Q4
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RIM announces Q4 2012 earnings, Jim Balsillie resigns from board, company plans to refocus on enterprise
We've already seen a bit of big news slip out ahead of RIM's earnings announcement, and the company's now dropped another bombshell itself. Former co-CEO Jim Balsillie has resigned from his position on the company's board of directors. In a statement, Balsillie said simply: "As I complete my retirement from RIM, I'm grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success." RIM also confirmed that CTO David Yach would be retiring as well, and that COO Jim Rowan has "decided to pursue other interests," but it hasn't offered any indication of a broader shakeup beyond those three departures. As for the fourth quarter earnings, RIM is reporting revenue of $4.2 billion, down 19 percent from the third quarter, and a GAAP net loss of $125 million. Total BlackBerry shipments for the quarter dipped 21 percent to 11.1 million units, while PlayBook shipments totaled 500,000, which is actually a new high water mark for the tablet (1.3 million were shipped during the fiscal year). This is also notably the company's first quarterly earnings under the leadership of new CEO Thorsten Heins, who admits that the RIM faces some "significant" business challenges over the "next several quarters," and says that he's "taking the necessary steps to address them." That includes "increased management accountability and process discipline," as well as what he describes as a "comprehensive review of strategic opportunities including partnerships and joint ventures, licensing, and other ways to leverage RIM's assets and maximize value for our stakeholders." On the company's earnings call, Heins further added that he intends to refocus on the company's enterprise business, and not try to be "all things to all people." He went on to offer an even more frank assessment of RIM's current state than he had earlier, stating that these are "difficult times" and that there's "no guarantee of success," while also adding that he's open to exploring "all opportunities." That includes the possibility of licensing BB10 which, incidentally, will apparently address the company's current LTE deficit "later this year." Asked on the call whether he would consider getting out of the hardware business altogether, Heins says that he prefers an "integrated" approach, but left the door open a little to that being done through partnerships instead of completely in-house -- he also repeatedly noted that he wants RIM devices to be high-end, "aspirational" products. In short: the company's focus now is on BB10 and enterprise, but it's seemingly leaving just about everything on the table.
Gamestop sees 'modest increase' to 'all-time high' sales of $9.55B in fiscal 2011
GameStop's total global sales reached $9.55 billion for the fiscal year (ending January 28, 2012), a "modest increase" from the same period last year, in which the company reported "all-time high" revenues of $9.47 billion.Due to some adjustments, GameStop added a mere $339.9 million to the moneybin this year, compared to its record net profit of $408 million in 2010 -- still, we understand that's plenty of cash to swim around in.The company also revealed that digital receipts grew 57 percent during the year to $453 million. GameStop explained to us earlier this year how it turned the digital market into a physical cash system and how publishers are reaping the rewards.
NPD: $3.3 billion spent outside of new boxed games across regions in Q4 2011
Still in its infancy of tracking and reporting games that aren't new and from a box, the NPD reported sales for the US and key European markets reached $3.33 billion in the fourth quarter of 2011 (Oct. - Dec.). The number covers "used games, game rentals, subscriptions, digital full-game downloads, social network games, downloadable content and mobile games." To be extra clear, that means "everything besides new physical copies of games sold in retail stores."The breakdown of the overall $3.33 billion has the States with a $2.04 billion spend, and the UK, Germany, and France forking over a combined total of $1.29 billion. Despite troubles at retail, UK consumers still dropped $508 million in the region, while Germany and France saw sales of $461 million and $320 million (respectively).NPD usually reports monthly, strictly on US game sales. "Now that we've established our Europe based service covering the UK, France, and Germany, we can begin working directly with clients to help them dissect at deeper levels how the unique market drivers specific to each country can help them understand the increasingly global nature of the games industry," said NPD Euro analyst Sam Naji.It's still hard to contextualize the data since the (publicly shared) tracking of digital spend is still so new. We do know that in 2011 the total spend in the States was around $16.6 billion, with new boxed games at retail reaching $9.3 billion.[Image credit: Digital Storm via Shutterstock]
TiVo releases Q4 results, announces transcoder and IP set-top box on the way
Today TiVo announced its earnings for Q4 2011 and the full year, however the most interesting note was word of a few new boxes on the way. From the sound of things, the company will deliver a four stream transcoder similar to the one we saw demonstrated at CES (pictured above) capable of dishing out video to multiple devices (phones, tablets, etc.) within the home simultaneously. Also on the way is an IP set-top box coming to retail that sounds very much like the TiVo Preview multiroom extender, however it could include access to internet video services as well. As mentioned on Tech of the Hub, CEO Tom Rogers' statements indicate the transcoder will enable both live streaming and DirecTV Nomad-style "high speed" sideloading of recorded content for offline viewing. More concrete are its positive numbers from the partnership with Virgin Media in the UK, and progress on a plan for Pace to develop TiVo-compatible set-top boxes for cable operators here and abroad. The Comcast partnership is also apparently progressing, with VOD access in beta trials and preparing to launch "soon" in the San Francisco area.
