David Kirkpatrick

May 3, 2010

Yahoo’s Carol Bartz must be high

Filed under: Business, Technology — Tags: , , , , , — David Kirkpatrick @ 5:35 pm

That’s the only way to explain her very odd mischaracterization of Google in this BBC article unless she was massively quoted out of context. If she’s running the company and has that poor of mental grasp on the competition, I’d be very, very concerned as a shareholder for the future of the company.

From the link:

“Google is going to have a problem because Google is only known for search,” said Ms Bartz.

“It is only half our business; it’s 99.9% of their business. They’ve got to find other things to do.

“Google has to grow a company the size of Yahoo every year to be interesting.”

Find other things to do? I’m no Google cheerleader (although I absolutely love the Chrome browser), but is she serious? I think I answered that in the previous parenthetical reference. Now I know Bartz was talking about monetized business, but even facing the Facebook threat to online ad revenue I seriously doubt Google has any short- or even mid-term concerns to remaining enormously profitable.

Maybe the tone of the interview was driven by a little industry jealousy. Just for fun let’s compare the recently released Q1 earnings reports for each.

Yahoo! (released April 20, 2010)

revenue: just under $1.6M, up one percent over first quarter 2009

Google (released April 15, 2010)

revenue: $6.77B, up 23 percent over last year’s first quarter

Now that is a difference in revenue. Yahoo is below two million and Google is below seven billion. Good interview, Carol. It’s always smart to call out your competition when you’re operating from a position of strength. Oh, wait …

April 26, 2010

$713 million

Filed under: Business, Technology — Tags: , , , , — David Kirkpatrick @ 3:48 pm

That’s how much Microsoft lost in Q3 with its Online Services Division. (Read: Bing)

From the link:

During Microsoft’s fiscal third quarter, which ended March 31, the Online Services Division, or OSD, reported a 12 percent increase in revenue, which rose to US$566 million on the back of higher advertising revenue. That wasn’t enough to offset a surge in operating expenses during the period. The division’s quarterly loss grew by 73 percent to $713 million, compared to a loss of $411 million during the same period last year.

OSD includes Microsoft’s online advertising business, the Bing search engine, and its various MSN websites.

January 29, 2009

Advice for Microsoft …

Filed under: Business, Technology — Tags: , , , — David Kirkpatrick @ 6:02 pm

… from CIO.com. Here’s a list of five changesthe Redmond behemoth should implement to remain viable in the coming years. I don’t think Microsoft is all that bad off in big scheme, but there’s some sensible advice there for any tech company. And some that just applies to MS.

From the link:

For the past few years, we’ve kept hearing that Microsoft is in financial trouble. But until now, for all the books and articles foretelling Microsoft’s demise at the hands of Google, the numbers really didn’t support that conclusion. Windows and Microsoft Office still sold in the billions; and businesses kept paying ridiculously high rates for collaboration software like SharePoint.

Today’s quarterly earnings call, coupled with the news that Microsoft will lay off 5,000 workers across multiple departments, shows that some of the worries about Microsoft were true after all. The Operating system, and all the software that runs on top of it, is moving to the Web. This isn’t about the recession. It’s about Microsoft’s paralysis.

So, Microsoft, if I’m speaking to you directly, here are steps you can take to build a bigger and brighter future, one where you can avoid the mistakes made by industries that have not adapted well to the Web (newspapers and magazines come to mind).

December 17, 2008

Morgan Stanley announces almost $2.4B quarterly loss

Filed under: Business — Tags: , , , , — David Kirkpatrick @ 2:33 pm

Overall the bank posted a net gain for the year, but the final quarter was predictably brutal.

From the link:

Morgan Stanley reported a fourth-quarter loss of $2.36 billion — or $2.34 a share — on Wednesday, as the bank remained battered by old investments.

The quarter was Morgan’s first loss this year, though it did not outweigh the profit earned earlier this year. Morgan reported a full-year profit of $1.59 billion, or $1.54 a share.

