You can tell a product ranks high in the public consciousness when something like this is news: AT&T’s quarterly earnings report makes it sound like the telecom may finally lose its iPhone exclusivity deal. While a class-action lawsuit recently confirmed the handset was originally locked to AT&T / Cingular for a full five years, the company’s Q2 SEC filing has the company making a considerable number of familiar excuses why AT&T’s cellular business will thrive even “as these exclusivity arrangements end.” While the iPhone isn’t mentioned by name, it’s hard to imagine sentences like “We believe offering a wide variety of handsets reduces dependence on any single handset” could refer to anything else — but before you start defecting to Team Red, know there’s nothing in there that suggests a date, much less proof of the fabled CDMA iPhone.
It’s a good day here, because rather than poor ‘ol Sad Moto we get to bust out Happy Moto, as Motorola has released some good news in its Q2 financial report. Earnings were $162 million, up from $26 million this time last year. That sounds like a big jump, but compared to overall sales of $5.4 billion you can see things are still rather tight — especially since those sales were down from $5.5 billion the year before and all-important mobile device sales figures dropped six percent to $1.7 billion. Also, these numbers were boosted by a “significant legal settlement” valued at $228 million. Maybe intellectual property wasn’t the only thing Moto got from RIM?
A couple of days ago, Apple announced their fiscal quarterly earnings, and the results pretty much blew everyone away. Apple broke records, their own, and amassed quite a bit of money. Not only that, but their iPhone 4 and iPad gadgets pretty much flew off the shelves. So, with all of that in mind, people were beginning to wonder if Apple would finally surpass Microsoft not only in market cap (as they did a few months back), but also in revenue. Well, Microsoft’s just unveiled the results, and history hasn’t been written here today.
In fact, Microsoft has revealed that they actually had their best fourth quarter, ever. They gained $16.04 billion in revenue in the quarter (versus Apple’s $15.7 billion). So, what’s Microsoft saying showed them the money? They are thanking enterprise and Windows 7 collaborations, as well as Office 2010. As for net income, Microsoft managed to wrangle in a strong $4.52 billion.
Something a bit different this time around, though, is that Microsoft can announce their yearly income, considering they’re counting this as their fourth quarter. They have a reported revenue of $62.48 billion, which marks a 7 percent increase year-over-year. In fact, Microsoft saw an increase in just about every department: their operating income increased 18 percent, while net income and earnings per share climbed 29 and 30 percent, respectively. The information is still developing, so if we hear anything more, we’ll be sure to update as needed.
Qualcomm has announced its financial results for fiscal Q3 2010. The company reports that its sales of CDMA-based devices like modems have grown 23% so far in 2010. The Q3 results for the company listed revenue of $2.71 billion, which is down 2% compared to the same quarter last year, but up 2% compared to fiscal Q2 2010.
Operating income for the quarter was $792M, down 11% compared to last year and up 2% from last quarter. Qualcomm reported that earnings per share were $0.47 per share, up 7% year-over-year and up 2% sequentially.
Operating cash flow for the company was $951 million, down 13% year-over-year. Qualcomm is predicting Q4 revenue in the $2.67B to $2.93B range for a growth rate of 9%.
Qualcomm has come forward and announced their very own third quarter fiscal results, which ended June 27th. While the numbers may not be as staggering as Apple’s results, it’s still enough to show that Qualcomm is still a presence in every market they make a claim for fame, and they’re not going anywhere any time soon. Just try to ignore all those “down from” lines past the break.
First, here’s a quick quote:
“Our financial performance this quarter exceeded our prior expectations, driven by record MSM chipset shipments, favorable product mix and continued strong demand for 3G devices around the world,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “Looking forward, we continue to see healthy CDMA-based device growth of approximately 23 percent in calendar year 2010, and are raising both our revenue and earnings guidance for the fiscal year.”
It’s interesting to see that CDMA-based devices are getting called out for all the love, but at the same time, perhaps it’s just a sign of some eventual changes. But, that’s just pure speculation, and nothing more. So let’s just get into the gritty details, shall we? The third quarter results look like this: overall revenue is a healthy $2.71 billion, but that’s down 2 percent year-over-year, while up 2 percent sequentially. Qualcomm’s operating income is $792 million, which is down 11 percent year-over-year, but up 2 percent sequentially.
