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Amazon focusing on 'lifetime' Kindle revenue, anticipating record device sales for Q4
Today's Amazon earnings were decidedly split -- the company revealed both a 44-percent increase in net sales and a 73-percent decrease in net income. So, why the discrepancy? It may at least partially be due to the much discussed suggestion that the company actually loses money for each Kindle sold -- a trend which, if true, has likely only been compounded by the release of the uber-cheap ad-supported version of the device. The company addressed the matter in part, suggesting that it is focused on "the lifetime value [of the Kindle], not just the economics of the devices and accessories." The total economic picture of the Kindle includes the device itself, accessories, downloaded content and ad-revenue. Things are apparently looking up for the company, as well, with Amazon anticipating "a record quarter in terms of device sales" for Q4. The positivity is a reflection, in part, of greater than anticipated Kindle pre-orders. Says CEO Jeff Bezos, "In the three weeks since launch, orders for electronic ink Kindles are double the previous launch. And based on what we're seeing with Kindle Fire pre-orders, we're increasing capacity and building millions more than we'd already planned."
Amazon net sales up, net income down for Q3 2011
Amazon pulled back the financial curtain for Q3 2011, revealing $10.88 billion in net sales for the quarter, a 44 percent jump over this time last year. Net income, on the other hand, decreased 73 percent year over year, down to $63 million. The quarter also saw the company's "biggest order day ever for Kindle," according to CEO Jeff Bezos -- September 28th, the introduction of three new reader devices from the company. The company's Q4 report will likely be affected by the coming launch of the Kindle Touch and the long-awaited Fire tablet.
Nokia Q3 2011 earnings: operating profit sinks 60 percent, but sales beat estimates
Man, can Nokia World get here any faster? Nokia needs Windows Phone in perhaps the worst possible way, and if you had any doubt whatsoever on that, just take a look at the outfit's woeful Q3 2011 earnings. Right off the top, net sales dropped 13 percent year-over-year (and three percent from Q2), while operating profit plummeted a staggering 60 percent year-over-year (and 36 percent since the prior quarter). All told, the company recorded net sales of €9 billion ($12.35 billion), and while things are gloomy in comparison to the glory days, it still has a whopping €5.1 billion ($7 billion) in its coffers. And the good news doesn't end there. The company's shares actually surged on word that the losses weren't as bad as anticipated, and that overall sales beat estimates. Only in a stock market can the loss of €68 million ($93 million) be "positive," but hey -- we're sure Nokia will take all the silver linings it can find. Of course, things should be on the up-and-up after a spate of WP7-based Nokia devices are revealed later this month in London, but it still remains to be seen how soon the company can ship, and if it can penetrate a smartphone market that's gaining iOS and Android loyalists by the truckload each day. Hit the links below for more percentages than the average simpleton can shake a stick at.
Intel earnings beat company records: $14.3 billion revenue, $3.7 billion net income
Apple may not have fared as well as expected in its own Q4, but just up the road in Silicon Valley Intel managed to exceed analyst predictions, posting record revenue of $14.3 billion -- up $3.2 billion, or 29 percent year-over-year. The company also set new records for microprocessor units shipped, and expects further growth over the next quarter, with notebook computer sales driving $14.7 billion in predicted Q4 revenue. Jump past the break for an in-depth look at the company's Q3, along with its outlook for the next quarter.
RIM's Q2 earnings report: $329 million in net income, not enough to fend off critics
The first quarterly earnings report post-Wake Up Call have just been published for Canada's own Research in Motion, and while the cash is still flowing, investors and analysts alike aren't feeling too rosy about the future. Despite Q2 revenue of $4.2 billion and a GAAP net income of $329 million, RIM's stock plummeted nine percent following the news. Why? That reality was at the lowest end of estimates, and as we've seen, it takes a blowout quarter to please the folks on Wall Street. Nevertheless, the company's touting a subscriber base that ballooned 40 percent year-over-year (surpassing 70m total), and while it's quick to trumpet the rollout of seven new smartphones, not a one of them managed to astound the QNX-desiring critics. The report also notes that 10.6 million handsets were moved in the quarter, around $780 million was invested as "part of a consortium of companies that successfully bid to acquire intellectual property assets from Nortel," and it's forecasting that BlackBerry smartphone shipments in Q3 will grow between 27 percent and 37 percent compared to Q2. Sadly, the company only "shipped" 200,000 PlayBook tablets, with the prevailing thought being that it actually sold far fewer. Moreover, nary a forecast was given for future PlayBook sales.As for thoughts from the head honcho(s)? Jim Balsillie, Co-CEO, stated that "overall unit shipments in the quarter were slightly below our forecast due to lower than expected demand for older models," further noting that his firm will "continue to build on the success of the BlackBerry 7 launch to drive the business as we focus our development efforts on delivering the next generation, QNX-based mobile platform next year." Next year is a long, long way away, though, and there's no doubt whatsoever what kind of competition will be in place by the time 2012 rolls around. We'll be hopping on the analyst call here in a few, and you can look beyond the break for any notable mentions.
