Tag Archives: Outlook

South Korea chipmaker shares rise on Micron's industry recovery outlook
March 21, 2019 6:00 am|Comments (0)

SEOUL (Reuters) – Shares of South Korean chip giants jumped on Thursday after U.S. chipmaker Micron Technology Inc forecast recovery in a memory market saddled with oversupply as device demand sags.

FILE PHOTO: Memory chip parts of U.S. memory chip maker MicronTechnology are pictured at their booth at an industrial fair in Frankfurt, Germany, July 14, 2015. REUTERS/Kai Pfaffenbach

The world’s second-biggest memory chip maker, SK Hynix Inc, saw its shares surge nearly 7 percent by 0330 GMT, while technology giant Samsung Electronics Co Ltd gained 4.3 percent.

Micron said on Wednesday it saw recovery in the memory chip market, after reporting quarterly profit that beat analyst estimates as cost control helped offset falling demand and prices.

“Micron’s projection on growing memory chip demand from data center operators set up a positive outlook for the memory chip industry, helping boost shares of South Korean chipmakers,” said analyst Seo Sang-young at Kiwoom Securities.

Analysts have been wary about prospects of the memory chip market due to lower demand for smartphones and slumping investment from data center companies.

“With its plan to cut production, it seems that Micron is determined to better control oversupply problems in the chip market,” said analyst Park Sung-soon at BNK Securities.

Tech research firm TrendForce in a report on Wednesday said it expects a only a slight decline in NAND flash chip sales in the second quarter as demand recovers from smartphones, computers and servers.

“Although it won’t cause an immediate reversal of the oversupply situation, it will have a positive effect on the market environment,” analyst Ben Yeh at DRAMeXchange, a Trendforce division, said in the report.

Both Samsung Electronics and SK Hynix said in their earnings conference calls in January that they expected sales of memory products to revive in the second half of the year.

Rising chip shares helped lift the broader KOSPI stock price index by 0.3 percent.

Reporting by Heekyong Yang; Editing by Christopher Cushing

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Posted in: Cloud Computing|Tags: , , , , , , , ,
Weak outlook overshadows tech firm Akamai's profit beat
August 1, 2018 12:00 am|Comments (0)

(Reuters) – Akamai Technologies Inc’s (AKAM.O) forecast for third quarter revenue largely missed Wall Street expectations on Tuesday, even as its second quarter profit topped estimates on strength in its cloud security business.

Shares of the company, which were initially up after results, fell 3.5 percent to $ 72.60 in after-hours trading.

It forecast current-quarter revenue of $ 656 million to $ 668 million, while analysts on average were expecting $ 668 million, according to Thomson Reuters I/B/E/S.

Akamai provides services to companies to speed up their web pages, but has been under pressure as larger customers such as Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O) develop their own in-house know-how to handle web traffic.

The company has been responding by shifting its focus to cloud security.

Revenue from Akamai’s web business rose nearly 11 percent to $ 351 million in the second quarter. However, this growth was the slowest in at least six quarters.

“(Revenue) is a little lower than what we’d like to see from the web division,” Chief Executive Officer Tom Leighton said on an earnings call with analysts.

On the same call, Chief Financial Officer James Benson said the company was nonetheless “optimistic” about web division growth.

Revenue from the company’s cloud security business – which provides data centers with safe ways to operate and deliver content – rose 33 percent to $ 155 million in the quarter.

The company’s overall revenue rose 9 percent to $ 663 million, narrowly beating the average analyst estimate of $ 662 million.

Net income fell to $ 43 million, or 25 cents per share, in the quarter ended June 30, from $ 57 million, or 33 cents per share, a year earlier, as expenses rose 16 percent.

Excluding items, the company earned 83 cents per share, beating the average analyst estimate of 80 cents.

Akamai said in quarter three it expects to report adjusted earnings of 80 cents to 86 cents per share. Analysts were expecting earnings of 80 cents.

