Different strokes for different folks. What do we mean by that? While Gabe Newell and the rest of the gang at Valve can't get enough Linux in their diet, the financial weight watchers at Advanced Micro Devices (AMD) just got through liposuctioning a portion of its Linux kernel development team by closing its Dresden, Germany-based Operating System Research Center (OSRC).
Much to the chagrin of Acer, Microsoft is making a run at hardware with its Surface RT and Surface Pro tablets, and those might be only the first of many more products to come. Microsoft's dancing a fine line with hardware in trying to set the bar for Windows 8 devices without completely ticking off its OEM partners, but it's also taken a big step towards an Apple-like business model. If Microsoft decides to go further, a major acquisition starts to make sense, and two names that have been thrown out there are Nokia and Nvidia.
Lest there be any doubt whatsoever that Microsoft has a lot riding on Windows 8, the Redmond outfit's financial report for its first fiscal quarter of 2013 (which ended September 30, 2012) contained more thorns than roses. For example, the company's quarterly earnings dropped 22 percent sequentially to $5.47 billion, as slumping PC sales continue to adversely affect tech firms across the board. Revenue also declined, dropping 8 percent to $16 billion, down from $17.37 billion one year prior.
Intel, the world's largest semiconductor player, is susceptible to market conditions just like every other company, and right now PC sales are in a slump. Serving up chips to the PC market is Intel's bread and butter, so it strives or struggles at a similar clip, though it's all relative. What do we mean? Well, Intel said it generated $13.5 billion revenue during the third quarter, which is an obscene amount of money, and even a little better than analysts were expecting, but only after the chip maker lowered its Q3 sales forecast.
Chip designer Advanced Micro Devices (AMD) on late Thursday warned investors that its third-quarter revenue will probably dip 10 percent from the previous quarter because of sluggish demand and a consumer preference towards tablet PCs. After hearing the news, AMD's stock took a beating, dropping below $3 per share to the lowest it's been in three years. The stock dipped even further today and is currently trading at around $2.86.
It's difficult to get a pulse on what's going on at OCZ Technology, though the fact that it still has one is at least a little bit encouraging. What investors didn't find encouraging is OCZ's warning that its customer incentive program will result in a "significant" quarterly loss and "materially lower" revenue than what was previously forecast. On the bright side, there's a new chief in town, and he doesn't seem much into sugar coating the situation.
HTC continues to struggle to find a way to flip the kind of profits it did during the company's heyday, back when it was moving handsets like gangbusters and practically had a license to print money. But the times, they are a-changin' and the HTC of old is having trouble competing in this new landscape dominated by Apple and Samsung, the latter of which has picked up the Android torch that HTC helped ignite. Ginormous profit dips are the norm for HTC these days, which today posted a record 79 percent drop in quarterly profit.
Pink slips have been a near-constant worry for Motorola Mobility workers ever since Google entered the picture. Leading up to the acquisition, Motorola severed ties with around 800 employees and closed several facilities in an attempt to cut costs. More recently, Google in August said it would eliminate 4,000 jobs at Motorola Mobility, or 20 percent of the staff, and according to a K-8 filing with the Securities and Exchange Commission, more layoffs are coming.
You don't need to pity Mark Zuckerberg, the billionaire whiz kid who may have gotten himself in over his head when taking the world's largest social playground to the stock market. As in, way over his head. He'll be okay. But that $38 IPO price, which was supposed to be just the beginning of a much, much higher number? It seems like a distant memory just four short months later. For one reason or another, Facebook's share price keeps moving further away from its IPO price, having started the week off by dropping more than 9.1 percent to $20.79 on Monday. Today it's down slightly more, and some are saying it could fall to $15.
There's been quite the shakeup in Silicon Valley this week. After learning that AMD's CFO Thomas Seifert has resigned to pursue other opportunities, we now find out that OCZ Technology's head honcho and founder, Ryan Petersen, has stepped down as CEO, effective immediately. Executive Vice President and Chief Marketing Officer, Alex Mei, is taking Petersen's place on an interim basis, but the question OCZ faces is whether it would be better off finding new management or selling its operations.