Dell's Q2 earnings fall short of estimates: $890 million net income, $15.66 billion revenue
Shares of Dell were down nearly eight percent in after-hours trading after the Texas-based PC maker posted lower-than-expected second-quarter results. Still, the company's revenue was up one percent over last year, totaling $15.66 billion, compared to $15.5 billion in Q2 2010. Net income jumped 63 percent, from $545 million to $890 million, over the year-ago quarter. Corporate and government orders were responsible for the jump in income, according to an AP report, but new sales predictions hint that orders may not be coming in as often as anticipated. Dell expects modest growth of one to five percent for the full year -- citing "a more uncertain demand environment" -- compared to previous estimates of five to nine percent growth. Jump past the break for the full rundown from Dell.
US Cellular Q2 results bring higher revenue, despite small customer loss
With the upcoming introduction of its LTE network and vast fall smartphone lineup, US Cellular's a regional carrier with a lot to look forward to. But its efforts over the second quarter, paired with the hopes of a bright future ahead, weren't enough to keep a few thousand customers from parting ways. While most of the reported figures were quite pleasant year-over-year -- service revenues bumped up three percent to $1 billion, percentage of smartphones sold skyrocketed to nearly 40 percent, ARPU increased to $51.84, and total operating income shot up a whole 61 percent -- the company also experienced a loss of 58,000 customers over the course of three months. The carrier doesn't seem too worried about this particular figure, however, as it stated its excitement about the launch of its 4G service later this year. Will the bleak and cold winter become warm and toasty because of a blazing-hot network? We're eager to find out. Hit the source link for the full quarterly earnings.
T-Mobile loses 50,000 customers in Q2 2011, revenue dips slightly
T-Mobile USA issued its Q2 earnings statement today and, while the outlook isn't quite as bleak as it was during the first quarter of this year, there's still some cause for concern up in Bellevue. According to the report, the carrier lost a total of 50,000 customers last quarter, which is actually an encouraging sign, considering it dropped a whopping 99,000 during Q1, and 93,000 during the second quarter of 2010. Total revenues, however, dipped slightly to $5.1 billion from the $5.2 billion reported for the previous quarter, with service revenues holding firm at $4.6 billion -- a 1.7 percent decrease from Q2 2010. President and CEO Philipp Humm blamed the numbers on a "challenging market," but was quick to point out the brighter aspects of T-Mobile's statement, including the carrier's expanded 4G coverage, and the fact that a full 29 percent of its customers are using 3G or 4G smartphones -- an "all-time high." Skip past the break for more numbers and acronyms.
Sprint posts Q2 2011 earnings: net subs up, contract subs down, net loss of $847 million
It's another mixed bag worth of earnings for the folks in Overland Park. Sprint just announced its Q2 2011 earnings prior to the market's open today, and while it's obviously doing its darnedest to paint a rosy picture, the raw numbers show a somewhat different backdrop. Despite having its third consecutive quarter of adding more than one million total net new wireless subscribers, the vast majority of those are coming from the (admittedly less lucrative) prepaid side. In fact, the company lost 101,000 postpaid subscribers in the period, and we're guessing that the one-two punch of WiMAX hitting the expansion skids while VZW built out LTE at a breakneck pace didn't help matters. 674,000 prepaid subs were added to the mix (through Virgin Mobile, Boost Mobile, etc. arms), and despite seeing quarterly sequential and year-over-year growth in wireless service revenue, the carrier still reported a net loss of $847 million. In a way, it's the same story on a different day for The Now Network, and while the just-announced LightSquared partnership may end up bolstering things in time, it'll take something a bit more jarring to turn things around by Q3. Or Q4... right, Dan?