MetroPCS Q4 results are in: increased revenue, slowing growth
The nation's fifth largest wireless provider -- MetroPCS -- has checked in with its Q4 2011 financials, and on the whole, the company looks to be doing quite well. Metro reported $1.2 billion in consolidated quarterly revenues and $362 million in earnings, an increase of 16% and 15% when compared to the fourth quarter of 2010. A few other positive vitals: average revenue per user (ARPU) was up $0.76, net income rose to $77 million and churn dropped 80 basis points from 4.5% in Q3 to 3.7% in Q4. Two small blemishes can be found in the net customer additions and cost per user (CPU) columns. While MetroPCS added well over 197,000 new customers in Q4, the rate at which it grew slowed dramatically -- down 34% when compared to the fourth quarter of 2010. The company's CPU also rose $1.17 during that same period -- which can be partially attributed to LTE network services, along with general expansion and operating costs. One other mildly unfortunate note was word that voice over LTE wouldn't be launching till the second half of the year, slightly later than we had been anticipating. Taking all that into consideration, it was still a strong quarterly showing from the value-centered wireless carrier.
Amazon elbows past Samsung for No. 2 tablet spot in Q4, according to IHS
Amazon had some serious trombone action going on last year -- what with all the horn tooting it did about Kindle Fire demand. Turns out Amazon was on to something, as the company has apparently grabbed the No. 2 spot from Samsung for tablet sales in the last quarter, according to research firm IHS iSuppli. Based on its numbers, Amazon sold 3.89 million tablets during the fourth quarter, eclipsing Samsung's 2.14 million units. The numbers equal a 14 percent share of the tablet market for Amazon while Samsung grabbed an 8 percent share, down from 11 percent in the third quarter. The brisk sales came at a price for Amazon, which saw fourth-quarter profits drop since it sold Kindle Fire tablets at a loss. Amazon's tablet sales also were still below the 15.4 million iPads sold by Apple for the period. All the competition is apparently taking a bite out of Apple's market share, however, which fell to 62 percent in 2011, compared to 87 percent in 2010. Samsung did manage to hold on to the No. 2 spot for the year, but with rumors already swirling about new iPads plus the Galaxy Note 10.1, the tablet wars aren't likely to cool off anytime soon.
Comcast slows the flood of video customer losses in Q4 2011
It's not often that a company announced it lost 17,000 customers in a quarter and that's considered good news, but for Comcast that's exactly the case when it comes to cable TV. Compared to the 135,000 customers lost in the same period a year ago (which was also lower than the year that preceded it), it's a slowing of a trend over the last few years and if you believe cord cutting is taking a toll on Big Cable, could indicate that is tailing off as well. That's not all of the good news however, as it also increased the number of customers picking up extra services like internet and phone. We didn't get too many tidbits from the earnings call, but did hear a mention that it's investing in new cloud-based software for its TV boxes -- hopefully that means we'll see that new Xfinity TV guide roll out widely sooner rather than later.
Acer Financials: meager 2011 Q4 profit, massive annual loss
Acer was hoping for the gloom to lift after two bad quarters, but it can hardly call its latest financials stellar. It scraped a slender $2.4 million profit in the quarter, which wasn't enough to prevent the company posting an overall annual loss of $212 million. It blamed one off charges and operational and strategic adjustments (though no mention of the impending war with Lenovo over Gianfranco Lanci) for the bad year. The terse release (after the break) claims the business is becoming "more healthy and stable," which is a good way to paint a quarter-on-quarter drop of 98.4 percent turnover.
