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 →
Samsung issued pre-earnings guidance on Friday indicating it will beat profit estimates set by the Street for the third quarter thanks to strong demand for its smartphones. The South Korea-based company said its operating profit for the three month period ending this September will total roughly 4.2 trillion won ($3.6 billion), which bested estimates from a group of 28 analysts who collectively thought Samsung’s profit slide in at 3.7 trillion won. The company still took a big hit compared to the same quarter last year however, when Samsung reported operating profit of 4.86 trillion won. ”It seems like there was a big surprise on the smartphone side,” Shinyoung Securities analyst Lee Seung Woo told Bloomberg. “I’m quite amazed.” Lee estimates Samsung has already shipped 30 million smartphones this quarter, half the figure it hopes to sell for the entire year. Samsung’s Galaxy S II handset has been its fastest selling smartphone ever, and models of the device are launching in the United States on AT&T, Sprint and T-Mobile. More →
Acer reported its second-quarter results on Wednesday and revealed its first ever quarterly loss. The company recorded a net loss of NT$6.79 billion, versus Wall Street estimates that the firm would report a NT$3.3 billion loss. The poor performance was blamed on Acer’s focus to clear up “excessive inventory” and on severance payments that were provided to executives who left the firm, Reuters said. In late March, Acer’s CEO Gianfranco Lanci resigned and recent rumors have suggested he will move to Samsung. Acer’s chairman J.T. Wang had originally expected to report positive revenue during the third quarter but he now says it will not be possible for the company to break out of its slump this year. “Today I have to say, trying to break even this year becomes impossible,” Wang said, noting that his company’s restructuring needs more time. Wang recently cut the company’s 2011 tablet forecast to 2.5 million units, down 50% from earlier estimates of 5-7 shipped units, and blamed weak tablet sales on competing devices. Acer founder Stan Shih recently said tablets are a passing “fad,” though we know several research firms that might disagree. More →
T-Mobile USA reported its second quarter results on Thursday and noted that it lost 50,000 subscribers during the quarter. That’s a drop, but it’s not as bad as the 93,000 customers the carrier lost during the year ago quarter or the 99,000 customers who left during the first quarter. T-Mobile also recorded $5.1 billion in revenue for the second quarter, down from the $5.2 billion it reported during the first quarter and the $5.4 billion in revenue it pulled in during the same quarter last year. Blended churn, which includes both prepaid and contract customers, was 3.3%. That’s down from the 3.4% reported last quarter. “The United States remains a difficult market for Deutsche Telekom, but we see improvements compared to the first quarter of 2011,” René Obermann, CEO of Deutsche Telekom said. “T-Mobile USA will continue its strategy with the extended HSPA+ 42 coverage and continued data growth.” Read on for the full press release. More →
HTC posted impressive second-quarter results on Friday noting that its profit of NT$17.52 billion was up 104% year-over-year and up 19% over the first quarter. The Taiwanese phone maker’s shipment total of 12.1 million devices during the quarter was up 24% year-over-year and 25% quarter-over-quarter. The company also noted that it shipped a total of 21.8 million devices during the first half of the year, a big jump from the 8.7 million it shipped during the first half of 2010. HTC noted that much of its growth came from the Americas, Europe and Asia. The average selling price of an HTC smartphone is currently $349, down from the average price of $359 last quarter thanks to new entry-level handsets. HTC expects its third quarter revenue to jump 10% quarter-over-quarter and 90% year-over-year, and plans to sell “around” 13.5 million handsets. Read on for a link to the PDF of HTC’s second quarter results.
