PC Tech World: profit

Showing posts with label profit. Show all posts

Saturday, July 6, 2013

HTC finances improve over last quarter, but show just $41.6 million profit in Q2 2013

HTC picks up the pace with for Q2 with $125 billion in earnings

Though HTC has fallen shy of the $65 million in earnings investors were looking for in Q2 2013, at least it's a marked improvement over last quarter's disaster. It managed to improve profits to $41.6 million from a mere $2.8 million last quarter, based on unaudited figures. Likely reflecting demand for the flagship One and HTC's ability to finally produce that handset in significant numbers, revenue also jumped to $2.4 billion -- that's bad in the sense that it's a 20 percent drop relative to the same quarter last year, but it's slightly better than the 33 percent year-on-year revenue shortfall we witnessed last quarter. Overall, these figures still pale in comparison to HTC's historical performance and there's no immediate prospect of things getting better. According to Reuters, the most serious problems occurred towards the end of the quarter, as sales for June swooned 26.4 percent versus Q2 2012 -- a trend that puts a lot of pressure on the little shoulders of the HTC One Mini.

Source: Reuters

Tuesday, April 23, 2013

ARM sees 44 percent profit increase in Q1 2013, ships 2.6 billion ARM-based chips

ARM has had a great quarter -- again. This time it's seen pre-tax profits soar 44 percent, while revenues are up 26 percent (to $209.4 million) since the same period last year. The company's thanking the continued adoption of its low-power chip designs, encompassing smartphones, mobile computing and even digital TVs and wearable tech. The advanced tech within its ARMv8, Mali and big.LITTLE ranges has meant the company can command higher royalties per chip.

In total, 2.6 billion ARM-based chips have made their way into the gadgets this quarter, an increase of 35 percent year-on-year, with embedded hardware up a hefty 50 percent since Q1 2012. It's seen even better performance from its Mali graphics processor shipments, which are up five times since the same period last year. As outgoing CEO Warren East notes: "Even low cost smart devices can contain multiple ARM-based chips and be based on ARM's advanced Cortex-A series technology and Mali graphics processors." With new friends on board for the near-future, the good times are likely to continue.

Source: ARM

Friday, April 19, 2013

Microsoft posts Q3 2013 earnings, generates $6.06 billion in profit as its CFO steps down

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.

Source

By: Unknown On 2:08 PM

Thursday, April 18, 2013

Verizon added 677,000 subscribers, made a $1.95 billion profit in Q1 2013 (updated)

Verizon added 677,000 subscribers, made a $1.95 billion profit in Q1 2013 (updated) data = {blogUrl: "www.engadget.com",v: 305};when = {jquery: lab.scriptBs("jquery"),plugins: lab.scriptBs("plugins"),eng: lab.scriptBs("eng")}; var s265prop9 = ('20544534' !== '') ? 'bsd:20544534' : ''; var postID = '20544534'; var modalMNo = '93319229', modalVideoMNo = '93320648', modalGalleryMNo = '93304207'; when.eng("eng.omni.init", {pfxID:"weg",pageName:document.title,server:"acp-ld39.websys.aol.com",channel:"us.engadget", s_account: "aolwbengadget,aolsvc", short_url: "",pageType:"",linkInternalFilters:"javascript:,",prop1:"article",prop2:"mobile",prop9:s265prop9,prop12:document.location,prop17:"",prop18:"",prop19:"",prop20:"",mmxgo: true }); adSendTerms('1')adSetMOAT('1');adSetAdURL('/_uac/adpagem.html');lab._script("http://o.aolcdn.com/os/ads/adhesion/js/adhads-min.js").wait(function(){var floatingAd = new AdhesiveAd("10000057",{hideOnSwipe:true});}); onBreak({980: function () { adSetType("F");htmlAdWH("93319229", "LB", "LB"); adSetType("");}}); EngadgetMenu NewsReviews Features Galleries VideosEventsPodcasts Engadget ShowTopics Buyers Guides Sagas Store HD Mobile Alt Announcements Cameras Cellphones Desktops Displays Gaming GPS Handhelds Home Entertainment Household Internet Laptops Meta Misc Networking Peripherals Podcasts Robots Portable Audio/Video Science Software Storage Tablets Transportation Wearables Wireless Acer Amazon AMD Apple ASUS AT&T Blackberry Canon Dell Facebook Google HP HTC Intel Lenovo LG Microsoft Nikon Nintendo Nokia NVIDIA Samsung Sony Sprint T-Mobile Verizon About UsSubscribeLike Engadget@engadgettip uswhen.eng("eng.nav.init")when.eng("eng.tips.init") onBreak({980: function () {htmlAdWH("93308280", "215", "35",'AJAX','ajaxsponsor');}});Verizon added 677,000 subscribers, made a $1.95 billion profit in Q1 2013 (updated) MobileByDaniel CooperpostedApr 18th, 2013 at 7:33 AM 0

Last quarter, Verizon gained a record high 2.1 million subscribers, but thanks to Hurricane Sandy and pension-related charges, suffered a $1.9 billion net loss. Now that the company is releasing its Q1 2013 figures, are we going to see some of those losses trimmed back? The latest jumble of spreadsheets says yes, revealing that Big V turned a profit of $1.95 billion whilst adding 677,000 new subscribers to its wireless service -- giving it a total customer base of 98.9 million users. In the quarter, Verizon activated 7.2 million smartphones, of which 5.9 million were LTE-ready devices. It added that 28 percent of those activations were customers who had defected from other carriers.

The company's wireline business saw 188,000 FiOS Internet and 169,000 FiOS Video customers, pushing that particular sector's revenue up to $2.6 billion -- 69 percent of Verizon's consumer revenue. Customers who are hoping to trade up from DSL should take heart that Big Red has switched over 83,000 homes to fiber this year, and plans to upgrade a further 217,000 dwellings before the end of 2013. CEO Lowell McAdam was his usual upbeat self, painting a rosy picture for the company's future without mentioning that other company that begins with V it's got to deal with.

