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3 Top 'Cloud' Stocks to Own in 2012
(page 4 of article)
Although hardly a household name like rivals AT&T(T_) and Amazon(AMZN_), Rackspace has quietly carved out an impressive niche in the growing cloud market.
Unlike many of its competitors, Rackspace focuses solely on cloud computing, a strategy that has served it well. The San Antonio, Texas-based firm recently continued its run of strong quarterly results, putting out impressive fourth-quarter results.
Walravens of JMP Securities expects this upward trajectory to continue.
"Rackspace is poised for continued growth because the market opportunity is lightly penetrated (less than 5%) and because the 'cloud services leader' message continues to resonate with enterprises big and small," he said in a recent note. "We believe the company faces a massive market opportunity as companies look to a specialized cloud computing service provider to address their IT needs."
Around 80% of Rackspace's revenue comes from "dedicated" cloud services, or applications that the company hosts on servers devoted to specific customers. The remaining 20% of the firm's sales come from its pool of Rackspace hardware and software that's not specifically allocated to given customers.
Rackspace's total customers climbed to 172,510 at the end of the fourth quarter, up from 161,422 at the end of the prior quarter.
The company is also gearing up for a busy 2012, and is planning to launch a host of new products, such as server load balancing and database services, as well as a high-performance storage offering.
The cloud specialist clearly has plenty to offer investors in the future, as evidenced by its high price-to-earnings ratio of 97, indicating the potential for earnings growth. Rival AT&T, in contrast, has a price-to-earnings ratio of 46.
"The company's fanatical support message continues to resonate well with its customers," noted Walravens. The analyst, however, warned that Rackspace's biggest challenge is recruiting enough staff to support its growth.
Rackspace recently told TheStreet that it added 241 new hires during the fourth quarter, bringing its total workforce to around 4,000. The company is "hiring like crazy" at the moment, according to Bryan McGrath, the Rackspace vice president of finance.
TheStreeet Ratings rates Rackspace "buy."
--Written by James Rogers in New York.
http://investorshub.advfn.com/boards/post_new.aspx?board_id=16009
Google (GOOG) to Exit Clearwire (CLWR) Stake; Plans to Sell at $1.60/Share
February 24, 2012 7:08 AM EST
Clearwire (Nasdaq: CLWR) shares are seeing some upside Friday morning following an amended 13D with the SEC filed by Sprint (NYSE: S) which shows Google (Nasdaq: GOOG) planning to sell its stake to Sprint.
From the filing.
Google (Nasdaq: GOOG) periodically rebalances its investments based on its goals and its evaluation of market conditions. Google plans to sell the 29,411,765 shares of Class A Common Stock of Clearwire (Nasdaq: CLWR) it holds (a) to the other Reporting Persons and/or the Intel Entities, Intel Capital, Intel Cayman, and Middlefield pursuant to Section 3.3 of the Equityholders’ Agreement or (b) if the Reporting Persons or the Intel Entities, Intel Capital, Intel Cayman, and Middlefield do not elect to purchase all of such shares within the specified time period, in one or more public open market transactions on the NASDAQ Stock Market. To the extent that such sales are conducted by means of one or more public open market transactions, such sales will be made beginning on or about February 27, 2012, in such amounts and over such time period as determined by Google and in compliance with all applicable securities laws.
Google plans to sell the shares at $1.60 each, which is 30 percent lower than Clearwire's trading price of $2.27.
http://www.streetinsider.com/Insiders+Blog/Google+%28GOOG%29+to+Exit+Clearwire+%28CLWR%29+Stake%3B+Plans+to+Sell+at+%241.60Share/7210350.html
FEBRUARY 22, 2012. "A plan to triple the tax rate would hurt all shareholders.."
Obama's Dividend Assault
http://online.wsj.com/article/SB10001424052970204880404577225493025537660.html?mod=googlenews_wsj
Microsoft sues Motorola Mobility, claims patent abuse
by Don Reisinger |February 22, 2012 5:45 AM PST The software giant says Motorola is attempting to use essential patents "to kill video on the Web." It also didn't miss the opportunity to take a swipe at Google.
Microsoft is the latest tech giant to take aim at Motorola Mobility--and thus, by virtue of its $12.5 billion acquisition, Google--in a FRAND (fair, reasonable, and nondiscriminatory) patent abuse claim.
The software giant today filed a formal competition law complaint with the European Commission against Motorola, arguing that the company is not offering essential patents on fair and reasonable terms. The complaint involves patents Motorola holds related to Web video and the way in which certain devices, like Windows PCs and the Xbox, access and play it.
