After a rough month that saw Apple’s stock tumble nearly $90 from a high of $644 earlier this month to as low as $555.18 on Tuesday, Apple reported its earnings for the second fiscal quarter on Tuesday after the market closed. Following a last-minute round of panic that swept Wall Street, Apple posted a net profit of $11.6 billion, or$12.30 per share — up 94% year-over-year — on revenue of $39.2 billion, crushing the Street’s consensus. Analysts were expecting earnings of $10.06 per share on $36.81 billion in sales. Read on for more. More →
E Ink, the popular company that provides paper-look gray-scale displays for eReaders, reported consolidated revenues of $48.02 million in January, down 63.6% from the same month last year and 11% sequentially. The growing popularity of media tablets with full-color displays likely played a big role in the decline — sales of Amazon’s Kindle Fire and Barnes & Noble’s Nook Tablet are thought to be eating into the companies’ respective dedicated eReader businesses to an extent. Even though E Ink’s revenue took a nose dive in January, the company said that it expects to post revenues of $1.35 billion this year, up 5% from 2011.
Qualcomm on Wednesday reported record earnings for the first quarter of fiscal 2012. The company took in $4.68 billion in revenue, up 40% year-over-year and 14% sequentially, beating Wall Street’s estimate of $4.58 million. Qualcomm’s net income of $1.4 billion was up 20% year-over-year and 25% over the fourth quarter. The firm also managed earnings of $0.97 per share, up 18% year-over-year and ahead of the Street’s EPS estimate of $0.90. Qualcomm boosted guidance for the full year, saying it expects to report between $18.7 billion and $19.7 billion in revenue for 2012. It had previously said revenue would likely fall between $18 billion and $19 billion. “I am pleased to report another record quarter with revenues, earnings and MSM shipments reaching all-time highs, driven by our industry-leading chipset portfolio and the continued strong demand for smartphones around the world,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “We are raising our revenue and earnings guidance as our broad licensing partnerships and extensive chipset roadmap, led by our integrated Snapdragon processors, position us well for strong growth in fiscal 2012. We continue to invest in innovative wireless technologies, products and services, and we are excited about the opportunities ahead as 3G and 4G continue to expand across new device types and geographies.” More →
Seagate said in its recent fiscal second-quarter earnings report that it expects the flooding in Thailand to result in a continued hard drive shortage throughout 2012. The company originally reported issues after flooding affected its factories in October, 2011. In addition, analysts have suggested that the floods could increase laptop and desktop PC prices, and hurt overall sales for major computer vendors. Seagate said that it shipped 47 million hard drives during the second fiscal quarter of 2012, which was down just 4% from the same quarter last year. The company confirmed in its earning statement that it has already secured long-term deals to make sure prices don’t inflate further. More →
Amazon on Tuesday reported its earnings for the fourth quarter, during which it took in $17.4 billion in revenue. While its net sales were up 35% from the $12.95 billion reported during the fourth quarter last year, the company missed analyst estimates of $18.26 billion in revenue for the quarter. Amazon’s net income decreased 58% to $177 million during the quarter, or $0.38 per diluted share, compared with the net income of $416 million it reported during the same quarter last year. Net sales for the year jumped 41% to $48.08 billion, up from the $34.20 billion the company reported in 2010. Amazon said its Kindle Fire tablet has been the #1 best-selling, most wished-for and most gifted product on its website for the past 17 weeks. In addition, the company said the nine-week holiday period ended December 31st, 2011 resulted in a 177% increase in Kindle unit sales, which includes the Kindle Fire. Amazon expects net sales to fall between $12 billion and $13.4 billion during the first quarter of this year, up between 22% and 36% from the first quarter last year. Amazon’s full press release follows after the break. More →
Nintendo recently published a note in which it said it will report an annual operating loss of 45 billion yen ($575 million) for the December quarter. Analysts had expected the Japan-based gaming giant to report a 4.2 billion yen loss, Reuters said Thursday. The company now expects to ship 10 million Wii consoles, instead of the original 12 million projected, and 14 million units of its portable 3DS gaming consoles, down from 16 million units. ”We had higher expectations for the year-end season, but failed to meet them,” President Satoru Iwata said while speaking to press in Osaka, Japan. Three analysts speaking to Reuters all agreed that Nintendo needs to rethink its strategy and understand that consoles could be a thing of the past. ”Their time of growth [from console systems] is over, and, while I don’t think the company will cease to exist, if they don’t move into new categories, they will no doubt lose the great scale they’ve amassed,” Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management in Tokyo, told Reuters. Satoru Iwata has previously said that creating games for Apple’s iOS mobile platform is “absolutely not under consideration.” More →
AT&T reported its fourth-quarter 2011 results on Thursday and noted that it achieved record mobile broadband and smartphone activations during the quarter. The company reported consolidated revenue of $32.5 billion, up 3.6% or $1.1 billion from the same quarter last year, but it posted a loss of $6.7 billion, or $1.12 per share. EPS swings to a profit of $0.42 per share discounting one-time charges including the massive breakup fee paid to T-Mobile. AT&T attributed 76% of its revenue growth to wireless, wireline data and managed services, which represented 76% of overall revenue, up 7.5% from last year. The carrier sold 9.4 million smartphones during the quarter, a record that was 50% more than its previous record and more than twice the number of smartphones that were sold during the last quarter. AT&T added 717,000 postpaid customers, the largest increase in postpaid in five quarters, and 2.5 million total net wireless subscribers. The company said it was also the best quarter for Android and iPhone activations and that it activated a total of 7.6 million iPhones during the quarter. AT&T also noted that its full year revenue totaled $126.7 billion, up 2% from the $124.3 billion it reported in 2010. AT&T’s full press release follows after the break. More →
Netflix on Wednesday announced its earnings for the fourth quarter of 2011. The company noted $876 million in revenue, up 47% from the same quarter last year, and earnings per share of $0.73. Analysts had pegged the company to report revenue in the ballpark of $857.4 million and EPS of $0.54, Barron’s relayed. Netflix also said it added 220,000 new subscribers, a far cry from the 800,000 it lost during the third quarter, and now serves 21.67 million streaming customers in the United States. The company has 24.4 million U.S. customers signed up for DVD subscriptions and that figure jumped by 610,000 during the quarter.