Update: Verizon got in touch to clarify that while the company raked in $4.8 billion, a big chunk of that cash which is hived off and sent back to Vodafone, which owns a 45 percent stake in the business. The figures have been amended to reflect the net income attributable to Verizon.

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Tags: breaking news, Financials, mobilepostcross, verizon

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By: Unknown On 8:20 PM

Monday, April 8, 2013

HTC pays price for One delays, reports worst quarterly profit so far in Q1 2013

Instead of reaping the rewards of putting out a lovely new flagship, HTC has just reported its lowest ever profit -- a mere $2.8 million in unaudited net income -- during the first three months of this year. That compares to $173 million in the same quarter of last year, representing a pretty catastrophic fall of around 98 percent. Underlying revenue dropped by a third to $1.4 billion. The reason? The top-end smartphone on which the company's fortunes currently rest, the HTC One, mostly missed its scheduled global arrival date in March due to manufacturing delays, so it effectively didn't exist during the period in question. It has only just become available to pre-order in the US and won't start shipping to customers until April 19th. At this rate, the HTC First -- the manufacturer's second big announcement of the year -- might actually deserve its name.

Source: Bloomberg, HTC

Thursday, February 7, 2013

Sony posts a net loss of $115 million for Q3, stays on track for full-year operating profit

Still-in-turnaround-mode Sony has reported its earnings for the October to December period, and has recorded a net loss of about 10.8 billion yen ($115 million). It did however improve its revenue to $21 billion as the yen weakened, despite slower sales of items like HDTVs and Blu-ray players. Key for Sony is that it managed an operating profit for the quarter of 46.4 billion yen ($496 million) and remains on track to make its business profitable in the next financial year.

Despite Sony's best efforts -- which include initiatives that you've heard about like its Triluminos HDTVs, PlayStation Mobile for tablets and phones, 4K and new software for the Vita -- it's cut sales targets in all of those divisions. Projected sales for TVs and cameras fell by 1 million units each, and portable game players by 3 million, as noted by Bloomberg. It's been a year since Kaz Hirai took the reins, and with his "One Sony" restructuring plan well underway and (what everyone suspects is) a PlayStation 4 event around the corner, 2013 is as important a year as the company has ever had. We'll check in for more info on the earnings call in just a bit, for now you can paw through all the numbers yourself in the slides and reports linked below.

Source: Sony Q3 earnings (PDF), Slides

More Coverage: Reuters, Nikkei, Bloomberg

Tuesday, February 5, 2013

ARM sees 16 percent profit increase in Q4 2012, 21 percent increase in royalty payments

UK-based chipmaker ARM had yet another profitable quarter, announcing that the end of 2012 saw pre-tax profits of around $126 million -- an increase of 16 percent since the same period last year. Revenue totaled $262.8 million for Q4 and with a huge proportion of Android and iOS devices containing chip know-how from ARM, it continues to benefit from the smartphone boom. In fact, shipments of chips based on its processors totaled 2.5 billion in Q4 alone, while royalty revenue grew 21 percent year-on-year, thanks to successes with both its Cortex-A and Mali silicon series. ARM chief exec Warren East added that the company is "well positioned" to have a great 2013, too -- unless everyone stops buying phones all of a sudden.

Via: Reuters

Source: ARM

Friday, February 1, 2013

Panasonic remembers how to make money, reports $667 million profit last quarter

Panasonic remembers how to make money, thanks to weaker yen and costcutting

Just as Sharp offered a slightly more hopeful glimpse at its balance sheet this morning, so too does Panasonic have something worth celebrating: a net profit of 61.4 billion yen ($667 million) in the last three months of 2012. Much of this profit stems from a weaker yen and previous cost-cutting exercises, however, rather than any surge in demand for Panny products -- in fact, underlying sales continued to slip, with cameras, TVs and Blu-ray recorders proving especially hard to shift. Nevertheless, compared to the meager $164 million Panasonic made at the start of 2012, or the ego-crushing $2.1 billion net loss it suffered in the last three months of 2011, no one in that big HQ is likely to be complaining.

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Sharp manages an operating profit in Q3, but forecast remains cloudy

SHARP® GARNERS #1 SHARE IN LARGE SCREEN (60"+) CATEGORY IN 2012

More than Doubles Market Share on a Revenue Basis According to NPD Data

Mahwah, NJ, (January 28, 2013) – Sharp achieved the top U.S. market share in the 60"+ LED TV segment in 2012, according to The NPD Group's Retail Tracking Service. Fueled by an unmatched selection of large screen choices, picture quality performance and brand strength, Sharp more than doubled its market share between 2010 and 2012 (based on revenue share).

"The large screen market is a sweet spot right now for the TV industry," said Ben Arnold, Director of Industry Analysis at The NPD Group. "60"+ TV sales doubled in 2012 compared to 2011 and Sharp has top market share among U.S TV brands. This segment of the market is poised to grow even more in 2013."

Sharp offers the widest selection of 60" and larger LED TVs, including more than twenty 60" (diagonal) and above AQUOS LED televisions, including nine 60" class models, eight 70" class models, three 80" class models and the 90" class, the world's largest commercially available LED TV. This extensive lineup is tailored to meet the needs of virtually any large screen TV buyer, best positioning Sharp to meet the increasing consumer appetite for larger screens. In fact, Sharp's 60" class 6-Series AQUOS model (LC-60LE640U) was the number one selling large screen LED TV in 2012 on a revenue basis.

"Sharp is creating and leading the market for 60" and above LED TVs, making us the fastest growing brand in the industry," said John Herrington, President, Sharp Electronics Marketing Company of America. "In 2013, we will continue this momentum with an all-smart, all-LED, large screen Sharp AQUOS lineup that features more models with Quattron™ technology and striking new slim designs."

At CES 2013, Sharp unveiled its 2013 AQUOS large screen LED TV lineup, which will start rolling out in February. The all-smart, all-LED Sharp AQUOS large screen lineup will include 21 models in the 60" class or larger, more than half featuring Sharp's proprietary Quattron color technology.

For more information visit Sharp Electronics Corporation at www.SharpUSA.com. Find us on Facebook, follow us on Twitter and watch us on YouTube.