Activision revenues up in 2011, claims #1 publishing spot
The world hasn't converted entirely to a Kickstarter-based economy yet -- Activision's fiscal 2011 earnings are up again, with net revenues at $4.76 billion dollars (vs. 2010's $4.45 billion), exceeding its most recent outlook. Activision claimed the number one console and handheld publishing spot in both its fiscal Q4 (ending December 31) and the year of 2011.What drove this success? Like you don't know, but: Call of Duty. Modern Warfare 3 was the best-selling game in terms of dollars, and Black Ops was #5. Skylanders also contributed, as it was the #8 best-selling game in the fourth quarter, and best-selling kids' game of 2011.Digital revenue broke records again, with over 34 percent of that $4.76 billion net coming from "digital channels." No, you aren't forgetting some breakout XBLA hit from Activision -- those digital channels are COD map packs and WoW.
Sprint announces Q4 2011 results: the iPhone brings in 720,000 new customers
Following its bittersweet Q3, the latest financial report from Sprint this quarter offers up another mixed bag of news. Net operating losses totalled $438 million, more than the $139 million posted in the same quarter last year. It suffered a staggering $1.3 billion net loss (much of that due to upfront costs associated with launching the iPhone), dwarfing the Q3's $301 million losses. Operating revenue increases were, however, the largest in the last five years, up to $8.72 billion from $8.3 billion. Net subscribers now total 55 million, with 33 million postpaid, 14.8 million prepaid and around 7.2 million arriving from wholesale, adding an extra 1.6 million Sprint customers in the last quarter. This was also the first time in a long while that new subscribers on the Sprint platform outpaced losses at the Nextel and wireline businesses. Sprint hoped to see its iPhone draw customers into its network, putting it toe-to-toe with the bigger carriers, and it largely did, with 40 percent of the 1.8 million iPhones sold landing directly in the hands of new customers. However, the higher subsidy costs of the iPhone was also responsible for these tougher financial results. Last year also saw the tentative launch of Sprint's LTE network, and that's where the future appears to be for the carrier, with its forward-looking statement hinging on exactly how fast they're able to grab the 4G bull by the horns and get it into their customers' hands. Compatibility with Clearwire's next generation network is mentioned here, as is the "financial performance of Clearwire and its ability to build, operate, and maintain its 4G network." Lightsquared, however, was conspicuously absent from Sprint's future machinations.
Virgin Media's Q4 2011 report: Brits love TiVo, Fast Broadband, Vampire Diaries
Virgin Media's school report for both last year and last quarter has been pretty positive for the Branson-Branded service. It pulled down £4 billion ($6.3 billion) in revenue for the year and made its first ever profit with a tidy £76 million ($120 million). In the last quarter alone, it added 273,000 TiVo subscribers, a figure that doubled its overall figure to 435,000. Favorite shows included Coronation Street, which was most caught-up with and The Vampire Diaries, which was the most binge-watched series. It's also clear that us Britons do love some super-fast broadband, 133,000 users plumped for speeds over 30MB in Q4. Flush with cash, it's going to buy back some shares and double consumers broadband speeds as it promised in January -- which we suppose is a fair way to spend your first profit, even if we'd have preferred to go to Disneyland.
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.
IDC: Nokia, Samsung, Apple are the new top 3 handset makers
The latest figures are in from IDC: the top three global smartphone makers are Nokia, Samsung and Apple, in that order. Drilling down into the figures finds some surprises: Cupertino's third-place with only 8.7 percent of the market, while the giants of Korea and Finland are duking it out with 22.8 percent and 26.6 respectively. LG and ZTE are tied for fourth, but that's hardly good news for Goldstar, given that it's lost a staggering 42.2 percent of its market share in the last twelve months (Nokia was the other loser, eating 8.2 percent). The cause for the drop is in part the world's rejection of feature-phones (dropped faster than fashionistas rightly abandoned Ugg Boots and Jeggings) as millions upgraded to smartphones. After the break we've got the tables in full for anyone who wants to have their mind blown at the sheer quantity of handsets shipped in the last year, both financial and calendar.
