Verizon adds 872,000 subscribers, doubles profit in fourth quarter

By on January 25, 2011 at 11:07 AM.

Verizon adds 872,000 subscribers, doubles profit in fourth quarter

Shares of Verizon Communications stock slid over 1% in after-hours trading Tuesday morning as the company reported its fourth quarter earnings. Despite almost doubling profit from $2.37 billion in the fourth quarter of 2009 to $4.65 billion in 2010, earnings of $0.54 per share missed the Street’s consensus of $0.55 per share and revenue fell 2.6% to $26.4 billion. Subscriber growth of 872,000 net postpaid customers crushed Wall Street’s consensus, however, which sat in the mid-600,000s. “Verizon ended 2010 with strong results, driven by solid execution across all our businesses,” Verizon CEO Ivan Seidenberg said in a statement. “The fourth quarter capped a strong second half of the year, resulting in improved earnings, solid momentum and an even stronger balance sheet. Verizon Wireless produced another quarter of impressive growth, with record-high profitability, as we continue to drive higher smartphone adoption and data use. Following another solid quarter in our wireline businesses, we are optimistic about opportunities to continue to expand wireline margins.” Verizon also noted that only 26% of Verizon Wireless’ 83 million postpaid wireless subscribers owned smartphones at the close of 2010. This creates a tremendous opportunity for the carrier as it prepares to launch the iPhone 4 next month. Hit the break for Verizon’s full press release. More →

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HP reports Q4 earnings; revenue up 8% to $33.5 billion

By on November 22, 2010 at 6:03 PM.

HP reports Q4 earnings; revenue up 8% to $33.5 billion

Hewlett-Packard reported a solid quarter Monday evening, as the consumer electronics giant posted earnings that beat analyst expectations. HP’s net revenue in its fiscal fourth quarter of 2010 came in at $33.3 billion, up $2.5 billion from the fourth quarter last year. Non-GAAP diluted EPS was also up year-over-year, jumping 17% to $1.33. HP raked in a total of $126 billion in net revenue for its full fiscal 2010, up an impressive 10% from 2009. Looking forward, the company now projects 2011 revenue to fall between $132 and $133.5 billion, with non-GAAP diluted EPS ranging from $5.16 to $5.26. Hit the jump for the full report. More →

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T-Mobile USA announces lackluster Q3 earnings

By on November 4, 2010 at 7:33 AM.

T-Mobile USA announces lackluster Q3 earnings

Today, T-Mobile USA announced earnings from its third quarter of 2010. How did the company do? Well, to be honest, the stat sheet looks pretty beige. The company is reporting service revenues of $4.71 billion which is flat to Q2 2010 and down 0.5% year-over-year. T-Mo reports 7.2 million of its 33.8 million total customers (~ 21%) are using smartphones — only 2.8 million were using smartphones as of Q3 2009. Magenta saw wireless additions totaling 137,000 and had a lower than expected OIBDA (Operating Income Before Depreciation And Amortization) of $1.32 billion (largely due to investments in its HSPA+ network). Churn was 2.4% and 7.2% for contract and non-contract customers respectively; ARPU (average revenue per user) was $47.

“I am very pleased with the development of blended data ARPU. Along with the growing number of smartphones, this demonstrates the potential of mobile broadband data growth in the US market and for T-Mobile USA in particular,” said René Obermann, Chief Executive Officer of Deutsche Telekom.

Hit the read link to read the full report. More →

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Samsung reports Q3: $3.98 billion in profit on $35.8 billion revenue

By on October 30, 2010 at 8:08 AM.

Samsung reports Q3: $3.98 billion in profit on $35.8 billion revenue

South Korean electronics powerhouse Samsung has announced its Q3 financials via a press release. The outfit raked in an impressive $35.8 billion in revenue and $3.98 billion in operating profits, and about 25% of that profit came by way of its thriving telecommunications business. Samsung chiefs were quick to credit their mobile communications wing, which shipped 71.4 million phones during Q3 — a 19% increase on last year’s figures. Samsung claims to have sold 7 million Galaxy S phones during the quarter and expects to sell 10 million by the end of the calendar year. Go on Samsung, pat yourself on the back. Press release after the break. More →

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Motorola reports first growth quarter since 2008

By on October 28, 2010 at 8:27 AM.