About Sharp Electronics Corporation:
Sharp Electronics Corporation is the U.S. subsidiary of Japan's Sharp Corporation, a worldwide developer of one-of-a-kind home entertainment products, appliances, networked multifunctional office solutions, solar energy solutions, LED lighting and mobile communication and information tools. Leading brands include AQUOS® LED TVs, Insight® Microwave Drawer® ovens, and Plasmacluster® air purifiers.

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By: Dilusha On 9:01 PM

Thursday, January 31, 2013

Qualcomm Q1 2013 earnings: $1.91 billion in profit on revenues of $6 billion

The folks in San Diego are making it rain once again, as Qualcomm has just announced its earnings for the quarter with $6 billion in revenues, which represents a 29 percent year-over-year increase and a new record for the firm. It seems the company's Snapdragon chips are everywhere you look these days, and it should come as no surprise that Qualcomm also hauled in a profit of $1.91 billion, which is a 36 percent hike over the previous year. Seeing that the company is so well off, it's also announced a cash dividend payment of $428 million that will go back to shareholders, along with stock repurchases in the amount of $250 million. In case you were wondering, Qualcomm managed to push 182 million of its SoC's out the door during Q1, which represents a 17 percent year-over-year increase. With the Snapdragon 800 due by mid-year, we've a feeling that it'll keep raining in San Diego for some time -- even if the nice weather says otherwise.

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Wednesday, January 30, 2013

LG's Q4 earnings show a narrow yearly net profit of $80.75 million, improved income for all divisions

LG ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2012 FINANCIAL RESULTS
All Business Units Report Improved 2012 Operating Income from Previous Year

SEOUL, Jan. 30, 2013 – LG Electronics Inc. (LG) today announced consolidated revenues of KRW 50.96 trillion (USD 45.22 billion) and a net profit of KRW 91 billion (USD 80.75 million) for full-year 2012. Despite a 6 percent revenue decrease from 2011, operating profits increased significantly in 2012 to KRW 1.14 trillion (USD 1.01 billion) from KRW 379 billion (USD 342.06 million) in full-year 2011.

Fourth quarter 2012 consolidated revenues were KRW 13.50 trillion (USD 12.37 billion) with an operating profit of KRW 107 billion (USD 98.08 million). Unaudited consolidated financial results for the fourth quarter ending Dec. 31, 2012 showed a net loss of KRW 468 billion (USD 428.96 million) which reflects a fine related to alleged cathode-ray tube pricing issues imposed by the European Commission in December.

The LG Home Entertainment Company reported record sales of flat-panel TVs with 9.3 million units in the fourth quarter resulting in a 17.4 percent revenue increase quarter-on-quarter to KRW 6.44 trillion (USD 5.91 billion) and full-year operating profit of KRW 542 billion (USD 480.92 million). Revenues from 3D and Smart TVs increased with higher unit sales in the United States, Europe and CIS countries. Although the Home Entertainment Company had the strongest quarter of the year in terms of revenue, profitability declined somewhat due to lower average selling prices and increased competition. LG will continue to aggressively market 3D and Smart TVs and plans to expand its share of the premium TV segment in 2013 with Ultra HD TVs and OLED TVs.

The LG Mobile Communications Company reported a 7 percent unit increase quarter-on-quarter in mobile handset shipments to 15.4 million with more than half of the units coming from smartphones. Smartphone shipments grew 23 percent compared to the previous quarter, increasing to 8.6 million devices from the 7 million in the third quarter. Fourth quarter revenues were the highest of the year, growing 15 percent to KRW 2.81 trillion (USD 2.58 billion) quarter-on-quarter. Sales of premium LTE smartphones such as Optimus G and Vu:2 increased in the fourth quarter, as did the L-series and Google Nexus 4. With more European and emerging markets introducing LTE services this year, LG plans to increase smartphone revenues and market share by launching follow-up devices to Optimus G and the L-series as well as the new F-series.

The LG Home Appliance Company posted almost flat revenues year-on-year, with sales of KRW 2.94 trillion (USD 2.7 billion) in the fourth quarter as strong sales in the U.S. and CIS countries were largely offset by sluggish demand in Europe, the Middle East and Latin America. Profitability was affected by unfavorable foreign exchange rates and increased marketing investments, even though average selling prices for home appliance products rose in the fourth quarter. The company plans to improve its revenue and profitability in 2013 with more competitive products, advanced technologies and a stronger focus on profitable regions.

The LG Air Conditioning & Energy Solutions Company reported sales of KRW 683 billion (USD 626 million) in the fourth quarter, essentially unchanged year-on-year. An operating loss of KRW 11 billion (USD 10.08 million) in the quarter showed improvement from the same period last year due to operational efficiencies. For full-year 2012, the company recorded revenues of KRW 4.35 trillion (USD 3.86 billion) and operating profit of KRW 156 billion (USD 138.42 million). The priority in 2013 will be to introduce more energy-efficient and localized products to bolster revenue growth.

2013 Business Direction
For 2012, LG Electronics is targeting a revenue goal of KRW 53.5 trillion with plans to spend KRW 2.5 trillion in capital expenditures.

2012 4Q Exchange Rates Explained
Starting from the fourth quarter of 2012, the Company has modified its disclosure of operating profit or loss in accordance with the newly issued Amendments to Korea-International Financial Reporting Standards (K-IFRS) 1001 "Presentation of Financial Statements." Due to this change, the Company has also reclassified comparative financial data in accordance with the new disclosure requirement. Amounts in Korean won (KRW) are converted into U.S. dollars (USD) at the average rate of the three month period in each corresponding quarter: KRW 1,091 per USD (2012 4Q) and KRW 1,146 per USD (2011 4Q). Average rate of the twelve-month period in 2012 was KRW 1,127 per USD.

