AT&T Reports Q3 Earnings; Generates $31.5 Billion in Revenue

AT&T has just announced its earnings for Q3 2012, and they seem to be very impressive, which was expected considering that the iPhone 5 launched last quarter. It managed to ship around 6.1 million smartphones in all, with most of them — around 4.7 million — being iPhones. Smartphones acounted for around 81% of its total postpaid sales.

It reported consolidated revenues of $31.5 billion, which is almost the same year-over-year. Both wireless and wireline segments showed steady growth, with a net increase of 678,000 in wireless subscribers. Its total wireless subscriber base is now 105.9 million.

AT&T’s net income for Q3 2012 was around $3.7 billion, while its cash and cash equivalents declined to $2.2 billion.

Randall Stephenson, AT&T Chairman and CEO, said:

“We had another impressive quarter with strong earnings growth, record cash flows and solid returns to shareholders through dividends and share buybacks. In wireless, we had another excellent smartphone quarter, penetration of usage-based mobile data plans continues to climb, and our 4G LTE network build is ahead of schedule. And in wireline, our IP network continues to deliver strong gains in U-verse high speed Internet connections, which helped drive an almost 10 percent increase in broadband data ARPU.”

Here’s a snapshot of their performance over the last quarter:

  • Reported consolidated revenues of $31.5 billion, flat versus the year-earlier period
  • Strong 2.6 percent consolidated revenue growth when adjusted for Advertising Solutions
  • AT&T’s growth engines — wireless, wireline data and managed IT services — continue to transform the company’s revenue mix; represented 81 percent of total revenues and grew 6.4 percent versus the same quarter a year ago, led by:
  • 18.3 percent growth in wireless data revenues, up more than $1 billion versus the year-earlier quarter
  • 38.3 percent growth in U-verse revenues
  • 11.4 percent growth in strategic business services revenues

Check out the complete earnings release on AT&T – AT&T Q3 2012 Earnings

Facebook Reports Q3 Earnings; Makes $1.26 Billion in Revenue

Facebook just reported its earnings for Q3 2012, and the numbers are looking good. It reported $1.262 billion in quarterly revenue, with an operating profit of $377 million, and a net loss of $59 million. While revenue growth was impressive at 32% year-over-year, it posted a loss primarily due to a huge tax bill.

Of the total, it generated $1.09 billion from advertising and $176 million from payments and other fees. Its ad business seems to be improving, and there is still ample room for growth, with Facebook yet to figure out an optimum monetization strategy for its massive mobile user base.

Mark Zuckerberg, Facebook founder and CEO, said:

“As proud as I am that a billion people use Facebook each month, I’m also really happy that over 600 million people now share and connect on Facebook every month using mobile devices. People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform. At the same time, we are deeply integrating monetization into our product teams in order to build a stronger, more valuable company.”

Facebook’s monthly active users hit 1.01 billion as of September 30, 2012, while its daily active users increased to 584 million. Mobile monthly active users were around 604 million, and continues to grow at a rapid rate.

It made a number of new releases last quarter — it updated its apps for Android and iOS, upgraded its SDK for developers and launched Facebook Gifts, a ton of new advertising products and completed the Instagram acquisition, which seems to be its best yet.

via Facebook

Yahoo Reports Q3 2012 Earnings, Revenue Tops $1.2 Billion

Yahoo just posted its earnings for the third quarter of 2012, and managed to beat expectations. This was Marissa’s first full quarter as CEO, and Yahoo seems to be moving in the right direction.

Yahoo made $1.217 billion in quarterly revenue, down marginally year-over-year. However, adjusted for traffic acquisition costs, its revenue was $1.072 billion, roughly 2% up year-over-year.

Marissa Mayer, CEO of Yahoo!, said:

“Yahoo! had a solid third quarter, and we are encouraged by the stabilization in search and display revenue. We’re taking important steps to position Yahoo! for long-term success, and we’re confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders.”

The top management has been shuffled quite a bit since Marissa stepped in. Yahoo has made some key hires and redesigned its entire product strategy. It launched quite a few new products and services, and sold some of its stake in Alibaba to raise around $7 billion in cash.

Yahoo’s cash and cash equivalents increased to $7.560 billion by the end of the last quarter.

It reported net income of $3.161 billion, but its actual operating income was only around $152 million. Its stock is up around 5% today.

via Yahoo – PR

Microsoft Reports Earnings: $16 Billion in Revenue, $4.5 Billion in Net Profit

Microsoft has announced its earnings for Q3 2012 (Q1 FY2013). It generated $16.01 billion in quarterly revenue, and operating income of $5.31 billion. It made a net profit of $4.47 billion. The revenue numbers don’t include $1.36 billion in deferred revenue related to Windows 8 upgrades and pre-sales.

