Tag: Financials

Sharp set to make a loss

sharp2Troubled Japanese giant Sharp – which got a $1.7 billion bailout earlier this year – looks like it’s still in trouble.

It said that it would report an operating loss for the six month from April to September, hit by declining sales of smartphones. Smart makes displays used in the phones.

It had said in July that it expected to make a profit of around $100 million but instead it will report an operating loss of $215 million this Friday.

The bailout by the banks in May included a requirement that Sharp restructure but it’s reported that it may have to sell off its formerly highly profitable display business.

Sharp formerly supplied its displays to a number of companies including Apple, but is faced by competition from a far wider range of display companies now.

BlackBerry turns in loss

BlackberryCanadian company BlackBerry said it made a loss for its financial second quarter.

It reported a quarterly loss of $66 million with revenues falling to $490 million in the quarter.

Analysts had expected that BlackBerry would turn over $610.6 million in the quarter.

Earlier this month, BlackBerry bought Good Technology in a bid to increase its market share in services.

The firm still remains committed to releasing smartphones and will release a phone later this year using the Android OS called Priv.

BlackBerry’s plan to turn its fortunes round depends on whether it can make more money from the services business.

Oracle hit by currency fluctuations

Athens honours the Oracle of Delphi in the shape of a treasury thereThe continuing strength of the US dollar has hit database company Oracle in the financials.

The company said for its Q4 results, its revenues fell by five percent to $10.7 billion.

Its revenues for the whole of its financial year 2015 amounted to $38.2 billion.

It said that if it wasn’t for the strength of the US dollar its revenues would have been up by three percent.

Nevertheless, it software and cloud revenues fell by six percent in the quarter, turnng in $8.4 billion. Software as a service (SaaS) and plaform as a service (PaaS) revenues grew 29 percent year on year, up by 29 percent.

Cloud infrastructure as a service revenues amounted to $160 million.

Oracle introduced a new term to TechEye’s lexicon – constant currency. That means that if the whole world+dog used the US dollar, its results would have been far different.

Unfortunately for Oracle, the world+dog doesn’t regard the dollar as the constant currency. Hence the results.

HTC continues to slide

Telephone BoxSmartphone vendor HTC expects to make a loss for transactions during the second quarter of this year.

HTC, which formerly held a strong share in smartphone sales worldwide, is blaming the forecast loss on poor sales in mainland China and a lack of demand for high end Android phones.

Many market analysts have predicted that the market for high end smartphones is practically saturated but former competitors like Samsung and Apple still continue to do well.

Sales of HTC phones in May fell by something like 20 percent compared to the previous month and as much as 49 percent compared to the same month in 2014.

HTC’s gross margins are also shrinking, aggravating the slide.

Many outsiders believe that HTC lacks the financial muscle of an Apple or a Samsung and can’t afford the high price that marketing smartphones appears to demand.

ARM profits fall

Plucky British chip firm ARM Holdings’ first half profit plunged, it was announced today, under the company’s new leadership, but it did note record cash generation.

Pre-tax profit was £15 million for the second quarter, significantly down from £54.8 million the same time last year.

But adjusting for acquisition and share payment costs, as well as IP indemnity, Linaro charges, and share of results in joint venture, ARM did say normalised profit was £86.6 million for the quarter compared to £66.5 million the same time last year. Intangible assets as of 30 June 2013 were £625.1 million.

Half of the 25 licences signed for the quarter were with Asian semiconductor companies, with ARM noting increased activity in the region, particularly China. The quarter saw ARM signing its first Chinese subscription licence, with this company gaining access to much of ARM’s portfolio, including Mali graphics processors. 

The order backlog rose ten percent sequentially, and ARM did note record net cash generation of £96 million.

A massive 2.4 billion ARM based chips were shipped, up 20 percent compared to the same time last year.

In a statement, CEO Simon Segars said the company continued to see strong demand for next-gen ARM technology, noting five Cortex-A series processor licences were signed, along with seven for Mali.

“During the quarter, our partners announced exciting new design wins as ARM-based chips were selected for high-volume OEM products,” Segars said. “These included many new smartphones and tablets, ARM-based 64-bit servers and mobile base stations”.

Oracle blames sales teams for poor results

Oracle has blamed its salesforce for its rubbish miss in third-quarter software sales and warned that its ailing hardware business will lose more ground this quarter.

