Declining hardware sales and expensive layoffs hurt IBM's bottom line
It was another rough quarter for IBM, which reported a drop in revenue. That marks eight quarters in a row of revenue declines. For the first quarter of 2014, IBM's total revenues reached $22.5 billion, down 4 percent from the first quarter of 2013. On the plus side, IBM is still making a profit -- $2.4 billion in Q1 2014, though even that figure is marred by the fact that it's down 21 percent year-over-year.
Earnings report sends Intel's stock soaring to a 52-week high
Talk is cheap at the end of the day, so despite doomsayers predicting the demise of the PC, Intel's sales and revenue proved those notions wrong. Intel, the largest semiconductor company in the world, beat out analyst expectations by reporting first quarter revenue of $12.8 billion, operating income of $2.5 billion, net income of $1.9 billion, and earnings per share of 38 cents.
Big losses have become all-too-familiar for BlackBerry
The numbers are in for BlackBerry's fourth quarter of fiscal 2014, and once again, they're not pretty. To get some of the bigger ones out of the way, BlackBerry posted a $423M loss, or $0.08 per share diluted, for Q4, which contributed to a $5.9 billion loss for entire year. Despite the heavy losses, BlackBerry's recently inaugurated CEO John Chen said he was "very pleased" with how things are going. Confused?
The worst may be over in terms of slumping PC sales that have made headlines throughout the past year. HP, the second largest PC supplier in the world, reported a 4 percent jump in PC sales compared to last year en route to posting a $28.2 billion quarter for its fiscal period ended January 31, 2014. That's actually a 1 percent decline in net revenue compared to the same quarter a year ago, but still higher than Wall Street was expecting.
It's been a few quarters since Lenovo shoved Hewlett-Packard aside to become the leading PC maker in the world (in terms of shipments), and whatever the Chinese OEM is doing, it seems to be working. Lenovo on Thursday announced record results for its third fiscal quarter ended December 31, 2013, noting that it generated $10.8 billion in revenue. That's a 15 percent year-over-year increase and also marks the first time Lenovo's topped the $10 billion mark.
If at first you don't succeed, try, try again. That's the motto Microsoft followed with its Surface strategy, which initially failed to win over customers and led to a $900 million charge on unsold inventory. Oh, but what a difference a couple of quarters can make. Microsoft's Surface revenue more than doubled sequentially to $893 million en route to the Redmond giant posting record revenue of $24.52 billion for the quarter ended December 31, 2013.
Wins in the console sector have paid off handsomely
On hindsight, AMD absolutely made the right decision to purchase ATI, an acquisition that was met with some skepticism among analysts at the time. What those analysts couldn't have predicted is that several years later the PC market would find itself in a slump, leaving AMD to lean heavily on its graphics division. In doing so, AMD posted a profit of $89 million, or 12 cents a share, in the fourth quarter of 2013, rebounding from a $473 million loss, or 63 cents a share, a year prior.
BlackBerry can't seem to catch a break no matter what it does. This was a year of change for BlackBerry, from a shakeup in management to new devices and even a new name. However, the end result is still the same -- losses. The latest loss comes to $4.4 billion for the Canadian handset maker's three month period ended November 30, 2013. No company wants to be staring at $4.4 billion loss, though the majority of that red ink is due to charges.
Investors react positively to HP's revenue results
Hewlett-Packard's fourth quarter net revenue slipped 3 percent year-over-year (or 1 percent when adjusted for the effects of currency) to $29.1 billion, though analysts were expecting a bigger decline. Part of the reason why HP exceeded expectations is because it was propped up by growth in its Enterprise Group (servers, software, storage, and networking products), which was up 2 percent compared to the same quarter a year ago.
Another solid quarter from Lenovo proves there's still a market for PCs
There's little doubt tablet PCs and smartphones are cannibalizing traditional PC sales. It's not the only factor that's caused a slump in PC sales, but the infatuation with mobile devices has certainly played a role. What's an OEM system builder to do? Well, in the case of Lenovo, the OEM adopted a "PC Plus" strategy, allowing it to cash in on the mobile craze while simultaneously making money on traditional PCs. This strategy has led to a record number of device sales, and if you're worried Lenovo is turning its back on desktops and laptops, check out these stats.