Steve Ballmer, Microsoft’s CEO, said:

“The launch of Windows 8 is the beginning of a new era at Microsoft. Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”

Kevin Turner, Microsoft’s COO, said:

“We’re incredibly excited to be approaching general availability of Windows 8 and Windows RT. We’ve already certified more than 1,000 systems for Windows 8 from our hardware partners, ranging from the smallest tablets and convertibles to touch-enabled ultrabooks and all-in-ones to the most powerful desktop computers.”

Microsoft’s Business Division posted $5.5 billion in revenue in the last quarter, a marginal decline of 2% year-over-year. SharePoint, Exchange and Lync continued to show double-digit revenue growth. Operating income was slightly lower at $3.646 billion.

Server and Tools continued to grow, generating around $4.55 billion in quarterly revenue, up 8% year-over-year. Operating income increased to $1.748 billion.

Windows made $3.24 billion in quarterly revenue, down 33% year-over-year. This is expected to show a significant rise this quarter as Windows 8 launches, right before the holiday season. Operating income nearly halved to $1.646 billion.

Online Services was a money sink as usual. It reported revenue of $697 million, up 9% year-over-year, but had nearly $364 million in operating losses.

Entertainment & Devices reported revenue of $1.946 billion, with an operating profit of $19 million. With Windows Phone 8 launching this fall, Microsoft is banking on it to drive revenue growth in the coming quarters, but that seems unlikely.

Microsoft ended the quarter with around $66.6 billion in cash. cash equivalents and short-term investments.

via Microsoft – SEC

Verizon Reports Q3 2012 Earnings; Revenue Up to $29 Billion

Verizon has reported its earnings for Q3 2012. It posted double digit percentage earnings growth yet again, for the third quarter in a row. Verizon’s total operating revenues increased to $29 billion, with its operating income for the quarter increasing to $5.5 billion.

Wireless revenue was $19 billion, up 7.3% year-over-year, while wireline revenue was $9.9 billion, down 2.3% year-over-year, as expected. Wireless margins were at a record high, while FiOS revenue growth led to an increase in the wireline consumer revenue growth.

Verizon added 1.8 million retail connections in Q3, including 1.5 million postpaid connections. The total retail connections increased to 95.9 million, including 90.4 postpaid connections. It also increased the reach of its 4G LTE mobile broadband network to more than 250 million people in 419 markets in the U.S.

Lowell McAdam, Verizon chairman and CEO, said:

“In the third quarter, Verizon continued to deliver double-digit earnings growth and strong cash generation, and we remain solidly on track to meet our financial objectives for the year. With our 4G LTE network advantage, well-received Share Everything Plans and unmatched product portfolio, Verizon Wireless continues to do an outstanding job of balancing growth and profitability. Wireless achieved record profitability in a quarter in which we reported the highest number of retail postpaid gross and net adds in four years.

Based on the strength of our FiOS fiber-optic network, we reported the highest growth in U.S. consumer wireline revenues in 10 years. Additionally, strategic services growth in our Enterprise business helped offset weaker revenues caused by global economic challenges. We are confident that we have the right plans in place to meet these challenges while improving the long-term profitability in both Consumer and Enterprise.”

via Verizon – SEC

Nokia Reports Q3 2012 Earnings; $754 Million in Operating Losses

Nokia has reported its earnings for the third quarter of 2012, and they seem to be just as bad as ever. Probably even worse, considering that they should have improved by now. It reported a $754 million operating loss on net sales of $9.49 billion. It sold close to 2.9 million Lumia devices in Q3, 6.5 million Asha full touch units and close to 77 million devices in all. Device sales have been on a decline since a couple of years now, and Nokia’s move to Windows Phone doesn’t seem to be helping smartphone sales much.

Nokia’s CEO, Stephen Elop, said:

“As we expected, Q3 was a difficult quarter in our Devices & Services business; however, we are pleased that we shifted Nokia Group to operating profitability on a non-IFRS basis.

In Q3, we continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products.

In our mobile phones business, the positive consumer response to our new Asha full touch smartphones translated into strong sales. And in Q3, our mobile phones business delivered a solid quarter with sequential sales growth and improved contribution margin.

In Location & Commerce, we made progress establishing our platform offering with customers like Amazon. This is in line with our plan to expand our location offering to more customers.

And, Nokia Siemens Networks had a remarkable quarter in which we achieved record profitability on a non-IFRS basis and the Nokia Siemens Networks cash balance increased for the fourth quarter in a row.

While we continue to focus on transitioning Nokia, we are determined to carefully manage our financial resources, improve our competitiveness, return our Devices & Services business to positive operating cash flow as quickly as possible, and ultimately provide more value to our shareholders.”

Nokia ended the quarter with roughly $10 billion in cash and cash equivalents.

