CorporateInternationalNewsResults Q2 sales at $15.7 bn, up 22 percent

Amazon has announced its Q2 sales increased 22 percent to reach $15.7 billion.

Operating cash flow increased 41 percent to $4.53 billion for the trailing twelve months, compared with $3.22 billion for the trailing twelve months ended June 30, 2012. Free cash flow decreased 76 percent to $265 million for the trailing twelve months, compared with $1.10 billion for the trailing twelve months ended June 30, 2012.

Common shares outstanding plus shares underlying stock-based awards totaled 474 million on June 30, 2013, compared with 468 million one year ago.

Operating income decreased 26 percent to $79 million in the second quarter, compared with $107 million in second quarter 2012. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $18 million.

Net loss was $7 million in the second quarter, or $0.02 per diluted share, compared with net income of $7 million, or $0.01 per diluted share, in second quarter 2012.

“We are so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content,” said Jeff Bezos, founder and CEO of

“The Kindle Store now offers millions of titles including more than 350,000 exclusives that you won’t find anywhere else. Prime Instant Video has surpassed 40,000 titles, including many premium exclusives like Downton Abbey and Under the Dome. And we’ve added more than a thousand books, games, educational apps, movies and TV shows to Kindle FreeTime Unlimited, bringing together in one place all the types of content kids and parents love,” added Bezos.

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Wipro Q2 revenues at Rs 9,735 crore, up 5 percent


Wipro has achieved revenue of Rs 9,735 crore in the second quarter, an increase of 5 percent Y-o-Y.

Net Income from continuing operations was Rs 1,623 crore, an increase of 11 percent Y-o-Y. IT services revenue was Rs 8,936 crore, a sequential increase of 0.2 percent and Y-o-Y increase of 4.9 percent. IT services Earnings Before Interest and Tax (EBIT) was Rs 1,785 crore, an increase of 2 percent Y-o-Y.

Commenting on the results Azim Premji, chairman, Wipro said, “We are seeing higher confidence among our clients on the backdrop of positive macroeconomic developments,
particularly in the US.”

TK Kurien, executive director & CEO, Wipro said, “We are seeing a pickup in large deal closures which has reflected in strong order book in the current quarter. Our clients look to technology to pursue growth and profitability and increase organizational agility.”

Suresh Senapaty, executive director & chief financial officer, Wipro said, “Our investments in client mining have shown benefits with strong growth in our top clients. We have given wage hikes for both onsite and offshore employees effective June 2013, which has impacted our operating margins in the quarter.”

The outlook for third quarter revenues from IT Services business to be in the range of $1.62- $1.65 billion.

The IT Services segment had 147,281 employees as of June 30, 2013, an increase of 1,469 people in the quarter. The company added 28 new customers for the quarter.

Wipro has won a multi-year, multi-million dollar contract with an APAC-based telecom service provider, to provide big data based analytics solutions to enable business transformation. Wipro, as the lead system integrator for this engagement, will transform business processes to improve end-customer experience, reduce churn and enhance decision making capabilities of the operator by providing meaningful insights into the consumer.

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Tata Communications Q1 revenue at Rs 4,498 cr, up 10 percent

vinod kumar

Tata Communications’ consolidated gross revenues increased 10 percent year-on-year to Rs 4,498 crore.

The gross revenues for core business improved by 10 percent at Rs 4,019 crore from Rs 3,646 crore during Q1 FY2013.

Global Voice Services (GVS) maintained its growth trend in volume of International Long Distance (ILD) minutes. The ILD voice minutes carried in Q1 FY2014 were at 13.9 bn, up from 13.1 bn minutes in Q1 FY2013. GVS net revenues registered a 12 percent Y-o-Y growth in Q1 FY14.

Global Data Services (GDS) gross revenues maintained its growth momentum at 12 percent with Rs 1,796 million during the reporting quarter, up from Rs 1,598 crore last year in Q1 FY2013.

The start-up business, primarily Neotel, posted a further revenue improvement of 4 percent at Rs 479 crore up from last year which stood at Rs 461 crore. In local currency terms, Neotel’s Q1 FY14 revenues were up by 17.7 percent Y-o-Y. The start-up business EBITDA margins were at 21 percent in Q1 FY2014 compared to 12.8 percent in Q1 FY2013.

Neotel’s performance benefited from market-share gains, an evolving business mix in favor of recurring revenues and sustained cost optimisation efforts.

Commenting on the performance Vinod Kumar, MD and CEO, Tata Communications said, “We have surpassed last year’s performance on all financial parameters with strong revenue and EBITDA growth which sees us continue to outpace our peers in the market. Our focus on talent, service innovation and marketing is enabling our business with wider market appeal and allows us to offer greater value to our customers.”

Despite the continued softness in economic conditions, our business is pushing ahead with good momentum added Kumar.

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Apple Q3 revenue at $35.3 bn, achieves flat growth


Apple has posted quarterly revenue of $35.3 billion achieving a flat growth.

The company posted quarterly revenue 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.

Asia pacific net sales for the quarter was $2.04 billion. Apple 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.

iPhone unit sales totaled 31.2 million and 116.5 million in the third quarter and first nine months of 2013, respectively, increases of 20 percent and 19 percent compared to the same periods in 2012.

Net sales of iPad were $6.4 billion and $25.8 billion in the third quarter and first nine months of 2013, respectively. While iPad net sales during the third quarter of 2013 decreased $2.4 billion or 27percent compared to the third quarter of 2012, iPad net sales increased by $2.0 billion or 8 percent during the first nine months of 2013 compared to the same period in 2012.

Unit sales of iPad were 14.6 million and 57 million during the third quarter and first nine months of 2013, respectively, a decrease of 14 percent compared to the third quarter of 2012 and an increase of 29 percent compared to the first nine months of 2012.

