financials

Samsung post Q2 2013 financial report: close to $7 billion in net profit

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Samsung have released their revenue report for the 3 month period ending on June 30th. The details show a total revenue 57.46 trillion won ($51 billion), this revenue is an increase of 9-percent when compared to last quarter which raked in a total of 52.87  trillion won ($47 billion).  Samsung also managed to increase revenue by nearly 10 trillion won ($9 billion) compared to the same quarter of last year which made a total revenue of 47.60 trillion won ($42 billion).

Nearly all divisions have seen an increase in sales with the semiconductor side of things getting a 1-percent bump and display panel getting the biggest at 15-percent. The IT and Mobile department also saw a sale increase of 9-percent. Comparing Samsung’s lasted results to all previous quarters and years, there has been a steady increase in sales with more revenue and profit rolling in, although Samsung have stated the IT and Mobile division may slow its pace and perhaps fail to climb next quarter, but none the less, Samsung had a great quarter and should do well for the years end. Check out the press release and source link (PDF) below for more info.

Samsung Electronics Announces Earnings for Q2 in 2013
SEOUL–(Korea Newswire) July 26, 2013 — Samsung Electronics Co., Ltd. today announced revenues of 57.46 trillion won on a consolidated basis for the second quarter ended June 30, 2013, a 9-percent increase from the previous quarter. Consolidated operating profit for the quarter reached 9.53 trillion won, representing a 9-percent increase on quarter, while consolidated net profit for the same quarter was 7.77 trillion won.

In its earnings guidance disclosed on July 5, Samsung estimated second quarter consolidated revenues would reach approximately 57 trillion won with consolidated operating profit of approximately 9.5 trillion won.

In contrast to the first half of last year, revenue was up 19 percent and operating profit increased 51 percent in the first half of 2013 as profitability in the components business improved. The profit ratio reached 16.6 percent in the first six months of the year compared with 13.1 percent recorded in the same period last year. Samsung expects to see solid growth and the components business’ contribution to profits will gradually increase.

Highlighting the quarterly performance, growth remained steady in high-end smartphone and premium television businesses. Most noticeably, a growth spurt in shipments for OLED panels for smartphones and high consumer demand for air conditioners spurred growth.

Led by the much-awaited launch of GALAXY S4, smartphone shipments and revenue increased from the March quarter. The strong growth streak for the smartphone market is expected to continue in the third quarter albeit at a slower pace.

The components business improved both in terms of revenue and operating profits from a quarter earlier due to a higher demand for mobile device-related parts. However, overall sales of logic chips declined due to lower mobile application processor shipments.

Escalated investments in R&D and in distribution channels, as well as expenses on new product launches have dampened wider gains for IT & Mobile Communications (IM) Division, which encompasses the Mobile Communications, Networks, and Digital Imaging businesses.

“Entering into a typically strong season for the IT industry, we expect earnings to continue to increase. However, we cannot overlook delayed economic recovery in Europe and risks from increased competition for smartphone and other set products,” said Robert Yi, Senior Vice President and Head of Investor Relations.

Mr. Yi added, “We expect to improve profit yields in the second half due to high-margin, differentiated components products, as well as gains stemming from increased smartphone and TV shipments.”

The Display Panel segment’s operating profit jumped 46 percent on quarter to 1.12 trillion won thanks to strong demand for high value-added panels for IT and TV panels sized 60-inch and over. A mid- to low-end TV lineup targeting emerging markets and a range of premium TV offerings were credited for the Visual Display business’ earnings. As for the next quarter, uncertainties over Europe’s economy and Chinese subsidies for electronics goods could possibly hinder growth.

As for this year’s capital expenditure, Samsung Electronics plans to spend a record total of 24 trillion won, an increase of over 1 trillion won from the previous year. This amount may increase depending on market conditions in the second half and the outlook for next year.

The Semiconductor business will invest 13 trillion won, while the Display Panel segment will inject 6.5 trillion in capex. The increase in spending is aimed at enhancing Samsung’s competitive edge in growth-generating, high value-added DRAM, NAND and System LSI products.

In the second quarter, capex amounted to 5.2 trillion won, in which the Semiconductor business was responsible for 2.2 trillion and 1.3 trillion won in spending was accredited to the Display Panel segment. All told, a total of 9 trillion won or 38 percent of the planned capex investment was made in the first half of the year.

Memory Over Logic

Samsung’s Semiconductor businesses – including Memory and System LSI – posted 8.68 trillion won in consolidated revenue. The Memory chip business reached earnings of 5.70 trillion won or an 11-percent spike in revenue quarter-on-quarter.

Global demand for PC DRAM remained weak while orders for high value-added server and mobile DRAMs stayed strong. The NAND flash memory segment remained competitive due to wider adoption of Solid State Drives for enterprise and personal PCs. Steady demand for affordable smartphones and tablets also shored up NAND sales.

With a differentiated product mix including server and mobile DRAMs, Samsung was able to improve sales with high-performance, high-density chips. The NAND flash memory segment remained competitive through process migration to 10-nanometer class process technology.

In the July-September quarter, demand for DRAM used in data centers is expected to remain high. Orders from the electronic gaming industry will add to profit margins as video gamers seek more powerful graphics DRAMs. Peak seasonality will help PC sales by a slight margin.

Samsung will try to ramp up sales of application processors (AP) with 28-nanometer process technology and high-resolution image sensors. Demand for the components is expected to grow as mobile devices needing more processing power roll out into market in the remaining quarters.

By diversifying its product portfolio and consumer base, and by gearing up development of 20 nm-class and 14 nm-class process technology, Samsung aims to achieve a stable level of growth.

Premium Displays Boost Panel Profitability

The Display Panel business recorded revenue of 8.18 trillion won in the second quarter while posting an operating profit of 1.12 trillion won. This represented a 46-percent increase in profit compared with the previous quarter on the back of improved sales in high value-added panels.

In the second quarter, the overall panel market saw on-quarter growth as demand for TV panels was bolstered by sales promotions such as Labor Day in China. Demand for tablet displays continued to demonstrate growth despite the continued slump in IT panel products. With an improved market environment, Samsung was able to deliver solid results and improve profitability in the quarter by expanding sales in high value-added products, such as high-resolution displays for tablets, large-size premium TV panels, and OLED displays for smartphones.

Looking ahead to the third quarter, Samsung anticipates market growth as higher seasonal demand for panels takes effect. For TV panels, demand is expected to be dampened by economic uncertainties although the large-size premium panel market is expected to sustain growth. Samsung aims to strengthen its leadership in the high-end TV panel segment with expanded sales in UHD panels and in the 40- to 50-inch class.

Concerning the market outlook for IT panels, although uncertainty remains in the PC and monitor sector, robust demand for tablet displays is expected to continue as new products are launched by manufacturers in the latter half of 2013. Samsung plans to reinforce its market leadership in tablet panels by expanding its lineup of high-resolution and mass market displays.

For OLED panels, positive growth for high-end smartphone displays is expected to be maintained in the second half. To ensure continued momentum, Samsung will concentrate on offering differentiated smartphone displays through technological competitiveness, including flexible display technology, and focus on enhancing cost competitiveness.

Full Lineup and Strong Technology-edge: A Formula for Growth

The IT & Mobile Communications division – consisting of Mobile Communications, Networks and Digital Imaging businesses – posted operating profits of 6.28 trillion won on 35.54 trillion won in revenue for the June quarter. Out of the total IM earnings, the mobile business was responsible for 34.58 trillion won.

Driven by Samsung’s flagship GALAXY S4 and the GALAXY Note 8.0, which have been well received by the market, quarterly revenue for the mobile sector climbed 9 percent compared with the prior quarter.

An upswing in R&D investment and expansion of distribution channels, along with new product launches have weighed on IM’s performance. Slow sales in PC and Networks businesses also brought down profitability.

Looking ahead, Samsung smartphone sales are expected to pick up in the third quarter and outperform global market forecasts. Smartphones will grow to account for over 70 percent of the company’s mobile phone shipments in the third quarter due to the strengthening mid- to low-end mobile market. Growth momentum in the July-September quarter will remain on course, although at a slightly reduced pace.

In the case of tablet PCs, Samsung will post growth in the mid-10 percent range with the introduction of new tablets. Shipments of tablets will jump to a little over 30 percent on-quarter, outpacing the market.

Average Selling Price (ASP) of smartphones will likely be impacted due to a wider range of low- to mid-priced smartphones hitting the market. Sales of tablet PCs are expected to remain solid and Samsung is looking to expand global sales with a broad portfolio of models including GALAXY Tab 3.

Samsung is also looking to improve profitability in IM through its lineup of mid- to high-end hybrid tablet-laptop devices such as ATIV Q and wider adoption of LTE mobile telecommunication technology.

TV Sales See Growth in Key Markets

The Consumer Electronics Division – including the Visual Display and Digital Appliances businesses – posted an operating profit of 430 billion won for the quarter on revenues of 12.78 trillion won. The Visual Display business accounted for 7.94 trillion won of earnings. Sales of premium TV models and strong seasonality for air conditioners helped improve the division’s sales performance by 14 percent on-quarter.

In the TV market, despite sluggish demand in Europe and the effect of weak seasonality, year-on-year and quarter-on-quarter growth in the low single digit range was experienced. In the second quarter, Samsung strengthened its product lineup in North America and China to expand sales. The company continued to expand sales of its premium TV lineup, recording positive on-quarter sales growth of the F7000/8000 series and of large-sized TVs of over 60 inches. In emerging markets, Samsung increased sales through its lineup of mass market products.

