Cisco just reported its third quarter earnings and we're examining them now.It reported:EPS Q3 EPS $0.57 versus expectations of $0.55, that's a beat.Revenue of $12 billion versus expectations of $11.97 billion, another slight beat.Investors are also happy with Cisco's solid guidance.It expects the next quarter to show 0%-3% Y/Y growth which excludes the set-top business that Cisco sold and EPS of $0.59-$0.61.Analysts were expecting actual revenue to decline 3.3% and EPS of $0.58.The stock is up about 5% in after hours trading.Here's the full press release.Cisco Reports Third Quarter EarningsSolid Quarter Driven by Strong Execution; Continued Strong Margins and Momentum in Growth AreasQ3 Revenue : $12.0 billionGrowth of 3% year over year -- Q3 guidance was 1% to 4% growth year over year normalized to exclude the SP Video CPE Business for Q3 2015 Q3 Earnings per Share: $0.46 GAAP; $0.57 non-GAAPQ4 Guidance:Revenue: 0% - 3% growth year over year normalized to exclude the SP Video CPE Business for Q4 2015 Earnings per Share: GAAP $0.48 - $0.53; Non-GAAP: $0.59 to $0.61Cisco today reported third quarter results for the period ended April 30, 2016."We delivered a strong Q3, executing well despite the challenging environment," said Chuck Robbins, Cisco chief executive officer.A reconciliation between net income and EPS on a GAAP and non-GAAP basis is provided in the table following the Consolidated Statements of Operations.Cisco continued to build a greater mix of recurring revenue as reflected in deferred revenue.Days Sales Outstanding in Accounts Receivable DSO -- was 33 days at the end of the third quarter of fiscal 2016, compared with 33 days at the end of the second quarter of fiscal 2016, and compared with 37 days at the end of the third quarter of fiscal 2015.Other Financial HighlightsIn the third quarter of fiscal 2016, Cisco declared and paid a cash dividend of $0.26 per common share, or $1.3 billion.The remaining authorized amount for stock repurchases under this program is approximately $16.2 billion with no termination date.AcquisitionsDuring the third quarter of fiscal 2016, Cisco completed the following acquisitions:Jasper Technologies -- provides a cloud-based Internet of Things IoT service platform to help enterprises and service providers launch, manage and monetize IoT services on a global scale.Acano -- provides on-premises and cloud-based video infrastructure and collaboration software.Synata -- will enable us to deliver search capabilities for collaboration cloud applications.Leaba -- a fabless semiconductor company whose semiconductor expertise is expected to help to accelerate Cisco'snext generation product portfolio and bring new capabilities to the market faster.CliQr -- provides an application-defined cloud orchestration platform that is expected to help Cisco customers simplify and accelerate their private, public and hybrid cloud deployments.Business Outlook for Q4 Fiscal 2016 Cisco estimates that GAAP EPS will be $0.48 to $0.53 which is lower than non-GAAP EPS by $0.08 to $0.11 per share in the fourth quarter of fiscal 2016 as follows: Q4 2016 Share-based compensation expense $0.05-$0.06Amortization of purchased intangible assets and other acquisition-related/divestiture costs 0.03- 0.05 Total $0.08-$0.11 Share-based compensation expense is expected to impact Cisco's results of operations in similar proportions as the third quarter of fiscal 2016.
It would be one thing if a company just scraping by tacked on a tiny fee, but Verizon hauled in $7.9 billion in profit last quarter on $32.2 billion in sales while AT s operating income climbed to $7.1 billion on revenue totaling $40.5 billion.MUST SEE: 2 new Craigslist scams you need to watch out forEvery few years like clockwork, a new company comes along to save us from cell phone carriers.The company s Google Fi service uses a combination of cellular and Wi-Fi to offer dirt-cheap prices — unlimited voice and text messaging cost just $20 per month, and then Google charges $10 for every 2GB of data.Apple may or may not have investigated the possibility of launching its own wireless service in the past, but we now have definitive word from CEO Tim Cook that the company will not enter the wireless space.We ll do some things along the way with e-SIMs along the way, but in general, I like the things carriers do.The wait continues…Thanks to the sharing economy, living in five different cities in five years has never been more doable.