"In legal proceedings on both sides of the Atlantic, Motorola is demanding that Microsoft take its products off the market, or else remove their standards-based ability to play video and connect wirelessly," Microsoft vice president and deputy general counsel Dave Heiner wrote in a blog post today. "The only basis for these actions is that these products implement industry standards, on which Motorola claims patents. Yet when the industry adopted these standards, we all were counting on Motorola and every contributor to live up to their promises."
Heiner says Motorola is forcing Microsoft to pay $22.50 in royalties for each $1,000 laptop. Those laptops rely on 50 patents the mobile company holds for the video standard H.264. In order to use that standard, Microsoft says, it needs to license patents, based on FRAND terms, from 29 other companies, as well. Those companies charge the software giant "2 cents for use of more than 2,300 patents."
This isn't the first time Motorola has been hit with allegations of FRAND abuse. Earlier this month, after losing a German court battle in which a judge ruled Apple's iPhone and iPad violated 3G patents Motorola holds, the Cupertino, Calif.-based company slapped its counterpart with charges that it violates FRAND standards.
"Apple appealed this ruling because Motorola repeatedly refuses to license this patent to Apple on reasonable terms, despite having declared it an industry standard patent seven years ago," an Apple spokeswoman told CNET at the time.
In response, Motorola said that it tried for years to work out fair licensing terms with Apple, but the iPhone maker refused.
"Apple's refusal to negotiate in good faith, as well as their aggressive litigation campaign against Android, left Motorola Mobility with no option other than to seek to enforce the company's rights and patent portfolio," Motorola said, adding that it would rather license patents than engage in litigation.
As one might expect, given the companies' contentious relationship over the years, Microsoft's Heiner was more than willing to target Google in today's blog post. The search giant announced plans to acquire Motorola Mobility for $12.5 billion last year. Regulators recently approved the acquisition, paving the way for Google to take control of the mobile firm.
Heiner argues that Google's involvement with Motorola could be a bad thing for the industry. He pointed to a recent commitment made by Microsoft and Apple, among others, saying they would not seek injunctions on products that might be violating standard, essential patents. Google, Heiner says, declined the opportunity to do the same.
"Google's unwillingness so far to make this commitment is very concerning," Heiner wrote. "That's why you can pretty well count on a chorus from across the industry: 'Google: Please don't kill video on the Web.'"
But Microsoft isn't necessarily a victim in the world of patents. The software giant over the last several years has secured well over 1,000 deals with companies over claims that they are using patents the software giant owns. Microsoft has been especially successful licensing patents to Android vendors. Heiner acknowledged today that "more than 70 percent of Android devices are now licensed to use Microsoft's patent portfolio."
Motorola is one of the few Android vendors that have not played nice with Microsoft. Rather than license patents from the software company, the mobile firm last year decided to battle it out in court. In December, a U.S. International Trade Commission judge found that Motorola is allegedly infringing just one of seven patents Microsoft holds.
"Microsoft is not seeking to block Android manufacturers from shipping products on the basis of standard essential patents," Heiner said today about his company's past litigation. "Rather, Microsoft is focused on infringement of patents that it has not contributed to any industry standard. And Microsoft is making its patents--standard essential and otherwise--available to all Android manufacturers on fair and reasonable terms."
So far, the European Commission has not responded to Microsoft's complaint. But if you ask Heiner, the stakes are high, and something needs to be done sooner rather than later to stop Motorola and Google.
"Motorola has broken its promise," he wrote. "Motorola is on a path to use standard essential patents to kill video on the Web, and Google as its new owner doesn't seem to be willing to change course."
Neither Google nor Motorola Mobility immediately responded to CNET's request for comment.
http://news.cnet.com/8301-13506_3-57382524-17/microsoft-sues-motorola-mobility-claims-patent-abuse/
Rackspace can now supply Infrastructure-as-a-Service (IaaS) and higher level Platform-as-a-Service (PaaS) technologies to UK Government departments.
Rackspace is in the special position of being able to offer cloud services for both data processing and secure storage from its UK cloud data centre. As the government looks to address compliance and governance issues pertaining to the cloud, Rackspace also offers maximum levels of proximity with minimised latency.
http://ih.advfn.com/p.php?pid=nmona&article=51262269&symbol=RAX
Clearwire Shareholders Feel the Burn
By Sean Williams | More Articles
February 16, 2012
No, this isn't a Zumba routine, but shareholders of wireless service provider Clearwire (Nasdaq: CLWR ) are feeling the burn today.