Moving into the second half of the year, growth will pick up under stronger seasonal demand although competition may intensify with launches of premium TV products. Uncertainties over the discontinuation of the China energy subsidy and economic recovery in Europe may also weigh on demand.

Although competition will intensify, Samsung aims to strengthen its market leadership in the third quarter by offering premium TV products with differentiated design and technology, including UHD TV, Curved OLED TV and large-sized TVs of over 60 inches and Smart TVs. In emerging economies, the company will focus on promoting region-specific TV models and mass market LED TV models in response to an expected rise in demand.

For the Digital Appliances Business, despite challenging economic conditions driving down global demand during the second quarter, Samsung achieved growth by strengthening its mass market product lineup and responding positively to strong seasonality for air conditioners. Looking ahead, low growth in developed economies is expected, while overall growth in emerging markets such as Asia is forecast. Samsung will seek to enhance competitiveness by expanding its product portfolios in both the mass market and premium segments, and improve profitability and operational efficiency.

About Samsung Electronics Co., Ltd.

Samsung Electronics Co., Ltd. is a global leader in technology, opening new possibilities for people everywhere. Through relentless innovation and discovery, we are transforming the worlds of televisions, smartphones, personal computers, printers, cameras, home appliances, LTE systems, medical devices, semiconductors and LED solutions. We employ 236,000 people across 79 countries with annual sales of US$187.8 billion. To discover more, please visit www.samsung.com.
News Source: Samsung Electronics

Source: Samsung results PDF

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ARM post financial results for Q2 2013: £171.2 million in revenue with £86.6 million in profit before tax

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ARM have posted their financial results for Q2 2013, reaching a total revenue of £171.2 million and a net profit of £86.6 million before taxes. Their revenue sees an increase of 26-percent year of year with profit being an even 30-percent increase. Obviously with the future of smartphones and tablets getting bigger and bigger, ARM have nothing but increased profits in the future amusing they aren’t hit with another lawsuit that set them back £41.8 million, which brings their IFRS profit to just £15 million. Check out the snippet of the press release below or the source link for the full PDF.

A presentation of the results will be webcast today at 09:30 BST at ARM HOLDINGS PLC REPORTS RESULTS FOR THE SECOND QUARTER AND HALF YEAR ENDED 30 JUNE 2013 www.arm.com/ir
CAMBRIDGE, UK, 24 July 2013 —ARM Holdings plc announces its unaudited financial results for the second quarter and half year ended 30 June 2013.
Q2 2013 – Financial Summary
Normalised* IFRS Q2 2013 Q2 2012 % Change Q2 2013 Q2 2012 Revenue ($m) 264.3 213.0 24% 264.3 213.0 Revenue (£m) 171.2 135.5 26% 171.2 135.5 Operating margin 48.6% 46.4% 7.4% 37.8% Profit before tax (£m) 86.6 66.5 30% 15.0 54.8 Earnings per share (pence) 4.89 3.58 37% 0.75 2.83 Net cash generation** 96.3 46.9 Effective revenue fx rate ($/£) 1.54 1.57
H1 2013 – Financial Summary Normalised* IFRS H1 2013 H1 2012 % Change H1 2013 H1 2012 Revenue ($m) 528.2 422.4 25% 528.2 422.4 Revenue (£m) 341.5 268.0 27% 341.5 268.0 Operating margin 49.5% 45.5% 22.7% 37.2% Profit before tax (£m) 176.0 128.5 37% 82.1 106.2 Earnings per share (pence) 10.19 6.93 47% 4.44 5.53 Net cash generation** 155.1 105.2 Effective revenue fx rate ($/£) 1.55 1.58
Q2 Financial Highlights • Group revenues in US$ up 24% year-on-year (£ revenues up 26% year-on-year) • Order backlog up more than 10% sequentially • Normalised profit before tax and earnings per share up 30% and 37% year-on-year respectively (IFRS PBT and EPS down 73% and 73% year-on-year respectively) • £41.8m costs incurred in Q2, being ARM’s contribution to a full and final settlement of certain patent related litigation, charged in the IFRS reported results • Record net cash generation of £96m • Interim dividend increased by 26%
Progress on key growth drivers in Q2 • Growth in adoption of ARM® o 25 processor licenses signed for a wide range of applications from smartphones and mobile computers, to storage and embedded microcontrollers technology o Advanced technology enables a higher royalty percentage per chip o 5 Cortex™-A processor licenses signed, including another Partner licensing v8 processors that support ARM’s big.LITTLE technology o 7 Mali graphics processor licenses signed o POP™ IP helps optimise ARM processor implementations. ARM signed 5 further POP IP licenses in Q2 • Growth in shipments of chips based on ARM processor technology o 2.4 billion ARM-based chips shipped, up 20% year-on-year o Continued penetration of processors containing both Cortex-A and Mali graphics processors Outlook ARM enters the second half of 2013 with a record order backlog and a robust opportunity pipeline. Relevant data for the second quarter, being the shipment period for ARM’s Q3 royalties, points to a small sequential increase in industry revenues. Building on our strong performance in the first half, we expect overall Group dollar revenues for full year 2013 to be at least in line with market expectations.
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Simon Segars, Chief Executive Officer, said: “ARM has delivered another quarter of strong revenue and normalised earnings growth. We continue to see demand for ARM’s next generation technology, and in Q2 we signed five licenses for Cortex-A series processors, and seven licenses for ARM’s Mali graphics processor, demonstrating our leadership in both low-power processor and 3D graphics technology. During the quarter, our Partners announced exciting new design wins as ARM-based chips were selected for high-volume OEM products. These included many new smartphones and tablets, ARM-based 64-bit servers and mobile base stations.
In Q2, ARM’s processor royalty revenue again outperformed the semiconductor industry, growing at 24% year-on-year. In part this outperformance was driven by the growth in smartphones and mobile computing. These smart devices increasingly contain both ARM’s higher-royalty yielding Cortex-A processor technology and also ARM’s Mali graphics.”
Q2 2013 – Revenue Analysis Revenue ($m)*** Revenue (£m) Q2 2013 Q2 2012 % Change Q2 2013 Q2 2012 % Change PD Licensing 88.3 67.0 32% 56.9 42.6 34% Royalties 119.3 96.3 24% 77.7 61.5 26% Total PD 207.6 163.3 27% 134.6 104.1 29% PIPD Licensing 14.3 11.6 23% 9.2 7.3 25% Royalties 16.0 1 13.7 16% 10.4 8.6 21% Total PIPD 30.3 25.3 19% 19.6 15.9 23% Development Systems 13.4 13.3 1% 8.7 8.5 3% Services 13.0 11.1 17% 8.3 7.0 19% Total Revenue 264.3 213.0 24% 171.2 135.5 26%
1 Includes catch-up PIPD royalties of $1.4m (£0.9m) in Q2 2013 and $1.5m (£1.0m) in Q2 2012.
H1 2013 – Revenue Analysis Revenue ($m)*** Revenue (£m) H1 2013 H1 2012 % Change H1 2013 H1 2012 % Change PD Licensing 169.1 132.2 28% 108.6 83.7 30% Royalties 242.7 189.2 28% 158.1 120.4 31% Total PD 411.8 321.4 28% 266.7 204.1 31% PIPD Licensing 28.4 23.2 22% 18.1 14.7 23% Royalties 32.6 1 26.8 21% 21.2 16.9 25% Total PIPD 61.0 50.0 22% 39.3 31.6 24% Development Systems 30.0 28.8 4% 19.3 18.3 6% Services 25.4 22.2 14% 16.2 14.0 15% Total Revenue 528.2 422.4 25% 341.5 268.0 27%
1 Includes catch-up PIPD royalties of $1.4m (£0.9m) in H1 2013 and $3.6m (£2.3m) in H1 2012.
* Normalised figures are based on IFRS, adjusted for share-based payment costs, amortisation of intangibles, acquisition-related charges, impairments of investments, IP indemnity and similar charges, Linaro-related charges and share of results of joint venture, and profit or loss on disposal of available-for-sale financial assets. For reconciliation of IFRS measures to normalised non-IFRS measures detailed in this document, see notes 12.13 to 12.16. ** Net cash generation is defined as movement on cash, cash equivalents, short-term and long-term deposits, adding back dividend payments, investment and acquisition consideration, other acquisition-related payments, share-based payroll taxes, payments related to joint ventures and Linaro, and deducting inflows from share option exercises and investment disposal proceeds – see notes 12.8 to 12.12 *** US Dollar revenues are based on the group’s actual dollar invoicing, where applicable, and using the r

Source: ARM

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Apple’s Q3 2013 revenue report released: $35.3 billion in revenue with $6.9 billion in net income

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Apple have release their revenue results for Q3 2013. The results show a drop in overall revenue across most of the board except when comparing it to the same quarter of last year with a minor jump from $35 billion, however compared to Q2 of this year which reached $43.6 billion, there is a significant drop shown. Although revenue for last years quarter was lower, it’s net income was higher coming in at $8.8 billion.

