Tag: profits

Hynix profits drop 34 percent

Hynix Semiconductor has announced a slump in profits as the memory chip industry struggles with slow demand.

The South Korean company posted second quarter results of $488 million net profits, showing a 34 percent drop compared to the same point last year.

Revenues also dropped, with a 16 percent decline over the year.

The firm put this down to slowly growing demand, with other DRAM makers such as Nanya and Inotera posting declines too.

Despite the effects of the Japanese earthquake disruption pushing demand up briefly, economic instability across the globe has seen the trend reversed, says Hynix.

From the previous quarter, DRAM bit shipments were flat, with an average selling price decline of one percent. NAND flash shipments rose 36 percent, while the ASP dropped by 19 percent over the same period of time.

Like other memory makers, Hynix plans to look towards 30 nanometre process products in a bid to drive demand in the near future.

This could lead to more activity in the consumer PC market which has been lacklustre of late, and Hynix looks set to increase its 30nm output by 40 percent by the end of the year.

Hynix has also planned to start mass production of it next gen 2Ynm class process in the second half of this year.

Psion sees trouble ahead

Once the byword for mobile computing, Psion is facing some major worries.

Shares in the outfit have fallen 16 percent after a profits warning as Psion is seeing a yearly performance well below expectations.

This year should have been quite good for Psion it had just entered the rugged handheld computer market with its EP10 product.

However the outfit moaned that this year it suffered from supply chain problems relating to one of its products, which is now resolved and exchange rate weaknesses.

It cost a lot for the development and launch costs for the EP10 and it expects a first half loss of £4 million and revenue growth for the full year of between 5 percent and 8 percent.

Having lost £4 million in the first half of the year, Psion will have to make a profit of £13.5 million in the second half just to meet its estimate.

A company spokesman said that sales of the EP10 are looking healthy with approximately 9000 units sold already, and are 16 percent up on last year.

However analysts who spoke to the Guardian said that the profit gap created in the first half will be too large for the company to bridge in the second half unless there are exceptional sales and no more production cock-ups. 

Toshiba goes into the black, uncertain about tomorrow

Toshiba can’t seem to get its facts straight.

Despite making loose promises that its profits could rise by 25 percent by March next year, it’s also warning that this may not happen due to the Japan earthquake earlier this year.

The company’s unhelpful forecasts come as it today reported a net profit of
137.8 billion yen ($1.7 billion) for March 2010 to 2011.

This was up from a loss of 19.7 billion yen a year earlier, while its operating profit nearly doubled to 240.3 billion yen ($2.98 billion) on revenue of 6.4 trillion yen ($79.3 billion). The main money growers for the company were television sets and memory chips, used in smartphones and tablets.

However, it’s not all looking rosy for the company, which has said that some of the plants affected by the earthquake won’t be up and running until October of this year. As a result, it hopes that by March next year it will have won back clients who could have moved elsewhere as a result of short supplies. For the year to March 2012, it forecast a net profit of 140 billion yen ($1.7 billion), an operating profit of 300 billion yen on revenue of 7.0 trillion yen ($87 billion) .

Toshiba hasn’t been very lucky in terms of quake damage. It was forced to close its chip-making factory in Iwate Prefecture, which still isn’t in full working order, and it’s also concerned that any blackout or problem now, could set it back further.

This, plus the fact that its rivals including SanDisk and LG are pushing to take away business from the company, could put Toshiba in a very tight spot.

Foxconn profits jump in 2010

Hard working taskmaster Terry Gou is sure to please Foxconn investors in its latest earnings report.

Despite inconveniences like having to pay workers a slightly larger pittance, and provide them with better working conditions, Foxconn has announced a 53 percent rise in consolidated  revenues for 2010.

Figures for the year topped NT$2.99 trillion for 2010, up from NT$77.15 billion.

Net income also went up by 1.9 percent to NT$77.1 billion for the year, while
the company’s gross profit for the twelve months increased by 58.5 percent to NT$100.9 billion from NT$63.6 billion in 2009.  