Clearwire last night reported its highly-anticipated fourth quarter results and, continuing with its theme since inception, lost more money that Wall Street had predicted. Although revenue for the quarter rose 107% over the year-ago period to $361.9 million, which was slightly ahead of consensus estimates, one-time writedowns widened Clearwire's quarterly loss to $0.81 – more than double the $0.35 loss analysts had been looking for. So much for that first quarter of EBITDA profits, huh?
The real pound- and profit-buster of last night's routine was the company's fiscal 2012 guidance. Due to the build-out of its 4G LTE network that Clearwire highlighted in August, the company is expecting revenue to be either flat or slightly down for the year ($1.15 billion to $1.25 billion versus $1.25 billion in fiscal 2011). Capital expenditures are forecast to rise to $450 million, to $550 million.
With extensive losses projected for the immediate future (what's new, right?), we once again need to focus on the only thing of importance to Clearwire investors: its spectrum.
Clearwire holds most of its spectrum in the 2.5 Ghz to 2.7 Ghz range. While not as desirable or as costly as other bands of spectrum, Clearwire still possesses what many feel is a treasure trove of assets. MetroPCS Communications (NYSE: PCS ) is actively pursuing additional spectrum, as is AT&T (NYSE: T ) additional spectrum being one of the driving forces behind its proposed (but subsequently failed) takeover of T-Mobile from Deutsche Telecom.What's really sad, though, is that despite offering Clearwire two separate lifelines, Sprint Nextel (NYSE: S ) seems hell-bent in not developing its 4G LTE network with the help of Clearwire.
Sprint's original plan was to go with LightSquared, which has, as of yesterday, been told twice now by the FCC to shelve its business plan altogether because it would interfere with certain types of GPS receivers. With LightSquared off the burner, Foolish colleague Anders Bylund noted that Sprint may get desperate enough to cozy up to DISH Network (Nasdaq: DISH ) and its own hybrid broadband network. It may not be a match made in heaven, but it's even more evidence that Sprint doesn't want anything to do with its welfare-recipient, Clearwire.
The Apple iPhone is also playing a crucial role in blocking Sprint and Clearwire from getting together. Even though the iPhone has a net negative effect on margins, all major carriers willingly carry it because of the traffic it eventually drives through their front doors. Unfortunately for Clearwire, the iPhone doesn't work on its network. Clearwire is one of a very select few tech stocks unable to ride the Apple train higher.
http://www.fool.com/investing/general/2012/02/16/clearwire-shareholders-feel-the-burn.aspx
Rackspace crossed the $1 billion revenue mark in 2011. "We are on pace to achieve another billion in a fraction of the time that it took our company to grow to its first billion," said CEO Lanham Napier.
http://beta.fool.com/erinannie/2012/02/14/two-words-buy-rackspace/1995/?source=eogyholnk0000001
UPDATE: Rackspace Hosting 4Q Up 85% On Revenue, Margin Growth Date : 02/13/2012 @ 6:12PM
Source : Dow Jones News
Stock : Rackspace Hosting Inc. (RAX)
Quote : 49.23 0.72 (1.48%) @ 8:00PM
UPDATE: Rackspace Hosting 4Q Up 85% On Revenue, Margin Growth
PrintAlert
Rackspace Hosting, Common Stock (NYSE:RAX)
Today : Monday 13 February 2012
Rackspace Hosting Inc.'s (RAX) fourth-quarter earnings jumped 85% as it grew its customer base and sold more high-end offerings involving cloud computing.
The San Antonio-based data storage provider continued to benefit from businesses' push to manage technology resources more efficiently. Rackpace's cloud storage business--which allows companies to rent server capacity by the hour, paying only for what they use--again saw particular growth.
Looking to the current year, Rackspace expects "revenue growth and margin profile that is similar to our performance in 2011," Chief Executive Lanham Napier said on a conference call with analysts.
Shares jumped 5.8% to $52.10 in after-hours trading as the latest results beat analysts' expectations.
The company reported a profit of $25 million, or 18 cents a share, up from $13.5 million, or 10 cents a share, a year earlier. Revenue rose 32% to $283.3 million.
Analysts polled by Thomson Reuters most recently forecast a profit of 15 cents a share on revenue of $281 million.
"Dedicated cloud" revenue, which accounts for the bulk of the total, increased 23%. The smaller public cloud segment saw revenue jump 86%.
Rackspace ended the period with 172,510 customers, up from 130,291 a year earlier. Installed-base growth, a measure of revenue derived only from existing customers, was 1.2%, up from 0.6% a year earlier.