Motorola reports first growth quarter since 2008

Motorola announced its Q3 results on Thursday and while the seemingly imminent arrival of the Verizon iPhone weighs heavily on investors’ minds, Motorola managed to report its best quarter in some time. Sales in the third quarter were up 13% year over year to $4.9 billion and phone revenue came in at $2 billion, up 20% from the year prior. Motorola shipped 9.1 million cell phones in Q3, 3.8 million of which were smartphones. Smartphone shipments beat the Street’s estimates, which typically fell between 3.5 and 3.6 million. Motorola also stated that its total cash on hand rose to $9 billion. Motorola’s business relies heavily on its current deal with Verizon Wireless, where its DROID-branded smartphones are a central draw that Verizon spends big marketing dollars on. Should Verizon finally manage to launch a CDMA version of the Apple iPhone next year, which is looking increasingly likely, it could spell trouble for Moto. More →

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Sony Ericsson post modest profits in Q3, $2.26 billion in sales

By on October 15, 2010 at 6:01 PM.

Sony Ericsson post modest profits in Q3, $2.26 billion in sales

Earlier today, mobile giant Sony Ericsson posted their third quarter financials via a conference call. The handset maker managed to eek out a third consecutive quarter of profits; bringing in $69 million in net income on sales of $2.26 billion. It’s not all sunshine in Japan/Sweden. The volume of handsets being shipped by SE did dip significantly. Chief Executive, Bert Nordberg, had the following to say: “Our strategy to focus on the smartphone segment is succeeding and smartphones now comprise more than 50% of our total sales. During the quarter, we launched our Android-based Xperia models in new markets, such as China and the U.S.”

Sony Ericcson has been — unsuccessfully — playing market share catch up over the past few months, but having named themselves as a partner for Window Mobile 7… it’s still game on. More →

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Google has strong Q2, 24% revenue growth year-over-year

By on July 16, 2010 at 8:32 AM.

Google has strong Q2, 24% revenue growth year-over-year

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Mountain View, CA search juggernaut Google has announced their Q2 2010 financial results… and it all looks very good. Google posted revenue of $6.82 billion for the quarter (up 24% YoY), a net income of $1.84 billion (up from $1.48 billion), an effective tax rate of 24%, cash, cash equivalents, and short-term marketable securities of $30.1 billion, and an additional 1,200 employees. Other highlights from Q2 include:

  • Google-owned sites generated revenues of $4.50 billion, or 66% of total revenues
  • Google’s partner sites generated revenues, through AdSense programs, of $2.06 billion, or 30% of total revenues

Hit the read link for the full financial disclosure. More →

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Blockbuster to be delisted from the NYSE

By on July 3, 2010 at 11:30 AM.

Blockbuster to be delisted from the NYSE

Blockbuster-store

Blockbuster continues its downward spiral as it has been suspended from trading and forced to delist from the NYSE effective next Wednesday. Currently trading at $0.18 per share, Blockbuster failed to win majority stockholder approval last week for a reverse stock split that would have brought its stock above the $1 threshold and back in compliance with the NYSE. In a move that delays any immediate bankruptcy proceedings, Blockbuster was given a one-month reprieve on debt payments that the movie rental giant failed to pay on July 1st. The creditors, which hold nearly $440 million of Blockbuster’s whopping $920 million of debt, agreed to postpone any “remedies” until August 13th. In the upcoming weeks, Blockbuster is hoping to negotiate with partners to get a quick infusion of cash by possibly converting some bondholders to equity investors. This quick fix may be a little too little, a little too late and may only delay the inevitable bankruptcy as Blockbuster shows no signs of becoming profitable in the foreseeable future. More →

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Palm laying off staffers as part of the HP acquisition?

By on July 2, 2010 at 6:06 PM.

Palm laying off staffers as part of the HP acquisition?

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While the world is focused on HP and the future of webOS, some Palm employees are reportedly pondering their own future after they were handed pink slips this week. According to an unnamed source, “many” employees were supposedly laid off in the days just prior to the completion of the HP/Palm merger. The source did not quote numbers or name names so the total sum of people and positions that were removed are unknown. HP and Palm have not publicly disclosed any reduction in the work force so we will have to wait for these ex-Palm employees to come out of the wood work to either confirm or refute this rumor. Anyone willing to stand up and be counted? More →

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Palm's Hail Mary to be a Sprint 4G handset?

By on March 2, 2010 at 7:28 AM.