LG finally shows a profit from cellphones, record high flat-panel shipments in Q4 earnings
LG has revealed its earnings statements for the fourth quarter of 2011 and the full year, and it managed to notch an operating profit of 23 billion won ($20.5 million), boosted by a 10 billion won operating profit in its handset division. That was despite lower sales compared to the previous quarter (17.7 million compared to 21.1 million), with higher sales of its new Optimus LTE and lower sales of less profitable dumbphones. It also had solid results in TVs with an operating profit of 150 billion won and record shipments of 8.8 million units, thanks to demand for its higher end models over the holidays. Check out the slides in the PDF linked below for notes on how LG plans to dominate 2012 with more LTE, 3D and air conditioners, although we'd just recommend moving to Level 5 of the Kobe System.
Amazon announces Q4 2011 results: sales jump to $17.43 billion, but profits drop 58 percent
Amazon's just announced its earnings for the fourth quarter of the year, and it's a bit of a mixed bag. While net sales were up 35 percent year-over-year to $17.43 billion, net income dropped a hefty 58 percent to $177 million, or 38 cents a share -- that's off analysts' expectations, who were looking for sales in the neighborhood of $18.3 billion and earnings of 17 cents a share. As always, the company is remaining mum on any specific Kindle sales figures, but it says that sales of all Kindle devices nearly tripled over the holiday shopping season, and that the Kindle Fire remains the bestselling item across all of the products it offers; of course, the loss it's taking on each one is also one of the big reasons for that drop in profits. Specific figures are equally hard to come by for some of Amazon's other services, but the company says the number of Appstore for Android customers has nearly tripled from the previous quarter (with them downloading more apps in Q4 than all of the previous quarters combined), and that the number of Instant Video customers has more than doubled year-over-year (with the number of streams increasing 300 percent from the previous quarter). Looking at the full year, sales for all of 2011 totaled $48.08 billion, up 41 percent from $34.2 billion in 2010, while net income dropped 45 percent to $631 million (down from $1.15 billion in 2010). And as for the future, Amazon is also lowering expectations somewhat for the first quarter of 2012, projecting that revenue will come in at $12 to $13.4 billion, and that net income could range from a $200 million loss to a gain of $100 million.
Canon announces middling Q4 2011 earnings report, president steps down
In the wake of a relatively strong Q3, Canon today unveiled a slightly less rosy earnings report for the fourth quarter of 2011. Net sales for the quarter reached ¥964.8 billion (about $12.6 billion), up from the ¥916 billion the company reported last quarter, but down about 9.7 percent from Q4 2010. Quarterly operating profit, meanwhile, rose 14.2 percent on the year, to ¥94.6 billion ($1.2 billion). Profit for the full fiscal year, however, declined by 2.4 percent to ¥378.1 billion (approximately $4.9 billion), compared with the ¥387.6 billion ($5.1 billion) Canon raked in for all of 2010. Net income, on the other hand, rose by nearly 14 percent over Q4 2010 (¥61.4 billion from ¥54 billion), but only 0.8 percent over the full fiscal year (¥248.6 billion in FY 2011, ¥246.6 billion in FY 2010). Looking forward to 2012, the cameramaker expects net income to increase to ¥250 billion, which would mark the second straight year of less than one percent growth. This forecast is lower than what many analysts expected, though Canon based its projections on assumptions that the yen will continue to rise against both the dollar and the euro, making Japanese exports more expensive in Western markets. It was against this backdrop of disappointment that company president and COO Tsuneji Uchida announced his resignation today, effective March 29th. The 70-year-old Uchida will be replaced by 76-year-old chairman Fujio Mitarai, with Uchida slipping into an advisory role. Coming off a year that saw a devastating tsunami in Japan and supply chain disruptions in flood-ravaged Thailand, Canon underscored its cautious outlook for 2012, in a statement: "The future remains increasingly uncertain amid growing concern over a global economic slowdown." Find Canon's full report at the source link, below.