Dell had an unremarkable Q1 of fiscal 2017, with its parent Denali Holding Inc today reporting revenues down 2 per cent year on the year to $12.5bn, but greatly reduced operating losses, trimmed 52 per cent from $335m to $161m.The company burned through $63m in cash in the three months ended April 29 but this pointed to "seasonally low" cash generation in the period.Cash flow from operations improved about $800m year-on-year.PCs continued to provide the lion's share of revenue, with the Client Solutions group pulling in $8.6bn, down 3 per cent year on year.Nonetheless, Dell knows how to make money from this challenging sector, generating divisional operating income of $385m, up 76 per cent.This translated to higher unit shipments and market share, which meant revenues fell less than rivals, Dell claimed.
Verizon has long been the nation s most expensive wireless carrier.Because people are willing to pay.The networking giant pulled in $7.9 billion in operating income during the first quarter this year, and it did so on revenue that totaled $32.2 billion.But even as ridiculous as those numbers are, it s apparently not enough.It s never enough, is it?According to a new report, Verizon is getting ready to increase the cost of its wireless plans across the board.
Get to grips with the company that just paid £24 billion for UK chipmaker ARM.Founded in 1981, SoftBank is a Japan-based telecoms and internet group.Headquartered in Tokyo, it has international operations across broadband, fixed telecoms, e-commerce, finance, media and marketing.Included in its portfolio of companies are SoftBank BB, IDC Frontier, GungHo Online Entertainment and SB Creative.It also works with foreign companies such as Yahoo!.In July 2016 SoftBank announced that it was acquiring UK-based chipmaker ARM for £24 billion as part of a deeper push into the Internet of Things market.
Microsoft posted revenue of $20.6 billion in the fourth quarter of its 2016 financial year, a decline of 7 percent year on year.The company offers non-GAAP financials wherein all Windows 10 revenue is booked at the point of sale, rather than allocated piecemeal over two to four years with the exact timeframe depending on the customer type .The non-GAAP results also change how the company accounts for impairment, integration, and restructuring charges.Under this alternative reporting regimen, revenue for the quarter was was up 2 percent to $22.6 billion, operating income was down 3 percent to $6.2 billion, and net income was up 8 percent to $5.5 billion.As in past quarters, Microsoft is also continuing to provide constant currency guidance to give an indication of what its revenue and income changes would be if the dollar were as weak today as it was this time last year.Cloud businesses—in particular Office 365 and Azure—continued to show the biggest gains, but the fourth quarter was also unusually strong even for Windows revenue.
More Charts Yahoo delivered middling earnings on Monday, and on the call Marissa Mayer gave what sounded a lot like a goodbye speech.This indeed may be her last earnings report at the company: the final bids for Yahoo's core business were reportedly due on Monday, and there's no guarantee that the buyer will keep her around.So how'd she do?This set of charts from Statista tells the tale.Revenue in all major segments has declined, as has operating income.At the same time, Mayer has made tough choices in terms of cutting headcount — on Monday's call, she said that employment numbers at Yahoo are back to 2005 levels.Mayer has had one success: Yahoo's stock price has more than doubled since she took over.
SAP profit up nine percent, software licenses hit £870 million in Q2German software maker SAP saw strong growth in its software licenses during its second quarter, helping profit rise by 9 percent to €1.52 billion £1.25bn .Llcence revenue rose by 10 percent to €1.04 billion £870m , higher than analysts were expecting.The company added 500 new customers to its S/4 HANA cloud platform, with cloud subscription revenue growing 30 percent overall year over year to hit €720 million £602m .Total revenue jumped 5 percent to reach €5.2 billion £4.3bn .SAP CEO Bill McDermott said that his company delivered a unique trifecta of double digit growth in software, cloud and operating income.
Europe's largest software company SAP has reported gains in cloud software sales and said it is "navigating through" the uncertainty caused by the Brexit referendum in the UK.SAP said that cloud subscriptions and support revenue grew 30 percent year-over-year to €720m in its second financial quarter.New cloud bookings were up 28 percent to €255m."The rapidly expanding cloud business together with solid growth in support revenue continued to drive the share of more predictable revenue," the company said, with cloud subscriptions and support, as well as software support, accounting for 63 percent of the company's total revenue in the second quarter of 2016.Total revenue stood at €5.2bn, of which cloud and software revenue was €4.36bn, an increase of seven percent, and operating profit was up 81 percent to €1.27bn."SAP delivered a unique trifecta of double digit growth in software, cloud and operating income.
