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Netflix Q4 results: 220k new streaming-only customers, beats earnings estimates (Update: no game rentals coming)
Netflix's Q4 2011 earnings report is in, and the company indicates its streaming subscriber count is now 21.67 million. DVD subscribers were still down however, although not as much as expected with cancellations peaking in September when the services split, leaving it with a total number of 24.4 million customers. This closes out a tough 2011 that saw its subscriber count drop by 800k in Q3, and most recently resulted in the search for a new Chief Marketing Officer. The company exceeded its own targets for growth in streaming customers and domestically, the segment reported a higher-than-expected profit of $52 million.When it comes to its competition however, Netflix cosigned a rumor indicated today by the New York Post that Amazon may spin off its Prime Instant video service into a cheaper-than-Netflix standalone offering. For now however, it believes Amazon and Hulu offer only a fraction of its content, and net subscriber viewing hours that are less than 10 percent of the 2 billion --around 30 per member -- it reported during Q4.Regarding the new 56-day delay for DVDs and Blu-ray discs from Warner Bros., it "didn't like" the new terms, but decided it was more efficient to keep a direct relationship for discs than to try buying discs from retail again, and expects more "differentiated dates" from studios going forward. With its Starz deal coming to an end soon, Netflix plans to plug the content hole by licensing some of the movies from Encore directly from the studios, and the kid-friendly Disney fare with flicks like The Adventures of Tin Tin and Rango from Paramount (via Epix) until its new Dreamworks deal takes effect in 2013. Interestingly, it also comments that "content is a differentiator", and that it's "increasingly" licensing content exclusively to fight its true competition, TV Everywhere services like HBO Go. We'll be back with any interesting remarks from the earnings call (scheduled for 6PM ET), until then check out the press release itself linked below.Update: The earnings call (just finished) was predictably boring, but CEO Reed Hastings confirmed the company has "no plans" to offer videogames for rental, which had been announced as part of the later-retracted Qwikster spinoff. As far as offering current season episodes of TV shows for cord-cutters, it won't be bidding on those either. When it comes to 3D, Blu-ray 3D discs are already in the mix, while the company is "looking into" streaming 3D.
Clearwire Q4: revenues up, costs down, LTE expensive
Things are looking up at Clearwire, its Q4 revenue came in just over Wall Street's estimates at $362 million, split between $198 million retail and $164 million wholesale -- with the latter figure up 20 percent over the last quarter. It pointed a finger at increased smartphone usage and slashed operating costs (spending only $82 million) as the reason for the bump. With this being Clearwire, it's still in the business doldrums, relying on handouts from Sprint to keep it going. It's planning to flog off around $300 million of debt to "qualified investors" as a way to ensure sufficient funding for the forthcoming LTE rollout. If you're interested in this sort of thing, you can read the full breakdown after the interval, presumably storming around pretending that you're Gordon Gekko.
AMD reports a net loss for Q4 2011, 30 million APUs sold last year
As the quarterly earnings train rolls along, AMD has announced its results for the last three months of 2011, with weaker than expected sales resulting in a net loss of $177 million on revenue of $1.69 billion. Worse, ZDNet mentions AMD expects revenue to continue to decline as 2012 gets started. Of course, there were highlights including sales of more than 30 million Accelerated Processor Units (APU) for the year, resulting in record annual notebook revenue, while CEO Rory Read also noted "re-gained momentum" in its server business. AMD's revenue remained flat YoY at $6.57 billion, but that and all the other dirty financial details are in the press release after the break. For 2012 Read says AMD is "clear on our priorities and opportunities", we'll see if those newly focused initiatives add up to a better result at this time next year.
Verizon releases Q4 results, sees jump in revenue, broadband subscribers, net loss
Verizon has just come out with its Q4 results this morning, ending the fiscal year with yet another solid revenue report, and a decidedly less rosy net loss. According to the provider, total revenue reached $18.3 billion during the final quarter of 2011, up 13 percent from last year. Verizon saw a particularly notable spike in data revenue, which reached $6.3 billion, representing a 19.2 percent increase over the year, and comprising nearly 42 percent of all revenue. Overall, though, VZW finished the quarter with a net loss of $2.02 billion, compared to the $2.64 billion profit it saw last year. The company also saw an increase in its subscriber base, adding 98,000 broadband customers in the span of a quarter, including 201,000 FiOS internet users, 194,000 new FiOS video subscribers, and a net addition of 1.2 million postpaid customers. As far as demographics go, smartphones now comprise a full 44 percent of Verizon's consumer base, up from 39 percent last quarter. For the full year, total revenue finished at $70.2 billion, up 10.6 percent from Big Red's 2010 figures. For more stats and breakdowns, check out the full PR after the break.