Motorola Mobility on Thursday released its second quarter 2011 earnings and despite recent analyst downgrades, the company recorded a strong quarter. Motorola posted net revenues of $3.3 billion, up 28% from the same time period last year. In addition, mobile device revenues were $2.4 billion, up 41% from the second quarter of 2010. Motorola Mobility shipped a total of 11 million devices, including 4.4 million smartphones and 440,000 units of its XOOM Android tablet. That’s a large improvement over the 8.3 million mobile devices the firm shipped during the year-ago quarter. CEO Sanjay Jha also told CNET in a recent interview that the Verizon Wireless DROID BIONIC will finally launch in September. In addition, Motorola Mobility will introduce two new tablets and two 4G LTE smartphones. One of the tablets will have a 10-inch screen while the other will have a smaller display. “You’ll like the look of the tablet,” Jha said. “The consumer and carrier feedback has been positive. We want to compete. We think we have competitive products in the marketplace, and we’ve got good design wins in the U.S.” Read on for the full press release. More →
AT&T reported its second quarter results on Thursday. The company’s consolidated revenues were $31.5 billion, up 2.2% ($680 million) from the same quarter last year. AT&T’s wireless, wireline data and managed services were responsible for 76% of those revenues, and that figure is growing at a rate of 8.3% year-over-year. AT&T Mobility added a total of 1.1 million subscribers during the quarter, including 331,000 net postpaid adds, and it now serves a total of 98.6 million subscribers. The carrier also noted that it had its best-ever second quarter for smartphone sales: it sold 5.6 million total smartphones, up 43% year-over-year. AT&T activated 3.6 million iPhones during the quarter, more than half of the smartphones sold, and said that nearly 25% of the iPhone activations were from new subscribers. AT&T also noted that its planned acquisition of T-Mobile is still on track for closure during the first quarter of next year. Read on for the full press release.
Apple, Samsung, and HTC will each post gains in their respective earnings reports according to 46 analysts polled by Reuters. “We expect second quarter earnings to reveal a widening gulf between the winners and losers and further illustrate the ‘changing of the guard’ as Apple, HTC and Samsung continue to increase market share,” CCS Insight analyst Geoff Blaber told the news outlet. Analysts say Samsung’s growth, which pushed it past Nokia as the largest smartphone builder in the world, was fueled by Google’s Android operating system. The group also collectively predicts that Apple sold 16.9 million iPhones during the fiscal third quarter. That figure is down from the fiscal second quarter of this year, but it’s also twice as many devices as Apple sold during the same quarter last year. Similarly, Samsung is expected to report that it shipped 19 million smartphones during the quarter and analysts believe the Korean company is on pace to surpass its 60 million unit sales target for the year. Nokia will continue to struggle, although we hope it picks up momentum when its Windows Phone devices begin launching later this year. “There were few products in the market that can match Galaxy S II as Apple appears to be delaying new iPhone debut due to disruptions in parts supply, while Nokia continues to fail to introduce competitive lineup,” Jin Sung-hye, a Hyundai Securities analyst, said. More →
Samsung’s profits fell 26% during the second quarter due to poor sales in its LCD display division, according to a report the company released today. The firm’s operating profits were $3.5 billion for the quarter, down from $4.7 billion from the same period last year. According to a survey from Bloomberg that included six analysts, the Korean company’s display arm is expected to post an operating loss of 3.5 billion won ($69 million), down from an 880 billion won ($827.2 million) profit during the second quarter of 2010. Earlier this week, the head of Samsung’s combined LCD and semiconductor business, Kwon Oh-hyun, confirmed that Samsung’s component sales would suffer during the second quarter. That business could suffer more as Samsung continues to fight multiple lawsuits with its largest LCD buyer, Apple, and rumors have suggested the iPhone builder could drop Samsung as a supplier. “Only the phone business is holding up,” Kim Sung In, an analyst with Kiwoom Securities Co. told Bloomberg. “Everything else is looking bad. There’s no bright picture for the company looking ahead.” More →
Printed circuit board (PCB) suppliers in Taiwan have noticed “disappointing orders” for iPhone and iPad hardware, according to DigiTimes. As a result, the suppliers have cut quotes by 10% on average for the second quarter, noting that there’s no sign of a rebound. The drop in iPhone hardware orders suggests that Apple’s highly anticipated next-generation iPhone is imminent; it’s largely expected that the company will take the wraps off of the device in September. The PCB suppliers that are cutting hardware sales expectations include Compeq Manufacturing, Nan Ya PCB, Tripod Technology and Unimicron Technology. More →