Adding back taxes, at an average 25% tax rate, yields $7.5 billion in operating income.Software names have pretty good operating margins—around 30% on average at scale—so the magic number is around $25 billion in annual revenue.For example, a company that creates a must-use application that gains a 20% share of this global user base, charging $145 per user would reach annual revenues of $25 billion.To get to $25 billion in revenue, a software company would need to reach approximately $1.5 million a year per customer, assuming 20% share of that large corporate pool.Such a company would have to offer a platform that drives significant value to be able to sell that kind of deeper value proposition.How can investors go about looking for candidates to be the next $100-billion-market-cap software giant?
The Swedish Youtube star Felix "Pewdiepie" Kjellberg made a profit of SEK 70 million in 2015, can Breakit reveal. The world's largest youtuber, the Swedish 26-year-old Felix "Pewdiepie" Kjellberg has another profitable year in the luggage. During the last year had sales of his private companies Pewdie Productions just over 75 million - with an operating income of senseless SEK 70 million. The show documents from the Companies Registration Office as Breakit have read. The figures can be compared with 2014 when Felix Kjellberg Pewdiepie drew more than 63.7 million crowns and made a profit of SEK 63 million strong. The trend, however, is not explosive, and Felix Kjellberg, with its billions of impressions on the world's largest video platform, is probably far from happy with the result.
Nintendo did in April-June of 24.5 billion yen, or about $ 232 million net loss. The company's result was worse than expected, while the Wii U consoles demand remained weak and the appreciation of the yen against the dollar cut the value of overseas sales. Nintendo's turnover more than three-quarters come from abroad. The company kept its outlook unchanged, waiting for this account for 35 billion yen of operating income. Nintendo announced just before the publication of financial results, the planned hit game add-on Pokemon Go Plus in release delayed until September, when the add-on was originally scheduled to be published this week. Pokemon Go Plus is a Bluetooth device that will help the players to detect nearby Pokémon.
Sales at O2 UK fell by 8.9 per cent to €3.46bn £2.91bn for the first half of the year, as customers opted to hang on to their old handsets rather than upgrade.Sales for the quarter fell even further by 12.3 per cent year-on-year to €1.71bn £1.4bn .However, Philip Carse, an analyst at Megabuyte, notes that, given the weak pound, the drop in revenue is closer to four per cent in real terms.Sales for the entire Telefonica group for the half-year dropped by 7.1 per cent to €25.2bn £21.2bn .Operating income fell 10 per cent over the same period to €3.1bn £2.6bn .Carse said: "Much of the revenue decline reflected the impact of lower handset sales from O2 Refresh which enables early upgrades .
Ecommerce company Amazon today disclosed that its Amazon Web Services AWS public cloud division generated $2.88 billion in revenue in the second quarter of this year.That s 58 percent more than AWS generated in the second quarter of 2015.And it s the most revenue AWS has ever captured in a quarter.In the past four quarters, AWS has registered $9.94 billion in revenue — not very far off from $10 billion.That said, revenue growth is not as high as it s been in previous quarters.AWS brought in $718 million in operating income for the second quarter — the most operating income ever for the business unit — with $2.02 billion in operating expenses, Amazon said in a statement.Alibaba, Baidu, Google, IBM, Microsoft, Oracle, and VMware are among AWS competitors in the cloud infrastructure business.Samsung recently acquired another AWS competitor, Joyent.In the second quarter, Amazon promoted Andy Jassy from AWS senior vice president to chief executive of the AWS business.Also in the quarter AWS launched a larger version of its Snowball hardware for moving data from on-premises data centers to Amazon s facilities, and AWS expanded the geographical reach of its SNS messaging service.Additionally Salesforce said it had selected AWS as its preferred cloud provider and that it would use AWS to start offering the Sales Cloud customer relationship management CRM service out of more data center facilities around the world.In the first quarter of this year, AWS fetched Amazon $2.56 billion in revenue.
Amazon reported earnings for its second fiscal quarter of 2016 today and for its AWS unit, it was once again a big quarter.AWS net sales hit $2.9 billion in the last quarter, up from $2.5 billion in net sales in the last quarter.That s up from $1.8 billion in the year-ago-quarter.It s worth noting that that s a slightly slower quarter-to-quarter growth rate than in the last quarter, though.While Q1 net sales were up 64 percent year-over-year, they were only up 58 percent from Q1 to Q2.Operating income for AWS in the Q1 quarter was $604 million and accounted for more than half of all of Amazon s operating income.