Operating margin rose to 36.1% from 33.5%.
Rackspace has added software and higher levels of service to its offering, seeking to stand out amid a crowded storage services field that includes rivals such as Amazon.com Inc. (AMZN) and Verizon Communications Inc. (VZ).
Napier said on the call that the company is benefiting from longtime customers taking on added services, which raises the company's profitability.
The stock, which hit an all-time high last week, is up 14% so far this year.
-By Matt Jarzemsky, Dow Jones Newswires, 212-416-2240; matthew.jarzemsky@dowjones.com
--Nathalie Tadena contributed to this article.
http://www.nasdaq.com/article/update-rackspace-hosting-4q-up-85-on-revenue-margin-growth-20120213-01392
Nice batch of headlines......
•Rackspace Hosting, Yingli rise after hoursat MarketWatch(Mon 6:06PM EST)
•Rackspace 4th quarter trumps Street estimatesat Reuters(Mon 5:27PM EST)
•RackSpace Up 5% on Q4 Beatat Barrons.com(Mon 5:19PM EST)
•Rackspace Hosting to Present at Investor Conferences in FebruaryBusiness Wire(Mon 5:14PM EST)
•Rackspace Up As Q4 EPS Jumps 80% On Cloud Servicesat Investor's Business Daily(Mon 5:07PM EST)
•Rackspace Revenue Growth Rolls Onat TheStreet(Mon 5:03PM EST)
•Rackspace Hosting Inc. Earnings: Beats EstimatesWall St. Cheat Sheet(Mon 4:59PM EST)
Rackspace Hosting Reports Fourth Quarter 2011 Results
For the quarter ended December 31, 2011:
Net revenue of $283 million grew 32% year-over-year and 7.1% from Q3 2011
Adjusted EBITDA (1) of $102 million grew 42% year-over-year and 16.2% from Q3 2011
Achieved adjusted EBITDA margin of 36.1%, up from 33.5% year-over-year and 33.3% in Q3 2011
Net income of $25 million grew 85% year-over-year and 25.3% from Q3 2011
http://finance.yahoo.com/news/Rackspace-Hosting-Reports-bwtmp-4159914625.html?x=0&.v=1&c=1
How about an IDCC - Intellectual Ventures 'partnering'?
IV combined with IDCC and Fortress in the Nortel auction.
I think all this from goog and mr softy is in direct response to the DOJ's (expected) approval of the Nortel purchase. I think the DOJ wanted assurances how these patents (and those of mmi bought by goog) are going to be used by one competitor against the other. I read a very good letter from an antitrust attorney a few months ago about all this posturing....I'll try and find it.
Microsoft’s Shift Over Industry-Standard Patents Timed to Undercut Google
...Microsoft Corp. (MSFT)’s vow to negotiate with competitors over industry-standard patents, instead of trying to block their products, marks a change from the company’s position less than a year ago.
The policy announced yesterday by Microsoft came the same day that Google Inc. (GOOG) made its own promise regarding standard- essential patents to appease regulators scrutinizing its $12.5 billion acquisition of Motorola Mobility Holdings Inc.
Microsoft, Google and Apple Inc. (AAPL) are staking out positions on standard-setting patents amid global litigation over wireless devices and tighter regulatory scrutiny. The Microsoft pledge, and an Apple policy made public Feb. 7, were timed to undermine Google, said Andrew Updegrove, a lawyer with Gesmer Updegrove in Boston.
“You already have Google increasingly under the spotlight,” said Updegrove, who advises standard-setting boards on intellectual property policies. “They’re living in a tighter and tighter confinement just because their market power is increasing.”
By issuing policies that contrast with Google, Microsoft and Apple “are playing to the marketplace and they’re playing to the regulators,” he said.
http://www.bloomberg.com/news/2012-02-08/microsoft-pledges-fair-licenses-to-technology-essential-patents.html
Apple Loses Bid to Ban German Samsung Sales
By Karin Matussek - Feb 9, 2012 4:25 AM PT
Apple Inc. (AAPL), maker of the iPad and iPhone, for the second time failed to win a ban on sales of Samsung Electronics (005930) Co.’s Galaxy 10.1N from a German court.
The Dusseldorf Regional Court rejected the bid for an emergency ruling today in a case where Apple invoked a European design right. Apple last week lost a similar attempt over a technology patent in a Munich court.