Apple also released their sale figures for devices sold in the 3 months ending on June 30th with the iPhone increasing its shipping count from 26 million devices year over year to 31.2 million. Their iPad side of things saw a decline in sales year over year from 17 million units to 14.6 million. Sadly the same can be said to their Macs as well with a minor drop from 4 million to 3.8 million year of year. Nevertheless Apple still had a solid quarter with a massive profit and can’t be blamed for not outshining themselves. Check out more info in the press release below.

Apple Reports Third Quarter Results
Sales of 31 Million iPhones Set New June Quarter Record

CUPERTINO, Calif., Jul 23, 2013 (BUSINESS WIRE) — Apple(R) today announced financial results for its fiscal 2013 third quarter ended June 29, 2013. The Company posted quarterly revenue of $35.3 billion and quarterly net profit of $6.9 billion, or $7.47 per diluted share. These results compare to revenue of $35 billion and net profit of $8.8 billion, or $9.32 per diluted share, in the year-ago quarter. Gross margin was 36.9 percent compared to 42.8 percent in the year-ago quarter. International sales accounted for 57 percent of the quarter’s revenue.

The Company sold 31.2 million iPhones, a record for the June quarter, compared to 26 million in the year-ago quarter. Apple also sold 14.6 million iPads during the quarter, compared to 17 million in the year-ago quarter. The Company sold 3.8 million Macs, compared to 4 million in the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $3.05 per share of the Company’s common stock. The dividend is payable on August 15, 2013, to shareholders of record as of the close of business on August 12, 2013.

“We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.”

“We generated $7.8 billion in cash flow from operations during the quarter and are pleased to have returned $18.8 billion in cash to shareholders through dividends and share repurchases,” said Peter Oppenheimer, Apple’s CFO.

Apple is providing the following guidance for its fiscal 2013 fourth quarter:

* revenue between $34 billion and $37 billion

* gross margin between 36 percent and 37 percent

* operating expenses between $3.9 billion and $3.95 billion

* other income/(expense) of $200 million

* tax rate of 26.5%

Apple will provide live streaming of its Q3 2013 financial results conference call beginning at 2:00 p.m. PDT on July 23, 2013 at www.apple.com/quicktime/qtv/earningsq313. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 29, 2012, its Form 10-Q for the quarter ended December 29, 2012, its Form 10-Q for the quarter ended March 30, 2013, and its Form 10-Q for the quarter ended June 29, 2013 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.

(C) 2013 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in
thousands and per share amounts)

Three Months Ended Nine Months Ended
————————————————————————– —————————————————————————————
June 29, June 30, June 29, June 30,
2013 2012 2013 2012
————————— ————————— ————————— —————————————-

Net sales $ 35,323 $ 35,023 $ 133,438 $ 120,542
Cost of sales (1) 22,299 20,029 83,005 66,281
——————– ——- ——————– ——- ——————– ——- ——————– ——————–

Gross margin 13,024 14,994 50,433 54,261
——————– ——- ——————– ——- ——————– ——- ——————– ——————–

Operating expenses:
Research and development (1) 1,178 876 3,307 2,475
Selling, general and administrative (1) 2,645 2,545 8,157 7,489
——————– ——- ——————– ——- ——————– ——- ——————– ——————–

Total operating expenses 3,823 3,421 11,464 9,964
——————– ——- ——————– ——- ——————– ——- ——————– ——————–

Operating income 9,201 11,573 38,969 44,297

Other income/(expense), net 234 288 1,043 573
——————– ——- ——————– ——- ——————– ——- ——————– ——————–

Income before provision for income taxes 9,435 11,861 40,012 44,870

Provision for income taxes 2,535 3,037 10,487 11,360
——————– ——- ——————– ——- ——————– ——- ——————– ——————–

Net income $ 6,900 $ 8,824 $ 29,525 $ 33,510
==================== ======= ==================== ======= ==================== ======= ==================== ====================

Earnings per share:
Basic $ 7.51 $ 9.42 $ 31.67 $ 35.89
Diluted $ 7.47 $ 9.32 $ 31.44 $ 35.48

Shares used in computing earnings per share:
Basic 918,618 936,596 932,388 933,672
Diluted 924,265 947,059 939,172 944,440

Cash dividends declared per common share $ 3.05 $ 0 $ 8.35 $ 0

(1) Includes share-based compensation expense as follows:
Cost of sales $ 90 $ 70 $ 262 $ 196
Research and development $ 245 $ 172 $ 708 $ 500
Selling, general and administrative $ 243 $ 206 $ 728 $ 596

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in
thousands)

June 29, September 29,
2013 2012
—————————– —————————————-

ASSETS:

Current assets:
Cash and cash equivalents $ 11,248 $ 10,746
Short-term marketable securities 31,358 18,383
Accounts receivable, less allowances of $104 and $98, respectively 8,839 10,930
Inventories 1,697 791
Deferred tax assets 3,193 2,583
Vendor non-trade receivables 4,614 7,762
Other current assets 7,270 6,458
——————– ——— ——————– ——————–
Total current assets 68,219 57,653

Long-term marketable securities 104,014 92,122
Property, plant and equipment, net 16,327 15,452
Goodwill 1,522 1,135
Acquired intangible assets, net 4,353 4,224
Other assets 5,421 5,478
——————– ——— ——————– ——————–
Total assets $ 199,856 $ 176,064
==================== ========= ==================== ====================

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:
Accounts payable $ 15,516 $ 21,175
Accrued expenses 13,470 11,414
Deferred revenue 7,333 5,953
——————– ——— ——————– ——————–
Total current liabilities 36,319 38,542

Deferred revenue – non-current 2,672 2,648
Long-term debt 16,958 0
Other non-current liabilities 20,553 16,664
——————– ——— ——————– ——————–
Total liabilities 76,502 57,854
——————– ——— ——————– ——————–

Commitments and contingencies

Shareholders’ equity:
Common stock, no par value; 1,800,000 shares authorized; 908,442 and 19,024 16,422
939,208 shares issued and outstanding, respectively
Retained earnings 104,564 101,289
Accumulated other comprehensive (loss)/income (234) 499
——————– ——— ——————– ——————–
Total shareholders’ equity 123,354 118,210
——————– ——— ——————– ——————–
Total liabilities and shareholders’ equity $ 199,856 $ 176,064
==================== ========= ==================== ====================

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)

Nine Months Ended
———————————————————————————
June 29, 2013 June 30, 2012
—————— ——————————————

Cash and cash equivalents, beginning of the period $ 10,746 $ 9,815
——– ——– ——————– ——————–

Operating activities:
Net income 29,525 33,510
Adjustments to reconcile net income to cash generated by operating
activities:
Depreciation and amortization 4,974 2,296
Share-based compensation expense 1,698 1,292
Deferred income tax expense 2,524 4,066
Changes in operating assets and liabilities:
Accounts receivable, net 2,091 (2,278)
Inventories (906) (346)
Vendor non-trade receivables 3,148 (293)
Other current and non-current assets 484 (3,238)
Accounts payable (4,740) 2,450
Deferred revenue 1,404 2,575
Other current and non-current liabilities 3,556 1,686
—————— ——————– ——————–

Cash generated by operating activities 43,758 41,720
—————— ——————– ——————–

Investing activities:
Purchases of marketable securities (122,681) (121,091)
Proceeds from maturities of marketable securities 13,963 10,344
Proceeds from sales of marketable securities 81,734 73,140
Payments made in connection with business acquisitions, net (443) (350)
Payments for acquisition of property, plant and equipment (6,210) (4,834)
Payments for acquisition of intangible assets (560) (1,067)
Other (188) (56)
—————— ——————– ——————–

Cash used in investing activities (34,385) (43,914)
—————— ——————– ——————–

Financing activities:
Proceeds from issuance of common stock 335 433
Excess tax benefits from equity awards 644 1,036
Taxes paid related to net share settlement of equity awards (1,001) (1,145)
Dividends and dividend equivalent rights paid (7,795) 0
Repurchase of common stock (17,950) 0
Proceeds from issuance of long-term debt, net 16,896 0
—————— ——————– ——————–

Cash (used in)/generated by financing activities (8,871) 324
—————— ——————– ——————–
Increase/(decrease) in cash and cash equivalents 502 (1,870)
—————— ——————– ——————–

Cash and cash equivalents, end of the period $ 11,248 $ 7,945
======== ======== ==================== ====================
Supplemental cash flow disclosure:
Cash paid for income taxes, net $ 7,188 $ 5,901

Apple Inc.
Q3 2013 Unaudited Summary Data
(Units in thousands, Revenue in millions)

——————– ——————– ——————————–
Q3’13 Q2’13 Q3’12 Sequential Change Year/Year Change
————————————————————————– ——————————————————– ——————————————————– ———————————– ————————————————

Operating Segments Revenue Revenue Revenue Revenue Revenue
——————————– —————————- —————————- ——- ——————–
Americas $ 14,405 $ 14,052 $ 12,806 3% 12%
Europe 7,614 9,800 8,237 – 22% – 8%
Greater China (a) 4,641 8,213 5,389 – 43% – 14%
Japan 2,543 3,135 2,009 – 19% 27%
Rest of Asia Pacific 2,046 3,162 2,498 – 35% – 18%
Retail 4,074 5,241 4,084 – 22% 0%
——————– ———- ——————– —— ——————– —— ——- ——————–
Total Apple $ 35,323 $ 43,603 $ 35,023 – 19% 1%
——————– ——————– ——————– ———-

——————– ——————– ——————————–
Q3’13 Q2’13 Q3’12 Sequential Change Year/Year Change
————————————————————————– ——————————————————– ——————————————————– ———————————– ————————————————

