We always expect Apple to post big quarterly numbers, but the sheer volume of cash Apple made last quarter almost defies description. The Cupertino-based maker of iDevices has announced that it pulled in $46.3 billion in revenue for Fiscal Q1 2012, the period that ended December 31. That is nearly double the 2011 value.
While Everquest and Ultima Online helped define MMORPGs, World of Warcraft is the game that most people think of when the genre is mentioned. But could its heyday in the sun be coming to a close after all these years? A Reuters report released late last night would have you believe so: its headline trumpeted “World of Warcraft loses steam” and the article went on to describe how Wall Street investors kicked Activision Blizzard after it said that the game lost almost 1 million subscribers in the past quarter. We actually read the report, though, and we’re calling it nothing but FUD.
Japanese consumer electronics giant Panasonic announced late last week that they are in the middle of a “major restructuring”, which could see cuts to at least five percent of its work force in the coming months. Based on current staffing estimations which peg the company ranks at close to 367,000, this could result in a whopping 17,000 jobs cut, most of which will likely be in Japan. Panasonic officials claim the company will be refocusing its efforts on three key market segments as a result of changing global business environments, down from the five it was pursuing currently. In addition to the refocusing, Panasonic claims at least a small percentage of the cuts will be a result redundancies found following the acquisition of Sanyo and Panasonic Electric Works.
The online video streaming behemoth (and occasional disc rental service) known as Netflix has announced quarterly earnings, and they are spectacular. Earnings were up 88% year over year, with revenue of $719 million. The big news however, this that Netflix added 3.3 million subscribers, to end at 23.6 million. That means Netflix has more subscribers than Comcast.
Nvidia finished off its fiscal fourth quarter ended January 30, 2011 with a bang and announced net income of $171.7 million, which is more than double from one quarter ago when team green collected $84.9 million. Nvidia posted strong numbers all around, including a 5 percent increase in quarterly revenue, and feels confident about its future with its Tegra platform leading the mobile charge.
Blackberry maker Research in Motion (RIM) has reported earnings today and industry watchers weren't too happy. The company missed analyst expectations and the reason is pretty clear. Competition from Android and the iPhone are eating into RIM's business. Verizon, which was traditionally a Blackberry heavy carrier, has been getting into Android in a big way. Additionally, consumers continue to jump ship for the iPhone for non-business activities.
It's not all gloom and doom, though. Revenue did rise 24$ to $4.24 billion, but expectations were around $4.35 billion. RIM's stock took a pounding, but the smartphone maker isn't standing still. RIM will be buying back $31 million in stock to help stabilize the company. Investors are growing concerned that RIM will become increasingly marginalized as other platforms continue to take off.
RIM isn't going away anytime soon. They're a profitable business, and people that use Blackberrys often love them. Do we have any diehard Blackberry fans out there?
Many have often wondered if Facebook and Twitter would ever find a way to monetize the millions of eyeballs they draw to their site every day, and it looks like we finally have our answer. It appears as though Facebook managed to bring in over $800 million in revenue for 2009, a number that blows the lid off anything the analysts were forecasting.
The Reuters news agency who reported on the earnings insist that the information came from a reliable, albeit unnamed source within the company. Validating this number is all but impossible considering Facebook continues to operate as a private company, but these guys have a pretty high degree of credibility.
Assuming these numbers are correct, this works out to about $2 in revenue per user. They still have a long way to go, but beating street estimates should help them attract additional investors should they ever choose to go public. You might only be worth a couple of bucks to Zuck, but he makes it up in volume.
Networking specialist Cisco this week reported its third quarter earnings for the period ended May 1, 2010, noting third quarter net sales of $10.4 billion. Net income (GAAP) came out to $2.2 billion, or $0.37 per share, while non-GAAP net income reached $2.5 billion, or $0.42 per share.
"Our financial results were outstanding, achieving record level revenue and earnings per share results. We witnessed a return to strong balanced growth across geographies, products and customer segments that we haven't seen since before the global economic challenges began. We emerge from this downturn gaining market share, a larger share of the total wallet spend of our customers, dramatically improved customer relations as a trusted technology and business partner, and having next-generation products in almost every product category. It is clear that our game plan for how to handle economic downturns is hitting on all cylinders," said John Chambers, chairman and CEO of Cisco.
Chambers went on to say that Cisco's operations exceeded expectations in every measurement perspective, including revenues, earnings per share, new products, successful acquisitions, and internal startups. In other words, it was a heck of a quarter for Cisco.
An year ago, when the PC industry was retreating in the face of a rampant financial tsunami, Microsoft wrote a bit of history, albeit for all the wrong reasons. It registered its maiden year-on-year revenue decline back then. But now that an economic recovery is well underway, Microsoft is riding a wave of its own – the Windows 7 wave. The company posted its third-quarter results on Thursday.
During the quarter ended Mar. 31, 2010, its earnings reached $4.01 billion after rising 35% as compared to the the previous year. Revenue also registered an increase of 6% and reached $14.50 billion. The strong showing can safely be attributed to Windows 7, which is “by far the fastest-selling operating system in history.”
“Windows 7 continues to be a growth engine, but we also saw strong growth in other areas like Bing search, Xbox LIVE and our emerging cloud services,” said Microsoft CFO Peter Klein. “Our record third-quarter revenue along with continued rigor on cost management resulted in exceptional EPS growth.”
It is important to note that Microsoft has chosen to defer $305 million of revenue from its Office productivity suite. This is due to the fact that these Office sales are covered by the ongoing Microsoft Office 2010 Technology Guarantee program.
While there is no gainsaying the fact that the Pre did lend a fatally rudderless Palm some direction, the much anticipated forward thrust is an entirely different matter. The impetus that Palm hoped to receive from its dapper webOS products hasn't materialized. The Sunnyvale-based company has lowered its guidance for the current fiscal. It blamed the move on lower-than-expected sales of its new webOS-based phones.
“Since the quarter has not yet closed, it is too soon to offer exact numbers, but we stated that we expect to report revenues for Q3 between $300 and $320 million. We also announced that we expect our revenue for this fiscal year to fall below the guidance we gave to Wall Street, which ranged from $1.6 to $1.8 billion,” CEO Jon Rubinstein announced in an internal email meant for employees. Its full financial results will be announced next month.
Rubinstein clarified that the the abrupt announcement was being made in order to “prevent a surprise for Wall Street when we announce quarterly earnings in March.” But this announcement did take many by surprise and sent its shares down south. Its share price dropped 13% on the news before eventually making a bit of a come back.
The company is currently pursuing a new strategy to improve sales. “To accelerate sales, we initiated Project JumpStart nearly three weeks ago. Since then, nearly two hundred Palm Brand Ambassadors, supplemented by Palm employees from Sunnyvale, have been training Verizon sales reps across the U.S. on our products.” It clearly believes that lack of awareness and Verizon's poor handling of its products are the two major factors hampering sales.