A Dusseldorf appeals court last week upheld Apple’s request to ban sales of the Galaxy Tab 10.1, the predecessor model, which the company had won in the same lower court that rejected today’s bid. Samsung began selling the Galaxy Tab 10.1N, a revised version, in Germany last year to get around that ban. Samsung lost two patent rulings against its rival in a Mannheim court last month.
“The Galaxy Tab 10.1N now sufficiently differs from the form Apple has registered as a design right,” the court said in a statement. “Apple’s iPads and Samsung’s Galaxy Tab 10.1N now are two competing products of equal value.”
The legal battle between Cupertino, California-based Apple and its closest competitor in tablet computers is intensifying as an increasing number of consumers use tablets and smartphones to visit websites, play games and download music. More patent rulings between the two are scheduled for the coming weeks.
Remains on Sale
Samsung said the ruling affirms its position that the Galaxy Tab 10.1N is distinctive and doesn’t infringe the rights asserted by Apple. The Galaxy Tab 10.1N remains available to consumers in Germany, Samsung said.
Apple spokesman Alan Hely declined to comment on today’s ruling and referred to the company’s earlier statement that Samsung is “blatantly” copying the iPhone and iPad.
The judges in today’s case said the Galaxy 10.1N is no longer a “quasi-identical copy” of the iPad. They rejected the claim that Samsung is exploiting the reputation Apple’s products have earned. The new design with a broader frame on the side as well as loud speakers and Samsung’s name tag on the front are enough to distinguish the products, the court said.
“It’s odd to claim that buyers are fooled into thinking they buy an Apple product if they get the Samsung device,” said Deputy Presiding Judge Ulrike Pastohr. “You don’t buy consumer electronics like you would buy butter in a supermarket, you’re much more attentive.”
Today’s case is: LG Dusseldorf, 14c O 292/11.
http://www.bloomberg.com/news/2012-02-09/apple-loses-second-bid-to-ban-german-sales-of-samsung-s-galaxy-tab-10-1n.html
Rambus Shares Climb as Company Settles Patent-License Dispute With Nvidia
QBy Heather Perlberg - Feb 8, 2012 6:20 AM PT .
Rambus Inc., which gets most of its revenue from royalties, jumped in early trading after saying it signed a patent agreement with Nvidia Corp., settling all claims with the chipmaker.
The accord covers a broad range of semiconductor products offered by Nvidia, Sunnyvale, California-based Rambus said in a statement today.
“This settlement was a surprise,” said Hamed Khorsand, an analyst at BWS Financial Inc. who recommends buying the shares. “It also validates patents Rambus has been starting.”
Rambus, which spent the past decade suing companies that refused to license its patents, settled with Nvidia 1 1/2 months after reaching a five-year agreement with Broadcom Corp (BRCM). On Dec. 1, 2010, the company filed patent-infringement complaints with the International Trade Commission against Nvidia, Broadcom and other chip companies.
“It’s interesting that one by one the companies involved in ITC matter are starting to settle,” Khorsand said. “Companies might be looking at it from a standpoint where the patents will be upheld and Rambus would be able to force them to stop selling into the U.S.”
http://www.bloomberg.com/news/2012-02-08/rambus-shares-climb-as-company-settles-patent-license-dispute-with-nvidia.html
Forbes Earnings Preview: Rackspace Hosting
By Narrative Science (see below for what this is)
Wall Street is optimistic about Rackspace Hosting (RAX), which is slated to report its fourth quarter results on Monday, February 13, 2012. Analysts project a profit of 15 cents a share, a rise from 10 cents per share a year ago.
What to Expect:
The consensus estimate has fallen over the past three months, from 16 cents. Analysts are projecting earnings of 53 cents per share for the fiscal year.
Revenue is projected to be $281.1 million for the quarter, 30.9% above the year-earlier total of $214.7 million. For the year, revenue is projected to come in at $1.02 billion.
Trends to Watch For:
Revenue has grown by double digits year-over-year for the last four quarters. Over that span, the company has averaged growth of 29.9%, with the biggest boost coming in the most recent quarter when revenue rose 32.5% from the year earlier quarter.
The company’s profit has been on the rise for three quarters in a row. In the third quarter, net income rose 69.2% while it rose 56.8% in the second quarter and 40.9% in the first quarter.