Net sales of iTunes, software and services were $4 billion and $11.8 billion in the third quarter and first nine months of 2013, respectively, increases of $787 million or 25 percent and $2.4 billion or 26 percent compared to the same periods in 2012. These increases were primarily due to growth in net sales from iTunes, AppleCare and licensing.

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 added Cook.

“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, CFO, Apple.

Apple has given fourth quarter revenue guidance between $34 billion and $37 billion, gross margin between 36 percent and 37 percent and operating expenses between $3.9 billion and $3.95 billion.

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Huawei H1 sales reaches CNY 113.8 bn, up 10.8%


Huawei has generated revenues of CNY 113.8 billion, an increase of 10.8 percent over the same period in 2012 as per its its unaudited financial results for the first half of 2013.

Based on this robust growth and other positive business indicators, Huawei expects to generate a net profit margin of 7-8 percent in 2013.

“Our success in H1 2013 was mainly driven by the steady growth of the carrier network business, the expansion of enterprise business, and the fast growth of the consumer business, as well as the continuous enhancement of our overall operational efficiency. Revenues and profit are in line with our expectations,” said Cathy Meng, chief financial officer, Huawei.

From these positive indicators, we believe Huawei will generate strong performance and profit margins in the second half of this year and are confident that we will achieve our goal to increase revenue by 10 percent added Meng.

Looking ahead, we will continue to focus on our pipe strategy, increase investment in core growth areas for the business, and boost efficiency through a series of operational and management reviews and improvements. Huawei will also create more value for our customers by providing them with even more innovative and competitive products and services.

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Telenor India Q2 revenue reaches Rs 696 crore, down 27 percent

telenor office

Telenor India reported Q2 revenues of Rs 696 crore, down by 27 percent Y-o-Y.

On the other hand, revenues in six circles increased by 7 percent compared to second quarter last year despite negative development in Maharashtra following closure of neighbouring Mumbai circle earlier this year.

The company’s number of subscriptions increased by 0.9 million in the second quarter taking the total subscriber base to 24.5 million. In the second quarter of 2012, the comparable six circle subscription base closed at 23.5 million.

In the quarter, the quality of the customer base improved, resulting in an increase of ARPU from Rs 94 in first quarter to Rs 97 in second quarter.

The EBITDA loss improved to Rs 146 crore mainly as a result of the revenue development and product optimisation positively impacting the gross margin.

In the second quarter of 2013, Telenor Group reported revenues of NOK 25.7 billion, representing an organic revenue growth of 2 percent.

“Telenor’s geographical footprint covers both advanced and growing economies, offering growth opportunities and profitability as demonstrated in the second quarter. At the same time, regulatory issues remain a challenge, particularly visible in Bangladesh and India during this period,” said Jon Fredrik Baksaas, president and CEO, elenor Group.

In the second quarter the company gained more tham 5 million new subscribers driven by strong growth in Asia. The company was recently declared a successful applicant for a telecommunications licence in Myanmar.

We are currently awaiting the telecom law and final licence conditions from the local authorities. Our acquisition of Bulgaria’s second largest telecom operator Globul has been approved by the EU Commission added Baksaas.

In terms of outlook for 2013, the company has announced organic revenue growth in the range of 2-3 percent and EBITDA margin before other income and expenses around 34 percent.

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ZTE’s H1 net profit at RMB 302 million, up 23.5 percent

zte office

ZTE today issued guidance for first-half net profit at RMB 302 million, an increase of 23.5 percent Y-o-Y.

With Q2 performance, the company has achieved two consecutive quarters of positive results. In the first half, ZTE’s revenue was RMB 37.7 billion, a decrease of 11.6 percent, a result of lower demand for GSM and UMTS products in China, and lower sales of GSM handsets and data cards.

ZTE’s gross profit margin gained in the first half, a result of improved cost controls and a focus on efficiency. The company’s sales, administrative and research and development expenses declined significantly, and the company recognized a financial gain from the disposal of a subsidiary.

In the first half of 2013, the Renmenbi appreciated in value against the US dollar, resulting in less favorable foreign exchange comparisons with a year earlier. ZTE was also affected by a depreciation in the Euro, Japanese Yen and some emerging market currencies against the US dollar.

ZTE today also announced details of its stock option incentive scheme for employees whereby 103.2 million ZTE shares, equivalent to 3 percent of the company’s share capital will be distributed to 1,531 holders.

The stock options will have a validity period of five years, comprising of a two-year waiting period, and a three-year exercise period. When conditions for exercising the options are fulfilled.

Option holders can exercise them in three tranches, with each tranche accounting for 30 percent, 30 percent and 40 percent of the options respectively. The exercise price of the options will be RMB 13.69 each, which was the closing price of ZTE’s A-shares on the Shenzhen stock exchange on July 12, 2013.

The beneficiaries of the stock option program will be ZTE directors, senior management, and employees involved in core businesses that directly contribute to the company’s operating results and business development.

A total of 5.35 million stock options will be granted to 18 directors and executives holding senior management roles, while 97.85 million options will be awarded to core business employees.

“The stock option scheme is a mechanism for correlating employee remuneration with the company’s financial performance and long-term strategic objectives,” said Hou Weigui, chairman, ZTE.

“The scheme will help the company foster a culture of value creation, and align the interests of shareholders with senior management and core employees. It will enable the company to effectively deploy our human resources, and optimize our employee compensation structure and competitiveness, laying the foundation for the continuing sustainable development of ZTE in the long term,” added Weigui.

“ZTE will grasp this opportunity to embark on a second wave of entrepreneurial growth, and human resources will be a key part of our journey. The share option incentive scheme will help attract and incentivize our employees to create greater value for the company and shareholders,” added Shi Lirong, president, ZTE.

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