Their net income is at a steady $767 million, which is actually up 4 percent year-over-year, but down 1 percent sequentially. The company’s operating cash flow is at $951 million, which is a decrease of 13 percent year-over-year. As far as shipments go, Qualcomm saw 103 million units of CDMA-based Mobile Station Modem (MSM) find their way into the world. In the end, strong numbers all around, and hopefully this means more growth for the company that’s giving us our Snapragon love in the years to come.
Press Release:
Reports Record MSM Shipments; Raises Financial Guidance
SAN DIEGO, July 21 /PRNewswire-FirstCall/ — Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the third quarter of fiscal 2010 ended June 27, 2010.
“Our financial performance this quarter exceeded our prior expectations, driven by record MSM chipset shipments, favorable product mix and continued strong demand for 3G devices around the world,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “Looking forward, we continue to see healthy CDMA-based device growth of approximately 23 percent in calendar year 2010, and are raising both our revenue and earnings guidance for the fiscal year.”
Third Quarter Results (GAAP)
Revenues: $2.71 billion, down 2 percent year-over-year and up 2 percent sequentially.
Operating income: $792 million, down 11 percent year-over-year and up 2 percent sequentially.
Net income: $767 million, up 4 percent year-over-year and down 1 percent sequentially.
Diluted earnings per share: $0.47, up 7 percent year-over-year and 2 percent sequentially.
Effective tax rate: 21 percent for the quarter.
Operating cash flow: $951 million, down 13 percent year-over-year; 35 percent of revenues.
Return of capital to stockholders: $1.49 billion, including $309 million, or $0.19 per share, of cash dividends paid, and $1.18 billion to repurchase 32.4 million shares of our common stock.
Pro Forma Third Quarter Results
Pro forma results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, certain tax items that are not related to the current year and acquired in-process research and development (R&D) expense.
Revenues: $2.70 billion, down 2 percent year-over-year and up 1 percent sequentially.
Operating income: $991 million, down 12 percent year-over-year and 7 percent sequentially.
Net income: $936 million, up 4 percent year-over-year and down 5 percent sequentially.
Diluted earnings per share: $0.57, up 6 percent year-over-year and down 3 percent sequentially. The current quarter excludes $0.07 loss per share attributable to certain share-based compensation and $0.03 loss per share attributable to certain tax items.
Effective tax rate: 19 percent for the quarter.
Free cash flow: $954 million, down 8 percent year-over-year; 35 percent of revenues (defined as net cash from operating activities less capital expenditures).
Detailed reconciliations between results reported in accordance with generally accepted accounting principles (GAAP) and pro forma results are included at the end of this news release.
Third Quarter Key Business Metrics
CDMA-based Mobile Station Modem™ (MSM™) shipments: approximately 103 million units, up 10 percent year-over-year and 11 percent sequentially.
March quarter total reported device sales: approximately $25.2 billion, up 19 percent year-over-year and down 9 percent sequentially.
March quarter estimated CDMA-based device shipments: approximately 134 to 138 million units at an estimated average selling price of approximately $183 to $189 per unit.
Cash and Marketable Securities
Our cash, cash equivalents and marketable securities totaled approximately $17.6 billion at the end of the third quarter of fiscal 2010, compared to $18.2 billion at the end of the second quarter of fiscal 2010 and $15.7 billion a year ago. On July 8, 2010, we announced a cash dividend of $0.19 per share payable on September 24, 2010 to stockholders of record as of August 27, 2010.
Well, it’s about that time of the year. And, while Apple’s busy releasing all sorts of hit products like the iPad and iPhone 4, it’s about time to figure out how much they’ve actually made over the last few months. Today, Apple finally unveiled their official third quarter results, which equals one full quarter with the iPad out in the world. And, believe us when we say that the iPad’s made a big dent in the market (and a very good bulge in Apple’s wallet).
The fiscal 2010 third quarter ended on June 26th of this year, and with it, Apple is happy to announce that they’ve posted a record revenue of $15.7 billion, and a net quarterly profit of $3.25 billion. This is versus last year, where Apple amassed a revenue of $9.73 billion, and a net quarterly profit of $1.83 billion. So, enough of the money, let’s take a look at the actual products.