The company also did well when it came to its earnings per share, with a total of NT$2.22 for the fourth quarter of 2010. This was despite the average gross margin for the quarter dropping 0.1 percent to 7.9 percent.

Foxconn described the year as uncertain and “challenging”.  It however said that despite the general uncertainty the “results were as expected and remain seasonal.”

It also confirmed several new investments in China. According to the Taiwan Economic Daily this includes an interest in investing in solar cell manufacturer Neo Solar Power .

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.

AOL earnings see net income rise but revenues slip

AOL saw a rise in its net income but a slide in revenue during the fourth quarter of 2010.

The company reported earnings of $66.2 million, compared with $1.4 million in the same period a year ago. However, revenue fell 26 percent to $596 million.

It put down the fall in revenue to restructuring costs following the aftermath of its divorce from Time Warner. Slides in advertising sales and dial-up subscriptions also contributed to the loss and the company also said that selling off “unprofitable units” had also caused a decline in sales.

Overall AOL ad revenue was down 29 percent and display was down 14 percent,

However, the poor performance hasn’t phased the AOL marketing machine, with Tim Armstrong, Chairman and CEO, approving a quote in which he says: “I am very proud of what we accomplished in 2010 as we began the year with a significant restructuring of AOL and ended the year with a significantly improved balance sheet, a number of exciting new products and a new culture focused on winning.

 “We have set aggressive goals for ourselves in 2011 in pursuit of capturing the growing opportunity ahead of us.”

That hasn’t stopped business analysts from criticising the figures.

Henry Blodget Tweeted: “Most of AOL’s ad revenue plunge came from search (which is 100% profit) and closed products, but even AOL’s core US display business, the one it is betting what’s left of the company on, shrank in Q4.”

However he added: “On a positive note, AOL still generating $300mm of cash a year and has $800mm in bank.”

Panasonic and Mitsubishi Electric make lots of dosh

Mitsubishi Electric and Panasonic both piled on the profits in their latest financials.

In its newly released financial figures, Mitsubishi reported a net income of $31.9 billion (2,601.3 billion yen) between April and December last year, a 13 percent increase from the same period last year. Operating income stood at $2.36 billion (92.5 billion yen), a huge 254 percent increase from the same time in 2009.

It found success in its Energy and Electric Systems arm, racking up a total sales figure of $8.19 billion (668.5 billion yen), a one percent increase from the same period last year.

However, the company’s Information and Communication Systems section didn’t fare so well, bringing in a total sales figure of $285 million (23.3 billion yen), which was a nine percent decrease from last year.

The company said in a statement that the loss was as a result of  the telecommunications equipment business taking a nose dive due to lower demand for optical broadband access systems and other communications infrastructures. This was despite increased orders for home broadband equipment.

The sector also saw a decrease in sales mainly due to a decline in the system integration business.

However, it dusted itself off when it came to the electronic devices part of the business, reporting a 32 percent increase in total sales from last year. Figures for the end of December stood at $365 million (29.8 billion yen) while operating income was $55 million (4.5 billion yen), a $138 million (11.3 billion yen) improvement.

The company added that its semiconductor business saw increases in both orders and sales compared to the same period of the previous year, which it put down to increased orders for consumer- and industrial-use power modules as well as optical transmission devices.

Panasonic  was also on top form.  It reported a 24 percent growth between October and December last year, which it said was driven by strong sales of flat-panel TVs, auto components and solar panels.

This brought its earnings up from $490 million (39.98 billion yen)  in profit, up from $395 million (32.26 billion yen) the year before.

Quarterly sales for the Japanese electronics maker climbed 21 percent to $28 billion
(2.285 trillion yen).

Panasonic stuck to its forecast for net profit of $1 billion (85 billion yen) for the year through March 2011. This was a turnaround from the poor figures the year before. Sales also look to be on the rise with a sales forecast of ($109 billion) 8.9 trillion yen, which accounts for a rise of around 20 percent.