It is not clear why Oracle should be suffering. Its sales teams have been boosted over recent months and it should be doing much better.

The storage maker had consulted its tarot cards and come up with a one to 11 percent rise in new software licenses and internet-based subscriptions in the May quarter. Either that, or Larry Ellison might need to be thrown into the volcano of his pacific island.

It is difficult to escape the news that Oracle’s February quarter revenue miss was its worst since the November quarter of 2011.

CFO Safra Catz told Information Week that the sales force had lost its sense of urgency.

“Since we’ve been adding literally thousands of new sales reps around the world, the problem was largely sales execution, especially with the new reps as they ran out of runway in Q3,” Catz said.

Wall Street is not so certain. It blames tepid spending by governments and corporations in an uncertain global environment. But Catz said that is not true, it is just lazy sales teams spending too much time dozing.

There are other figures within Oracle’s bottom line which are not that great. Its hardware division, for example, is still pretty poor, and the outfit is facing greater competition in cloud or web-based software from the likes of IBM, SAP and Salesforce.

Revenue from Oracle’s hardware division fell to $671 million from $869 million in the year-ago quarter. The division’s revenue has fallen every quarter since Oracle bought it.

Other analysts think that Oracle’s May-quarter software sales projection was in line with expectations and that is because some of the deals that slipped in the third quarter were probably signed in the fourth.

Oracle posted a two percent drop in new software sales and web-based software subscriptions to $2.3 billion in its fiscal third quarter. Investors scrutinise new software sales because they generate high margin, long-term maintenance contracts and are an important barometer of future profit.

Overall, Oracle’s revenue dipped one percent to $9 billion, just missing the $9.382 billion analysts had expected on average. 

ARM commits to new markets, posts full year earnings

British IP chip giant ARM Holdings has announced its fourth quarter and full year 2011 results. They are, as you’d guess, quite good.

Normalised revenues for full year 2011 were $785.0 million, up from 2010’s $631.3 million, or a 24 percent increase.

Fourth quarter revenues were up 21 percent year-on-year to $217 million. In a statement, ARM pointed out that it signed 25 new processor licences over the quarter, including the first for the ARMv8-A architecture, as well as nine Cortex-A and eight Cortex-M licences signed. ARM says a large chunk of its signees were in the digital TV, mobile computers and smartphones markets.

The company managed to ship 1.2 billion chips into smartphones and mobile computers, or a 10 percent increase, while 1 billion chips were shipped into the consumer and embedded digital device markets, up 40 percent year-on-year.

Warren East, CEO at ARM, boasted that 2012 will be another year of growth for the company. East suggested that the world is still infatuated with ARM products and the firm is ploughing money into developing those, too.

What will be interesting for ARM is how it moves into those new markets in the guise of Windows 8 machines. We reported last year that ARM was planning on entering that space. Since, both Intel and ARM are publicly taking a “let the best man win” policy.

ARM’s outlook says it will be exploring new product markets and it has a record order backlog.

While the semiconductor industry, generally speaking, is perceived by some analysts as being on the ropes, ARM is cautiously saying its first quarter revenues for 2012 to reach roughly $200 million, down from Q4 2011. However, the company will continue reaping revenues for each ARM device sold and expects the full year to hit $860 million.

SAP continues to do well without Apotheker

Walldorf based SAP, the company which advertises an awful lot at airports, has posted its third quarter earnings ending 30 September 2011.

It has been doing very well since losing the action man Apotheker to HP.SAP posted its seventh consecutive quarter of double digit growth in the thrilling non-IFRS software, and software-related service revenues. The net profit after tax hit €1.74 billion for the quarter, a 150 percent boost from the same time last year. 

SAP’s operating cash flow for the first nine months of 2011 sat at €3 billion, or a 45 percent increase from the same time last year. 

While many other companies in the enterprise space had been considering culls, SAP’s workforce increased three percent. 

In a statement, Bill McDermott, co-CEO, highlighted SAP’s exceptional software revenue growth. In fact, the fastest rate the company has seen in a decade. McDermott claimed that’s because “customers are shifting their investments to software that helps them grow and innovate.”

CFO Werner Brandt bragged that the Apotheker-less enterprise company has been doing particularly well. “Our momentum puts us on pace to achieve a record cash flow year,” he said. “Continued efficiency gains combined with operational excellence led to a very strong operating margin performance.”