Texas Instruments 2011 Q4 earnings: $3.42 billion in revenue, $298 million in profit
It's that special time of year after CES, when many tech companies regale us with their latest earnings reports. Texas Instruments is the most recent firm to divulge its financials, and while the company isn't breaking any records, it did beat Wall Street's expectations. TI pulled in $3.42 billion in revenue, a three percent dip from the previous year, and profit dropped to $298 million from the $942 million it made in Q4 2010. While the company's spinning the numbers as a positive, stating that orders for its chips are up and its revenue beat estimates, the fact that TI's closing two manufacturing plants over the next year and a half doesn't paint such a rosy picture. Of course, if the future with OMAP 5 is as good as we think it is, Texas Instruments should be just fine.
Google's Q4 2011 results: $2.71 billion profit, $8.13 billion in revenue, Wall Street disappointed
Google just released its fourth-quarter 2011 results, and man, Wall Street is not pleased. The company reported $2.71 billion in profit (up from $2.54 a year earlier), net revenue of $8.13 billion and earnings of $9.50 per share, excluding some one-time charges. That's less than the $10.49 per share and $8.40 billion financial analysts were expecting and, as Reuters notes, it's the first time in nine quarters that Google hasn't beaten revenue estimates. Of course, the company spun its results the best it could, emphasizing that its gross revenue jumped 25 percent to $10.58 billion, making this the first time the company's raw sales exceeded $10 billion in any given quarter. Of course, that figure doesn't reflect the myriad costs associated with boosting web traffic, and investors are more concerned with that $8.13 billion in net revenue. Needless to say, Wall Street is none too impressed -- as of this writing, the company's stock was down almost nine percent in after-hours trading.That's not to say Google is struggling. The outfit actually logged a sharp increase in clicks on its search ads, but said the fee it receives from those ads was down eight percent from both the previous quarter as well as the fourth quarter of 2010. Plus, by all metrics, Android is still on quite the tear. In a conference call with investors, the company said there are now 250 million Android devices, up 50 million from the last quarter. Some more tidbits: 7000,000 devices are being activated per day and more than 11 billion items have been downloaded from Android Market (it hit the 10-billion mark last month). Finally, Google+ now has 90 million worldwide users, more than double the figure from three months earlier. Need a deeper dive on the numbers? We've got the full financial results at the source link, with the summary earnings release below.
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.
TSMC profits down 22.5 percent, still able to afford a new yacht
It's not been a great year for Taiwan Semiconductor Manufacturing Company: the chip foundry behind Qualcomm and NVIDIA's silicon (amongst others) saw profits slump by 22.5 percent in the last quarter of 2011. Like everything in this world, however, trouble is relative: the business still made a net profit of just over a billion US dollars. CEO Morris Chang pointed a wealthy digit toward customers clearing out old inventory and said that new orders for phone and tablet CPUs would arrive shortly -- thanks to a 28-nanometer factory that opened its doors around the same time. He then casually mentioned that a 20-nanometer facility will open its doors towards the end of this year, followed by a 14-nanometer block by 2014. We've got the report on the financials -- for those with a currency convertor and some spare time to hand -- after the break.
Motorola estimates 10.5 million devices shipped in Q4 2011, over half smartphones
We'll need to wait for the company's earnings later this month for the final numbers, but Motorola has now provided some preliminary results for the fourth quarter of 2011 that indicate smartphones accounted for more than fifty percent of all the mobiles devices it shipped. Specifically, Motorola estimates that it shipped a total of 10.5 million devices in the quarter, 5.3 million of which are smartphones (there's no further breakdown beyond that). That's up from 4.8 million smartphones in the previous quarter, although the number of total mobile devices slipped from 11.6 million. The company also says it expects "modest profitability" with estimated sales of $3.4 billion for the quarter, and it reaffirmed that it expects Google's $12.5 billion acquisition to close in "early 2012" if all goes as planned. Head on past the break for the press release.
HTC's growth streak is over: quarterly revenue down 2.5 per cent, profits even worse
Difficult times for a company that had grown used to a gleaming record of growth. As predicted after that serious stutter in November sales, HTC's unaudited revenue for Q4 2011 shows a 2.49 percent fall on the same quarter in 2010. Unaudited operating income was just shy of 13 billion Taiwanese dollars (about $430 million), which represents a 22 percent decline on the year before. Prior to this, the company had seen nothing but upward movement after springing out of nowhere a few years ago and delivering us some rather nice handsets, but it looks like competition in the Android sphere (read: Samsung) is starting to make life harder for the Taiwanese manufacturer -- although none of its recent statements betray much in the way of self-reflection.