Revenue in every corner of the bank fell, even when compared with last quarter, showing a deteriorating environment that cut across businesses. Analysts polled by Thomson Reuters had forecast a loss of 34 cents a share. The loss from continuing operations for the quarter, which does not include Discover, the credit card unit that was spun off, was $2.20 billion, or $2.24 a share

November 14, 2008

Retail feeling the crunch

Aside from Wal-Mart, the retail numbers this quarter are pretty bleak and not promising to be much better over the traditional big holiday season.

Here’s an example from today — Abercrombie & Fitch:

Abercrombie & Fitch Reports Third Quarter Results;

Third Quarter Net Income of $63.9 Million or $0.72 Per Diluted Share;

Board of Directors Declares Quarterly Dividend of $0.175;

Company Provides Update for 2008

NEW ALBANY, Ohio, Nov. 14 /PRNewswire-FirstCall/ — Abercrombie & Fitch Co. (NYSE:ANF) today reported unaudited results which reflected third quarter net income of $63.9 million and net income per diluted share of $0.72 for the thirteen weeks ended November 1, 2008, compared to net income of $117.6 million and net income per diluted share of $1.29 for the thirteen weeks ended November 3, 2007.

  Third Quarter Highlights

   — Total Company net sales decreased 8% to $896.3; comparable store sales
      decreased 14%

   — Total direct-to-consumer net sales decreased 6% to $57.5 million

   — Abercrombie & Fitch net sales decreased 8% to $385.8 million;
      Abercrombie & Fitch comparable store sales decreased 8%

   — abercrombie net sales decreased 14% to $109.5 million, abercrombie
      comparable store sales decreased 20%

   — Hollister Co. net sales decreased 7% to $383.6 million; Hollister
      comparable store sales decreased 18%

   — RUEHL net sales increased 7% to $13.5 million; RUEHL comparable store
      sales decreased 25%

   — Net income for the third quarter was $63.9 million

   — Net income per diluted share in the third quarter was $0.72

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said:

“Our third quarter financial results reflect a pull back in consumer spending and a difficult economic environment that is having an affect on all retailers.  However, during these difficult times, we remain firmly committed to the aspirational positioning of our brands, providing an unparalleled store experience for our customers and investing in initiatives that will allow us to continue the international expansion of our brands.  We are mindful of the current environment and will continue to operate the business with a seasoned and disciplined approach, looking for efficiencies within our operations.”

Update — Here’s a Wall Street Journal piece on the sector.

From the link:

U.S. retail sales took a record dive in October as consumers afraid for their jobs continued a retreat heading into the holiday shopping season and cut back spending on a wide variety of goods ranging from cars to furniture to electronics.

Separately, U.S. import prices fell at a record pace last month, further evidence that falling oil prices and the slowing global economy are having a rapid damping effect on inflation. Assuming that trend is confirmed by upcoming producer and consumer price reports, Federal Reserve policymakers should have added flexibility to address the credit crisis through liquidity programs and even more rate cuts without worrying about an inflationary outbreak.

Retail sales tumbled 2.8% last month from the previous month, the Commerce Department said Friday. It was the fourth drop in a row. Sales in September decreased 1.3%, revised down from an originally estimated 1.2% decline.

Economists expected a 2.4% drop in sales during October, the first month of the fourth quarter. The 2.8% drop was the largest since records began in 1992. The previous record was a 2.65% decline in November 2001.

Update 11/19/08 — And here more news, a bit more focused on the online retail sector, via AccountantsWorld:

The retail industry continued to see signs of a sharp pullback in consumer spending, both online and in stores.

Growth in online sales slowed to a near halt in October, comScore, a research firm, is expected to report on Tuesday. Separately, Lowe’s and Target reported Monday that third-quarter profit fell as consumers cut back on large home-improvement projects and discretionary purchases.

 

Online spending grew by only 1 percent over October 2007, comScore said. That was the lowest monthly growth rate since comScore began tracking e-commerce in 2001, and was down from 5 percent in September.

In the past, e-commerce has been somewhat protected from cutbacks in consumer spending that have affected retail stores, because online shopping was perceived as more convenient. Consumers also turned to online outlets to compare prices easily.

