Tag: financial results

Samsung sales hit by smartphone business

Piccadilly Circus, pic Mike MageeKorean giant Samsung released its fourth quarter figures and shows it is being adversely affected by sales of smartphones.

As well as manufacturing smartphones, Samsung also makes chips inside the devices as well as displays, meaning it’s hit by a triple whammy.

The company said its results amounted to 53 trillion in the quarter – around about the same figure as this time last year.

It won’t release net profit figures until later in this month after the results have been independently audited.

Sales of smartphones are falling due to a largely mature market and Samsung in particular faces competition from a number of Chinese manufacturers digging into its market share.

Toshiba: the nightmare continues

ToshibaToshiba was supposed to announce its annual financial results today but that was not to be because it has discovered extra accounting errors to compound the “errors” that caused a change of management to the top.

Toshiba delayed its financial results in March after accounting discrepancies forced the management to be replaced by a fresh team of unsullied people were voted on to its board.

According to Reuters, the latest discrepancies relate to problems at a US subsidiary and some errors on charges on fixed assets at several other subsidiaries.

CEO Masashi Muromachi said he couldn’t apologise enough for the trouble caused by the Toshiba errors but would now announce its financial results on September 7.

Muromachi said Toshiba had discovered 10 new instances of accounting mistakes and said that if he couldn’t meet the new deadline he might resign.

But that would likely lead to more turmoil at Toshiba because he was appointed first as interim CEO and then as permanent CEO.

Acer profits little from large turnover

cashPC maker Acer released its financial results for the second quarter of 2016 and while its revenues amounted to $1.94 billion, its net profits were only $79,000.

The figures underline the challenges PC makers face as demand weakens for PCs.

Acer’s operating margin for the quarter was only 1.48 percent, and while that’s an improvement on the Q1 margin of 0.45 percent, it’s an uncomfortably small figure.

Acer said better gross margins “reflect Acer’s focus on value creation and optimised product mix strategy”.

It said changes it was making to its expenses “positively impacted the overall profitability” while it also faced challenges from foreign exchange fluctuations.

In the first half of 2015, its consolidated revenues amounted to $4.12 billion, down 18.9 percent compared to the same period in 2014.

This, Acer said, “reflected the delayed PC purchase as customers waited for Windows 10”.

Infineon turns in healthy profits

Infineon CEO Reinhard PlossInfineon said its revenues, earnings and its margin rose “significantly” in its third quarter results.

Revenues grew by seven percent to reach euro 1.58 billion, compared to the euro 1.483 billion it reported for the last quarter. Margins improved to 15.4 percent.

Net profits amounted to euro 109 million for the quarter. The company believes that its margins for its fourth financial quarter will amount to 16 percent.

And the company is forecasting that all four of its operating segments will show revenue growth and a year for year rise in revenues of 34 percent.

Infineon bought US company the International Rectifier Corporation in January this year – that firm had revenues of $1.1 billion.

Reinhard Ploss, the CEO of Infineon (pictured), said: “The integration of International Rectifier is progressing according to plan. Leading technologies and an excellent system understanding differentiate us from the competition.”

Samsung profits up

Samsung-SSD-ActivatedKorean chaebol Samsung said that it made an operating profit of $5.96 billion in its second quarter with semiconductor business leading the way.

Samsung often makes the press as a manufacturer of smartphones but it is a big company with fingers in almost every vertical pie.

As well as making smartphones, for example, Samsung also makes components for a variety of purposes and has a big flat panel business too.

It also makes memory components and expects bouyant sales in the second half of this year.

But it sounded a warning about its smartphone business as it faces increasing competition from Chinese manufacturers, particularly at the low end.

It said in a regulatory statement that its high end S6 Edge phone is selling so well it’s unable to meet demand.

Canon hit by smartphone sales

Canon - WIkimedia CommonsJapanese imaging giant Canon released its second quarter financial results and said demand for a number of its products fell during the period

In addition, Canon was hit by the disparity in currencies between the dollar, the euro and yen, it said.

In a statement, Canon said that although demand in Japan for interchangeable lens digital cameras remained strong but suffered “sever conditions” in other regions. Sales volumes for digital compact cameras also fell in most regions compared with the same periods of the previous year.

As cameras in smartphones become ever more powerful, there’s a disincentive for people to spend money on separate devices.

Canon said: “Although sales volume declined amid the ongoing contraction of the market due to the effects of the growing popularity of smartphones, profitability improved thanks to the growing ratio of high added value models featuring high image quality and high magnification zoom capabilities.”

Canon’s semiconductor lithography equipment segment grew in its second quarter, and although sales for volume for digital radiography systems fell compared to the same period last year, sales increased year on year.

Net profits for Canon fell to 68 billion yen for the quarter, compared to 81 billion yen in the same period last year.