Earnings Conference and Conference Call
LG Electronics will hold a Korean-language earnings news conference on Jan. 30, 2013 at 16:30 Korea Standard Time at the LG Twin Tower Auditorium (B1 East Tower, 20 Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea). An English language conference call will follow on Jan. 31, 2013 at 10:00 Korea Standard Time (01:00 GMT/UTC). Participants are instructed to call +82 31 810 3069 and enter the passcode 9084#. The corresponding presentation file will be available for download at the LG Electronics website (www.lg.com/global/ir/reports/earning-release.jsp) at 13:00 on Jan. 30, 2013. Please visit http://pin.teletogether.com/eng/ and pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142680# when prompted.

# # #

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By: Dilusha On 7:54 PM

Amazon posts $21.27 billion in 2012 Q4 revenues, makes tinier profit of $97 million

Amazon.com Announces Fourth Quarter Sales up 22% to $21.27 Billion
Operating income up 56% year-over-year - above high end of guidance

SEATTLE, Jan 29, 2013 (BUSINESS WIRE) -- Amazon.com, Inc. AMZN +11.16% today announced financial results for its fourth quarter ended December 31, 2012.

Operating cash flow increased 7% to $4.18 billion for the trailing twelve months, compared with $3.90 billion for the trailing twelve months ended December 31, 2011. Free cash flow decreased 81% to $395 million for the trailing twelve months, compared with $2.09 billion for the trailing twelve months ended December 31, 2011. Free cash flow for the trailing twelve months ended December 31, 2012 includes fourth quarter cash outflows for purchases of corporate office space and property in Seattle, Washington, of $1.4 billion.

Common shares outstanding plus shares underlying stock-based awards totaled 470 million on December 31, 2012, compared with 468 million one year ago.

Net sales increased 22% to $21.27 billion in the fourth quarter, compared with $17.43 billion in fourth quarter 2011. Excluding the $178 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 23% compared with fourth quarter 2011.

Operating income increased 56% to $405 million in the fourth quarter, compared with $260 million in fourth quarter 2011. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $2 million.

Net income decreased 45% to $97 million in the fourth quarter, or $0.21 per diluted share, compared with $177 million, or $0.38 per diluted share, in fourth quarter 2011.

"We're now seeing the transition we've been expecting," said Jeff Bezos, founder and CEO of Amazon.com. "After 5 years, eBooks is a multi-billion dollar category for us and growing fast - up approximately 70% last year. In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5%. We're excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection."

Full Year 2012

Net sales increased 27% to $61.09 billion, compared with $48.08 billion in 2011. Excluding the $854 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales grew 29% compared with 2011.

Operating income decreased 22% to $676 million, compared with $862 million in 2011. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the year on operating income was $14 million.

Net loss was $39 million, or $0.09 per diluted share, compared with net income of $631 million, or $1.37 per diluted share, in 2011.

Highlights

-- For the second year in a row, Amazon's tablet was the most popular item for customers - Kindle Fire HD continued its run as the #1 best-selling, most gifted, and most wished for product across the millions of items available on Amazon worldwide. At year-end, Kindle Fire HD, Kindle Fire, Kindle Paperwhite and Kindle held the top four spots on the Amazon worldwide best seller charts since launch.

-- Amazon announced the launch of AutoRip, a new service that gives customers free MP3 versions of CDs they purchase from Amazon. Additionally, customers who have purchased AutoRip CDs at any time since Amazon first opened its Music Store in 1998 will find MP3 versions of those albums in their Cloud Player libraries - also automatically and for free.

-- Amazon introduced Kindle FreeTime Unlimited, bringing together for the first time all of the types of content kids and parents love - books, games, educational apps, movies and TV shows - into one simple, unlimited, easy-to-use service for kids ages 3-8.

-- Amazon's digital media selection has grown to over 23 million movies, TV shows, songs, magazines, books, audiobooks, and popular apps and games in 2012, an increase from 19 million at year-end 2011.

-- Amazon.com announced new licensing agreements with Turner Broadcasting, Warner Bros. Domestic Television Distribution, and A+E Networks, for popular television series including Falling Skies, The Closer, Pawn Stars, Storage Wars, and Dance Moms, expanding its catalog of title offerings for Prime Instant Video to more than 36,000 movies and television episodes.

-- Amazon launched Kindle Stores for Brazil, Canada, China, and Japan, with a large selection of the most popular books, including thousands of local-language books.

-- Amazon announced that 23 KDP authors each sold over 250,000 copies of their books in 2012, and that over 500 KDP Select books have reached the top 100 Kindle best seller lists around the world.

-- Amazon announced that for the eighth consecutive year, the company ranks #1 in customer satisfaction during the holiday shopping season according to the ForeSee annual Holiday E-Retail Satisfaction Index. ForeSee surveyed over 24,000 customers between Thanksgiving and Christmas, asking them to rate their satisfaction with the top 100 retailers. For the second year in a row, Amazon's score of 88 is the highest ever attained by any retailer in the study.

-- Amazon Web Services (AWS) announced the launch of its newest Asia Pacific Region in Sydney, Australia, now available for multiple services including Amazon Elastic Compute Cloud (EC2), Amazon Simple Storage Service (S3), and Amazon Relational Database Service (RDS). Sydney joins Singapore and Tokyo as the third Region in Asia Pacific and the ninth Region worldwide.

-- AWS announced that SAP Business Suite is now certified to run on the AWS cloud platform. Enterprises running SAP Business Suite can now leverage the on-demand, pay as you go AWS platform to support thousands of concurrent users in production without making costly capital expenditures for their underlying infrastructure. AWS also announced that SAP HANA, SAP's in-memory database and platform, is certified to run on AWS and is available for purchase via AWS Marketplace.

-- AWS continued its rapid pace of innovation by launching 159 new services and features in 2012. This is nearly double the services and features launched in 2011.

-- AWS has lowered prices 24 times since it launched in 2006, including 10 price reductions in 2012.

Financial Guidance

The following forward-looking statements reflect Amazon.com's expectations as of January 29, 2013. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.

First Quarter 2013 Guidance

-- Net sales are expected to be between $15.0 billion and $16.6 billion, or to grow between 14% and 26% compared with first quarter 2012.

-- Operating income (loss) is expected to be between $(285) million and $65 million, compared to $192 million in the prior year period.

