Google had a bit of an off first quarter this year. It’s not like they lost billions of dollars, but the financial markets were a little unhappy with the numbers. The just announced Q2 results should make everyone forget all about that though. Google reports an astounding $9.03 billion in quarterly revenue. That’s a record for Google.
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.
Microsoft just can't catch a break. The tech giant reported their first quarter results, and they managed to beat analyst expectations. Microsoft had revenue of $16.43 billion for the which is a 13% increase from a year ago. Income was $5.23 billion, or about 61 cents per share. So why is Microsoft feeling down about these admittedly huge numbers? The market isn't impressed. Redmond is seeing stock dip 2% in after-hours trading.
Oh, poor Microsoft and their declining business. No one thinks they're cool anymore, and that surely means they are going down in flames. After all, they only pulled in a measly $20 billion in revenue last quarter. Wait, what? Indeed, good old Microsoft has had a record quarter with nearly $20 billion in sales, working out to $6.63 billion in profit after all the bills are paid. That's $0.77 per share for you stock market folks.
The cheers are surly rattling the windows up in Redmond on the news. The Entertainment and Devices division saw a 55% increase in revenue on the strength of Kinect and the Xbox 360. This is rather astonishing seeing as the division that makes Windows is only $1.3 billion ahead of the Xbox folks now. That used to be a much wider gulf. All the more reason to milk the current console generation that much more.
One Microsoft product that isn't getting much attention is Windows Phone 7. If it had made an impact on the bottom line, we assume Ballmer would have been dancing on the roof, or something like that. Still, with these sorts of numbers, they can afford to build WP7 slowly.
Analysts were expecting Intel to make some money, but the chipmaker beat everyone's expectations, including their own. According to All Things D, Intel reported revenue of $11.5 billion with sales up 8% year over year. But with that sales increase, profits were up 48%. As you might expect, Intel's shares are selling up on the news. Gartner is reporting that PC sales ended up weaker than expected in the 4th quarter, so these results are even more impressive.
Most of Intel's divisions were seeing increased sales. Even Atom chips are still moving nicely. Although, the coming year may be difficult with new Windows on ARM initiatives and mobile chips from Nvidia and Qualcomm exploding. But Intel still expects to maintain in 2011. They are predicting the same $11.5 billion in revenue for next year. Only time will tell if Intel's mobile parts can gain market share to return those numbers.
Hulu CEO Jason Kilar offered up some interesting numbers today to illustrate the strength of the streaming video service. If you take Kilar's word for it, the prognosis is good. According to Kilar, Hulu is on track to make over $240 million in revenue in 2010. Other notable figures included 30 million monthly users, 800 million ad impressions, and 352 ad partners.
Not bad for a service that many pundits expected to fail out of the gate. Hulu has made its way by showing limited ads during video streams. A pay versions was launched recently, but it's not clear how much of the total revenue will come from those $10 per month subscriptions.
One thing is clear about this: internet TV is big, and as much as the networks might want to think of Hulu as a secondary content source, it is fast becoming a dominant one. We're interested to see how Hulu does now that the paid Hulu Plus service is open to everyone. Of course, Kilar didn't mention profits, so it's possible Hulu is still treading water. Could we be seeing sky-high profits soon?
Microsoft's first quarter numbers are in, and the Redmond giant made a killing. Profits were up 51% over last year according to Seattle PI. This is pretty great for a company that has more or less been treading water for the last few years. The market tends to only reward growth, which has been bad for Microsoft. After the announcement, Microsoft shares rose a percent, which is something at least.
"This was an exceptional quarter combining solid enterprise growth and continue strong consumer demand for Office 2010, Windows 7 and Xbox 360," said Microsoft CFO Peter Klein. Microsoft's sales were up 25% from just one year ago, but part of that gain is from deferred revenue ahead of the Windows 7 launch last year. Most divisions turned a profit for Microsoft, even the Entertainment and Devices unit managed a $382 million profit. Many commentators are quick to dismiss Microsoft, but they are clearly still humming along.
Microsoft’s performance during the fourth quarter not only exceeded the Street’s expectations but also saved some blushes. The Redmond-based company earned $16.04 billion in revenue, a 22% rise compared to the same period last year, and enough to get it past Apple’s quarterly revenue of $15.7 billion. The Street had foreseen Apple bettering Microsoft’s quarterly revenue for the first time ever, but MS had other plans.
Windows 7 continued its stellar performance during the quarter and, along with Office 2010, accounted for a large part of the company’s growth. “We saw strong sales execution across all of our businesses, particularly in the enterprise with Windows 7 and Office 2010,” said Kevin Turner, chief operating officer.
According to a press release issued by the company, “Operating income, net income and diluted earnings per share for the quarter were $5.93 billion, $4.52 billion and $0.51 per share, which represented increases of 49%, 48% and 50%, respectively, when compared with the prior year period.”
Sometimes it escapes our attention that people are still buying huge numbers of PCs these days. Intel's quarterly profit announcement reminded everyone of that today with news that the chip maker had record profits of $2.9 billion. Not to belabor the point, but that is all raw profit, not revenue.
The new numbers display a solid increase of $445 million over last quarter, and a massive $3.3 billion increase from last year. Not only did regular CPU sales blow up, but Atom revenue was up a respectable 16%. Any way you slice it, it's good to be Intel right now. Did you buy any Intel chips in the last few months? Upon reflection, we realized we may have more than a little to do with their profits.
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.