Huawei is coining it in

cashHuawei might be banned from the US and treated with suspicion in some parts of the EU, but the outfit is coining it in.

It posted a 30 percent increase in first-half revenue to $28.3 billion and said it would achieve “effective growth” in 2015.

The company mostly competes with Sweden’s Ericsson, which is also doing well, selling communications towers and other infrastructure.

It said that it had an operating margin of 18 percent in the first six months of 2015, compared with 18.3 percent in the previous half-year.

Huawei CFO Meng Wanzhou said that Huawei achieved stable and healthy growth in all of its three business segments.

“We are confident that we will maintain effective growth and steady and healthy development in all business segments in 2015,” he said.

The last time we saw health segments like this was when we opened a Terry’s chocolate orange, but that is neither here nor there.

Huawei earlier this year set a target of 20 percent growth in global revenue for 2015.

Last year, Huawei reported a 19 percent rise in its first-half revenue. The company reported an operating margin of 11.9 percent in 2014.

Huawei had targeted overall revenue of $70 billion by 2018, which translates as roughly 10 percent annual growth. It posted 21 percent revenue growth last year.

Twitter didn’t do well

coinTwitter’s financial results for the first quarter of its financial year were released earlier than expected and they show the social networking firm isn’t doing as well as everybody expected.

Revenues from advertising grew 74 percent during its quarter but way down from the 97 percent growth in its previous financial quarter.

Its revenues amount to $436 million for the quarter, turning in a net loss of $162 million.

Executives attributed the shortfall to lower than expected money from its new direct response products.

Dick Costolo, Twitter’s CEO said it is “early days” for its products and he believes will give more results for direct response advertisers.

Twitter also bough a marketing technology company called TellApart and struck a deal with Google’s DoubleClick advertising products.

Costolo said that monthly active users for the first quarter amounted to 302 million

ARM goes up

ARMBritish technology firm ARM Holdings turned in revenues of £227.5 million for its first financial quarter, the firm said today. That’s an increase of 22 percent compared to the same financial period last year.

Simon Segars, the company’s CEO, said that many handset manufacturers had announced tablets and smartphones based on ARMv8-a and Mali graphics processors.

Production of these devices will increase in the second half of this year, giving ARM higher royalty percentages per chip.

ARM designs semiconductors and licenses the designs to others who manufacture them.

Segars said that ARM is also beginning to be adopted in enterprises for networking and server applications.

Processor royalty revenue was up 31 percent year on year, he said.

And in the quarter, ARM licensed 30 processors, and signed four licences for its Mali multimedia processors.

The quarter showed strong growth in shipments of microcontrollers and chips for mobile devices, ARM said.

Analysis: Intel fails to fix PC malaise

Intel's Gordon Moore and Robert NoyceIntel reported its financial first quarter results yesterday evening and as expected its PC business continued to decline.

But Intel consolidated its results making it hard to see how much money it’s losing on its really quite disastrous foray into the mobile and tablet markets.

PR executives spun the results by saying they were in line with previous estimates – but its previous estimates weren’t in line with the estimates it previously estimated.

Its revenues were flat and it expect its revenues to continue to be flat for the rest of the year. But with gross margins of 60.5 percent for the quarter, it still turned in a net profit of two billion dollars.

CEO Brian Krzanich said in a prepared statement that growth in data centres, the internet of things (IoT) and memory helped to keep its figures relatively not too bad.

The client computing group showed revenues of $7.4 billion, a fall of 16 percent compared to the previous quarter and a fall of eight percent compared to the same quarter in its last financial year.

And while the data centre group turned in revenues of $3.7 billion, that was down 10 percent sequentially but rose 19 percent year on year.

The internet of things group delivered revenues of $533 million – a fall of 10 percent compared to the previous quarter but up 11 percent year on year.

Its software and services operating division delivered revenues of $534 million, down four per cent sequentially and three per cent year on year.

It is hard to describe Intel’s results as stellar. Like Microsoft, it is showing signs of malaise and despite optimistic forecasts that PC sales are going to go through the roof because of the launch of Windows 10, that is a hope, not a promise.

Intel’s problem is, that like IBM in the 1990s, it resembles a big oil tanker and can’t be turned around quickly. The real question is that as it depended on its success in the PC business through sales of X86 chips, where does it actually go now?

Its mobile strategy has been all over the place for years now and phone manufacturers quite simply went for better and cheaper ARM processors. The Wintel hegemony is over and Intel’s board lacks a charitable nature. Krzanich is too newly fledged to dump yet, but the board will already be demanding answers.

The problem is, there are no easy answers to the Intel malaise and despite it being the 50th anniversary of Moore’s Law (pictured, left)  in just a few days time, that isn’t going to stop the slow and steady decline in the company’s fortunes. Like Microsoft, it is largely irrelevant to the changing nature of current technology and we doubt the internet of things is going to make any real difference in the long run. ♣