-- This guidance includes approximately $285 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir . This call will contain forward-looking statements and other material information regarding the Company's financial and operating results.

These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment and data center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services and technologies, system interruptions, government regulation and taxation, payments and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission ("SEC"), including its most recent Annual Report on Form 10-K and subsequent filings.

Our investor relations website is www.amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases and social media postings.

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By: Dilusha On 7:41 PM

Friday, January 25, 2013

AT&T lost $3.9 billion in Q4 2012, earned $7.3 billion profit for the year

American telecommunications giant AT&T announced its Q4 2012 financial results this afternoon, which reflect $3.9 billion in losses for Ma Bell's final fiscal quarter of last year. However, the company's also posting "record smartphone sales" of 10.2 million last quarter -- "the most by any US carrier," it claims. As it's Q4, the results for the full year are also in; AT&T revealed $7.3 billion in net income across the entirety of 2012. That's what we'd call a marked change from last year's losses.

In terms of phones, AT&T activated 8.6 million new iPhone customers (16 percent of which were totally new to the company), up 1 million over 2011's Q4 and nearly double that of Q3 2012. No specific number is given on Android sign-ups, but AT&T's calling it the "best-ever sales quarter for Android smartphones" -- when those 8.6 million iPhones are subtracted from the overall Q4 2012 sales of phones (10 million), it's not looking so good for non-Apple built devices. On the U-verse front, the latest lifetime subscriber numbers reflect 8 million TV and high-speed internet users, with 192K joining in Q4 2012.

Operating revenues just barely exceeded those of 2011, reaching $127.4 billion, offset by $114.4 billion in expenses (down $3 billion over 2011). Customer numbers also grew in 2012, by a healthy 1.086 million people, the vast majority of which are contract customers (approximately 70 percent). Needless to say, things seem to have gone pretty okay for AT&T in 2012, despite a rocky final quarter. Not too bad for the least loved mobile carrier in the US.

Update: This post originally reflected $3.9 billion in profit for Q4 2012, when it should've reflected losses. Please excuse our error!

when.eng("eng.perm.init")

Microsoft reports Q2 2013 earnings: posts record revenue of $21.5 billion, $6.38 billion profit (update)

Microsoft Reports Record Revenue of $21.5 Billion in Second Quarter
Strong business demand and key product launches drive record revenue.

REDMOND, Wash. - Jan. 24, 2013 - Microsoft Corp. today announced quarterly revenue of $21.46 billion for the quarter ended December 31, 2012. Operating income, net income, and diluted earnings per share for the quarter were $7.77 billion, $6.38 billion, and $0.76 per share.

These financial results reflect the net deferral of revenue for the Windows Upgrade Offer, Office Upgrade Offer and Pre-sales, and the Entertainment and Devices Division Video Game Deferral, partially offset by the recognition of previously deferred revenue for Windows 8 Pre-sales. 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.

"Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers," said Steve Ballmer, chief executive officer at Microsoft. "With new Windows devices, including Surface Pro, and the new Office on the horizon, we'll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need."

The Windows Division posted revenue of $5.88 billion, a 24% increase from the prior year period. Adjusting for the net deferral of revenue for the Windows Upgrade Offer and the recognition of the previously deferred revenue from Windows 8 Pre-sales, Windows Division non-GAAP revenue increased 11% for the second quarter. Microsoft has sold over 60 million Windows 8 licenses to date.

"We saw strong growth in our enterprise business driven by multi-year commitments to the Microsoft platform, which positions us well for long-term growth," said Peter Klein, chief financial officer at Microsoft. "Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and the Microsoft Business Division."

The Server & Tools business reported $5.19 billion of revenue, a 9% increase from the prior year period, driven by double-digit percentage revenue growth in SQL Server and System Center.

"We see strong momentum in our enterprise business. With the launch of SQL Server 2012 and Windows Server 2012, we continue to see healthy growth in our data platform and infrastructure businesses and win share from our competitors," said Kevin Turner, chief operating officer at Microsoft. "With the coming launch of the new Office, we will provide a cloud-enabled suite of products that will deliver unparalleled productivity and flexibility."

The Microsoft Business Division posted $5.69 billion of revenue, a 10% decrease from the prior year period. Adjusting for the impact of the Office Upgrade Offer and Pre-sales, Microsoft Business Division non-GAAP revenue increased 3% for the second quarter. Revenue from Microsoft's productivity server offerings – collectively including Lync, SharePoint, and Exchange – continued double-digit percentage growth.

The Online Services Division reported revenue of $869 million, an 11% increase from the prior year period. Online advertising revenue grew 15% driven by an increase in revenue per search.

The Entertainment and Devices Division posted revenue of $3.77 billion, a decrease of 11% from the prior year period. Adjusting for the Video Game Deferral, the division's non-GAAP revenue decreased 2% for the second quarter. Xbox continues to be the top-selling console in the United States. During the quarter, Microsoft launched Windows Phone 8 with a broad array of carriers and devices.

Business Outlook

Microsoft reaffirms fiscal year 2013 operating expense guidance of $30.3 billion to $30.9 billion.

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. PST (5:30 p.m. EST) 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 Jan. 24, 2014.

Adjusted Financial Results and Non-GAAP Measures

For second quarter fiscal year 2013 GAAP revenue, operating income, and earnings per share growth included the net deferral of revenue for the Windows Upgrade Offer, the Office Upgrade Offer and Pre-sales, and the Entertainment and Devices Division Video Game Deferral, and the recognition of previously deferred revenue for Windows 8 Pre-sales. These items are defined in our Form 10-Q for the quarterly period ended December 31, 2012. 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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By: Dilusha On 9:53 AM

Tuesday, January 8, 2013

Galaxy powers Samsung to record $8.3 billion profit

A man uses Samsung Electronics' tablet Galaxy Tab 10.1 on display for customers at the company's headquarters in Seoul in this file October 7, 2011 file photo. Samsung Electronics, the world leader in mobiles and memory chips, said it likely earned a quarterly profit of $8.3 billion, as it sold close to 500 handsets a minute and as demand picked up for the flat screens it makes for mobile devices, including those for rival Apple Inc products. REUTERS/Jo Yong-Hak/Files

1 of 6. A man uses Samsung Electronics' tablet Galaxy Tab 10.1 on display for customers at the company's headquarters in Seoul in this file October 7, 2011 file photo. Samsung Electronics, the world leader in mobiles and memory chips, said it likely earned a quarterly profit of $8.3 billion, as it sold close to 500 handsets a minute and as demand picked up for the flat screens it makes for mobile devices, including those for rival Apple Inc products.