Product Summary Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue
——————– ——————————– —— —————————- —— —————————- —– ——- —– ——————–
iPhone (b) 31,241 $ 18,154 37,430 $ 22,955 26,028 $ 15,821 – 17% – 21% 20% 15%
iPad (b) 14,617 6,374 19,477 8,746 17,042 8,779 – 25% – 27% – 14% – 27%
Mac (b) 3,754 4,893 3,952 5,447 4,020 4,933 – 5% – 10% – 7% – 1%
iPod (b) 4,569 733 5,633 962 6,751 1,060 – 19% – 24% – 32% – 31%
iTunes/Software/Services (c) 3,990 4,114 3,203 – 3% 25%
Accessories (d) 1,179 1,379 1,227 – 15% – 4%
——————– ———- ——————– —— ——————– —— ——- ——————–
Total Apple $ 35,323 $ 43,603 $ 35,023 – 19% 1%
——————– ——————– ——————– ———-

(a) Greater China includes China, Hong Kong and Taiwan.
(b) Includes deferrals and amortization of related non-software
services and software upgrade rights.
(c) Includes revenue from sales on the iTunes Store, the App Store,
the Mac App Store, and the iBookstore, and revenue from sales of
AppleCare, licensing and other services.
(d) Includes sales of hardware peripherals and Apple-branded and
third-party accessories for iPhone, iPad, Mac and iPod.

0

Nvidia Q1 earning are in: $954 million in revenue with $77.9 million profit

nvidia-2
Nvidia have posted their financial results for their Q1 quarter of 2014. Bringing in a total of $954 million with profit of $77.9 million. The results show an increase of 29 percent year over year, but a substantial decrease of 55 percent compared to last quarter. Nvidia are expecting the revenue in Q2 to be just higher than Q1 with $975 million give or take a percent or two.

NVIDIA Reports Financial Results For First Quarter Fiscal 2014

Thursday, May 9, 2013

NVIDIA (NASDAQ: NVDA)

  • Revenue of $954.7 million
  • GAAP net income of $77.9 million, or $0.13 per diluted share. Non-GAAP net income of $113.8 million, or $0.18 per diluted share
  • Record GAAP and non-GAAP gross margins of 54.3 percent and 54.6 percent respectively

NVIDIA (NASDAQ: NVDA) today reported revenue for the first quarter of fiscal 2014, ended April 28, 2013, of $954.7 million, down 13.7 percent from $1.11 billion in the fourth quarter of fiscal 2013.

GAAP earnings per diluted share were $0.13, down 53.6 percent from $0.28 in the prior quarter. Non-GAAP earnings per diluted share were $0.18, down 48.6 percent from $0.35 in the prior quarter.

As previously announced, NVIDIA plans to return in excess of $1 billion this fiscal year to shareholders in the form of share repurchases and quarterly dividend payments. During the first quarter, NVIDIA returned $146.3 million to shareholders by repurchasing $100 million of shares, and paying $46.3 million of dividends, or $0.075 per share. As part of NVIDIA’s capital return program, the company plans to continue its quarterly dividend program at $0.075 per share and to return additional cash of at least $750 million during fiscal 2014, largely through a structured share repurchase program.

“The success of Kepler-based GPUs within and beyond the PC helped drive another quarter of record margins,” said Jen-Hsun Huang, president and chief executive officer of NVIDIA. “Kepler is capturing share among gamers, strengthening our workstation and supercomputing segments, and will fuel new growth opportunities for our GRID server graphics solutions. With Tegra 4 devices and Tegra 4i certification on the way, we’re gearing up to return to growth in the second half.”

GAAP Quarterly Financial Comparison
(in millions except per share data) Q1 FY14 Q4 FY13 Q1 FY13 Q/Q Y/Y
Revenue $954.7 $1,106.9 $924.9 down 13.7% up 3.2%
Gross margin 54.3% 52.9% 50.1% up 1.4 p.p. up 4.2 p.p.
Operating expenses $435.8 $402.0 $390.5 up 8.4% up 11.6%
Net income $77.9 $174.0 $60.4 down 55.2% up 29.0%
Earnings per share $0.13 $0.28 $0.10 down 53.6% up 30.0%
Non-GAAP* Quarterly Financial Comparison
(in millions except per share data) Q1 FY14 Q4 FY13 Q1 FY13 Q/Q Y/Y
Revenue $954.7 $1,106.9 $924.9 down 13.7% up 3.2%
Gross margin 54.6% 53.2% 50.4% up 1.4 p.p. up 4.2 p.p.
Operating expenses $396.2 $360.4 $348.0 up 9.9% up 13.9%
Net income $113.8 $214.9 $97.5 down 47.1% up 16.7%
Earnings per share $0.18 $0.35 $0.16 down 48.6% up 12.5%

*Non-GAAP earnings excluded stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, and the tax impact associated with such items.

NVIDIA’s outlook for the second quarter of fiscal 2014 is as follows:

 

  • Revenue is expected to be $975 million, plus or minus two percent.
  • GAAP and non-GAAP gross margins are expected to be approximately flat relative to the prior quarter, at 54.3 percent and 54.6 percent, respectively.
  • GAAP operating expenses are expected to be approximately $448 million; non-GAAP operating expenses are expected to be approximately $408 million.
  • GAAP and non-GAAP tax rates for the second quarter and annual fiscal 2014 are both expected to be 16 percent, plus or minus one percent. This estimate excludes any discrete tax events that may occur during a quarter, which, if realized, may increase or decrease our actual effective tax rates in such quarter.

 

We estimate depreciation and amortization for the second quarter to be approximately $61 million to $63 million. Capital expenditures are expected to be in the range of $65 million to $75 million.

Diluted shares for the second quarter are expected to be approximately 590 million.

Among highlights of the first quarter of fiscal 2014, NVIDIA:

 

  • Announced its intention to return in excess of $1 billion to shareholders during fiscal 2014.
  • Introduced NVIDIA® GRID™ VCA™, the industry’s first visual computing appliance — enabling businesses to deliver ultra-fast GPU performance to any Windows, Linux or Mac client on their network.
  • Announced that NVIDIA GRID-based servers are now available from Dell, HP and IBM, and that NVIDIA GRID-enabled software is available from Citrix, Microsoft and VMware.
  • Introduced its first fully integrated 4G LTE mobile processor, NVIDIA® Tegra® 4i, which is three times faster yet half the size of its nearest competitor.
  • Introduced GeForce® GTX™ TITAN for gamers, with the DNA of the world’s fastest supercomputer and powered by world’s fastest GPU.

Dividend

NVIDIA will pay its next quarterly cash dividend of $0.075 cents per share on June 14, 2013, to all stockholders of record on May 23, 2013.

CFO Commentary and Earnings Presentation
Commentary on the quarter by Karen Burns, NVIDIA interim chief financial officer, and a presentation, are available at www.nvidia.com/ir.

Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2014 financial results and current financial prospects today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). To listen to the call, please dial (706) 679 2572. A live webcast (listen-only mode) of the conference call will be accessible at the NVIDIA investor relations web site www.nvidia.com/ir and at www.streetevents.com. The webcast will be recorded and available for replay until the company’s conference call to discuss its financial results for its second quarter fiscal 2014.

Non-GAAP Measures
To supplement NVIDIA’s Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income tax expense, non-GAAP net income, non-GAAP net income, or earnings, per share, and free cash flow. In order for NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, and the associated tax impact of these items, where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less purchases of property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

About NVIDIA
Since 1993, NVIDIA (NASDAQ: NVDA) has pioneered the art and science of visual computing. The company’s technologies are transforming a world of displays into a world of interactive discovery — for everyone from gamers to scientists, and consumers to enterprise customers. More information at http://nvidianews.nvidia.com and http://blogs.nvidia.com.

Certain statements in this press release including, but not limited to statements as to: the company’s dividend program and share repurchases; Kepler capturing share among gamers, strengthening the company’s workstation and supercomputing segments, and fueling new growth opportunities for the company’s GRID server graphics solutions; Tegra 4 devices and Tegra 4i certification on the way; the company’s return to growth in the second half; the benefits of NVIDIA GRID VCA and NVIDIA Tegra 4i; the company’s financial outlook for the second quarter of fiscal 2014; and the company’s tax rate for the second quarter and fiscal year 2014 are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission, or SEC, including its Form 10-K for the fiscal period ended January 27, 2013. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

(C) 2013 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GRID and Tegra are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability, and specifications are subject to change without notice.