Analyst Ratings:
The majority of analysts (61.1%) rate Rackspace as a buy. This compares favorably to the analyst ratings of its nearest 10 competitors, which average 52.1% buys. Analysts have become more cautious about the stock in the last three months.
http://www.forbes.com/sites/narrativescience/2012/02/08/forbes-earnings-preview-rackspace-hosting-2/?partner=yahootix
----------------------
Narrative Science, an innovative technology company, turns data into stories. Narrative Science has developed a technology solution that creates rich narrative content from data. Narratives are seamlessly created from structured data sources and can be fully customized to fit a customer’s voice, style and tone. Stories are created in multiple formats, including long form stories, headlines, Tweets and industry reports with graphical visualizations. Multiple versions of the same story can be created to customize the content for each audience’s specific needs. Contact forbes@narrativescience.com
The CEO has implied there would be no secondary unless there was the need to accomodate a large order. On the yahoo thread, watch for postings from stocksock, josephjpeters and nytessr. Those posters know the technology.
More importantly, past transcripts and webcasts indicate the growth on the horizon. Transcripts are on seekingalpha and webcasts can be linked from OCZ website.
"Brussels Sprouts Opposition to Vodafone Merger"
ha ha ha
Right now on Bloomberg TV ... Micron CEO Steve Appleton dies in small plane crash in Boise ID.
http://www.bloomberg.com/news/2012-02-03/micron-ceo-appleton-dies-in-plane-accident.html
A Bloomberg update on that Harbinger fund .... the LightSquared piece was down 59%.
Earnings on Feb 13.
Wow, I'm afraid to say anything and jinx the move! Rumors out there?
Earnings are next week (I think).
Hi magilla....maybe the Q could push TRC Capital toward oh, let's say...KOP, Pennsylvania!
"Harbinger Capital Offshore Fund lost 47% in 2011 on LightSquared bet"
That's a tag line scrolling at the bottom of Bloomberg TV this morning. Holy cow.
Qualcomm recommends rejection of below-market mini-tender offer by TRC Capital
Theflyonthewall.com – 55 minutes ago
Companies:
QUALCOMM Incorporated
Symbol Price Change
QCOM 59.56 0.00
Qualcomm has been notified of an unsolicited "mini-tender" offer by TRC Capital Corp. to purchase up to 2M shares, or approximately 0.12%, of Qualcomm's outstanding common stock at a price of $55.00 per share in cash. TRC's offer price is approximately 4.5% below the $57.59 closing price of Qualcomm common stock on Jan. 18, the day before the offer commenced. The offer is subject to various conditions, including TRC's ability to obtain sufficient financing necessary to fund its financial obligations arising from the offer. Qualcomm does not endorse TRC's mini-tender offer and recommends that Qualcomm stockholders do not tender their shares since the offer is below the current market price for Qualcomm shares
SAN DIEGO (AP) -- Mobile phone chip maker Qualcomm Inc. said Wednesday that its fiscal first-quarter profit rose 16 percent as rising global demand for smart phones boosted sales.
The company also raised its outlook for the current quarter and said that new 3G and 4G wireless networks should increase its sales opportunities during 2012. It set its earnings and revenue forecasts above analyst expectations for the current quarter.
Shares jumped 5 percent in aftermarket trading.
The company said that its net income in the quarter ended Dec. 25 was $1.4 billion, or 83 cents per share, compared to $1.17 billion, or 72 cents per share, during the same period a year before.
Qualcomm 1Q net income beats expectations on smart phone demand, company raises 2Q outlook........
Revenue during the quarter was $4.68 billion, up from $3.35 billion during the same period last year.
The company also reported adjusted net income, excluding one-time charges like acquisition costs and share-based compensation, of 97 cents per share.
The results beat analyst expectations for adjusted net income of 90 cents per share on $4.56 billion in revenue.
CEO Paul Jacobs said Qualcomm expects sales and profits during the current quarter to be boosted by the company's licensing partnerships sales of its Snapdragon processors which are used in smart phones.
The company said it expects revenue in the quarter to be between $4.6 billion and $5 billion.
The company said it now expects adjusted net income during the quarter to be between 91 cents and 97 cents per share.
Analysts were expecting adjusted net income of 89 cents per share on revenue of $4.49 billion.
Shares rose $3.04 to $62.60 in aftermarket trading following the earnings report. They rose 74 cents, or 1.3 percent, to close at $59.56 during normal trading Wednesday.
http://finance.yahoo.com/news/Qualcomm-1Q-net-income-beats-apf-1296734757.html?x=0
..
LOL !!
This LightSquared saga is movie material.
Thanks for the updates...maybe 2012 will see a revival of QPSA !
Isn't this something? I'm not staying on the outside looking in...I'm getting some AAPL in the better late than never attitude!
* Apple's cash balance is now a quarter of its $415 billion market capitalization and roughly equals California's 2012-2013 state budget.