Credit: Reuters/Jo Yong-Hak/Files

By Miyoung Kim and Hyunjoo Jin

SEOUL | Tue Jan 8, 2013 8:49am EST

SEOUL (Reuters) - Samsung Electronics, the world leader in mobiles and memory chips, said it likely earned a quarterly profit of $8.3 billion, as it sold close to 500 handsets a minute and as demand picked up for the flat screens it makes for mobile devices, including those for rival Apple Inc products.

That run of five straight record quarters may end in January-March on weaker seasonal demand, though a strong pipeline of smartphones - the South Korean group's biggest earner - and improving chip prices have eased concerns that earnings growth could slow this year, powering Samsung shares to record levels last week.

The stock closed down 1.3 percent on Tuesday, in a Seoul market that fell 0.7 percent.

"Investors are a bit concerned that Samsung's momentum may slow in the first half. The smartphone market is unlikely to sustain its strong growth as advanced markets are nearing saturation despite growth in emerging countries," said Kim Sung-soo, a fund manager at LS Asset Management.

Samsung has outpaced Apple - its biggest rival and biggest customer - despite the U.S. firm's launch of the latest iPhone 5, with sales momentum boosted by its Galaxy Note II phone-cum-tablet, or 'phablet', in the fourth quarter. IPhone 5 sales were a little below expectations, analysts said.

While Apple rolled out just a single new smartphone last year globally, Samsung bombarded the market with 37 variants tweaked for regional and consumer tastes, from high-end smartphones to cheaper low-end models. By comparison, Taiwan's HTC Corp released 18 models, Nokia 9 and LG Electronics 24.

HTC on Monday said its fourth-quarter profit slumped more than 90 percent as its sales continue to trail those of the Galaxy range and the iPhone.

Samsung, valued at close to $230 billion, gave its October-December earnings guidance on Tuesday, ahead of the full earnings release expected by January 25.

A HIGH NOTE

Shipments of Samsung's flagship Galaxy S III, which overtook the iPhone 4S in the third quarter to become the world's best-selling smartphone, are likely to have slipped to around 15 million in the last quarter from 18 million in July-September, analysts estimate, but sales of around 8 million Galaxy Note II 'phablets' should more than make up for that - pushing overall smartphone shipments to around 63 million.

"The Note was selling well, boosting fourth-quarter profit, while iPhone 5 sales were less than expected," said Song Myung-sub, an analyst at HI Investment & Securities.

"Samsung's profit will drop in the current quarter because of decreased phone profits. It will launch the Galaxy S IV only in March or April so, without new models, phone sales prices will fall this quarter. For the whole year, Samsung will launch new models faster than Apple and have the upper hand in the smartphone market."

The new Galaxy, widely expected to be released within months, may have an unbreakable screen and full high-definition quality resolution boasting 440 pixels per inch, as well as a better camera and a more powerful processor.

"Samsung's smartphone shipments are likely to grow even in a seasonally weak first quarter. The early launch of the Galaxy S IV would drive second-quarter growth momentum," said BNP Paribas Securities analyst Peter Yu, who predicts Samsung's 2013 operating profit will grow 25 percent to almost $35 billion.

Samsung is expected to increase its smartphone sales by more than a third this year, and widen its lead over Apple as it offers a broader range of mobile devices, said Neil Mawston, executive director at market researcher Strategy Analytics, which forecasts Samsung will sell 290 million smartphones this year, up from a projected 215 million in 2012.

Kim Sung-in, an analyst at Kiwoom Securities, sees Samsung shipping 320 million smartphones this year and doubling sales of its tablets to 32 million.

STRONG NUMBERS

Samsung said its October-December operating profit jumped 89 percent to 8.8 trillion won from a year ago, just ahead of a forecast for 8.7 trillion won by 16 analysts surveyed by Reuters. That is 8.6 percent higher than its previous record of 8.1 trillion won in July-September.

Analysts expect profits from the mobile division to more than double from last year and increase slightly from the previous quarter, to around 5.8 trillion won. A recovery in chip prices and flat screens should also boost component earnings, helped by booming sales of mobiles carrying Samsung's chips, micro-processors and flat screens.

Reflecting the strong outlook, shares in Asia's most valuable technology stock last week hit a life high of 1.584 million won ($1,500). The stock gained 44 percent last year, topping Apple's 31 percent increase and easily outpacing a 9 percent rise on the broader Korean market.

Samsung, led by founding family member and chairman Lee Kun-hee, is embroiled in a patent legal battle with Apple globally. Apple won a $1.05 billion verdict against Samsung in August, but has failed to win a permanent sales ban on several, mostly older Samsung models.

(Additional reporting by Joyce Lee and Narae Kim; Editing by Ian Geoghegan)

View the original article here

By: Dilusha On 10:40 PM

Sunday, November 18, 2012

Panasonic executive: panel displays to return to profit in Q4

A man looks at Panasonic Corp's Viera TV screens displayed in an electronics store in Tokyo November 15, 2012. REUTERS/Toru Hanai

1 of 2. A man looks at Panasonic Corp's Viera TV screens displayed in an electronics store in Tokyo November 15, 2012.

Credit: Reuters/Toru Hanai

IBARAKI, Japan | Thu Nov 15, 2012 1:29am EST

IBARAKI, Japan (Reuters) - Panasonic Corp's panel display business should return to profit in the three months to March 31, as it decouples from Japan's struggling TV industry with stronger sales of LCD panels to makers of tablets and PCs, the head of the division said in an interview on Thursday.