 

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
April 28, April 29,
2013 2012
Revenue $ 954,739 $ 924,877
Cost of revenue 436,171 461,513
Gross profit 518,568 463,364
Operating expenses
Research and development 327,161 283,902
Sales, general and administrative 108,626 106,636
Total operating expenses 435,787 390,538
Operating income 82,781 72,826
Interest and other income, net 5,281 4,269
Income before income tax expense 88,062 77,095
Income tax expense 10,171 16,658
Net income $ 77,891 $ 60,437
Basic net income per share $ 0.13 $ 0.10
Diluted net income per share $ 0.13 $ 0.10
Shares used in basic per share computation 616,872 615,780
Shares used in diluted per share computation 619,302 623,786

 

NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
April 28, January 27,
2013 2013
ASSETS
Current assets:
Cash, cash equivalents and marketable securities $ 3,713,351 $ 3,727,883
Accounts receivable, net 346,998 454,252
Inventories 377,597 419,686
Prepaid expenses and other current assets 168,670 173,437
Total current assets 4,606,616 4,775,258
Property and equipment, net 588,023 576,144
Goodwill 641,030 641,030
Intangible assets, net 336,733 312,332
Other assets 107,125 107,481
Total assets $ 6,279,527 $ 6,412,245
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 328,259 $ 356,428
Accrued liabilities and other current liabilities 597,318 619,795
Total current liabilities 925,577 976,223
Other long-term liabilities 511,433 589,321
Capital lease obligations, long term 18,333 18,998
Stockholders’ equity 4,824,184 4,827,703
Total liabilities and stockholders’ equity $ 6,279,527 $ 6,412,245

 

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended
April 28, January 27, April 29,
2013 2013 2012
GAAP gross profit $ 518,568 $ 585,602 $ 463,364
GAAP gross margin 54.3 % 52.9 % 50.1 %
Stock-based compensation expense included in cost of revenue (A) 2,653 2,826 2,526
Non-GAAP gross profit $ 521,221 $ 588,428 $ 465,890
Non-GAAP gross margin 54.6 % 53.2 % 50.4 %
GAAP operating expenses $ 435,787 $ 402,029 $ 390,538
Stock-based compensation expense included in operating expense (A) (30,744 ) (32,943 ) (33,043 )
Amortization of acquisition-related intangible assets (3,915 ) (4,325 ) (4,342 )
Other acquisition-related costs (B) (4,946 ) (4,373 ) (5,171 )
Non-GAAP operating expenses $ 396,182 $ 360,388 $ 347,982
GAAP net income $ 77,891 $ 173,973 $ 60,437
Total pre-tax impact of non-GAAP adjustments 42,258 44,467 45,082
Income tax impact of non-GAAP adjustments (6,348 ) (3,507 ) (7,989 )
Non-GAAP net income $ 113,801 $ 214,933 $ 97,530
Diluted net income per share
GAAP $ 0.13 $ 0.28 $ 0.10
Non-GAAP $ 0.18 $ 0.35 $ 0.16
Shares used in diluted net income per share computation 619,302 622,018 623,786
Metrics:
GAAP net cash flow provided by operating activities $ 175,650 $ 451,009 $ (9,208 )
Purchase of property and equipment and intangible assets (65,667 ) (47,758 ) (28,923 )
Free cash flow $ 109,983 $ 403,251 $ (38,131 )
(A) Excludes stock-based compensation as follows: Three Months Ended
April 28, January 27, April 29,
2013 2013 2012
Cost of revenue $ 2,653 $ 2,826 $ 2,526
Research and development $ 21,935 $ 22,009 $ 21,207
Sales, general and administrative $ 8,809 $ 10,934 $ 11,836
(B) Comprise of transaction costs and compensation charges related to acquisitions.

 

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
Q2 FY2014 Outlook
GAAP gross margin 54.3 %
Impact of stock-based compensation (A) 0.3 %
Non-GAAP gross margin 54.6 %
Q2 FY2014 Outlook FY2014 Outlook
(In millions) (In millions)
GAAP operating expenses $ 448.0 $ 1,760.0
Stock-based compensation expense included in operating expense (31.0 ) (125.0 )
Amortization of acquisition-related intangible assets (4.0 ) (17.0 )
Other acquisition-related costs (B) (5.0 ) (18.0 )
Non-GAAP operating expenses $ 408.0 $ 1,600.0
(A) Represents $2.4 million of stock-based compensation expense included in cost of revenue.
(B) Comprise of transaction costs and compensation charges related to acquisitions.

 

Contact

NVIDIA PressTeam

t: +1 408 486 2000
e: press@nvidia.com

Source: Nvidia

0

Apple posts $43.6 billion in revenue with $9.5 billion in net profit for Q2 2013: 37.4 million iPhones sold and 19.5 million iPads

apple
Apple have posted their revenue results for the second financial quarter of 2013. Reaching a total of $43.6 billion in revenue with $9.5 billion in net profit. Comparing to the same period last year with a total revenue of $39.2 billion things would be looking up Apple this year have a smaller net profit with an even higher total revenue which was $11.6 billion, so over $2 billion in the difference.

Apple shipped a total of 19.5 million iPads, 37.4 million iPhones this quarter. Check out the full breakdown of the revenue report with the press release below.

Apple Reports Second Quarter Results
37.4 Million iPhones Sold; 19.5 Million iPads Sold

CUPERTINO, Calif., Apr 23, 2013 (BUSINESS WIRE) — Apple(R) today announced financial results for its fiscal 2013 second quarter ended March 30, 2013. The Company posted quarterly revenue of $43.6 billion and quarterly net profit of $9.5 billion, or $10.09 per diluted share. These results compare to revenue of $39.2 billion and net profit of $11.6 billion, or $12.30 per diluted share, in the year-ago quarter. Gross margin was 37.5 percent compared to 47.4 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.

The Company sold 37.4 million iPhones in the quarter, compared to 35.1 million in the year-ago quarter. Apple also sold 19.5 million iPads during the quarter, compared to 11.8 million in the year-ago quarter. The Company sold just under 4 million Macs, compared to 4 million in the year-ago quarter.

“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO. “Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline.”

“Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Peter Oppenheimer, Apple’s CFO.

Apple is providing the following guidance for its fiscal 2013 third quarter:

* revenue between $33.5 billion and $35.5 billion

* gross margin between 36 percent and 37 percent

* operating expenses between $3.85 billion and $3.95 billion

* other income/(expense) of $300 million

* tax rate of 26%

Apple will provide live streaming of its Q2 2013 financial results conference call beginning at 2:00 p.m. PDT on April 23, 2013 at www.apple.com/quicktime/qtv/earningsq213. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 29, 2012, its Form 10-Q for the quarter ended December 29, 2012, and its Form 10-Q for the quarter ended March 30, 2013 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.

(C) 2013 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in
thousands and per share amounts)
Three Months Ended Six Months Ended
———————- ———————-
March 30, March 31, March 30, March 31,
2013 2012 2013 2012
———– ———– ———– ———–
Net sales $ 43,603 $ 39,186 $ 98,115 $ 85,519
Cost of sales (1) 27,254 20,622 60,706 46,252
——- ——- ——- ——-
Gross margin 16,349 18,564 37,409 39,267
——- ——- ——- ——-
Operating expenses:
Research and development (1) 1,119 841 2,129 1,599
Selling, general and administrative (1) 2,672 2,339 5,512 4,944
——- ——- ——- ——-
Total operating expenses 3,791 3,180 7,641 6,543
——- ——- ——- ——-
Operating income 12,558 15,384 29,768 32,724
Other income/(expense), net 347 148 809 285
——- ——- ——- ——-
Income before provision for income taxes 12,905 15,532 30,577 33,009
Provision for income taxes 3,358 3,910 7,952 8,323
——- ——- ——- ——-
Net income $ 9,547 $ 11,622 $ 22,625 $ 24,686
==== ======= ==== ======= ==== ======= ==== =======
Earnings per share:
Basic $ 10.16 $ 12.45 $ 24.09 $ 26.48
Diluted $ 10.09 $ 12.30 $ 23.90 $ 26.17
Shares used in computing earnings per share:
Basic 939,629 933,582 939,273 932,265
Diluted 946,035 944,893 946,626 943,185
Cash dividends declared per common share $ 2.65 $ 0 $ 5.30 $ 0
(1) Includes share-based compensation expense as follows:
Cost of sales $ 87 $ 63 $ 172 $ 126
Research and development $ 239 $ 168 $ 463 $ 328
Selling, general and administrative $ 249 $ 193 $ 485 $ 390

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in
thousands)
March 30, September 29,
2013 2012
—————— ——————
ASSETS:
Current assets:
Cash and cash equivalents $ 12,053 $ 10,746
Short-term marketable securities 27,084 18,383
Accounts receivable, less allowances of $99 and $98, respectively 7,084 10,930
Inventories 1,245 791
Deferred tax assets 3,242 2,583
Vendor non-trade receivables 6,252 7,762
Other current assets 6,377 6,458
——— ———
Total current assets 63,337 57,653
Long-term marketable securities 105,550 92,122
Property, plant and equipment, net 15,026 15,452
Goodwill 1,400 1,135
Acquired intangible assets, net 4,136 4,224
Other assets 5,294 5,478
——— ———
Total assets $ 194,743 $ 176,064
========= ========= ========= =========
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable $ 14,912 $ 21,175
Accrued expenses 13,331 11,414
Deferred revenue 7,265 5,953
——— ———
Total current liabilities 35,508 38,542
Deferred revenue – non-current 2,877 2,648
Other non-current liabilities 20,868 16,664
——— ———
Total liabilities 59,253 57,854
——— ———
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value; 1,800,000 shares authorized; 940,094 and 17,954 16,422
939,208 shares issued and outstanding, respectively
Retained earnings 116,572 101,289
Accumulated other comprehensive income 964 499
——— ———
Total shareholders’ equity 135,490 118,210
——— ———
Total liabilities and shareholders’ equity $ 194,743 $ 176,064
========= ========= ========= =========