Sony, Sharp and Fujitsu earnings all bring bad news, only Toshiba says something nice
Plenty of Japanese earnings news today and, as with Nintendo, most of it's pretty dire. Sony's hit from the earthquake and PSN outtage has inevitably contaminated this quarter, but it's suffered from slow Bravia TV, PC and camcorder sales too. Together, these factors contributed a hefty ¥15.5 billion ($200 million) loss in the three months to the end of June, compared to a ¥25.7 billion profit for the same quarter last year. Meanwhile, Fujitsu also lost ¥20.4 billion, which it largely attributed to a 6.7 percent decline in Japanese sales following the disaster. However, sales in other countries also fell 5.3 percent, reflecting a stronger yen and general lack of consumer demand. Despite everything, Sharp managed to make an operating profit of ¥3.5 billion -- but this was down an eye-watering 84.4 percent on the same period last year. Like Sony, the company is suffering from weak demand for TVs, and says it's switching one of its main TV panel plants to make smaller panels for mobile devices instead -- including the iPhone and iPad. There was some more upbeat news from Toshiba, however, which has managed to stay in the green. It reported a slight rise in net quarterly profit to ¥470 million due to demand for its power systems and home appliances. At least that's a note worth ending on.
Intel delivers record earnings yet again in Q2 -- let the boardroom bragging begin
We know, you've heard it all before, but the chip maker's once again reporting record revenues, reaching a whopping $13.1 billion in Q2 2011. If you're keeping track, that's up $2.3 billion, or 22 percent, from Q2 2010, and bests last quarter's earnings of $12.9 billion by 2 percent. Net income was up 10 percent year-over-year, but down three percent from last quarter, ringing in at $3.2 billion. As Intel humbly points out, this is the outfit's fifth consecutive quarter of record revenue. So, perhaps a little bit of gloating is in order.
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.
What analysts think about Apple's iPhone sales
Apple is announcing its quarterly earnings on July 19 and analysts are prepping their sales estimates for the big day. Philip Elmer-Dewitt of Apple 2.0 compiled a handful of these projections which range from a high of 20.25 million from Nicolae Mihalache of Traderhood down to a low of 15 million from Charlie Wolf of Needham. The average estimate falls at 16.9 million units which is a 101% year-over-year increase and a slight drop from the 18.6 million sold last quarter. In four years of iPhone sales, DeWitt estimates Apple has sold over 125 million handsets.
Nearly half a million customers left T-Mobile in Q1 2011
Not even promises of a new Sidekick can keep T-Mobile from hemorrhaging customers, it seems, as the company reported significant losses in its Q1 statement for 2011. According to official Q1 financials, 471,000 contract customers either failed to re-up, or outright canceled their contracts. Stacked against a shortcoming growth of just 372,000 prepaid customers (including MVNO customers for sub-carriers), T-Mobile suffered a net loss of 99,000 users, a 29-percent increase in losses over the same period for the previous year. Ouch. The firm chalked its loss to increased "competitive pressures," which lends credence to AT&T's insistence that Sprint and Verizon are such fierce opponents that it has to acquire T-Mobile for the magenta-tinted carrier to stay in the game. You can judge the profits and pitfalls for yourself -- just hit the source link for the full financials.
Clearwire posts Q1 loss amid record subscribers, decides not to sell spectrum after all
You know you're having a wacky quarter when it involves a resigning CEO, lawsuits, and rumors that one of your wholesale partners is courting your potential replacement. But can you still come out on top? Clearwire answered this question during yesterday's Q1 2011 earnings report to investors, and the answer is just as intriguing as the quarter itself. Though it posted a substantial revenue of $242 million, the company was also inflicted with a net loss of $227 million. Don't worry, it gets crazier -- Clearwire experienced record subscriber growth, seeing an increase of 533 percent year-over-year from Q1 2010. Sounds like a contradiction, right? A few factors led to the loss, such as higher costs from network expansion and writing off the "abandonment of projects that no longer fit within management's strategic network plans." A loss is a loss, but at least the future looks brighter; Clearwire predicts it will end the year with nearly a million more subs than originally forecasted (9.5 million, up from 8.8). Saving the best news for last, CEO John Stanton announced his company is no longer feeling the pressure to sell off some of its spectrum, primarily due to its recent $1 billion deal with Sprint. The deal will add enough cash flow to sustain network operations for the next year, so Clearwire just needs to make sure it uses some of the extra cash to buy us all something pretty. The full press release can be found after the break.