Samsung estimates operating profit of $4.5 billion on cellphone, hard drive biz sales
Fourth quarter estimates for Samsung's earnings are out and wouldn't you know it, selling a record number of mobile phones -- more than three times over what it sold in the same period last year -- is a pretty good way to turn a profit. Businessweek notes it closed the three months ending in December with an operating profit of 5.2 trillion won ($4.5 billion), beating analyst estimates. Other than the more than 300 million phones it sold, there was also a bump from the $1.38 billion sale of its hard drive business to Seagate that helped overcome drops in profits from its chipmaking and flat-screen units. Detailed results are expected later on this month, but The Wall Street Journal reports Samsung expects to notch an operating profit of 16.2 trillion won ($14 billion). Here's hoping it takes a break from counting up all that cash to show off a few things better and brighter next week at CES.
Intel cuts Q4 revenue forecast by $1 billion due to hard drive shortages
We've already seen quite a few companies lower their forecasts in the wake of the Thailand floods and subsequent hard drive shortage, and it unsurprisingly looks like Intel is no exception. The company issued a press release today advising that its fourth quarter revenue is now expected to come in at $13.7 billion, plus or minus $300 million, and not $14.7 billion (plus or minus $500 million) as previously expected. If you do the math, that means the company is taking around a $1 billion hit in revenue, due largely to a reduction in the worldwide PC supply chain that's led to a drop in processor purchases. According to Intel, thing should begin to turn around in the fourth quarter, when it expects computer sales to be "up sequentially," although it notes that hard drive shortages are expected to continue into the first quarter, with a recovery anticipated to take place over the first half of 2012. The company's full statement is after the break.
THQ lays off 30 Play THQ employees
The business world, like the rest of the world, is a cruel and unforgiving mistress. Following the "weaker than expected" sales figures achieved by THQ's uDraw tablet during the third quarter of the 2012 fiscal year, THQ has let go 30 members of its Play THQ team; the Agoura Hills unit responsible for uDraw. "We are taking a difficult but important step to reduce the number of employees that supported this brand," a THQ representative said in a statement to Game Informer. "30 people will be leaving the company and business unit leader Martin Good will also be leaving to pursue new opportunities outside the company." THQ is still hopeful that the success of Saints Row: The Third and WWE '12 will pull out a fourth quarter turnaround before the end of fiscal 2012.
After strong Q3 showing, HTC sees nearly 20 percent drop in November revenue
All was looking rosy for HTC at the end of October, when the company released yet another stellar Q3 earnings report. Since then, however, things have apparently gone downhill in a pretty drastic way, as evidenced by an unaudited revenue report for the month of November. In an announcement issued today, the manufacturer confirmed that it saw about 31 billion Taiwanese dollars ($1.03 billion) in consolidated revenue last month, down 19.6 percent from November 2010, when it raked in some 38.5 billion Taiwanese dollars (about $1.27 billion). HTC didn't offer an explanation for the drop, though an earlier Q4 earnings forecast predicted that the company's impressive streak of robust earnings reports would soon come to an end. It remains to be seen whether December treats the company more gently, but for now, you can check out the full financial breakdown at the source link, below.
TiVo Q4 results bring first sub growth in years, DirecTiVo is imminent
While many consumers are still waiting for something new from TiVo -- finally enabling the second processor core on Premieres this weekend is a nice step, but how about more HD menus? -- said company has found growth for the first time in four years by turning to a more traditional way to sell set-top boxes in the US. Yes, the growth is mostly thanks to six months of success with Virgin Media and other provider deals like the one with RCN. TiVo netted an additional 117,000 this quarter, bringing the total to just over 2 million and even more growth is expect in the coming months -- despite the continuous drop in retail subscribers -- thanks to the expected limited release of the DirecTiVo in December, with a more widespread release next year. This helped TiVo realize a 25 percent year-over-year growth in revenues, but still wasn't enough to hold off a net loss, which came in at a cool 24.5 million for the quarter. You have to stop going down before you can go up, but more TiVos in more homes is a good thing for just about everyone involved.