October 16, 2008

Google’s profit up over 25%

Filed under: Business — Tags: , , , — David Kirkpatrick @ 4:16 pm

Big Q3 numbers for Google.

From the WSJ link:

Google Inc.’s quarterly profit rose 26% as revenue jumped with strong demand for online search advertising despite the turbulent U.S. economy.

The Mountain View., Calif., search giant Thursday posted third-quarter net income of $1.35 billion, or $4.24 a share, up from $1.07 billion, or $3.38 a share, in the same period last year.

Revenue jumped 31% from a year earlier to $5.54 billion. Excluding traffic acquisition costs, or commissions paid to marketing partners, the search giant’s revenue rose 34% to $4.04 billion.

Google’s U.S. paid clicks–which includes clicks related to ads served on Google’s site as well as partner sites–grew 18% from a year earlier.

September 10, 2008

Lehman Brothers posts almost $4B Q3 loss

Filed under: Business — Tags: , , , — David Kirkpatrick @ 11:54 pm

It’s a record for the firm since going public.

From the link:

Lehman Brothers suffered its worst quarterly loss since going public, reporting a loss of nearly $4 billion Wednesday, and announced a series of drastic steps aimed at reviving the beleaguered firm.

Among those changes were plans by the firm to spin-off part of its commercial real estate assets, sell a majority stake of its investment management division and slash its annual dividend.

Following a wild market session Tuesday in which Lehman (LEH, Fortune 500) shares plunged 45% to their lowest levels in nearly a decade, the investment bank said it lost $3.9 billion during the fiscal third-quarter, or $5.92 a share.

The results, which were released more than a week in advance to help quell fears about the firm’s underlying health, were the company’s second consecutive loss and exceeded Lehman’s $2.8 billion second-quarter loss announced in June.

Lehman Chairman and CEO Richard Fuld Jr. described the quarter as “one of the toughest periods” in the 158-year old firm’s history.

July 17, 2008

Microsoft tops $60B in fiscal year

Filed under: Business, Technology — Tags: , , , — David Kirkpatrick @ 5:29 pm

Microsoft put up some impressive numbers this past fiscal year, breaking the $60 billion mark in revenue. It may be gigantic and hated in many corners, but MS is doing something right.

From the release:

Microsoft Corp. today announced revenue of $15.84 billion for the fiscal fourth quarter ended June 30, 2008, an 18% increase over the same period of the prior year.  Operating income and diluted earnings per share for the quarter were $5.68 billion and $0.46, representing growth of 42% and 48%, respectively, over the same period of the prior year.

For the fiscal year ended June 30, 2008, Microsoft announced revenue of $60.42 billion, an 18% increase over the prior year.  Operating income and diluted earnings per share for the year were $22.49 billion and $1.87, representing yearly growth of 21% and 32%, respectively.

The growth rates for operating income and diluted earnings per share were impacted by a $1.1 billion charge in the fourth quarter of fiscal year 2007 related to the expansion of the company’s Xbox 360 warranty coverage.

“Delivering $60 billion in annual revenue is an outstanding accomplishment and a testament to the powerful combination of great technology solutions and strong execution by our partners and global sales and marketing teams,” said Kevin Turner, chief operating officer at Microsoft.  “The outlook for fiscal year 2009 is positive given the breadth of our impressive technology portfolio and the expanding collection of online services we are bringing to market.”

This fiscal year marked the launch of Microsoft’s flagship server products: Windows Server 2008, SQL Server 2008 and Visual Studio 2008. Revenue growth was primarily driven by continued customer demand for all products, including Windows Vista, which has sold over 180 million licenses since launch, the 2007 Microsoft Office system, server software, and Xbox 360 consoles and games.

“We had a strong finish in the fourth quarter, which capped off an impressive year for the company.  We grew revenue 18% for the year with earnings per share significantly outpacing that,” said Chris Liddell, chief financial officer at Microsoft.  “Looking forward, despite difficult economic conditions, we will build upon the momentum exiting fiscal year 2008 and expect to deliver another year of double-digit revenue and earnings growth in fiscal year 2009.”

The company is projecting revenues for next year between $67-68 billion.