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Six Months Ended
————————————-
March 30, 2013 March 31, 2012
—————— ——————
Cash and cash equivalents, beginning of the period $ 10,746 $ 9,815
——– ——– ——– ——–
Operating activities:
Net income 22,625 24,686
Adjustments to reconcile net income to cash generated by operating
activities:
Depreciation and amortization 3,280 1,461
Share-based compensation expense 1,120 844
Deferred income tax expense 1,957 2,915
Changes in operating assets and liabilities:
Accounts receivable, net 3,846 (1,663)
Inventories (454) (326)
Vendor non-trade receivables 1,510 (379)
Other current and non-current assets 1,269 (1,510)
Accounts payable (4,422) 2,809
Deferred revenue 1,541 1,916
Other current and non-current liabilities 3,658 778
—————— ——–
Cash generated by operating activities 35,930 31,531
—————— ——–
Investing activities:
Purchases of marketable securities (81,163) (85,022)
Proceeds from maturities of marketable securities 9,243 7,702
Proceeds from sales of marketable securities 49,188 49,052
Payments made in connection with business acquisitions, net (299) (350)
Payments for acquisition of property, plant and equipment (4,325) (2,778)
Payments for acquisition of intangible assets (429) (160)
Other (93) (48)
—————— ——–
Cash used in investing activities (27,878) (31,604)
—————— ——–
Financing activities:
Proceeds from issuance of common stock 275 377
Excess tax benefits from equity awards 502 636
Dividends and dividend equivalent rights paid (4,984) 0
Repurchase of common stock (1,950) 0
Taxes paid related to net share settlement of equity awards (588) (634)
—————— ——–
Cash (used in)/generated by financing activities (6,745) 379
—————— ——–
Increase in cash and cash equivalents 1,307 306
—————— ——–
Cash and cash equivalents, end of the period $ 12,053 $ 10,121
======== ======== ======== ========
Supplemental cash flow disclosure:
Cash paid for income taxes, net $ 4,258 $ 4,835

Apple Inc.
Q2 2013 Unaudited Summary Data
(Units in thousands, Revenue in millions)
Q2’13 Q1’13 Q2’12 Sequential Change Year/Year Change
——————- ——————- ——————- ——————- ——————-
Operating Segments Revenue Revenue Revenue Revenue Revenue
———– ———– ———– ——— ———
Americas $ 14,052 $ 20,341 $ 13,182 – 31 % 7 %
Europe 9,800 12,464 8,807 – 21 % 11 %
Greater China (a) 8,213 6,830 7,637 20 % 8 %
Japan 3,135 4,443 2,645 – 29 % 19 %
Rest of Asia Pacific 3,162 3,993 2,516 – 21 % 26 %
Retail 5,241 6,441 4,399 – 19 % 19 %
—— —— —— —- — —- —
Total Apple $ 43,603 $ 54,512 $ 39,186 – 20 % 11 %
— ——
Q2’13 Q1’13 Q2’12 Sequential Change Year/Year Change
————— ————— ————— ————– ————–
Product Summary Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue
—— ———– —— ———– —— ———– ——— ——— ——— ———
iPhone (b) 37,430 $ 22,955 47,789 $ 30,660 35,064 $ 22,276 – 22 % – 25 % 7 % 3 %
iPad (b) 19,477 8,746 22,860 10,674 11,798 6,264 – 15 % – 18 % 65 % 40 %
Mac (b) 3,952 5,447 4,061 5,519 4,017 5,073 – 3 % – 1 % – 2 % 7 %
iPod (b) 5,633 962 12,679 2,143 7,673 1,207 – 56 % – 55 % – 27 % – 20 %
iTunes/Software/Services (c) 4,114 3,687 3,171 12 % 30 %
Accessories (d) 1,379 1,829 1,195 – 25 % 15 %
—— —— —— —- — —- —
Total Apple $ 43,603 $ 54,512 $ 39,186 – 20 % 11 %
— ——

(a) Greater China includes China, Hong Kong and Taiwan.
(b) Includes deferrals and amortization of related non-software
services and software upgrade rights.
(c) Includes revenue from sales on the iTunes Store, the App Store,
the Mac App Store, and the iBookstore, and revenue from sales of
AppleCare, licensing and other services.
(d) Includes sales of hardware peripherals and Apple-branded and
third-party accessories for iPhone, iPad, Mac and iPod.

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Intel Q1 2013 results: $12.6 billion revenue with net income of $2 billion

Intel-Logo
Intel’s revenue results for Q1 2013 are in and the company have reached a total revenue of $12.6 billion and a net income of $2 billion. Their revenue is down around 7 percent compared to last quarter with their net income seeing a bigger drop with 17 percent compared to Q4 2012. Intel are predicting a revenue for Q2 of around €12.9 billion give or take $500 million.

Intel Press Release for Revenue results ending Q1 2013

SANTA CLARA, Calif., Apr. 16, 2013 – Intel Corporation today reported first-quarter revenue of $12.6 billion, operating income of $2.5 billion, net income of $2.0 billion and EPS of $0.40. The company generated approximately $4.3 billion in cash from operations, paid dividends of $1.1 billion, and used $533 million to repurchase 25 million shares of stock.

“Amidst market softness, Intel performed well in the first quarter and I’m excited about what lies ahead for the company,” said Paul Otellini, Intel president and CEO. “We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter. We are working with our customers to introduce innovative new products across multiple operating systems. The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace.”

Q1 Key Financial Information and Business Unit Trends

PC Client Group revenue of $8.0 billion, down 6.6 percent sequentially and down 6.0 percent year-over-year.
Data Center Group revenue of $2.6 billion, down 6.9 percent sequentially and up 7.5 percent year-over-year.
Other Intel® Architecture Group revenue of $1.0 billion, down 3.9 percent sequentially and down 9.0 percent year-over-year.
Gross margin of 56 percent, down 2 percentage points sequentially and down 8 percentage points year-over-year.
R&D plus MG&A spending of $4.5 billion, in line with the company’s expectation of approximately $4.6 billion.
Tax rate of 16 percent.

Business Outlook
Intel’s Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures or other investments that may be completed after April 16.

Q2 2013
Revenue: $12.9 billion, plus or minus $500 million.
Gross margin percentage: 58 percent, plus or minus a couple percentage points.
R&D plus MG&A spending: approximately $4.7 billion.
Amortization of acquisition-related intangibles: approximately $70 million.
Impact of equity investments and interest and other: approximately zero.
Depreciation: approximately $1.7 billion.

Full-Year 2013
Revenue: low single-digit percentage increase, unchanged from prior expectations.
Gross margin percentage: 60 percent, plus or minus a few percentage points, unchanged from prior expectations.
R&D plus MG&A spending: $18.9 billion, plus or minus $200 million, unchanged from prior expectations.
Amortization of acquisition-related intangibles: approximately $300 million, unchanged from prior expectations.
Depreciation: $6.8 billion, plus or minus $100 million, unchanged from prior expectations.
Tax Rate: approximately 27 percent for each of the remaining quarters of the year.
Full-year capital spending: $12.0 billion, plus or minus $500 million, down $1.0 billion from prior expectations.

For additional information regarding Intel’s results and Business Outlook, please see the CFO commentary at: www.intc.com/results.cfm.

Status of Business Outlook
Intel’s Business Outlook is posted on intc.com and may be reiterated in public or private meetings with investors and others. The Business Outlook will be effective through the close of business June 14 unless earlier updated; except that the Business Outlook for amortization of acquisition-related intangibles, impact of equity investments and interest and other, and tax rate, will be effective only through the close of business on April 23. Intel’s Quiet Period will start from the close of business on June 14 until publication of the company’s second-quarter earnings release, scheduled for July 17, 2013. During the Quiet Period, all of the Business Outlook and other forward-looking statements disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.

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Microsoft revenue totals $25.5 billion for Q3 2013 with a net income of $6.06 billion

microsoft-logo-640x480
Microsoft have posted their revenue results for the fiscal quarter Q3 2013. Their revenue reached a total of $25.5 billion with a net income of $6.06 billion. While their results are pretty steady, they show a slight decrease in net profit compared to last quarter and year on year. Below is the different divisions and their respective revenue.

Windows Division = $5.70 billion (23 percent increase from prior year)
Business Division = $6.32 billion (8 percent increase from prior year)
Server and Tools Business = $5.04 billion (11 percent increase from prior year)
Entertainment and Devices Division = $2.53 billion ( 56 percent increase from prior year)
Online Servers Division = $832 million ( 18 percent increase from prior year)

Check out the press release below for more information.

Microsoft Reports Third-Quarter Results

Microsoft delivers record third-quarter revenue and earnings per share; CFO transition announced.

REDMOND, Wash. – Apr. 18, 2013 – Microsoft Corp. today announced quarterly revenue of $20.49 billion for the quarter ended March 31, 2013. Operating income, net income, and diluted earnings per share for the quarter were $7.61 billion, $6.06 billion, and $0.72 per share.

These financial results reflect the net recognition of revenue related to the Windows Upgrade Offer, Office Upgrade Offer and Pre-Sales, and the Entertainment and Devices Division Video Game Deferral, partially offset by the European Commission fine. The following table reconciles these financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. We have provided this non-GAAP financial information to aid investors in better understanding the company’s performance.

“The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox LIVE, and Skype,” said Steve Ballmer, chief executive officer at Microsoft. “While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term.”

The Microsoft Business Division posted $6.32 billion of revenue, an 8% increase from the prior year period. Adjusting for the net recognition of revenue related to the Office Upgrade Offer and Pre-Sales, Microsoft Business Division non-GAAP revenue increased 5%. During the quarter, we launched the new Office, enhancing productivity and the user experience through new mobility, social, and cloud features.