UK tech market is positive M&A exception

Mergers and Acquisitions (M&A) in the UK have found most forward Price-to-Earnings (P/E) ratios down 14 percent or higher in the last 12 months – except for the technology industry.

The tech industry in the UK has found itself down on P/E ratios but only by three percent.

According to a report from KPMG, the Global M&A Predictor, the highest trend for M&As is in the telecoms segment – where P/E ratios are up by two percent. The increase in markets, nine percent, has outstripped expected earnings at eight percent. This area sitting somewhere on the technology landscape is the only sector in the UK where the price-to-earnings are positive, but non-cyclical consumer goods are just behind, says KPMG, at zero percent. 

The report suggests that the capacity for deals is high on the mark in non-cyclical consumer goods, because the net debt to the EBITDA ratio – standing for earnings before interest, tax, deprecation and amortisation – is down 127 percent but up 27 percent in tech. 

Continually improving technological advancements mean that, says tech partner Jonathan Stankler at KPMG, the tech industry is an exception. “Be it web-enabled television replacing digital in homes, music and sporting events bypassing traditional media companies to go direct to market, technology companies in the mobile data space and the cloud are well positioned to deliver strong growth.

“In addition, a myriad of technological advancements are providing stimuli to the deal market as companies seek to share IP and access technology hungry environments.”

Sony Ericsson releases results for Q4

Sony Ericsson has released its financial results for the fourth quarter of 2010, where it shipped less phones for a lower price resulting in, yes, lower sales.

Only 11.2 million phone units were shipped in the fourth quarter, down 23 percent on the same period last year which saw shipments of 14.6 million units. This was an increase of eight percent on the third quarter of 2010, however, when shipments were at 10.4 million units – but the Christmas shopping season was the main reason. Overall shipments for 2010 were at 43.1 million, down form 2009’s 57.1 million.

Sales were down 13 percent from €1.75 billion ($2.35 billion) to €1.53 billion ($2.05 billion). This was also a five percent decrease on the third quarter, when the company reported sales of €1.6 billion ($2.15 billion).

Average selling prices were up by from €120 ($161) in 2009 to €136 ($183), an increase of 13 percent. This was a 12 percent drop on the third quarter of 2010 when average selling prices were €154 ($207).

Profits were up on 2009 thanks to restructuring of the company. It earned €39 million ($52.4 million) in the fourth quarter, not counting restructuring costs, compared to losses of €40 million ($53.7 million) in the same quarter of 2009, an increase of €79 million ($106 million). Profits were €27 ($36.3 million) million lower than the third quarter of 2010 due to lower sales.

The company is doing much better than 2009 thanks to its restructuring effort, which was completed in 2010 with a cost of €381 million ($512 million). This transformation of the company ultimately saved it €880 million ($1.2 billion), with staff reductions of 4,000. It also paid back €150 million ($201.6 million) in loans that matured during the fourth quarter.

The company forecasts “modest” growth in handset shipments in 2011.

ASML reports huge profits for Q4 2010

ASML has reported a record rise in its fourth quarter earnings.  

It’s attributed the growth, which saw net profit for the quarter rising to sharply to £342 million (€406.8 million) from £4.2 million (€50.5 million) a year earlier and sales which rose to £1.28 billion (€1.52 billion) from £489 million (€581 million), to a strong demand for smartphones and tablet computers.

According to Eric Meurice, president and CEO of ASML, the company also moved to meet demand for its products by “almost tripling” the output of its factory in 2010 compared with 2009.

He said during the fourth quarter, the company also shipped the first of its second generation EUV systems, “and successfully exposed wafers at a customer manufacturing site.”

The company also reported that it booked orders valued at £1.9 billion (€2.32 billion) in the period, bringing its order backlog to an all-time high of £3.2 billion (€3.86 billion).

And it seems its wealth has spurred it on to do more. It’s also announced an £84 million (€1 billion) share buyback program over the next two years, and doubled its dividend for 2010 to £0.3 (€0.4) per share.

“The fourth quarter was a strong close to a remarkable year in the history of ASML during which we achieved record sales, profit and bookings,” added Meurice.