* Indeed, some analysts estimated Apple's cash holdings would increase to $65 billion at the end of 201l. That it has swelled nearly 50 percent above even those lofty projections is nothing short of awesome. Apple now has about $104 in cash per share
* "With Apple stating that it is 'actively' pursuing its options with regards to its cash balance, we believe the commentary may be setting itself up for a cash dividend in FY12," Ticonderoga Securities analyst Brian White said, raising his target on the stock to $666. Some continue to bank on a share-price rise to as high as $700.
*The company earned a mere 0.77 percent on its cash and investments in fiscal 2011, mostly due to its preference for safe, but low-yielding U.S. Treasury and agency debt."
* Apple's major expense last year was paying the lion's share to acquire - along with Microsoft and a few other companies - the patent portfolio of bankrupt telecommunications company Nortel for $4.5 billion.
* "We believe Apple is likely to announce a dividend during 2012, potentially next quarter when crossing $100 billion in cash and cash equivalents,. Walkley said. "We view this as very bullish for investors, as we believe a new group of investors seeking dividends would invest in Apple and drive shares higher."
http://finance.yahoo.com/news/apple-ceo-faces-first-test-000903265.html
Report: Apple starts hiring chip experts in Haifa, Israel
January 25, 2012 at 5:54 am
a clip from the article:
"Apple’s Cook touched on the Anobit acquisition in yesterday’s conference call. Acknowledging, “Anobit has fantastic technical talent.” Cook added, “We’re really fortunate to have them join us.”
Rather than make expensive acquisitions, Apple prefers snapping up smaller startups for their engineering talent or technology."
http://9to5mac.com/2012/01/25/report-apple-starts-hiring-chip-experts-in-haifa-israel/
Form SC 13G OCZ TECHNOLOGY GROUP Filed by: ROXBURY CAPITAL MANAGEMENT
Roxbury Capital Management Raises Stake in OCZ Tech (OCZ) to 6.3%
January 23, 2012 3:33 PM EST
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=8008906
Filed on: January 23, 2012
Apple® today announced financial results for its fiscal 2012 first quarter which spanned 14 weeks and ended December 31, 2011. The Company posted record quarterly revenue of $46.33 billion and record quarterly net profit of $13.06 billion, or $13.87 per diluted share. These results compare to revenue of $26.74 billion and net quarterly profit of $6 billion, or $6.43 per diluted share, in the year-ago quarter. Gross margin was 44.7 percent compared to 38.5 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter’s revenue.
The Company sold 37.04 million iPhones in the quarter, representing 128 percent unit growth over the year-ago quarter. Apple sold 15.43 million iPads during the quarter, a 111 percent unit increase over the year-ago quarter. The Company sold 5.2 million Macs during the quarter, a 26 percent unit increase over the year-ago quarter. Apple sold 15.4 million iPods, a 21 percent unit decline from the year-ago quarter.
“We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs,” said Tim Cook, Apple’s CEO. “Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline.”
“We are very happy to have generated over $17.5 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2012, which will span 13 weeks, we expect revenue of about $32.5 billion and we expect diluted earnings per share of about $8.50.”
http://ih.advfn.com/p.php?pid=nmona&article=50875786&symbol=AAPL
There better be some good stuff on the conference call...what a huge disappointment.
RIM Replaces CEOs as it Struggles to Answer Apple
QBy Scott Moritz and Hugo Miller - Jan 22, 2012 6:04 PM PT
Research In Motion Ltd. (RIM) shook up its top management, replacing co-Chief Executive Officers Jim Balsillie and Mike Lazaridis, who guided the BlackBerry maker for two decades and struggled to compete against Apple Inc. (AAPL)
Thorsten Heins, a chief operating officer who joined RIM four years ago from Siemens AG, will replace the pair in the CEO post effective immediately, RIM said in a statement. Director Barbara Stymiest will take over as chairman, as the two also cede their co-chairmen positions. Lazaridis, who founded RIM in 1984, will become vice chairman; Balsillie will remain a board member without any operational role.
The shakeup comes after Balsillie and Lazaridis showed little sign of being able to stop Apple and Google Inc. (GOOG)’s gains as the Silicon Valley companies remade the mobile-computing market with devices such as the iPhone and iPad. Waterloo, Ontario-based RIM’s stock tumbled 75 percent last year as sales slumped, and the two men, both 50, drew investor criticism for releasing products without the features necessary to compete..
more: http://www.bloomberg.com/news/2012-01-23/rim-replaces-ceos-as-it-struggles-to-answer-apple.html
I still use it w/o problems. I noticed on the last update that there was a page to accept or decline the install of some toolbars. I hit the decline, and the update happened with no issues.
