"Strong product offerings and solid operating performance resulted in record first quarter revenue,” said Dirk Meyer, AMD President and CEO. “We continue to strengthen our product offerings. We launched our latest generation of server platforms, expanded our family of DirectX 11-compatible graphics offerings, and commenced shipments of our next-generation notebook platforms to customers.”
AMD's net profit climbed to $257 million on a GAAP (generally accepted accounting principles) basis for the first quarter, which is a dramatic turnaround from the net loss of $416 million the company report in Q1 2009.
Coming as somewhat of a surprise, AMD's graphics segment revenue decreased 3 percent sequentially for the quarter, though it did increase 88 percent year-over-year. AMD said the sequential decrease was primarily the result of seasonal decline in royalties received in connection with the sale of game consoles, while the year-over-year increase was driving by an increase in GPU shipments.
As they tend to do, iSupply has broken down the iPad and worked out just what all those magical components are. After compiling and pricing all the individual parts, iSupply has estimated that there are $259.60 in parts in each 16GB Wi-Fi only iPad. That model retails for $499 leaving Apple with a healthy 48% gross margin.
The components associated with the display accounted for the largest proportion of the price, over 40%. The flash memory was also a big contributor to cost, but the increased price of these models keeps the margins around 50%. Clearly these numbers don't include R&D costs, but Apple has a reputation for maintaining higher margins than other hardware makers, who try to make up for lower margins with more sales over time.
We may not know just how much Apple is making on each iPad, but it seems clear they aren't taking a loss. The upcoming release of that 3G edition (with an extra $130 charge) should help as well. We look forward to the iSupply teardown of that model so we can see just what sort of magical 3G chip it has.
HP on Wednesday posted its first quarter financial results for 2010, noting net revenue of $31.2 billion, up 8 percent for a year ago and 5 percent when adjusted for the effects of currency.
"HP is well-positioned to outperform the market," said Mark Hurd, HP chairman and chief executive officer. "The strength of our portfolio, leaner cost structure, and accelerating market momentum give us the confidence to raise our full-year outlook."
It was a good quarter for HP's printer, enterprise storage and servers, and Personal Systems Group sectors, each of which posted increases in revenue, with the biggest bump a 26 percent hike in PSG. That's a different scenario from last quarter, when most of HP's main businesses posted declining sales.
Like a freight train going downhill on greased up tracks, there doesn't appear to be any stopping Acer, although there's no going down for this OEM.
Quite the opposite, actually, as Acer's revenue and profit numbers for 2009 climbed to record highs. According to Acer's financial report for 2009, the company's consolidated revenues reached $17.5 billion with net operating profit hitting $478.1 million. Both represent Acer's best annual figures on record to date.
While there have been some in the enthusiast community who have criticized Acer for a perceived lack in quality, that perception, whether true or not, has done little to curb the company's sales. And ever the confident OEM, Acer said recently it plans on becoming the world's No. 1 PC maker by 2012, a spot currently occupied by HP.
Microsoft today reported results for the second fiscal quarter ended December 31, 2009. It managed to churn out strong results during the quarter thanks mainly to Windows 7. Both its profit and revenue soared to record levels in this period. During fiscal 2Q, the company reported earnings of $6.66 billion, or 74 cents per share, on revenue of $19.02 billion. This is way better than what financial pundits had predicted.
Microsoft claims it has sold 60 million Windows 7 licenses. While the phenomenal consumer interest in Windows 7 is clearly propelling Microsoft's growth, the lingering parsimony among enterprises is a cause for concern.
The division that makes its popular Office productivity suite was particularly hit by lack of corporate spending, with its revenue dropping 3 percent. The entertainment division did not fare too well, either. It only sold 5.2 million Xbox 360 consoles, 13 percent less compared to the previous year.
3Com on Wednesday reported financial results for its fiscal 2010 second quarter ending November 27, 2009, and the results came as a bit of a surprise to Wall Street analysts. The company reported $322.2 million in second quarter revenue, compared to revenue of $354.6 million in the same quarter one year ago.