The Server & Tools business reported $5.04 billion of revenue, an 11% increase from the prior year period, driven by double-digit percentage revenue growth in SQL Server and System Center.

“Our enterprise business continues to thrive,” said Kevin Turner, chief operating officer at Microsoft. “Enterprise customers are increasingly turning to Microsoft for their IT solutions and as a result, we continue to take share from our competitors in key areas including hybrid cloud, data platform, and virtualization.”

The Windows Division posted revenue of $5.70 billion, a 23% increase from the prior year period. Adjusting for the recognition of revenue related to the Windows Upgrade Offer, Windows Division non-GAAP revenue was flat. During the quarter, we added to the Surface family of devices with Surface Pro.

The Online Services Division reported revenue of $832 million, an 18% increase from the prior year period. Online advertising revenue grew 22% driven by an increase in revenue per search.

The Entertainment and Devices Division posted revenue of $2.53 billion, an increase of 56% from the prior year period. Adjusting for the recognition of revenue related to the Video Game Deferral, the division’s non-GAAP revenue increased 33% for the third quarter. Xbox LIVE now has over 46 million members worldwide, an 18% increase from the prior year period.

“Our diverse business continues to deliver solid financial results, even as we navigate the evolving device market,” said Peter Klein, chief financial officer at Microsoft. “Looking ahead, we will continue to invest in long-term growth opportunities to drive our devices and services strategy forward and deliver ongoing value to shareholders.”

Business Outlook

Adjusting for the European Commission fine, Microsoft is revising operating expense guidance downward and now offers a range of $30.2 billion to $30.5 billion for the full year ending June 30, 2013. Microsoft also offers preliminary fiscal year 2014 operating expense guidance of $31.6 billion to $32.2 billion, representing 4% to 6% growth from the mid-point of fiscal year 2013 adjusted guidance.

CFO Transition

The company also announced Microsoft CFO Peter Klein will leave the company at the end of the current fiscal year, after nearly four years in role and 11 years at the company. Microsoft will be naming a new CFO from its finance leadership team in the next several weeks.

“It has been a pleasure to work with Peter as CFO,” Ballmer said. “He’s been a key member of my leadership team and a strategic advisor to me, and I wish him the very best.”

“I’ve had a great experience as CFO and overall in my time at Microsoft,” Klein said. “We have an incredibly strong finance organization, and I’m looking forward to working with my successor on the transition through the end of the fiscal year.”

Webcast Details

Peter Klein, chief financial officer, Frank Brod, chief accounting officer, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/investor/ . The webcast will be available for replay through the close of business on Apr. 18, 2014.

Adjusted Financial Results and Non-GAAP Measures

For the third quarter fiscal year 2013, GAAP revenue, operating income, and earnings per share included the recognition of revenue for the Windows Upgrade Offer, the Office Upgrade Offer and Pre-Sales, and the Entertainment and Devices Division Video Game Deferral, partially offset by the European Commission fine. These items are defined in our Form 10-Q for the quarterly period ended March 31, 2013. In addition to these financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these measures without the impact of these items gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

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Google Q1 financial results hit $14 billion in revenue with $3.35 billion net income

google headquarters
It’s that time again and Google are up for posting their financial results of Q1 2013, their results how a revenue of $14 billion with a net income reaching $3.35 billion. The results for this quarter show an increase of 31 percent year on year. The only real loss on Google side is with their Motorola division, which saw a revenue drop from $1.51 billion to $1.02 billion. Check out the press release below for more information.

Google Inc. Announces First Quarter 2013 Results

MOUNTAIN VIEW, Calif. – April 18, 2013 – Google Inc. (NASDAQ: GOOG) today announced financial results for the quarter ended March 31, 2013.

“We had a very strong start to 2013, with $14.0 billion in revenue, up 31% year-on-year,” said Larry Page, CEO of Google. “We are working hard and investing in our products that aim to improve billions of people’s lives all around the world.”

Q1 Financial Summary

Google Inc. reported consolidated revenues of $13.97 billion for the quarter ended March 31, 2013, an increase of 31% compared to the first quarter of 2012. Google Inc. reports advertising revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the first quarter of 2013, TAC totaled $2.96 billion, or 25% of advertising revenues.

Operating income, operating margin, net income, and earnings per share (EPS) are reported on a GAAP and non-GAAP basis. The non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, are described below and are reconciled to the corresponding GAAP measures at the end of this release.

GAAP operating income in the first quarter of 2013 was $3.48 billion, or 25% of revenues. This compares to GAAP operating income of $3.39 billion, or 32% of revenues, in the first quarter of 2012. Non-GAAP operating income in the first quarter of 2013 was $4.22 billion, or 30% of revenues. This compares to non-GAAP operating income of $3.94 billion, or 37% of revenues, in the first quarter of 2012.

GAAP net income including net income from discontinued operations in the first quarter of 2013 was $3.35 billion, compared to $2.89 billion in the first quarter of 2012. Non-GAAP net income in the first quarter of 2013 was $3.90 billion, compared to $3.33 billion in the first quarter of 2012.

GAAP EPS including impact from net income from discontinued operations in the first quarter of 2013 was$9.94 on 337 million diluted shares outstanding, compared to $8.75 in the first quarter of 2012 on 330 million diluted shares outstanding. Non-GAAP EPS in the first quarter of 2013 was $11.58, compared to $10.08 in the first quarter of 2012.

Non-GAAP operating income and non-GAAP operating margin exclude stock-based compensation (SBC) expense, as well as restructuring and related charges recorded in our Motorola Mobile business. Non-GAAP net income and non-GAAP EPS exclude the expenses noted above, net of the related tax benefits, as well as net income from discontinued operations. In the first quarter of 2013, the expense related to SBC and the related tax benefits were $681 million and $149 million compared to $556 million and $118 million in the first quarter of 2012. In the first quarter of 2013, restructuring and related charges recorded in our Motorola Mobile business were $66 million, and the related tax benefits were $23 million. In addition, net income from discontinued operations, in the first quarter of 2013, was $22 million.

Q1 Financial Highlights

Revenues and other information – On a consolidated basis, Google Inc. revenues for the quarter ended March 31, 2013 were $13.97 billion, an increase of 31% compared to the first quarter of 2012.

Google Revenues (advertising and other) – Google revenues were $12.95 billion, or 93% of consolidated revenues, in the first quarter of 2013, representing a 22% increase over first quarter 2012 revenues of $10.65 billion.

Google Sites Revenues – Google-owned sites generated revenues of $8.64 billion, or 67% of total Google revenues, in the first quarter of 2013. This represents an 18% increase over first quarter 2012 Google sites revenues of $7.31 billion.

Google Network Revenues – Google’s partner sites generated revenues of $3.26 billion, or 25% of total Google revenues, in the first quarter of 2013. This represents a 12% increase from first quarter 2012 Google network revenues of $2.91 billion.

Other Revenues – Other revenues from Google were $1.05 billion, or 8% of total Google revenues, in the first quarter of 2013. This represents a 150% increase over first quarter 2012 other revenues of $420 million.

Google International Revenues – Google revenues from outside of the United States totaled $7.1 billion, representing 55% of total Google revenues in the first quarter of 2013, compared to 54% in the fourth quarter of 2012 and in the first quarter of 2012.

Foreign Exchange Impact on Google Revenues – Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the fourth quarter of 2012 through the first quarter of 2013, our Google revenues in the first quarter of 2013 would have been $11 million higher. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the first quarter of 2012 through the first quarter of 2013, our Google revenues in the first quarter of 2013 would have been $110 million higher.

Google revenues from the United Kingdom totaled $1.39 billion, representing 11% of Google revenues in the first quarter of 2013, compared to 11% in the first quarter of 2012.
In the first quarter of 2013, we recognized a benefit of $35 million to Google revenues through our foreign exchange risk management program, compared to $37 million in the first quarter of 2012.
Reconciliations of our non-GAAP international revenues excluding the impact of foreign exchange and hedging to GAAP international revenues are included at the end of this release.

Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 20% over the first quarter of 2012 and increased approximately 3% over the fourth quarter of 2012.

Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 4% over the first quarter of 2012 and decreased approximately 4% over the fourth quarter of 2012.

TAC – Traffic acquisition costs, the portion of revenues shared with Google’s partners, increased to $2.96 billion in the first quarter of 2013, compared to $2.51 billion in the first quarter of 2012. TAC as a percentage of advertising revenues was 25% in the first quarter of 2013, compared to 25% in the first quarter of 2012.

The majority of TAC is related to amounts ultimately paid to our Network members, which totaled $2.28 billion in the first quarter of 2013. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $680 million in the first quarter of 2013.

Motorola Mobile Revenues (hardware and other) – Motorola Mobile revenues were $1.02 billion, or 7% of consolidated revenues in the first quarter of 2013.

Other Cost of Revenues – Other cost of revenues, which is comprised primarily of manufacturing and inventory-related costs, data center operational expenses, amortization of intangible assets, and content acquisition costs, increased to $2.98 billion, or 21% of revenues, in the first quarter of 2013, compared to $1.28 billion, or 12% of revenues, in the first quarter of 2012.

Operating Expenses – Operating expenses, other than cost of revenues, were $4.55 billion in the first quarter of 2013, or 33% of revenues, compared to $3.47 billion in the first quarter of 2012, or 33% of revenues.

