Multiple tech companies report drop in quarterly earnings
August 15, 2012, 12:19 am TWN
AP--Groupon became the latest company to report quarterly earnings, and its revenue growth fell short of analyst estimates. Here is a summary of recent earnings and reports for selected technology companies and what they reveal about the state of spending and the overall economy:
— July 2: Microsoft Corp. says it is absorbing a US$6.2 billion charge to reflect that one of the biggest deals in its 37-year history, for online ad company aQuantive, turned out to be a dud.
— July 6: Samsung Electronics Co. estimates its second-quarter operating profit at 6.5 trillion to 6.9 trillion won (US$5.7 billion to US$6.1 billion), a 79 percent jump from a year earlier based on the midpoint of that range. Analysts say the sharp rise in operating profits was driven by the success of its Galaxy line smartphones. However, Samsung's stock fell as lower-than-expected overall sales underlined the threat from Europe's economic malaise.
— July 9: Chip-maker Advanced Micro Devices Inc. (AMD) lowers its quarterly forecast, blaming weaker-than-expected sales in China and Europe and lackluster demand overall from consumers. AMD says it expects revenue to fall by 11 percent from the previous quarter, below its earlier forecast of a 3 percent decline.
— July 10: BlackBerry maker Research in Motion Ltd. asks disgruntled investors at a shareholders meeting for patience as it develops new devices to rival the iPhone and Android smartphones. The company reiterates a warning that the next several quarters will be challenging. It also expects to book another operating loss in the current quarter as the company cuts prices to sell its older BlackBerry models.
— July 17: Yahoo Inc. reports another lackluster quarter on CEO Marissa Mayer's first day at the company. It continues years of financial lethargy which has plagued the one-time Internet pioneer as Google and Facebook have prospered. Net income fell 4 percent from a year ago, and adjusted earnings were short of expectations.
Intel Corp., the world's largest chip-maker, says its revenues for the current quarter is likely to come in below Wall Street forecasts as it blames "a more challenging macroeconomic environment."
— July 18: IBM Corp. reports its 38th consecutive quarter of earnings increase. Net income rose 6 percent despite a 3-percent drop in revenues amid Europe's economic jitters. IBM revenues in Europe, the Middle East and Africa fell by 9 percent from last year. The turmoil in Europe hurt IBM's results as currencies there weakened, translating into fewer U.S. dollars. IBM says revenue would have been slightly higher than last year if currency exchange rates had remained the same.