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Journalism of Courage
SEATTLE, OCT 19: Software giant Microsoft Corp on Wednesday posted a quarterly profit that blew past expectations, powered by shrinking expenses, growing investment gains, and momentum in its flagship product, the Windows 2000 operating system.
Revenues totalled $5.8 billion, compared to $5.38 billion a year earlier. Analysts said they were relieved that Microsoft did not spring any nasty surprises on a market that has been battered by a string of bad news, diminished expectations and profit warnings by other technology heavyweights. "I was very encouraged," said Scott McAdams, president of Seattle-based brokerage McAdams Wright Ragen. "If you were looking for bad news, there just wasn’t anything there."
AOL Q3 PROFITS DOUBLE: America Online Inc, the world’s largest Internet services provider, said on Wednesday its fiscal first-quarter profit doubled from a year-ago as subscriber, E-commerce and ad revenues grew.
Dulles, Va.-based AOL said its first-quarter earnings, excluding extraordinary items, rose to $340 million, or 14 cents a share, compared to $182 million, or 7 cents a share. Revenue at the world’s largest Internet services companyrose 34 percent to $2.0 billion from $1.5 billion a year-ago.
The closely watched advertising and E-commerce revenue – which accounted for a third of total revenues – rose 80 percent to $649 million, within analysts’ estimates. The company, whose merger with media giant Time Warner Inc is still awaiting US regulatory approval, said in a statement it added 1.4 million net new subscribers in the quarter, for a total of 24.6 million members worldwide.
Wall Street analysts had on average expected AOL to earn 13 cents a share, according to First Call/Thomson Financial. Analysts polled by Reuters had expected advertising and E-commerce revenues of about $620 million to $655 million. "It was a solid quarter, not a blow out. I don’t see anything way out of line," said CIBC Oppenheimer analyst John Corcoran. Net income rose to $345 million, or 13 cents a diluted share, from $181 million, or 7 cents a diluted share a year earlier.
The company’s stock has been hit in recent sessions amid concerns the decline in ad spending that has afflicted AOL’s Internet media rivals would wreak the same havoc on AOL and its outlook. Its shares were last up at $46-1/4 on Instinet in after-hours trade after closing up $3.31 at $46.91.
Sun Microsystems net rises 85 pct: Sun Microsystems Inc, the biggest maker of computers that serve up Web pages, on Wednesday said fiscal first-quarter share earnings rose 88 percent as sales soared 60 per cent. The earnings release was briefly and mistakenly posted on Sun’s Web site and then quickly pulled down. But before that happened, Reuters and other news agencies were able to see that Sun said its net income rose 85 percent, its earnings per share rose 88 percent, and sales rose 60 percent.
Palo Alto, Calif.-based Sun said in an official release following the online gaffe that net income rose 85 percent to $510 million, or 30 cents a share, from $276 million, or 16 cents a share, before acquisition-related charges. Sales rose to $5.05 billion from $3.15 billion.
The results easily topped consensus analyst forecasts for earnings-per-share of 26 cents, according to First Call/Thomson Financial.
In Sun’s fourth quarter, sales rose 42 per cent and are vastly outpacing those of rivals International Business Machines Corp. and Hewlett-Packard Co. It was also the first time in 10 years that Sun’s first-quarter sales rose from the fourth quarter. Chief Financial Officer Mike Lehman forecast second-quarter sales will rise more than 40 per cent.
Nokia Q3 beats expectations: Nokia, the world’s largest mobile phone maker, reported better-than-expected third-quarter profits on Thursday and reaffirmed its growth outlook, easing recent concern about the possible effects of a slowdown in the world mobile market.
Nokia’s third-quarter pre-tax profit rose 42 per cent year-on-year to 1.34 billion euros ($1.14 billion), beating forecasts of 1.15 billion euros according to a Reuters poll of 13 analysts. Sales rose 50 per cent to 7.58 billion euros.
Mobile phone sales soared 59 percent to 5.46 billion euros,with the division’s operating profit up 42 percent to 1.07 billion euros. Operating margin for the third quarter fell to 19.6 percent from 25 percent in the second quarter, when using operating profit and net sales as a measurement.
"The strong third quarter gives us confidence in achieving our growth, profitability and market share targets for 2000," Chief Executive Jorma Ollila said in a statement. "In terms of EPS, we are heading towards a record-breaking level in the fourth quarter of 2000."
World stock markets have recently been shaken by a series of statements from mobile phone makers on possible slowing growth in the market. US maker Motorola, the world’s second biggest mobile phonemaker, last week cut its earnings estimates for the next two years due in part to slower projected growth.
