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.
Shares of Microsoft are up nearly 6 percent after posting Q1 financial results
After taking a $900 million charge on unsold Surface inventory last quarter, Microsoft investors were ready for a bit of good news, and they certainly got it. Kicking off its fiscal year, Microsoft reported record first-quarter revenue of $18.53 billion, resulting in a $5.24 million profit and earnings per share of $0.62. Not too shabby for a company that's in the midst of a transitional phase.
Microsoft's Xbox One and Sony's PlayStation 4 consoles feature AMD hardware inside, and it's primarily because of those deals that the Sunnyvale chip designer was able to return to profitability this past quarter. AMD said it made a profit of $48 million on revenue of $1.46 billion in the third quarter of 2013, compared to a $74 million loss in the previous quarter and a whopping $157 million loss in the same quarter one year ago.
Intel this week reported third-quarter revenue of $13.5 billion, operating income of $3.5 billion, and net income of $3 billion (or 58 cents per share), the latter of which represents 48 percent sequential growth. A peek around the web reveals that Intel's profit growth is almost 10 percent higher than Wall Street was expecting, allowing Intel to hush the naysayers during a period of transition to mobile.
Nvidia this week reported $977.2 million in total revenue for its second quarter of fiscal 2014 ended July 28, 2013, up 2.4 percent from $954.7 million the prior quarter though down 6.4 percent from $1.04 billion in the same period a year ago. This led to a 23.8 percent sequential jump in profit to $96.4 billion, or $0.16 per share. Not too shabby considering Tegra sales fell off a cliff last quarter.
AMD's $1.16 billion quarterly revenue wasn't enough to turn a profit
It's a tough time to be a chip maker without a significant foothold in the mobile handheld market. Witness Advanced Micro Devices (AMD), which recently announced $1.16 billion in revenue for the its second quarter of fiscal 2013, an operating loss of $29 million, and a net loss of $74 million, or $0.10 cents per share. Even though the numbers aren't where AMD would like them to be, the Sunnyvale chip designer is optimistic it will return to profitability next quarter.