HP releases Q4 2011 earnings: $9.7 billion operating profit for fiscal year
It hasn't been the best year for HP, what with the demise of webOS and the uncertainty surrounding its status as a PC maker. But, Meg Whitman hasn't taken the bridge of a sunken ship, though things are far from peachy keen. HP just posted its Q4 2011 earnings, and the company cleared a healthy $9.7 billion operating profit in 2011, though that's down 10 percent from last year. Total revenue for the quarter was 32.1 billion, a three percent decline from 2010. And, for those wondering just how much the death of webOS cost the company? Turns out that dalliance took a $3.3 billion chunk out of HP's bottom line. So, the news isn't the best for you HP fans, but we'll be listening in on the earnings call later today, so stay tuned for more details. Impatient folks can find plenty more financial figures in the Source link and PR that follow. Update: CEO Meg Whitman and CFO Cathie Lesjac were on the call, and while specifics were hard to come by, they did let loose a couple hints regarding the company's future direction. Meg once again assured us all that HP and PSG are meant to be together, so the king of PC makers plans to keep its crown. Additionally, both bigwigs stressed that the company will be plowing more of its money in 2012 into R&D to foster "organic innovation" instead of buying it through outside acquisitions. Given the massive case of buyer's remorse HP had this year, that's probably a pretty good idea.
Adobe to lay off 750 workers, restructure around digital media, marketing
The company made famous by the ubiquitous Flash Player and multimedia software like the Adobe Creative Suite has announced its plans to eliminate 750 full-time positions in attempts to reposition itself as a leader in digital media and marketing. In two separate press releases, Adobe gave a glimpse into the restructuring, which it will cover in-depth at a financial analysts meeting in New York tomorrow. The company expects the plan to result in pre-tax charges somewhere in the ballpark of $87 million and $94 million, a large chunk of which will come from expenses "related to employee severance agreements." According to one of the two press releases, the master of Flash plans to continue offering the Creative Suite as well as expanding "tablet-based touch apps" and cloud-based software. It's also promised to invest further in HTML 5 through tools like Dreamweaver, the recently announced Edge and PhoneGap, which it acquired with the purchase of Nitobi. Despite the shakeup, Adobe expects to meet its previous Q4 projections of between $1.075 billion and $1.125 billion. A bunch of corporate what-nots await you in the dual press releases after the break.
Qualcomm announces Q4 earnings: rakes in $4.12 billion in revenue
The Qualcomm juggernaut just keeps on rolling. As the company's financial year comes to a close it's celebrating yet another stellar quarter, reporting $4.12 billion in revenue -- up 39-percent from the same time last year and a dramatic 14-percent higher than its Q3 earnings. Of that incoming green, $1.06 was profit. For the year as a whole, Qualcomm saw profits rise 31-percent over 2010 to $4.26 billion while revenues were 36-percent higher than last year, reaching $14.96 billion. Qualcomm exceed expectations not only for earnings but also sales -- moving 127 million MSM chips in Q4, when analysts were estimating between 120 and 125 million units sold. You'll find some PR after the break but, for all the pretty financial charts you'll have to hit up the source.
Apple's earnings "miss" more an issue with overzealous analysts
Apple reported its quarterly earnings earlier this week, and the results were lower than many Wall Street watchers expected (even though Apple beat its own revenue guidance by more than 12%). This miss was widely reported and Apple's stock took a hit -- AAPL dropped from above 420 before the announcement to under 400 on Thursday afternoon. But whose fault is this negative perception? Is it Apple's failure to perform this past quarter, or analysts' overenthusiastic predictions that led to this situation? According to Fortune contributor Andy Zaky, this foible is only a minor blip created by analysts whose predictions were off the chart. Zaky points out that Apple, in the past, has reported revenue that was about 12-18% above guidance. Analysts used this historical information and issued a consensus estimate that was 5-10% above guidance. That's how it worked. Analysts would predict on the lower side, Apple would earn on the higher side and life was good. This past quarter, though, analyst estimates had crept up to 18.8% ahead of guidance, while Apple's reported earnings were 13% above the company's guidance. Though Apple's earnings fell within the normal 12 to 18% over guidance, analysts got ahead of themselves and overestimated Apple's performance. And it's their own fault, says Zaky. Apple repeatedly warned analysts this was going to be a transitional quarter, but analysts failed to listen. [Via The Loop]
Apple Q4 earnings fall short of expectations: $28.27 billion in revenue, $6.62 billion net profit
Apple's earnings for Q4 2011 are out, and the company has fallen short of expectations. It still managed to rake in $28.27 billion in revenue during the quarter -- up from $20.3 billion in Q4 2010 -- but that's quite a bit shy of the $29.6 billion or so analysts were counting on. Net profits came in at $6.62 billion, up considerably from the $4.3 billion seen in the same quarter last year, and Apple notes that it is indeed still a record quarter. In terms of products, the company announced that 17.07 million iPhones were sold in Q4 (a 21 percent jump from a year ago), along with 11.12 million iPads (a whopping 166 percent increase year-over-year), 4.89 million Macs (a 26 percent jump), and 6.62 million iPods (once again the one area that continues to decline, now down 27 percent from a year ago). Apple's cash pile on hand also continued to swell during the quarter, and now stands at around $84 billion. Press release is after the break.
