{"id":7204,"date":"2011-05-07T10:33:00","date_gmt":"2011-05-07T14:33:00","guid":{"rendered":"http:\/\/rbachnet.wwwmi3-ss40.a2hosted.com\/?p=7204"},"modified":"2022-12-30T16:07:33","modified_gmt":"2022-12-30T21:07:33","slug":"tech-world-financial-results","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/tech-world-financial-results\/","title":{"rendered":"Tech World Financial Results"},"content":{"rendered":"

F\"Money<\/a>oxconn, Microsoft and Intel just reported financial results, and things look different. Apple is more profitable than Microsoft, MSFT’s most profitable division are toys and Intel says server growth for the mobile web is driving its growth.<\/p>\n

Foxconn<\/a> financial results<\/h3>\n

\"Foxconn<\/a>the world’s manufacturer of all things tech recently posted its latest earnings report. TechEye<\/em><\/a> points out<\/a> that despite inconveniences like having to pay workers a slightly larger pittance<\/strong>\u00a0and give them better working conditions, Foxconn has announced a 53% rise in consolidated revenues<\/strong> for 2010. Terry Gou<\/a>‘s company\u2019s gross profit for the twelve months increased by 58.5% to NT$100.9 billion from NT$63.6 billion in 2009.<\/p>\n

Digitimes<\/em><\/a> says the figures are all better than market watchers’ forecasts. Market watchers originally expected rising labor and component costs would seriously impact Foxconn’s profitability in 2010, but the company’s strong revenues last year still managed to boost its overall profitability despite a drop of 1.37 percentage points in its gross margin from the 2009 level to 8.15%.<\/p>\n

Microsoft<\/h3>\n

\"Windows<\/a>Microsoft’s<\/strong><\/a> (MSFT<\/a>) profits grew 3% during its fiscal 3rd quarter ending March 31, 2011. During this period, the software giant racked up $5.23 billion in profits, while revenues reached $16.43 billion, a 13 percent climb. These profits came thanks to strong performance from some nontraditional divisions.<\/p>\n

MSFT’s Entertainment and Devices Division provided the biggest revenue gain<\/strong>. The home of Xbox and Kinect<\/a><\/strong>, Ballmer’s boys motion-sensing game controller increased sales by 60 percent to $1.94 billion.\u00a0 This is the smallest of Microsoft’s product divisions so it only generated 11.8 percent of overall sales. According<\/a> to CNET<\/em><\/a>. Kinect drove sales, selling 2.4 million units in the quarter according<\/a> to the New York Times<\/em><\/a>. CNET<\/em> reports the company sold 2.7 million Xbox 360 consoles in the quarter, a 79 percent increase from last year.<\/p>\n

Microsoft<\/a>‘s second-largest revenue generator this quarter was the Windows and Windows Live Division which had revenue of $4.45 billion. This represents a 4 percent decrease from last year’s $4.65 billion and net income fell 10 percent. According to CNET<\/em> Redmond says Windows is the fastest-selling operating system in history with 350 million licenses sold.<\/p>\n

The Server and Tools Division saw the next best performance. The home to Windows Server had sales of $4.1 billion, up 11 percent from a year ago. Profit for the unit climbed 12 percent. CNET<\/em> says business adoption of Windows Server, SQL Server and System Center lifted the division’s results.<\/p>\n

At the Business Division, home of Office, Microsoft’s revenue grew 21 percent from last year according to the NYT<\/em>. The NYT<\/em> says the company\u2019s Office software has no significant competition revenue grew to $5.25 billion. Office 2010 is the fastest-selling version of Office ever, Microsoft said, with businesses deploying the software at five times the rate of its predecessor.<\/p>\n

Microsoft’s smallest revenue generator<\/strong> the Online Services Division, home of Bing <\/strong>gained 14 percent in revenue to $648 million from $566 million.TechEye<\/a><\/em> reports<\/a> that Bing<\/a> increased its share of the search market but Microsoft spent so much on promotion the division saw operating losses of over $700 million. Ballmer’s partners are not happy with these results.\u00a0 Two years ago, Microsoft and Yahoo<\/a> inked a deal to use MSFT technologies for Yahoo\u2019s search to help both fight off rival Google. However, Yahoo\u2019s chief executive, Carol A. Bartz<\/a>, said that the partnership had not yielded the expected financial results for Yahoo and that technical glitches by Microsoft were to blame according to the NYT.<\/em><\/p>\n

Intel<\/h3>\n

\"\"<\/a>Chip giant Intel<\/a> <\/strong>(INTC<\/a>) has finally found a way into the mobile market. After years of trying to get its Atom chips into mobile devices, they are profiting from the demand for servers to feed the mobile devices<\/strong>. Intel Chief Financial Officer Stacy Smith<\/a> told<\/a> Bloomberg<\/em><\/a> that the spread of mobile devices fuels “explosive” growth for processors used in data centers. \u201cThere\u2019s a significant, maybe even an insatiable, demand driver for more and more performance and computing power that\u2019s moving into the cloud,\u201d Mr. Smith told Bloomberg. \u201cWhat gets lost is the explosive growth of all of these devices connecting to the Internet is driving a $10 billion dollar server business.\u201d Intel<\/a> recently reported that its second-quarter revenue will be $1 billion more than analysts had estimated, in part driven by the data center boom.<\/p>\n

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