Netflix serves 1.9 million international streaming customers and added 380,000 new subs during the quarter. “We are encouraged by the strength in acquisition that we are seeing, coupled with continued improvements in retention among our domestic streaming members,” the company said in a statement. “For Q1 to date, our domestic net additions for streaming are tracking close to our net additions in Q1 2010 of 1.7 million net additions. Given this trend, we are comfortable with our ability to continue to expand our domestic streaming contribution margin.”
Apple reports record Q1 blowout, biggest quarter ever with 37 million iPhones, 15.4 million iPad sold
Following a rare miss in the fourth quarter, Apple on Tuesday reported record earnings in the fiscal first quarter that crushed expectations. Wall Street’s consensus pointed to earnings of $10.06 per share on revenue of $39 billion, and Apple came in way above expectations with revenue of $46.33 and earnings of $13.87 per share. Following the record-breaking launch of Apple’s iPhone 4S, a number of analysts were expecting iPhone shipments to come in at 40 million units or more for the December quarter. The numbers are now in, and Apple managed to move 37 million iPhone handsets, which includes the iPhone 4S, iPhone 4 and the free-on-contract iPhone 3G. IPad shipments totaled 15.4 tablets million last quarter, and Apple also managed to ship 15.4 million iPods and 5.2 million Mac computers. Apple shipped 17.1 million iPhones, 11.1 million iPads, 6.62 million iPods and 4.89 million Macs in the fiscal fourth quarter and 16.24 million iPhones, 7.33 million iPads, 4.13 million Macs and 19.45 million iPods in the first quarter of fiscal 2011. The full press release follows below. More →
Verizon on Tuesday reported its fourth quarter 2011 results. The company noted record revenue growth during the quarter, which it said was fueled by strong demand for wireless service. Revenue for the year totaled $110.9 billion, up 4% from 2010. Its quarterly revenue of $28.4 billion was up 7.7% from the same time period last year. Verizon Wireless, a joint venture between Verizon Communications and Vodafone, reported the highest number of retail net additions in three years driven by smartphone sales. Revenues tipped at $18.3 billion during the quarter, up 13% from the same period last year. Data revenues was up even higher year over year, at $6.3 billion, up 19.2% ($1 billion) from the same period one year prior. ARPU grew 2.6% to $53.14. Verizon also reported $0.85 EPS, down from $0.90 EPS in 2010. The carrier added a total of 1 million total net connections during the fourth quarter and 1.5 million retail customers, including 1.2 million retail postpaid customers. Postpaid churn was 0.94% for the quarter. Verizon’s full press release follows after the break.
Yahoo has frozen its hiring process and may even consider layoffs according to a new report. The news was revealed by AllThingsD on Thursday, which wrote that the choices were made ahead of expected weak fourth quarter earnings. Yahoo isn’t considering mass layoffs, however; instead, AllThingsD said they are likely to be “small and selective” if they happen at all. Yahoo experienced a bit of turmoil earlier this week when co-founder, former CEO and board member Jerry Yang resigned from the company. AllThingsD said other board members may be considering leaving the company, too. Yahoo will report its fourth quarter earnings next Tuesday. More →
Microsoft reported its earnings for the quarter ended December 31st, 2011 Thursday and noted record revenue for its second fiscal quarter. Revenue of $20.89 billion was up 5% from the same period last year. “We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services,” said Steve Ballmer, chief executive officer at Microsoft. “Coming out of the Consumer Electronics Show, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012.” Microsoft’s business division reported $6.28 billion in revenue for the quarter, up 3% from the same period last year. Its Server & Tools business recorded $4.77 billion in revenue, up 11% from the same period last year. The Windows and Windows Live Division, however, reported revenue of $4.74 billion, which was down 6% from the same period last year. The company’s profits were recorded at $0.78 per share, beating analyst expectations of $0.76 per share. Microsoft’s full press release follows after the break. More →
Sony Ericsson on Wednesday posted a €247 million loss, blaming “intense competition, price erosion and restructuring charges” for its poor results. While the Swedish joint venture did continue to make headway in the smartphone market, noting a 67% increase in Android-based Xperia smartphone sales compared to the fourth quarter in 2012, the average selling price of its phones dipped 14% sequentially and operating margin plummeted to -10% excluding restructuring fees. Mobile phone shipments were down to 9 million from 11.2 million units in the same quarter a year earlier, and revenue slid to €1.29 billion from €1.53 billion in the fourth quarter 2010. ”Our fourth quarter results reflected intense competition, unfavorable macroeconomic conditions and the effects of a natural disaster in Thailand this quarter,” Sony Ericsson CEO Bert Nordberg said. For the full year, the company reported an operating loss of €243 million on €5.21 billion in sales. Sony Ericsson’s press release follows below. More →