"We are now making displays for more than 10 models of tablets and PCs," Yoshio Ito said at a former factory in the town of Ibaraki in Osaka, western Japan, once the hub of the company's TV production and which now serves as his headquarters and a research and development center.

Sales of small LCD panels will likely make up around 60 percent of the unit's sales in the October-March second half of the business year compared with 30 percent in the first six months, he said.

As Panasonic draws back from TVs it is looking to boost sales of smaller LCD panels used in tablet computers and mobile phones, a strategy also being pursued by local rival Sharp Corp.

In the three months to September 30, the company's audiovisual division posted a loss of 2.1 billion yen ($26 million), with sales down 7 percent from a year earlier. For the full year it cut its operating profit forecast for the unit to 36 billion yen from 121 billion yen.

Panasonic last month warned it will post a net loss of close to $10 billion in the year ending next March 31 as it writes off tax deferred assets and goodwill related to its mobile phones solar panels and small lithium batteries.

(Reporting by Tim Kelly and Reiji Murai; Editing by Michael Watson)

View the original article here

By: Dilusha On 7:25 PM

Saturday, November 10, 2012

Telus profit lifted by wireless; dividend raised

n">(Reuters) - Telus Corp reported a stronger third-quarter profit on Friday, as increased smartphone adoption boosted earnings from its wireless business and spurred the Canadian telecom company to raise its quarterly dividend.

Wireless data revenue jumped 23 percent in the third quarter ended September 30 as the proportion of postpaid subscribers using smartphones rose to 63 percent, from 48 percent a year earlier.

The Vancouver-based company, one of Canada's largest telecom players, raised its quarterly dividend to 64 Canadian cents a share, from 61 Canadian cents.

In a report to clients, Desjardins Capital Markets analyst Maher Yaghi said Telus' quarterly results and dividend increase were in line with expectations.

"Telus continues to post strong wireless results, which more than offset the decline in the profitability of the wireline business," he said. "The company should continue to attract dividend growth-seeking investors."

Telus said it added some 116,000 postpaid wireless subscribers in the quarter. Rogers Communications' has said its postpaid customer base grew by 76,000, and BCE Inc, Canada's largest telecom company, added 148,502 net postpaid customers.

The number of new postpaid subscribers is watched closely, because they often enter into multi-year contracts and pay more than prepaid customers.

The average Telus wireless customer paid C$61.42 each month in the quarter, 90 Canadian cents more than a year earlier, as growth from data more than offset declining revenue from voice services.

Telus' net income rose to C$351 million ($351 million), or C$1.07 per diluted share, in the quarter from C$326 million, or C$1.00 per share, a year earlier.

Analysts had expected earnings of C$1.07 a share, according to Thomson Reuters I/B/E/S.

Revenue rose 6 percent to C$2.77 billion, compared with the consensus forecast of C$2.75 billion.

The company also said Chief Financial Officer Robert McFarlane, who has been with Telus for 12 years, will retire at the end of the year. He will be replaced by John Gossling.

Telus said it also added 42,000 new TV subscribers and 26,000 high-speed Internet customers in the quarter ended September 30, partially offseting the loss of about 39,000 landline customers.

The company said its total wireless subscriber base of 7.6 million is up five percent from a year ago.

Shares of Telus were up 2.3 percent in afternoon trading. ($1 = 1.0017 Canadian dollars)

(Reporting by Ankur Banerjee in Bangalore and Allison Martell in Toronto; Editing by Joyjeet Das and Tim Dobbyn)

View the original article here

By: Dilusha On 7:38 PM

T-Mobile USA Q3 2012 earnings: Revenue drops 6 percent to $4.9 billion, profit down 15 percent

Mobile USA Reports Third Quarter 2012 Operating Results

Net Customer Growth in the Third Quarter; Continued Year-on-Year Churn Improvements

Third Quarter 2012 Highlights

Operational Highlights:

-Net customer additions of 160,000 reflect strong net additions of 365,000 branded prepaid customers
-Branded contract churn of 2.3% improved 30 basis points year-on-year
-Rate of branded net contract customer losses in the third quarter of 2012 improved slightly sequentially (492,000 in Q3/12 compared to 557,000 in Q2/12) but increased year-on-year (389,000 in Q3/11) due to the impact of the iPhone 5 launch
-3G/4G smartphones sales accounted for 77% of units sold and increased 28% year-on-year to 2.3 million units
-The $4 billion 4G network modernization plan is well underway; first cities with HSPA+ on -1900 PCS spectrum launched in the third quarter of 2012
-New Unlimited Nationwide 4G Data plan, launched in September, is a key differentiator in the marketplace

Summary of Financial Results:

-Total revenues of $4.9 billion, a decrease of 6.4% year-on-year, reflecting higher equipment revenues from the Company's new Value plans; total service revenues were $4.3 billion, a decrease of 8.7% year-on-year
-Branded prepaid revenues increased to $450 million, a 38% increase year-on-year
-Growth in Monthly 4G plans drove prepaid ARPU to $27.35, up 12.5% year-on-year
-Branded contract data ARPU of $19.45 increased 10.4% year-on-year
-Branded contract ARPU declined 3.3% year-on-year to $56.59 in part due to the popularity of the Value plans, which now account for nearly one-quarter of branded contract customers
-Adjusted OIBDA of $1.2 billion decreased 15.2% year-on-year in the third quarter of 2012 largely due to higher advertising expenses
-Adjusted OIBDA margin of 29% declined 2 percentage points sequentially and year-on-year

BELLEVUE, Wash.--(BUSINESS WIRE)--T-Mobile USA, Inc. ("T-Mobile") today reported its third quarter 2012 results, which demonstrate that successful execution of the Company's Challenger Strategy continues to improve performance in key operational and financial areas. T-Mobile ended the third quarter of 2012 with 33.3 million customers, a net addition of 160,000 customers compared to the second quarter of 2012. The sequential improvement was driven primarily by the continued expansion of branded prepaid customers and a reduction in branded contract net customer losses. The Company's branded prepaid customer growth was its best quarterly performance of this year and exceeded the annual growth reported in 2011.