Amazon.com Inc. is showing investors it can be consistently profitable while making big investments to challenge competitors in the U.S. and expand around the globe.The Seattle-based company reported second-quarter earnings that topped analysts estimates, while spending on quicker delivery to keep ahead of Wal-Mart Stores Inc. and other brick-and-mortar retailers, expanding its entertainment offerings to challenge video-streaming rival Netflix Inc. and pouring money into India to take on e-commerce competitor Flipkart Ltd.It s a new chapter for Amazon, which has previously entered money-losing cycles with big investments in pursuit of growth.The company Thursday reported its fifth-straight profitable quarter while operating expenses rose 28 percent to $29.1 billion.They are really putting the narrative that this company can t be profitable to rest, said RJ Hottovy, an equity analyst at Morningstar Inc.Amazon Web Services, the company s fast-growing and profitable cloud-computing division, provides a lot of wiggle room in other areas of the business.The unit delivered operating income of $718 million -- 56 percent of Amazon s total -- though it accounted for only 9.5 percent of revenue.The extra cushion enables Amazon to increase spending elsewhere without losing money.The company will have opened 21 new fulfillment centers this year by the end of the third quarter.That s more than double the 10 it opened in the first nine months of 2015, Chief Financial Officer Brian Olsavsky said.Strong demand during last year s holiday season drove up costs for Amazon as its delivery operations were stretched to the max.
Gaming is the bright shining star at Sony Corp.The company reported the results of its fiscal first quarter today, and it revealed that it generated $3.2 billion in revenues from its game and network services division during the three-month period ending June 30.That is up 14.5 percent from the same period in 2015.This segment of Sony s business also brought in $427 million in operating income, which is up a massive 126.3 percent year-over-year.That makes up 78 percent of the company s $546 million in quarterly profits.Sony has the dominant console in the $99.6 billion worldwide gaming business, and the PlayStation 4 is turning into one of its most important money makers.Sony points out that the increase in its sales is primarily due to games and not new hardware sales.This significant increase was primarily due to a significant increase in PS4 software sales including sales through the PlayStation Network , partially offset by the impact of foreign exchange rates and decreases in PlayStation 3 hardware and software sales, reads Sony s fiscal report.But the increased profits was due to both better software sales and reductions in PS4 manufacturing costs.Overall, Sony s financials are down year-over-year 10.8 percent to $15.7 billion.
Amazon Web Services AWS is on a roll after closing a financial quarter in which its operating income more than doubled.Amazon as a whole posted a solid quarter, with net sales of $30.4bn, up from $23.1bn, and net income of $857m, up from $92m.Much of that was due to the success of the cloud computing business.For the Q2 2016 period ended June 30:AWS net sales of $2.88bn were a 58 per cent increase on the year ago quarter's $1.8bn.AWS operating income of $718m was up 135 per cent over $305m in Q2 2015.
Sony s smartphone division looks set to fight another day, having recorded a small profit in the company s latest earnings breakdown, following some disastrous sales results in 2015.A $4 million operating income figure is the only positive though, as it s marred by the unfortunate circumstances behind it, and by another 30 percent fall in sales over last year.How has Sony pulled back from the edge?It lists three prime reasons: Redundancies of more than 1,000 people took place in Sony Mobile last year, a dramatic change in the range of phones available, and by ignoring international markets where its phones are expensive — driven by high exchange rates — and not very popular.This downsizing throughout the division appears to have had a moderately positive outcome.This year Sony s smartphone line up consists of the Xperia Z5 and models in its new X Series range, which were first shown at Mobile World Congress in February.
Your browser does not support HTML5 videoPlayPausePlayPauseMute0%00:00 / 00:00FullscreenSmallscreen Close Embed Feed Amazon given permission to test drone delivery in the UK AmazonAmazon has reported a solid growth in its revenues and profits for the second quarter ended 30 June.It reported net sales of $30.4bn £23.06bn; €27.42bn for the period, a 31% year-on-year increase and an operating income of $1.3bn in the second quarter, which is about three times more than the $464m operating income it achieved in the same period last year.The American e-commerce giant's press release, also showed that its net income for the quarter stood at $857m, almost nine times more than the $92m it posted last year.Earnings per share were reported at $1.78, up from 19 cents reported in the same quarter last year.Amazon said that profits would decline in the third quarter of 2016