SAP’s business outlook is optimistic. It feels that as companies carry on investing in IT – and SAP’s thrilling software – it will continue to grow. However, its outlook reported in July is unchanged. 

Some of its favourite customer wins include Union Steel, Total SA, AOK, Unilver and American Railcar Industries, which are all as dynamically entertaining as they sound. Just like SAP! 

Intel and IBM earnings: laughing all the way to the bank

Intel and IBM have both outdone themselves, earning gold stars all round for posting positive sales and profit figures in the first quarter of this year.

Intel set the ball rolling announcing a record EPS and revenue. It saw a 34 percent increase in  profit, which hit $3.3 billion, up $830 million, and a 25 percent hike in revenue growth.

Revenue in Intel’s data centre group grew 32 percent.

Its most beneficial sales came from chips used in server systems and other hardware, raking in 32 percent of Intel’s overall revenue. Chips used in personal computers netted the company a 17 percent rise.  

It boasted that it “generated approximately” $4.0 billion in cash from operations, but splashed the cash on paying dividends of $994 million, and threw $4.billion on repurchasing 189 million shares of stock.

Also adding to its money pile was its completion of the acquisitions of Infineon and McAfee in this quarter. The combination of both acquisitions contributed revenue of $496 million.

The high figures have led Paul Otellini to have a good old gloat. He said in a statement that the first-quarter revenue was an “all-time record for Intel fuelled by double digit annual revenue growth in every major product segment and across all geographies.”

He claims that the figures should help the company reach 20 percent annual growth for 2011.

IBM had some bragging of its own to do, reporting the highest revenue growth of 10 years.

Its first-quarter profit rose 10 percent to $2.86 billion as revenue reached $24.6 billion, up from $22.86 billion.

The hardware arm helped the most. Revenues from the company’s Systems and Technology segment rang in at $4.0 billion for the quarter, up 19 percent from the first quarter of 2010, while the Systems and Technology pre-tax income was $132 million, an increase of $329 million.

When it came to the company’s z mainframe server products, it saw  an increase of 41 percent compared with the year-ago period. Revenues from Power Systems increased 19 percent compared with the 2010 period, while revenues from System x increased 13 percent.  

Software also fared well, putting the company quids in with $5.3 billion, an increase of six percent for the quarter.

Revenues from IBM’s “key middleware products”, which include WebSphere, Information Management, Tivoli, Lotus and Rational products, were up 16 percent to $3.3 billion, while operating systems revenues increased by nine percent to $542 million increased nine percent.

Revenues from the company’s business analytics operations across services and software segments increased 20 percent.

ZTE does rather well in Q1 2011, Huawei does well overall

ZTE’s continued aggressive push has seen it enjoy a 13.80 percent boost in operating revenue for its fiscal quarter ending 31 March, 2011 – amounting to $2,300.81 million overall.

The Chinese powerhouse says net profit attributable to shareholders of the parent company grew 15.86 percent to £19.37 million, with earnings per share sitting at $0.01.

Segment carriers’ networks revenue grew 1.57 percent year-on-year, which ZTE puts down to the increase in sales of its wireless and access systems. Terminal products revenue grew 51.04 percent compared to the same time last year.

According to ZTE, that growth has been driven through its sales of 3G handsets, GSM handsets, CDMA handsets and data cards. 

Telco software systems, services and other products saw a decline of 0.26 percent year-on-year.

ZTE says its plans lie heavily in rolling out its telecommunications equipment worldwide, paired with “increasing broadband penetration” – and providing smart terminals globally. 

Meawhile Huawei has reported a 30 percent net profit jump, as well as revealing members of the board in a bid to boost transparency and ease criticism on the company.

Huawei has faced claims that it has strong links to the Chinese military. It denies any link and wants to sell itself to the world as a trusted company. Revealing board members is an attempt to allay fears over the founder’s involvement in the People’s Liberation Army. 

For the first time, maker of telco kit Huawei outpaced Ericsson in terms of market share growth.

While Ericsson is still a strong leader, analysts in China suggest that Huawei may already be giving the likes of Cisco & Co a scare.  Its net profit his $3.5 billion last year from $2.67 billion in 2009 according to the 2010 annual report published this week, reports Global Times