"The combination of T-Mobile USA and MetroPCS will further deepen the Company's LTE spectrum position in key metropolitan areas and provide a path to an at least 20 by 20 MHz LTE deployment in 90% of the top 25 U.S. markets"
In the quarter, the Company reported adjusted OIBDA of $1.2 billion and an adjusted OIBDA margin of 29%. As expected, third quarter 2012 adjusted OIBDA reflects higher advertising expenditures related to the Company's brand re-launch.

"We continue to make solid progress with our Challenger Strategy, as evidenced by our strong performance in prepaid services, the growing attractiveness of our Value and Unlimited plans, the execution of our network modernization program, and the expansion of our popular handset portfolio," said John Legere, President and CEO of T-Mobile USA. "Our strategy, including our ability to deliver more affordable, faster 4G services to more customers in more metropolitan areas, will be significantly accelerated by our proposed combination with MetroPCS. With MetroPCS, we aim to become the industry's leading value carrier – for both prepaid and contract service offerings – with the scale, spectrum and financial resources to aggressively compete with the other national carriers."

T-Mobile Strategic Initiatives Update

T-Mobile continues to make significant progress in executing its Challenger Strategy. In September, John Legere was named President and Chief Executive Officer of T-Mobile and has reiterated his strong commitment to the Company's Challenger Strategy.

Amazing 4G Services Highlights:

T-Mobile continues to advance its $4 billion 4G network modernization plan, which includes installing new advanced equipment that paves the way for the launch of Long Term Evolution ("LTE") service in 2013.
Las Vegas and Kansas City were the first cities where T-Mobile customers benefited from the launch of HSPA+ on 1900 PCS spectrum, which delivers enhanced voice and data coverage, as well as faster speeds on unlocked devices such as the iPhone; just yesterday, Washington DC, Baltimore, and Houston also went live. The Company expects to announce further network strengthening in many additional cities in the coming months.
In the third quarter of 2012, T-Mobile completed the transaction announced in June 2012 with Verizon Wireless for the purchase and exchange of AWS spectrum licenses in 218 markets across the U.S. This transaction improved T-Mobile's spectrum position in 15 of the top 25 markets nationwide.
T-Mobile continued to expand its compelling 4G smartphone portfolio, including adding more devices under the popular Samsung Galaxy lineup, such as the Samsung Galaxy Note 2, and announcing the upcoming availability of two Windows Phone 8 smartphones, including the exclusive Nokia Lumia 810.
Value Leader Highlights:

T-Mobile is a champion of "bring your own device (BYOD)" wireless, with affordable value plans that separate the cost of wireless service from the purchase of a new phone.
In early September, T-Mobile launched a new Unlimited Nationwide 4G Data plan that is a key differentiator in the marketplace.
Trusted Brand Highlights:

As part of its brand re-launch program, the Company increased investment in advertising to highlight its fast and reliable nationwide 4G network and its blazing fast data speeds in the U.S.

Multi-Segment Player Highlights:

In the Business-to-Business (B2B) segment, T-Mobile looks to serve as a trusted communications advisor, helping businesses develop cost-effective, high-value communications programs that meet their business objectives –through bring-your-own-device (BYOD), and mobile device management (MDM) programs as well as attractive international mobility and mobile broadband data plans. The Company continues to aggressively expand its B2B sales force.
T-Mobile launched three new Mobile Virtual Network (MVNO) partnerships during the quarter: Spot Mobile, Solavei, and UltraMobile, adding to its existing partnerships with TracFone/SIMPLE Mobile and Roam Mobility.
Challenger Business Model Highlights:

The Company continues with its efforts to drive operational efficiencies through the Reinvent program and is on track to achieve $900 million in annual gross cost savings, which the Company has started reinvesting in customer acquisition programs.
Combination with MetroPCS:

On October 3, 2012, Deutsche Telekom and MetroPCS announced their intent to combine T-Mobile and MetroPCS and create the premier "Challenger" in the U.S. wireless market and the value leader for contract and no-contract service offerings.
The complementary spectrum holdings of the two companies will enable a deeper LTE network deployment, with a clear path toward at least 20 by 20 MHz of 4G LTE in many areas of the country.
The combination will yield projected cost synergies of $6 to $7 billion.
A combined T-Mobile and MetroPCS will represent an attractive growth company with healthy projected growth rates, including a projected 7% to 10% EBITDA CAGR over the next five years.
Quarterly Financial Results:

For more detailed summary of third quarter 2012 financial results, please see the separate financial results release issued by T-Mobile today.
Forward-Looking Statements

This news release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this news release regarding the business outlook, expected performance and forward-looking guidance, as well as other statements that are not historical facts, are forward looking statements. The words "estimate," "project," "forecast," "intend," "expect," "believe," "target," "providing guidance" and similar expressions are intended to identify forward-looking statements.

Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer growth and retention, pricing, operating costs, the timing of various events and the economic and regulatory environment.

About T-Mobile USA

Based in Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless operation of Deutsche Telekom AG (OTCQX: DTEGY). By the end of the third quarter of 2012, approximately 131 million mobile customers were served by the mobile communication segments of the Deutsche Telekom group - 33.3 million by T-Mobile USA - all via a common technology platform based on GSM and UMTS and additionally HSPA+ 21/HSPA+ 42. T-Mobile USA's innovative wireless products and services help empower people to connect to those who matter most. Multiple independent research studies continue to rank T-Mobile USA among the highest in numerous regions throughout the U.S. in wireless customer care and call quality.

In order to provide comparability with the results of other US wireless carriers, all financial amounts are in US dollars and are based on accounting principles generally accepted in the United States ("GAAP"). T-Mobile USA results are included in the consolidated results of Deutsche Telekom, but differ from the information contained herein as, among other things, Deutsche Telekom reports financial results in Euros and in accordance with International Financial Reporting Standards (IFRS).

For more information, please visit http://www.T-Mobile.com. T-Mobile is a federally registered trademark of Deutsche Telekom AG. For further information on Deutsche Telekom, please visit www.telekom.de/investor-relations.

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By: Dilusha On 7:21 PM