IBM Reports Q3 2012 Earnings; Revenues Down 5% to $24.7 Billion

IBM reported its earnings for the third quarter of 2012 yesterday, with its net income growing to $3.8 billion, nearly flat year-over-year, and its revenues shrinking 5% to $24.7 billion. Most of the decline in revenue growth can be attributed to the economic slowdown in Europe and other parts of the world.

Virginia Rometty, IBM chairman, president and CEO, said:

“In the third quarter, we continued to drive margin, profit and earnings growth through our focus on higher-value businesses, strategic growth initiatives and productivity.

Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit and cash. We are reiterating our full-year 2012 operating earnings per share expectation of at least $15.10.”

IBM makes money primarily from three segments — services, software and hardware. Its technology services revenue declined 4% to $9.9 billion while business services revenue declined 6% to $4.5 billion.

Software revenue declined marginally to $5.8 billion, while hardware revenue totaled $3.9 billion, down 13% year-over-year. The global financing segment contributed $472 million to its top line.

IBM’s cash and cash equivalents grew to almost $12 billion this quarter.

via IBM – SEC

Intel Reports Q3 2012 Earnings; Revenues Flat at $13.5 Billion

It’s the earnings season again, and Intel was one of the technology giants to report its third quarter earnings. Its revenue in Q3 2012 was $13.5 billion, almost flat compared to the last sequential quarter. Its net income, however, was $3 billion, up 5.1% sequentially. It reported an operating income of nearly $3.8 billion, an generated $5.1 billion in cash from operations.

Paul Otellini, Intel president and CEO, said:

“Our third-quarter results reflected a continuing tough economic environment. The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we’re pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market.”

The PC Client group which is primarily the consumer PC division generated $8.6 billion in revenue, while the Data Center Group which is the server chip business generated $2.7 billion in revenue.

Intel also projected Q4 2012 revenue at $13.6 billion, slightly higher than current revenue. Intel is trying hard to get a strong foothold in the mobile processor market, which is dominated by ARM. Intel’s future also depends on the success of Microsoft’s Windows 8 on tablets to some extent. The next couple of years might be decisive for Intel.

via Intel – SEC

eBay Q3 2012 Earnings: Revenue Jumps 15%, Profit Up 22%

eBay reported its earnings for Q3 2012, with its revenue increasing 15% to $3.4 billion year-over-year. Its net income was up to $597 million, up 22% year-over-year. Its core Marketplaces product and PayPal contributed to most of the growth.

John Donahoe, President and CEO of eBay, said:

“We had a great third quarter across our company, with Marketplaces and PayPal accelerating customer growth. Mobile continues to be a game changer for us, and we continue to be a clear leader in mobile commerce and payments. With our strong portfolio and global reach, we are consistently demonstrating our capabilities to help consumers shop anytime, anywhere. And we are enabling retailers of all sizes to compete in a rapidly evolving, multichannel commerce environment.”

PayPal saw its user base expand to 117.4 million active registered accounts, up 14% year-over-year. Revenue from PayPal increased 23% while the total payment volume grew 20% to $35.2 billion. PayPal continues to focus on mobile to drive most of its growth and also gained traction with PayPal Here, its competitor to Square.

In Marketplaces, the gross merchandise value increased 11% to $16 billion, while the revenue increased 9%, driven primarily by growth in the US and Asia Pacific. eBay’s cash and cash equivalents increased to $7.3 billion in the last quarter.

eBay is undergoing a significant change, as it recently introduced a new redesign, and also launched a new marketing campaign. PayPal is its prime focus now, led by David Marcus, who is now focusing on the product and customers to grow the dominant online payments service.

via eBay – SEC

Salesforce Earnings: Revenues Grow 34%, Profit Still Elusive has announced its earnings for the second quarter of 2012 (Q2 FY13). It reported total revenue of $732 million, up 34% year-over-year, with subscription and support revenue growing to $687 million and professional services revenue increasing to $44 million. While the sales growth is impressive, it posted a net loss of $9.8 million, as sales and marketing expenses continued to balloon. Its deferred revenue grew faster than revenue, increasing 43% to $1.34 billion.

Its cash and cash equivalents stood at exactly $1 billion, while its short term marketable securities declined to $107 million by the end of the quarter. Its operating cash flow this quarter was around $136 million.’s Chairman and CEO, Marc Benioff said:

“Our second quarter revenue growth was outstanding at 34% in dollars and 37% in constant currency.’s social enterprise strategy is enabling companies to connect with customers, partners, and employees in completely new ways – and it’s creating new opportunities for their growth and ours.”

It has raised its earnings outlook for the next quarter and the full year, but its stock is down nearly 5% as profits continue to elude the leader in the enterprise cloud software market.

via Salesforce – SEC