Apple managed to sell 3.47 million Macs in this quarter, which is a 33 percent increase versus last year. And that also means that it’s a new quarterly record for the Cupertino-based company, too. As for iPhones, they sold 8.4 million of those, which is a 61 percent increase over last year. 9.41 million iPods were sold in the quarter, and that marks an 8 percent decline from last year.
However, the heavy hitter is the new one on the stage. The iPad, which Apple began selling this quarter, managed to fly off the shelves, reaching 3.27 million customers since its debut. “It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple’s history with iPhone 4,” said Steve Jobs, Apple’s CEO. “iPad is off to a terrific start, more people are buying Macs than ever before, and we have amazing new products still to come this year.”
Press Release:
Apple Reports Third Quarter Results
All-Time Record Revenue Earnings Increase 78 Percent
CUPERTINO, Calif., July 20 /PRNewswire-FirstCall/ — Apple® today announced financial results for its fiscal 2010 third quarter ended June 26, 2010. The Company posted record revenue of $15.7 billion and net quarterly profit of $3.25 billion, or $3.51 per diluted share. These results compare to revenue of $9.73 billion and net quarterly profit of $1.83 billion, or $2.01 per diluted share, in the year-ago quarter. Gross margin was 39.1 percent compared to 40.9 percent in the year-ago quarter. International sales accounted for 52 percent of the quarter’s revenue.
Apple sold 3.47 million Macs during the quarter, representing a new quarterly record and a 33 percent unit increase over the year-ago quarter. The Company sold 8.4 million iPhones in the quarter, representing 61 percent unit growth over the year-ago quarter. Apple sold 9.41 million iPods during the quarter, representing an eight percent unit decline from the year-ago quarter. The Company began selling iPads during the quarter, with total sales of 3.27 million.
“It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple’s history with iPhone 4,” said Steve Jobs, Apple’s CEO. “iPad is off to a terrific start, more people are buying Macs than ever before, and we have amazing new products still to come this year.”
“We’re really pleased to have generated over $4 billion of cash during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter of 2010, we expect revenue of about $18 billion and we expect diluted earnings per share of about $3.44″
Apple will provide live streaming of its Q3 2010 financial results conference call beginning at 2:00 p.m. PDT on July 20, 2010 at www.apple.com/quicktime/qtv/earningsq310/. This webcast will also be available for replay for approximately two weeks thereafter.
This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the Company’s reliance on the availability of third-party digital content and applications; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the Company’s reliance on sole service providers for iPhone® in certain countries; the continued service and availability of key executives and employees; war, terrorism, public health issues, and other circumstances that could disrupt supply, delivery, or demand of products; potential litigation from the matters investigated by the special committee of the board of directors and the restatement of the Company’s consolidated financial statements; and unfavorable results of other legal proceedings.
More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the SEC, including the Company’s Form 10-K, as amended, for the fiscal year ended September 26, 2009, its Forms 10-Q for the quarters ended December 26, 2009 and March 27, 2010, and its Form 10-Q for the quarter ended June 26, 2010 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.
Moto’s earnings for the first quarter came out today, and they pretty much echo what the company managed to do in the fourth quarter of 2009 — pull a small profit thanks to performance from the Home, Enterprise Mobility, and Network groups in the face of an operating loss from the Mobile Devices (read: phones) division. Unfortunately, all of the numbers are just a little bit worse across the board; Motorola didn’t have any Droid-style blockbuster launches or major gift-giving holidays to help it along this quarter, and ended up dropping $192 million in the hole compared to $132 million in the quarter prior. Co-CEO Sanjay Jha still seems upbeat, though — and he’d better, considering that he’ll lead the spun-off phone division after the breakup — pointing out that shipments actually increased in the quarter with the release of six new handsets. When you throw all the numbers together, the combined company posted $69 million in earnings, down from $142 million in the fourth quarter; hey, that’s still better than a loss, especially considering that it’s estimating considerably higher earnings in the current quarter. Follow the break for Motorola’s release.
