, near-bursting with piles of gold and riches -- or at least that's how we imagine it. The company today reported its first quarter 2011 earnings, reaping a record $1.4 billion in sales revenue, an increase of $100 million over the same period last year. Net income came to $503 million, up from $381 million in Q1 2010. Not surprisingly, the publisher attributed a hefty chunk of those profits to continued sales of Call of Duty: Black Ops -- which it also confirmed is not just the best-selling game ever (in terms of revenue) in the US, but in Europe as well. In addition, the company noted that digital sales were up 30 percent over Q1 2010 and accounted for 30 percent of Activision Blizzard's revenue last quarter. Finally, although it comes second in the "Activision Blizzard" name, Blizzard was first in profit for the quarter. The unit accounted for a whopping $170 million in income, compared to Activision Publishing's $48 million.
IDC: smartphone market grows 80 percent year-on-year, Samsung shipments rise 350 percent
Smartphones are getting kind of popular nowadays, in case you hadn't noticed. The latest figures from IDC show a 79.7 percent expansion of the global smartphone market between this time last year and today, which has resulted in 99.6 million such devices being shipped in Q1 of 2011. That growth has mostly been driven by Samsung, which has more than quadrupled its output to 10.8 million shipments in the quarter, and HTC, whose growth has been almost as impressive. The other big gainer is Apple, with 10 million more iPhones shipped, but the truth is that all the top five vendors are showing double-digit growth. In spite of Nokia losing a big chunk of market share and RIM being demoted from second to third in the ranking, both of those old guard manufacturers improved on their quarterly totals. IDC puts this strength in demand down to the relatively unsaturated smartphone marketplace, and believes there's "ample room for several suppliers to comfortably co-exist," before ominously adding, "at least for the short term." And after the short term, our break-dancing robot overlords take over. Update: IDC has also released data for Western Europe that shows Nokia has lost the top spot both in terms of smartphones, to Apple, and in terms of overall mobile phone shipments, to Samsung.
Increased game sales 'partly offset' Warner Bros' revenue decline
The precise impact of Warner Bros. Interactive Entertainment on big daddy Time Warner's bottom line is pretty obscured. WBIE is a division within a division of the media behemoth, which didn't bother to include a line for "video games" in its first-quarter earnings report. Though the company did manage to share a few positive words about its game-making sub-division. Nestled somewhere underneath Time Warner's "Filmed Entertainment" umbrella (a.k.a. Warner Bros.), WBIE apparently performed admirably for a division that ultimately suffered declining revenues. Filmed Entertainment, which encompasses feature film, television, home video and "interactive game production and distribution" (that's video games!), saw its revenues slide 3 percent to $2.6 billion in the first three months of 2011, as compared to the prior-year first quarter. More noticeable was the division's 50 percent plunge to $155 million in "adjusted" operating income for the period. However, Time Warner noted in its report that "declines were partly offset" by "higher video games revenues," in addition to other factors relating to television. While it's impossible to parse out video game sales from what's dubbed "other content" in the earnings breakdown, this category did show the biggest year-over-year percentage growth of all content in the Filmed Entertainment division, even if its dollar-amount revenues were a fraction of theatrical and television products' hauls. Notably, Time Warner indicated that first-quarter game sales were "driven by Lego Star Wars 3: The Clone Wars," which was developed by Traveller's Tales, part of WBIE subsidiary TT Games. The game is published by LucasArts. As for Time Warner's outlook on Filmed Entertainment for the rest of the year, CEO Jeff Bewkes said during the earnings call, "With our strong film slate, the momentum in our TV business and several promising games, we continue to expect Warner will post record profits this year." Would it have killed him to namedrop Mortal Kombat and the next Batman? Jeez.
NVIDIA losing ground to AMD and Intel in GPU market share
NVIDIA may be kicking all kinds of tail on the mobile front with its ubiquitous Tegra 2 chipset, but back on its home turf of laptop and desktop graphics, things aren't looking so hot. The latest figures from Jon Peddie Research show that the GPU giant has lost 2.5 percentage points of its market share and now accounts for exactly a fifth of graphics chips sold on x86 devices. That's a hefty drop from last year's 28.4 percent slice, and looks to have been driven primarily by sales of cheaper integrated GPUs, such as those found inside Intel's Clarkdale, Arrandale, and most recently, Sandy Bridge processors. AMD's introduction of Fusion APUs that combine general and graphics processing into one has also boosted its fortunes, resulting in 13.3 percent growth in sales relative to the previous quarter and a 15.4 percent increase year-on-year. Of course, the real profits are to be made in the discrete graphics card market, where NVIDIA remains highly competitive, but looking at figures like these shows quite clearly why NVIDIA is working on an ARM CPU for the desktop -- its long-term survival depends on it.
Sprint reports Q1 2011 results, adds 1.1 million subscribers
It's financials time and the word hasn't always been rosy for Sprint of late, but this time the company has some good news to share. In this, the first quarter of 2011, Sprint added 1.1 million total subscribers, 846,000 of those were prepaid, the other 310,000 postpaid. Churn was down too, 4.36 for prepaid and 1.81 percent for postpaid, lowest in five years for the former and lowest ever for the latter. Operating income was $259 million on $8.3 billion in revenue, which is up three percent from this time last year, but factor in taxes, lunar landing rights, and all the other fun stuff and the company posted a net loss of $439 million. CEO Dan Hesse called this "slow but steady progress," and the addition of subscribers "a tough streak to keep going as the bar keeps getting higher." A tough streak indeed, but the launch of phones like the Nexus S 4G might just help keep it alive for another quarter.