Thanks much.
INTC Earnings Call Transcript
-----more dot connecting, especially in the Q&A
http://seekingalpha.com/article/320787-intel-s-ceo-discusses-q4-2011-results-earnings-call-transcript
Intel Reports Record Year
PrintAlert
Intel (NASDAQ:INTC)
Intraday Stock Chart
Today : Thursday 19 January 2012
Intel Corporation today reported full-year revenue of $54 billion, operating income of $17.5 billion, net income of $12.9 billion and EPS of $2.39 -- all records. The company generated approximately $21 billion in cash from operations, paid dividends of $4.1 billion and used $14.1 billion to repurchase 642 million shares of stock.
For the fourth quarter, Intel posted revenue of $13.9 billion, operating income of $4.6 billion, net income of $3.4 billion and EPS of 64 cents. The company generated approximately $6.6 billion in cash from operations, paid dividends of $1.1 billion and used $4.1 billion to repurchase 174 million shares of stock.
“2011 was an exceptional year for Intel,” said Paul Otellini, Intel president and CEO. “With outstanding execution the company performed superbly, growing revenue by more than $10 billion and eclipsing all annual revenue and earnings records. With a tremendous product and technology pipeline for 2012, we’re excited about the global growth opportunities presented by Ultrabook systems, the data center, security and the introduction of Intel-powered smartphones and tablets.”
Business Outlook
Intel’s Business Outlook does not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after Jan. 19.
http://ih.advfn.com/p.php?pid=nmona&article=50818456
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Thursday is a bigger earnings day than I thought:
On Thursday after the market close, analysts are calling for the chip maker Intel (Nasdaq:INTC) to report a 3.4% improvement in its Q4 earnings per share (EPS) on a 19.7% increase in total revenue when compared to the year-ago quarter. Last month, the company said that its revenue will come in about $1 billion lower than previously expected due to hard disk drive supply shortages. Intel shares are up roughly 21% from a year ago.
Intel's rival Advanced Micro Devices (NYSE:AMD) is also slated to announce its earnings on the same day. Wall Street is expecting the company to check in with a 14.3% spike in EPS on a 3.9% gain in total revenue versus the prior year quarter. AMD has seen its stock price head in the opposite direction over the last year as it now sits around 30% below where it was trading at this time last year.
International Business Machines (NYSE:IBM) will weigh in with its Q4 results after the closing bell on Thursday. The consensus among analysts is that the company will announce a 10.5% advance in its quarterly EPS and a 2.5% increase in its top line. Shares of IBM have surged about 21% over the course of the last 52 weeks. (To learn more about earnings estimates, read Whisper Numbers: Should You Listen?)
Old Rivals
All eyes will turn to Google (Nasdaq:GOOG) when the tech giant releases its Q4 earnings after the closing bell on Thursday. Analysts are expecting the company's EPS to jump 19.5% on a 31.6% pop in revenue over Google's Q4 in 2010. The company's stock price was up and down in 2011, but recently set a new 52 week high of $670.25 per share.
The company has been taking aim at Apple (Nasdaq:AAPL) in everything from smartphones to music. Google recently added a new music store to its Android Market which is fully integrated with its Google Music platform. Apple will announce its earnings on January 24th.
Microsoft (Nasdaq:MSFT) has said that its PC sales in Q4 may be worse than previously expected because of flood damage to factories in Thailand. The company has seen its shares drop by roughly 2 percent over the course of the last year, but a pickup in sales of Windows Phones and the release of Windows 8 tablets have the potential to give the stock a lift. Microsoft will report its quarterly results after the market close on Thursday.
The Bottom Line
Thursday will certainly be one of the most important days of the earnings season for technology stocks. Analysts are expecting major top line growth from Intel and Google, while Microsoft has fired a preemptive strike to reign in expectations. The forecasts that these companies provide will give investors a sneak peek into what may be in store from the sector for the remainder of 2012. These are releases that most serious tech investors will not want to miss.
Read more: http://stocks.investopedia.com/stock-analysis/2012/Tech-Earnings-On-Tap-INTC-AMD-IBM-GOOG-AAPL0118.aspx?partner=YahooSA#ixzz1jpfJ3DXZ
BTW, intel reports tomorrow.
IMO, If they were to buy a company like IDCC and pay a lot. I'd think they want to wash it down with a CC, explaining the value to intel.
I've been thinking the same thing.
I think MSFT reports tomorrow, too.