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 →
It is pretty indicative of the shape Sprint is in when reporting a net loss of $980 million and 69,000 net retail subscribers is considered an improvement. The number three carrier in the U.S. lost $0.34 per share — $0.23 per share when you factor out $306 million in deferred taxes — which did not meet Wall Street expectations of a $0.19 loss per share. It wasn’t all bad though; fourth quarter churn was 2.11%, down from 2.16% year-over-year, and free cash flow was up at $666 million for the quarter. Here are a few other numbers from Sprint’s earnings call yesterday: average revenue per user $55, down $1 YOY, pre-paid churn was 5.56%, down from 8.1% the year prior, and $427 million was spent on capital expenditures, up from $304 million last year. More →
TechCrunch is reporting, under good authority, that it has information indicating sales of Amazon’s Kindle has already surpassed the 3 million mark. Analysts had predicted Kindle sales to eclipse the 2.5 million unit mark by the close of 2010… yes, that is 500,000 more units sold 365 days early. The report comes on the heels of impressive Q4 results, as Amazon posted a net sales increase of $9.52 billion, up 42% year-over-year; 37% when adjusted for a favorable foreign currency exchange rate. Net income for Q4 was $384 million or $0.85 per diluted share, a 71% increase year-over-year. As always, you can hit the links for more info. More →
AT&T is the latest company to turn in their Q4 report card, and so far, things are looking good. AT&T is reporting Q4 revenues of $30.9 billion with a net income of $3 billion. AT&T Wireless boasted a 2.7 million customer net-gain in Q4 — 7.3 million additions for the full year — and trimmed $200 million from operating expenses year-over-year. An increasing customer base, the lowest churn rate in company history (1.44%), and an eighth straight quarter of increased ARPU (average revenue per user) made for a profitable Q4. The official release is linked below. More →
Nokia reported its Q4 earnings, and to put it mildly, they crushed it. Nokia shipped 127 million units worldwide during Q4 which fueled net sales of €12 billion. Here are a few other highlights from the release and accompanying balance sheet:
- Market share of 39%, up from 37% in Q4 2008
- Q4 net income of €948 million, 26 eurocents/share, up 65% year-over-year
- Liquid assets of €8.9 billion
- 329 million units world wide, up 8% from last year
- Converged device market share of 40%, up from 35% last year
All things considered a very, very productive quarter for the worlds number one in handset maker. You can view the read link for the official Nokia press release and all the raw data. More →
Yahoo, the number two company in search, announced its less-than-impressive Q4 earnings a few days ago. Their revenue was down 4% from Q4 of 2008 and totaled $1.73 billion; year-over-year revenue also dropped 10% to $6.46 billion in 2009. Yahoo’s freshman CEO Carol Bartz had this to say about the companies Q4: “The fourth quarter marked a strong finish to 2009, which was a transformative year for Yahoo… Our business has positive momentum and we feel good as we head into 2010.” Yahoo, like Google, generates most of its cash from online advertising; analysts will be looking for revenues between $1.575 billion and $1.675 billion in Q1 of 2010. More →
Yesterday, Verizon Communications, Inc. reported a Q4 loss of $653 million, despite a strong showing from its wireless division. Verizon Wireless has the most retail customers of any U.S. carrier, and added 2.2 million new lines during Q4 — almost all of which were post-paid customers — bringing their total customer base to 91.4 million. Losses are being credited to a shrinking land-line customer base, as users move exclusively to cell phones, which was down 3.9% in Q4. VZ announced it will be laying off an additional 13,000 employees in 2010 in an attempt to tighten its belt and get back into the black. DROID.
It has been a long, and at times, ominous road for number-two chip maker AMD, however, we are happy to report that there is reason for the underdog to celebrate. After 13 consecutive quarters of operating in the red, AMD has reported a net income of $1.18 billion dollars for the fourth quarter of 2009. The announcement is largely due to a 28% growth in sales over the holiday season — fueled by the demand for new PC’s and netbooks — and a $1.25 billion lawsuit settlement from rival chip maker Intel. Sales from AMD’s graphics division lead the charge climbing 58% from the previous year, while processor sales also jumped 39% year-over-year. Even with all this good news AMD’s stock is trading lower, as analysts are uncertain that AMD can hit its revenue number for 2010 and/or gain market share from the juggernaut that is Intel. More →
In an economic climate where its been mostly doom and gloom, it’s nice to see that a few companies still know how to do one very important thing — turn a profit. One company that has been able to consistently do this over many years is RIM, maker of the BlackBerry smartphone who yesterday released their Q4 financial results. With Q4 revenue 24.5% over that of the previous quarter and 84% above the same period last year, RIM took in a cool $3.46 billion with the bulk of revenue (some 83%) coming from handset sales alone as some 7.8 million devices were sold over the past three months ended February 28, 2009. All told, RIM can now tout a subscriber base of 25 million which helped propel its net income for Q4 ’09 to $518.3 million ($0.90 per share diluted), a rather impressive increase over the $396.3 million ($0.69 per share diluted) of Q3 ’09 at a time when both corporations and consumers, who now make up half of RIM’s subscribers, are slashing expenses left, right and center. As for Fiscal 2009, net income came in at $1.89 billion ($3.30 per share diluted), an increase of 46.3% from that of 2008. RIM is expecting to add 3.7 to 3.9 million subscribers in Q1 2010 with revenue in the range of $3.3 and $3.5 billion and an earnings per share of $0.88 to $0.97 per share diluted.