Panasonic will layoff 17,000 workers globally (updated)
No matter how you slice it, 17,000 is a big number, especially when its seventeen thousand humans looking for jobs. The layoffs represent a four-percent reduction of Panasonic's 380,000 global workforce due to restructuring efforts, according to Nikkei. They are expected to begin this year and will mainly impact employees outside of Japan. Update: Post updated to reflect the actual number of job cuts, not the 40,000 originally quoted by Nikkei or the 35,000 quoted by the AFP. The cuts will come over two years. The news comes as Panasonic reported a ¥40.7 billion ($499 million) loss for quarter, largely on account of a ¥61 billion ($748 million) restructuring cost. Panny says that its bottom line was also affected by a strong Yen, stiff competition in television sales, and the recent earthquake and tsunami.
Verizon and AT&T combine to sell 5.8 million iPhones in Q1 2011
This morning Verizon released its quarterly earnings for Q1 2011. While the wireless carrier did not reveal its iPhone sales figure in the press release, its earnings conference call confirms Verizon sold 2.2 million iPhones in its first six weeks of sales (compared to the 3.6 million reported by AT&T for the first three months of 2011, a 2x longer period). Combined, Verizon and AT&T sold 5.8 million iPhones, which means that total US sales account for about 30 percent of the 18.6 million Apple sold worldwide in the quarter. Apple COO/acting CEO Tim Cook mentioned on yesterday's Apple earnings call that US sales were up 155 percent year-over-year, and iPhone sales in greater China were up 250 percent versus the year-ago quarter (both leading the curve of 113 percent growth in total sales). According to AT&T, its iPhone churn rate remained steady in the 1st quarter, which suggests most Verizon iPhone sales come from current Verizon Wireless customers who waited patiently for the carrier to land the iPhone. It will be interesting to see how these numbers play out over the next year and a half. A growing number of AT&T iPhone customers will come off their current 2-year contracts and have a choice of carriers. Will the Verizon iPhone lead to a mass exodus from AT&T, as theorized, or will AT&T continue to hold its own? How many would-be carrier jumpers will wait for the hypothetical autumn release of the iPhone 5?
AT&T iPhone sales unaffected by Verizon launch
AT&T announced its first quarterly earnings for 2011 and sales of the iPhone 4 remain strong. According to the earnings statement, AT&T activated 3.6 million iPhones in the quarter ending March 31. This is a one million year over year increase and a slight drop from the 4.1 million activated in Q4 2010. Overall, AT&T added two million new subscribers to climb to 97.5 million total subscribers. This figure is also down from the 2.8 million subscribers AT&T added in the closing quarter of 2010. These sales numbers were recorded in the same quarter Verizon Wireless launched its version of the iPhone 4. Despite predictions the Verizon iPhone would lead to a mass exodus from AT&T, the wireless carrier confirmed that iPhone churn remained the same year over year. In fact, about 23 percent of iPhone buyers in Q1 were new to AT&T. Apple reports it quarterly earnings today at 5 p.m. ET and Verizon reports its earnings tomorrow. It will be interesting to see where the remaining iPhone numbers fall.
Intel shocks everyone, including itself, with record Q1 earnings
This is starting to get a bit repetitive, but we're sure Intel will never tire of hearing it: the chip maker just had its best quarter ever. The company expected to pull in roughly $11.6 billion, topping last quarter (and its previous record) by $500 million. Looks like the company was being conservative enough to make Pat Robertson blush -- it raked in a grand total of $12.8 billion in Q1 of 2011. About $500 million of that discrepancy can be explained by the acquisition of McAfee and Infineon, the rest is thanks to huge increases in sales across all market segments. Now go ahead, Intel, you just pretend to be surprised like last quarter.
Google announces Q1 earnings: $8.58 billion gross revenue, $2.3 billion net income
Well, it looks like Larry Page had a bit of good news and some bad news to deal with on his first quarterly earnings call as CEO of Google. The company has just reported $8.58 billion in gross revenue for the first quarter of 2011, which represents a 27 percent increase over the first quarter of last year, but is actually a bit less than analysts were expecting. That figure also doesn't include the company's so-called traffic acquisition costs, however, which totaled $2.04 billion for the quarter and bring the company's actual revenue down to "just" $6.54 billion. Net income for the quarter was $2.3 billion, which represents a more modest gain from $1.96 billion in the first quarter of 2010. Also cutting into profits quite a bit was Google's operating expenses, which were up a hefty 33 percent to $2.8 billion -- a sizable chunk of which went to the nearly 2,000 new employees the company hired during the quarter. Interestingly, Google also revealed a few Android stats during its earnings call, saying that app downloads are up a full fifty percent from the fourth quarter of 2010, and that there's a total of three billion Android apps installed worldwide. As for Android devices, there's apparently 350,000 of those being activated every day. Head on past the break for company's full earnings report.