Palm's Hail Mary to be a Sprint 4G handset?

palm-sinking-ship

Speculation is running rampant about the future of Palm after it lowered its guidance last week with analysts, pundits and bloggers alike offering up advice to the struggling company. One of the more unusual suggestions has Palm partnering up with Sprint to release a WiMAX handset, noting that the manufacturer and the carrier have had a close relationship in the past and the market for a WiMAX handset is brand new and wide open. Some analysts dismiss this idea, claiming that Palm would not risk its future on an untested and relatively niche market, and they point towards updated 3G hardware with a larger touchscreen and distribution on a major carrier like AT&T as Palm’s saving grace. The Wall Street Journal even chimed in with its “people familiar with the situation” reiterating the claim that Palm will release a webOS device on AT&T in the next few months and projecting that Palm has new hardware on tap for later this year. In the end, Palm has one or two final high stakes hands to play and let’s hope it has enough cash in the bank to be able to ante up what it needs to stay in the game. More →

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Blockbuster continues its decline, posts $425M loss in Q4

By on February 25, 2010 at 4:19 PM.

Blockbuster continues its decline, posts $425M loss in Q4

blockbuster-shredder

Blockbuster continues its downward spiral with the once powerful movie rental company now posting yet another quarterly loss. Bad news across the board with sales plunging 16%, revenue falling 18%, and an income loss of $425 million which exceeds the $360 million loss posted in Q4 2008. Blockbuster is in tough shape; its stock is hovering around $0.31, a point that places its future on the NYSE at risk, and analysts en masse are questioning if it has the ability to repay its debts which total $964 million. In an attempt to reverse this trend, Blockbuster is closing stores, shuttering 253 of them last month with another 150 planned for April, and extending its reach by offering a video by mail service, an on-demand video streaming service, and is introducing kiosks which offer movie rentals without the overhead costs associated with a brick and mortar store. Blockbuster is jumping feet first into the kiosk market, rolling out 2,000 kiosks in 2009 with another 7,000 planned for 2010. This may be a little too little, a little too late as kiosk rental champion Redbox continues to eat away Blockbusters market share and Netflix, Blockbuster’s primary rival, is laughing all the way to the bank with $31 million in quarterly income and 12.3 million subscribers in tow. More →

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T-Mobile adds 1 million new subscribers in 2009, income and revenue decline

By on February 25, 2010 at 1:07 PM.

T-Mobile adds 1 million new subscribers in 2009, income and revenue decline

t-mobile-sign

T-Mobile held its position as the #4 carrier in the U.S. by adding one million new subscribers to its coffers in 2009 and ending 2009 with a total of 33.8 million customers. Catherine Zeta Jones’ favorite network gained a total of 371,000 new subscribers in Q4 2009, a number that was achieved by the addition of 488,000 pre-paid subscribers and the loss of 117,000 net contract subscribers. Despite the yearly and quarterly growth in its subscriber base, yearly revenue declined to $21.5 billion, a 1.6% year over year drop and quarterly revenue dropped to $5.41 billion from $5.72 billion in Q4 2008. T-Mobile’s net income also took a hit, dropping from $483 million at the end of 2008 to $306 million in 2009. Though overall revenue and income declined, T-Mobile’s mobile data business was lucrative as total data revenue reached $598 million in Q4 2009 and $2.2 billion for the full year, a 35% and 37% year over year increase. Additionally, the Magenta network’s infrastructure was also on the rise; its entire 3G network has been upgraded to 7.2 Mbps HSPA, select markets are being upgraded to 21Mbps HSPA+, and its 3G coverage now reaches 205 million people nationwide. More →

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Apple reports record revenue and profits for Q1 2010

By on January 25, 2010 at 5:21 PM.

Apple reports record revenue and profits for Q1 2010

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Apple reported its financial results for Q1 2010 which ended December 26, 2009 and the results were nothing short of impressive. Apple posted its all time highest quarterly revenue, its all time highest quarterly profit and when annualized, these numbers will push Apple into a $50+ billion per year company. The dollar figures are so impressive they don’t require an explanation, so we will let the numbers speak for themselves:

  • Revenue of $15.68 billion ($11.88 billion in Q1 2009)
  • 58% of revenue derived from international sales
  • Net quarterly profit of $3.38 billion or $3.67 per diluted share ($2.26 billion, or $2.50 per diluted share in Q1 2009)
  • Gross margin of 40.9 percent (37.9 % in Q1 2009)
  • $5.8 billion generated in cash

Sales of Macintosh computers and iPhones went through the roof in Q1 2010 with Apple selling 3.36 million computers and 8.7 million iPhones, representing a 33% unit increase for Macintosh sales and 100% unit growth for the iPhone when compared to Q1 2009. The only blotch on an otherwise stellar performance was the iPod which sold 21 million units in Q1 2010, an 8% unit drop from the same quarter last year. Estimates for Q2 2010 remain equally as optimistic with the Cupertino company expecting another quarter of impressive revenue that will top out at an expected $11.4 billion. And oh yeah, Steve Jobs said, “The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about.” More →

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