Amortization Expenses – Amortization expenses of acquisition-related intangible assets were $315 million for the first quarter of 2013. Of the $315 million, $153 million was as a result of the acquisition of Motorola, of which $116 million was allocated to Google and $37 million was allocated to Motorola Mobile.

Stock-Based Compensation (SBC) – In the first quarter of 2013, the total charge related to SBC was $697 million, compared to $556 million in the first quarter of 2012. We currently estimate SBC charges for grants to employees prior to March 31, 2013 to be approximately $2.7 billion for 2013. This estimate does not include expenses to be recognized related to employee stock awards that are granted after March 31, 2013 or non-employee stock awards that have been or may be granted.

Operating Income – On a consolidated basis, GAAP operating income in the first quarter of 2013 was $3.48 billion, or 25% of revenues. This compares to GAAP operating income of $3.39 billion, or 32% of revenues, in the first quarter of 2012. Non-GAAP operating income in the first quarter of 2013 was $4.22 billion, or 30% of revenues. This compares to non-GAAP operating income of $3.94 billion, or 37% of revenues, in the first quarter of 2012.

Google Operating Income – GAAP operating income for Google was $3.75 billion, or 29% of Google revenues, in the first quarter of 2013. This compares to GAAP operating income of $3.39 billion, or 32% of Google revenues, in the first quarter of 2012. Non-GAAP operating income in the first quarter of 2013 was $4.40 billion, or 34% of Google revenues. This compares to non-GAAP operating income of $3.94 billion in the first quarter of 2012, or 37% of Google revenues.

Motorola Mobile Operating Loss – GAAP operating loss for Motorola Mobile was $271 million, or -27% of Motorola Mobile revenues in the first quarter of 2013. Non-GAAP operating loss for Motorola Mobile in the first quarter of 2013 was $179 million, or -18% of Motorola Mobile revenues.

Interest and Other Income, Net – Interest and other income, net, was $134 million in the first quarter of 2013, compared to $156 million in the first quarter of 2012.

Income Taxes – Our effective tax rate was 8% for the first quarter of 2013.

Net Income – GAAP net income in the first quarter of 2013 was $3.35 billion, compared to $2.89 billion in the first quarter of 2012. Non-GAAP net income was $3.90 billion in the first quarter of 2013, compared to $3.33 billion in the first quarter of 2012. GAAP EPS in the first quarter of 2013 was $9.94 on 337 million diluted shares outstanding, compared to $8.75 in the first quarter of 2012 on 330 million diluted shares outstanding. Non-GAAP EPS in the first quarter of 2013 was $11.58, compared to $10.08 in the first quarter of 2012.

Cash Flow and Capital Expenditures – Net cash provided by operating activities in the first quarter of 2013 totaled $3.63 billion, compared to $3.69 billion in the first quarter of 2012. In the first quarter of 2013, capital expenditures were $1.2 billion, the majority of which was for production equipment, data center construction and facilities-related purchases. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the first quarter of 2013, free cash flow was $2.43 billion.

We expect to continue to make significant capital expenditures.

A reconciliation of free cash flow to net cash provided by operating activities, the GAAP measure of liquidity, is included at the end of this release.

Cash – As of March 31, 2013, cash, cash equivalents, and marketable securities were $50.1 billion.

Headcount – On a worldwide basis, we employed 53,891 full-time employees (38,739 in Google and 9,982 in Motorola Mobile and 5,170 in Motorola Home) as of March 31, 2013, compared to 53,861 full-time employees as of December 31, 2012.

WEBCAST AND CONFERENCE CALL INFORMATION

A live audio webcast of Google’s first quarter 2013 earnings release call will be available at http://investor.google.com/webcast.html. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, the financial tables, as well as other supplemental information including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, are also available on that site.

We also announce investor information, including news and commentary about our business and financial performance, SEC filings, notices of investor events, and our press and earnings releases, on our investor relations website (http://investor.google.com) and our investor relations Google+ page (https://plus.google.com/+GoogleInvestorRelations/posts).

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve risks and uncertainties. These statements include statements regarding our continued investments in our core areas of strategic focus, our expected SBC charges, and our plans to make significant capital expenditures. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, unforeseen changes in our hiring patterns and our need to expend capital to accommodate the growth of the business, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2012 which are on file with the SEC and are available on our investor relations website at investor.google.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. All information provided in this release and in the attachments is as of April 18, 2013, and we undertake no duty to update this information unless required by law.

ABOUT NON-GAAP FINANCIAL MEASURES

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP EPS, free cash flow, and non-GAAP international revenues. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of selected non-GAAP financial measures to the nearest comparable GAAP financial measures”, “Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures,” “Reconciliation from net cash provided by operating activities to free cash flow,” and “Reconciliation from GAAP international revenues to non-GAAP international revenues” included at the end of this release.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our recurring core business operating results, meaning our operating performance excluding not only non-cash charges, such as SBC, but also discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus expenses related to SBC, and, as applicable, other special items. Non-GAAP operating margin is defined as non-GAAP operating income divided by revenues. Google considers these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of SBC, and as applicable, other special items so that Google’s management and investors can compare Google’s recurring core business operating results over multiple periods. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, Google’s management believes that providing a non-GAAP financial measure that excludes SBC allows investors to make meaningful comparisons between Google’s recurring core business operating results and those of other companies, as well as providing Google’s management with an important tool for financial and operational decision making and for evaluating Google’s own recurring core business operating results over different periods of time. There are a number of limitations related to the use of non-GAAP operating income versus operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes some costs, namely, SBC, that are recurring. SBC has been and will continue to be for the foreseeable future a significant recurring expense in Google’s business. Second, SBC is an important part of our employees’ compensation and impacts their performance. Third, the components of the costs that we exclude in our calculation of non-GAAP operating income may differ from the components that our peer companies exclude when they report their results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

Non-GAAP net income and EPS. We define non-GAAP net income as net income plus expenses related to SBC and, as applicable, other special items less the related tax effects, as well as net income from discontinued operations. The tax effects of SBC and, as applicable, other special items are calculated using the tax-deductible portion of SBC, and, as applicable, other special items, and applying the entity-specific, U.S. federal and blended state tax rates. We define non-GAAP EPS as non-GAAP net income divided by the weighted average outstanding shares, on a fully-diluted basis. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that Google uses non-GAAP operating income and non-GAAP operating margin. However, in order to provide a complete picture of our recurring core business operating results, we exclude from non-GAAP net income and non-GAAP EPS the tax effects associated with SBC and, as applicable, other special items. Without excluding these tax effects, investors would only see the gross effect that excluding these expenses had on our operating results. The same limitations described above regarding Google’s use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP EPS. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP EPS and evaluating non-GAAP net income and non-GAAP EPS together with net income and EPS calculated in accordance with GAAP.

Free cash flow. We define free cash flow as net cash provided by operating activities less capital expenditures. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after the acquisition of property and equipment, including information technology infrastructure and land and buildings, can be used for strategic opportunities, including investing in our business, making strategic acquisitions, and strengthening the balance sheet. Analysis of free cash flow also facilitates management’s comparisons of our operating results to competitors’ operating results. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities as a means for evaluating Google is that free cash flow does not represent the total increase or decrease in the cash balance from operations for the period because it excludes cash used for capital expenditures during the period. Our management compensates for this limitation by providing information about our capital expenditures on the face of the statement of cash flows and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q and Annual Report on Form 10-K. Google has computed free cash flow using the same consistent method from quarter to quarter and year to year.

Non-GAAP international revenues. We define non-GAAP international revenues as international revenues excluding the impact of foreign exchange and hedging. Non-GAAP international revenues are calculated by translating current quarter revenues using prior quarter and prior year exchange rates, as well as excluding any hedging gains realized in the current quarter. We consider non-GAAP international revenues as a useful metric as it facilitates management’s internal comparison to our historical performance.

The accompanying tables have more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures.

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AMD Q1 2013 revenue results announced: $1.09 billion in revenue with $146 million net loss

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MD have posted their financial results for Q1 2013. Their revenue report shows a net loss of around $146 million with a total revenue reaching $1.09 billion. AMD lost reported over $470 million net loss last quarter, so their does seem a significant improved with Q4 also bringing in a similar revenue of $1.16 billion. Their revenue compared to the same quarter of last year shows a significant drop from $1.59 billion down to the $1.09 billion.

It’s already been announced that the PS4 will be powered by AMD and it’s also possible that the next Xbox will likely do so as well. This type of business can only prove well for AMD in the future and should hopefully get them back on track financially.

Source: AMD

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HP post Q1 2013 earnings with $28.4 billion in revenue and $1.2 billion in profit

HP
HP have posted their Q1 2013 results which have shined just beyond their expectations. Reaching a total of $28.4 billion in revenue and $1.2 billion in profit. Their net revenue shows a 6% drop year over year with their net profit seeing a 16% drop itself.

“We beat our non-GAAP diluted EPS outlook for the quarter by $0.11 per share, driven by improved execution, improvement in our channel and go-to-market efforts and the impact of the restructuring program we announced in May 2012,” said Meg Whitman, HP president and chief executive officer. “While there’s still a lot of work to do to generate the kind of growth we want to see, our turnaround is starting to gain traction as a result of the actions we took in 2012 to lay the foundation for HP’s future.”

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