A recurring theme in the tech industry is that sometimes you have to look backwards in order to move forward. Apple did it when Steve Jobs came back to lead the Cupertino company into a new era of unprecedented riches, Dell's doing it with Michael Dell returning in an attempt to return the No. 3 PC maker back to glory, and now Acer's following the blueprint by bringing in company co-founder Stan Shih after a quarter of record losses.
Google this week announced financial results for the quarter ended September 30, 2013, and investors reacted in positive fashion to the news, sending the company's stock to an all-time high. The Mountain View company reported consolidated revenues of $14.89 billion, an increase of 12 percent compared to the same quarter a year ago. That translated into a quarterly profit of nearly $3 billion, up an impressive 36.5 percent.
Intel this week reported third-quarter revenue of $13.5 billion, operating income of $3.5 billion, and net income of $3 billion (or 58 cents per share), the latter of which represents 48 percent sequential growth. A peek around the web reveals that Intel's profit growth is almost 10 percent higher than Wall Street was expecting, allowing Intel to hush the naysayers during a period of transition to mobile.
Job security is tough to come by these days, even if you're a high-level manager at Microsoft. Check that -- especially if you're a high-level manager at Microsoft. That wouldn't normally be the case, but as the market transitions to mobile, it's being reported that company CEO Steve Ballmer is in the midst of a major restructuring effort, details of which he's hammering out with a small group of confidants and board members.
Dell's future is as uncertain as it's ever been, and not just because the PC market is in a slump as consumers flock to mobile devices. The other major unknown is whether Dell will ultimately accept Michael Dell's proposed $24.4 billion buyout offer and go private, or if the board will be swayed by Carl Icahn's alternate deal that would keep the company public. As all this unfolds, Dell (the company) is seeing its profits get sucked into a vortex of uncertainty.
A private equity firm plans to invest $75 million into Corsair.
Everyone take a sigh of relief, Corsair isn't for sale, and therefore isn't at risk of ending up in the hands of a person or organization that doesn't share the same passion for PC peripherals as Corsair does. What about the rumor floating around that suggests Corsair may be sold to private equity firm Francisco Partners? Corsair tells Maximum PC the rumor is "inaccurate," though the company is looking to secure an investment.
Restructuring efforts are paying off for AMD as the PC market transitions to mobile.
Go ahead and fire up Survivor by Destiny's Child and fast forward to the chorus, as there may not be a more appropriate string of lyrics to describe the attitude at Advanced Micro Devices (AMD). With the PC market making a mad dash towards mobile devices and system sales down in general, AMD somehow managed to trim losses in Q1 2013 by about $444 million compared to the same quarter a year ago, beating out expectations in the process.
The sky didn't fall far for Intel, which met its revenue target for Q1.
Analysts can crow all they want about how the PC market is disintegrating, the world's largest semiconductor player still made a killing. We're of course referring to Intel, which today posted first quarter revenue of $12.6 billion, operating income of $2.5 billion, and net income of $2 billion. All of those are down to some extent, but how many businesses would jump at the chance to switch places with Intel?
Advanced Micro Devices (AMD) this week entered in an agreement to sell and lease back its Lone Star Campus located in Austin, Texas. The new owner will be 7171 Southwest Parkway Holdings, LP, an affiliate of real estate investment company Spear Street Capital. AMD says the sale is expected to generate $164 million in cash, the proceeds of which will be reflected in the chip designer's Q1 financial statement.
Carl Icahn wants Dell to pay investors $15.7 billion in special dividends.
The path to privatizing Dell may not be as quick and easy as Michael Dell anticipated. To recap, Michael Dell, with the help of private equity firm Silver Lake Management and a significant loan from Microsoft, hammered out an agreement with Dell's board of directors to acquire the company in a deal that would pay public shareholders $13.65 a share, ultimately valuing the deal at $24.4 billion. Over the past couple of weeks, some investors have spoken out in opposition of the deal, including Carl Icahn.