Samsung 2011 Q4 earnings official: $42 billion in sales, $4.7 billion operating profit
It might not be making as much money as the competition in Cupertino, but that doesn't mean Samsung isn't raking in cash at an astonishing clip. We reported earnings estimates a few weeks ago, but now it's official that the firm posted a 5.3 trillion won ($4.7 billion) operating profit in Q4 2011. That represents over a 2 trillion won ($1.8 billion) increase year over year. In all, it pulled in 47.3 trillion won ($42 billion) in sales, thanks in no small part to the over 300 million phones Sammy sold last year. While mobile accounted for roughly 40 percent of company sales and half of its operating profit (2.6 trillion won, or $2.3 billion), its semiconductor business did almost as well, raking in 2.3 trillion won ($2 billion) in profit over the same period. Samsung's Display Panel business outperformed 2010 -- buoyed by strong sales in LED televisions -- as sales were up almost 20 percent, to 8.55 trillion won ($7.6 billion).Well the call just finished up, and Sammy provided some prognosication for 2012. It anticipates the mobile business to continue to grow, with LTE and and new market segments (read: Galaxy Note) helping drive sales. TV sales are also expected to remain on the uptick, as Samsung anticipates demand to continue growing due in part to the London Olympics and roll-out of more Smart TVs. Feel free to check out all the numbers giving Samsung reason for its optimism at the source link below.
Motorola announces Q4 2011 earnings: $3.4 billion revenue, $80 million net loss
Motorola offered a estimate that lowered expectations for its Q4 2011 earnings earlier this month, and it's now out with the final numbers, reporting net revenues of $3.4 billion and a GAAP net loss of $80 million. That's a swing in the opposite direction from $80 million in net earnings during the same quarter a year ago, although the company did achieve the "modest profitability" it had promised on a non-GAAP basis, reporting earnings of $61 million by that accounting standard. Its earlier estimates of device shipments for the quarter also proved to be on the mark, with the company confirming that it shipped 10.5 million mobile devices in total, 5.3 million of which were smartphones. Mobile device shipments for all of 2011 totaled 42.4 million, with 18.7 million of those being smartphones. As for the company's efforts to break into the tablet business, it says it "shipped" 200,000 tablets in Q4 and an even one million during the year, although there's no word on actual sale figures to consumers. Motorola's Sanjay Jha also says that the company remains "energized" about the proposed merger with Google, which is still expected to close in early 2012 (it's also, incidentally, precluded an earnings call for today). Those interested can find all of the company's numbers at the source link below.
Microsoft paid Nokia $250 million to adopt Windows Phone, Q4 earnings report reveals
Microsoft and Nokia have historically been pretty tight-lipped about the value of their Windows Phone partnership, but the cat leapt out of the bag this morning, courtesy of Espoo's Q4 2011 earnings report. As SlashGear's Chris Davies noticed, Nokia received about $250 million from Redmond during the fourth quarter of 2011, as part of the companies' "broad strategic agreement." Under the agreement, the manufacturer receives so-called "platform support payments" from Microsoft -- which, in turn, receives software licensing payments from Nokia. The $250 million Microsoft doled out last quarter is the first of these transactions. All told, Nokia expects the payments both to and from Microsoft to total "in the billions of US Dollars."
Nokia releases Q4 2011 earnings report: operating profits drop, Lumia sales break one million
Nokia released its latest quarterly earnings report today, following up on a somewhat disappointing Q3 with a similarly bleak Q4. The Finnish manufacturer finished 2011 with a little more than €10 billion ($13.1 billion) in net sales -- 11 percent higher than Q3, but 21 percent lower than 2010, when Nokia raked in about €12.7 billion (approximately $16.7 billion). Operating profit, meanwhile, rose by 90 percent over Q3, but is still down on the year by a whopping 56 percent; this quarter, in fact, saw an operating loss of €954 million (about $1.3 billion). Its net cash and liquid assets also dropped by €1.4 billion over the year, marking a 20 percent decline. The general takeaway, then, is that things are looking better than they were last quarter, but worse than they were last year. To date, the company has sold "well over" one million Lumia devices, but this Windows Phone surge has apparently come at Symbian's expense. "In certain markets, there has been an acceleration of the anticipated trend towards lower-priced smartphones with specifications that are different from Symbian's traditional strengths," CEO Stephen Elop said in a statement. "As a result of the changing market conditions, combined with our increased focus on Lumia, we now believe that we will sell fewer Symbian devices than we previously anticipated." Looking forward, Nokia expects to break even during the first quarter of 2012, due in part to lower than expected seasonal sales and what it calls "competitive industry dynamics." For the full report, check out the source link below.