Reporting by Pushkala Aripaka in Bengaluru; Editing by Arun Koyyur and Rosalba O’Brien

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Posted in: Cloud Computing|Tags: , , , , , , ,
SAP, gaining market share, raises outlook
April 24, 2018 6:00 am|Comments (0)

FRANKFURT/LONDON (Reuters) – Germany’s SAP (SAPG.DE) announced upbeat results in the seasonally tough first quarter, saying it was gaining ground on its main competitors Salesforce (CRM.N) and Oracle (ORCL.N) in the cloud and that its margin recovery was firmly on track.

SAP logo at SAP headquarters in Walldorf, Germany, January 24, 2017. REUTERS/Ralph Orlowski

SAP, Europe’s largest tech company by stock market valuation, also raised its sales and profits guidance for 2018 to take into account the $ 2.4 billion acquisition of U.S. sales software firm Callidus that was announced in January.

“We’re gaining share fast and we’re outpacing our toughest competitors pretty handily,” Chief Executive Bill McDermott told reporters on a conference call, calling the results strong at the top and bottom line.

SAP now expects total non-IFRS revenues at constant currencies this year of 24.8-25.3 billion euros ($ 30.28-$ 30.89 billion), representing growth of 5.5-7.5 percent, up from an earlier expectation of 5-7 percent growth.

Non-IFRS operating profits rose 14 percent in constant currency to 1.235 billion euros, compared to the average forecast of 1.19 billion euros in a Reuters poll of 15 analysts.

SAP headquarters in Walldorf, Germany, January 24, 2017. REUTERS/Ralph Orlowski

Cloud subscription and support revenues, SAP’s growth driver, grew by 18 percent to exceed 1 billion euros for the first time. At constant currencies they rose 31 percent, to which McDermott said: “Wow.”

Cloud growth accelerated outside the United States and grew faster than any of SAP’s major rivals, including Oracle, Salesforce and Workday (WDAY.O), he added SAP has faced currency headwinds due to the strong euro, and both the company and analysts focus on key metrics after adjustment for currency effects to get an underlying picture of performance.

Had SAP reported in U.S. dollars, like its competitors, the growth numbers would have turned out even better, said Chief Financial Officer Luca Mucic. Cloud subscriptions, for example, would have shown year-over-year growth in the first quarter of 37 percent in U.S. dollar terms, he said.

“We grew faster than every ‘best-of-breed’ cloud (competitor) out there,” McDermott said. “Faster than Workday, a lot faster than Salesforce, and a lot faster than Oracle.”

Mucic said that an expansion of 1.1 percentage points in operating margins in the first quarter boded well for SAP after a strong showing in the same quarter a year ago.

($ 1 = 0.8191 euros)

Reporting by Douglas Busvine and Eric Auchard; Editing by Tom Sims

Our Standards:The Thomson Reuters Trust Principles.

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Posted in: Cloud Computing|Tags: , , , ,
Microsoft Outlook users with Office 365 get a security perk: Unsafe email warnings
April 12, 2016 2:15 am|Comments (0)

There’s no need for a hacker to attack a server or network if they can simply trick someone into disclosing confidential information. Microsoft is adding an additional layer of defense to help stop that from happening—if you subscribe to Office 365.

In the coming weeks, Microsoft said it will begin showing what it calls “Safety Tips” at the top of email: colored bars to let you know whether an email is safe, suspicious, or known to be fraudulent. Microsoft said Safety Tips will be managed by Exchange Online Protection, the back-end protection mechanism used to secure email sent through Office 365.

Why this matters: Everyone tells you, don’t click on suspicious links!—and yet we do, because we don’t necessarily think the link is suspicious. It might be a purported email from HR, or from a client, or an urgent request that comes in late on a Friday. Microsoft’s Safety Tips won’t be able to block everything, but it’s an additional layer of security that will make the crook’s job a little harder. Of course, it’s also another reason to subscribe to Office 365.

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