Update: Despite the slight profit, poor phone sales may have finally cost Motorola the stateside mobile crown. The Associated Press is reporting that with 8.8 million iPhones sold in Q1, Apple has edged out Motorola as the largest phone maker in the US.
It must be that time of the year, because we’ve got corporate results coming up all over the place. First we heard from Apple, and then we got some corroborating information from AT&T after they released their own results. Now it’s time for Microsoft to reveal their third quarter fiscal earnings, and although they’ve got a few drops, for the most part it seems that the Redmond-based company is doing pretty well for itself.
The top of the cake goes like this: revenue reaching $14.5 billion for the quarter ending March 31st, which results in a total net income of $4.01 billion. That beats the Wall Street analyst’s expectations, so that’s good news for Verizon Wireless in of itself. Those results include $78 million that Microsoft gave to Yahoo!, but do not include $305 million deferral relating to Microsoft Office 2010. Continuing on the incline would be Microsoft’s Entertainment and Devices division, which reported a $165 million in earnings. Compare that to the $41 million lost year-over-year, and that’s some good numbers.
However, Microsoft’s Online Service Division recorded a $713 million loss, which stacks alongside a $411 million loss last year. But, we can’t go out on bad news, so we’ll add that Windows Live and Windows are still the products raking in the cash for Microsoft: they recorded a $3.061 billion operating income. Basically, oodles and oodles of money. We’ll have to wait and see what happens after the launch of the Kin One and Kin Two devices, along with Windows Phone 7 devices later this year. And let’s not forget Project Natal. All these devices should only help the company in the long-run.
Looks like bad news can’t keep Apple down — not that recent events really had much of an impact on the second quarter 2010 financial results, but let’s face it: it wouldn’t have mattered much. Apple managed to post some impressive numbers this afternoon. In fact, it’s the best non-holiday quarter the company has ever posted. So, that’s pretty noteworthy.
Apple reports that they’ve posted a $3.07 billion profit over a collected $13.5 billion in revenue in the fiscal quarter of 2010. That’s just January to March, for the record. Percentage wise, that means Apple profits were up 90% while revenue went up 49%. As for those Macs? Sales went up 33% over last year, with a total number of 2.92 million units sold. As for the iPod, sales were actually down by one point, with “only” 10.89 million units sold.
And then there’s the iPhone, which adds up to an increase of 131% with an additional 8.75 million units sold. Pretty impressive numbers, and we’re sure that Apple is still sitting pretty high in their Cupertino offices. And, we can see why they’d be thrilled by their current business model. Now, we just have to wait for the impact of the next iPhone, and we’ll probably get to repeat all of this next quarter.
As expected, Palm isn’t doing that hot. The company declared at the end of last month that their lacking smartphones sales had made them decrease their revenue expectations, so the numbers we’re hearing today aren’t that surprising. And while the number of smartphones they shipped is significant, it’s unfortunately not a good representation of the number of smartphones they actually sold. Still, the company has high hopes for what’s to come.
In total, Palm has announced that they lost $22 million, part of their $366 million profit. Based on shipped products, the company had a 23% increase from the previous quarter, effectively shipping 960,000 smartphones. However, the number they actually sold is drastically lower, topping off at 408,000 units. And while we’re not going to directly compare those numbers to the iPhone’s estimated 8.7 million units sold in the same time frame, we feel like we should at least point it out. No, we’re not expecting Palm to compare in numbers, but it goes to show that the company is still fighting an up-hill battle.
Palm’s CEO, Jon Rubinstein, said that the company’s under-performance is certainly disappointing, but he wanted to stress that the potential for the company is still strong. He also stressed that they are making great improvements on future products (which hopefully means more handsets, and not just different version of the existing ones), and that the changes they’re making to improve sales are having an impact. He also noted that they are looking forward to future carrier launches, which we’re taking to mean AT&T here in the States. Unfortunately, those may already be seeing some major delays. We’re hoping that Rubinstein’s hope is not ill-fated, as we would love to see some more products (and better numbers) from the company that brought us webOS. We’ve got our fingers crossed.
Moto’s earnings for the first quarter came out today, and they pretty much echo what the company managed to do in the 