While that represents a drop of 9.1 percent, revenue increased sequentially to the tune of 10.9 percent, from $290.5 million. According to 3Com, revenue grew sequentially across all major sales regions, a feat the company attributes to a "solid recovery" in several international regions.
"We are pleased with 3Com's performance in the quarter," said Bab Mao, 3Com's Chief Executive Officer. "We exceeded our guidance for revenue, operating profit, earnings per share, and our cash balance, while delivering sequential revenue growth across all our sales regions and achieving record gross and operating margins."
3Com's net income in the quarter was $20.0 million, or $0.05 per diluted share, compared with net income of $12.9 million, or $0.03 per diluted share, in the same quarter one year ago.
The powers that be at Twitter have always skirted questions concerning the three-year-old social media company's lack of a revenue model. With them focusing solely on wooing more and more people to the microblogging platform, profitability seems improbable, if not impossible. But Twitter has managed to do the unthinkable.
According to a BusinessWeek report, which cites unnamed sources, Twitter has finally become profitable. It achieved this unlikely feat by inking separate search deals with Google and Microsoft. Although the news of the deals is rather stale and the ink on them fully dry now, this report is the first to quote definite figures.
BusinessWeek claims to have learned from its sources that the two deals, signed back in October, have together earned Twitter $25 million. The deal with Google is said to be worth $15 million and that with Microsoft around $10 million. Twitters's annual expenses, though officially unknown, are said to be in the region of $20-25 million. So even despite the two deals, Twitter must have only managed a small profit at best. The sources also revealed that Twitter's “telecom expenses” - it has to pay carriers for the millions of text messages sent through its service - have been reduced greatly after it successfully negotiated more favorable deals with carriers.
With all the talk and attention focused on Google's Android platform and Apple's still trendy iPhone (even as AT&T's service wigs out), it seems easy to forget about RIM and the BlackBerry - just ask Wall Street.
RIM on Thursday reported a 59 percent increase in third-quarter income, made possible by a flurry of new subscribers and record sales of the company's BlackBerry. And all but 20 percent of those new subscribers were non-corporate customers, which would indicate that BlackBerrys are holding their own in the popularity contest alongside the iPhone, Palm Pre, Droid, and other hot smartphones.
"The consumer side is growing real fast," co-Chief Executive Jim Balsillie said on a conference call with analysts. "It's not like this isn't a competitive space with big companies trying to do well and yet we're No. 1."
RIM managed to sell 10 million BlackBerry phones during the third-quarter alone, beating its previous record of 8.3 million set in the second-quarter. To put it into perspective, Apple sold 7.4 million iPhones in the most recent quarter.
For the quarter ended October 31, HP reported a net profit of $2.4 billion, up 14 percent from $2.1 billion in Q4 2008. That's good news for HP, considering the company's net revenue dropped 8 percent to $30.8 billion.
HP's struggles have been in just about every sector minus services, including big losses in revenue in consumer PCs, enterprise storage and servers, software, and printing. But the continued strength of HP's services business, along with corporate cost-cutting measures, helped the company turn what looked like an unlikely profit in Q4.
"HP's solid performance in Services drove record profit, and the accelerated pace in signings creates strong momentum going into 2010," said Mark Hurd, chairman and chief executive officer, HP. "Our operational execution and improving cost structure generated strong quarterly and year-end results. We expect to outperform the market due to our significant scale, broad portfolio, and market-leading position."
Out of all of HP's businesses, only services (and to a smaller extent, financial services) saw an increase.in revenue. Services spiked 8 percent to $8.9 billion, the company reported.
Microsoft is scheduled to post quarterly results next Thursday. While things have started to look up for the Redmond-based behemoth, especially its search engine business, its main growth drivers, Windows and Office, still remain hamstrung due to the bleak state of the PC market.