There was a time when PCs practically sold themselves, but that was before everyone started crowing about the tough economic landscape and other factors that, as Dell explains, makes growing a PC business "challenging," a word the OEM used when describing its second quarter financial results. Amid slumping sales and declining profits, Dell said it's in the process of transforming its business with a clear strategy focused on long-term results.
Lenovo's investors have to be loving life right about now. The OEM is on top of its game and kept the sales momentum going by announcing yet another strong quarter in which net income (profit) for the three month period ended June topped $141.1 million, up 30 percent year-over-year. Lenovo's PC consumer business in mature markets has more than quadrupled in mature markets since 2008, and the company nearly doubled its PC revenue in emerging markets outside of China, the OEM said.
Auction site eBay is rolling in riches as its online business continues to boom. Revenue for the second quarter ended June 30, 2012 spiked 23 percent year-over-year to $3.4 billion, eBay said. Second quarter income on a non-GAAP basis reached $730 million, up 16 percent compared to one year ago, while GAAP income hit $692 million. PayPal is a big reason why eBay is doing so well these days.
By all means, Intel was on top of its game in the second quarter of 2012. The Santa Clara chip maker reported quarterly revenue of $13.5 billion, operating income of $3.8 billion, and net income of $2.8 billion. Talk all you want about the PC sales slump, Intel still performed well, with its PC Client Group pulling in $8.7 billion in revenue, up 3 percent sequentially, along with its Data Center Group adding another $2.8 billion (up 14 percent sequentially). If the numbers are so strong, why is Wall Street on edge?
Scanning AMD's financial report for the first quarter of 2012, you would think the Sunnyvale chip maker is in big trouble. Revenue was $1.59 billion, a nice number if not for the fact that it represents a net loss of $590 million, or $0.80 cents per share, along with an operating loss of $580 million. That's a 6 percent sequential decrease and a 2 percent decrease year-over-year. Non-GAAP earnings were $0.12 a share. So why wouldn't investors want to hit the panic button?
Verizon had it going on in the first quarter of 2012. Solid performance in both wireless and wireline business segments led to a consolidated double-digit percentage growth in year-over-year quarterly earnings results, a 4.6 percent leap in year-over-year quarterly revenue growth to $28.2 billion, and $6 billion in cash flow from operating activities, up $922 million compared with the same quarter in 2011.
Record enterprise solutions and services revenue of $18.6 billion for fiscal year 2011 ($4.9 billion the fourth quarter) played a big role in Dell reporting its "most successful financial year ever." Revenue for the full year topped $62 billion, representing a 1 percent year-over-year increase, with $16 billion pouring in during the final quarter, a 2 percent increase over the previous year. But it was Dell's outlook for the coming quarter that didn't sit well with investors, who collectively sent the company's shares down more than 4 percent.
Nvidia's fourth quarter financial results were a bit of a mixed bag, and despite reporting revenue growth for the company's full fiscal year, investors reacted negatively to Nvidia's outlook for the first fiscal quarter of 2013. First things first -- the GPU maker reported revenue of $4 billion for the fourth quarter of 2011, up 12.8 percent from $3.54 billion in fiscal 2011, but down 10.6 percent from the previous quarter.
If you're an old school PC gamer, a quick way to get depressed is to head over to your local GameStop or Babbages and browse the PC section. The lone rack (at best) is a far cry from the days of shelves lining stores like Software Etc.* with PC titles, but that doesn't mean the platform is dead, Steam and other digital platforms have change the way PC gamers shop, and it's the reason Activision Blizzard's digital sales are at an all time high.
Sprint's Chief Executive Officer Dan Hesse wished long and hard for an opportunity to carry Apple's iPhone, but what he and his company never considered was the old adage that says 'Be careful what you wish for, because you just might get it and then you're stuck with high iPhone subsidies.' We added that last part, but to be fair, does it matter? Sprint, like Verizon, was hellbent on carrying the iPhone, and now it's seeing the cost of that decision.