Tag Archives: Revenue
FILE PHOTO: The logo of Infosys is pictured inside the company’s headquarters in Bengaluru, India, April 13, 2017. REUTERS/Abhishek N. Chinnappa/File Photo
(Reuters) – Indian IT services company Infosys Ltd raised its full-year revenue growth forecast on Friday, but reported a larger-than-expected drop in third-quarter profit, due to higher expenses.
The country’s second-biggest software services exporter by market capitalization reported a 29.6 percent fall in attributable profit for October-December to 36.09 billion rupees ($ 511.94 million). That compared with the 41.31 billion rupees average of 25 analyst estimates compiled by Refinitiv Eikon.
A year earlier, it made a profit of 51.29 billion rupees, helped by tax benefits from the firm’s deal with the U.S. Internal Revenue Service, the company said in a statement here
Still, Infosys raised its revenue growth forecast for the year through March 2019 to 8.5-9 percent in constant currency, from 6-8 percent previously.
Total expenses in the quarter surged over 26 percent to 170.21 billion rupees, which included an additional depreciation and amortization charge of $ 12 million and a reduction of $ 65 million in the carrying value for its Skava units.
The company also said it was “no longer highly probable” that the sale of its units Kallidus & Skava and Panaya would be completed by March 31, 2019.
Meanwhile, revenue from operations in the quarter rose 20.3 percent to 214 billion rupees in what is usually considered a seasonally weak period for Indian IT firms.
Infosys also approved a buyback of shares worth 82.60 billion rupees as part of its capital allocation policy.
On Thursday, market leader Tata Consultancy Services Ltd reported a record quarterly profit for October-December.
Reporting by Arnab Paul and Krishna V Kurup in Bengaluru; Editing by Jason Neely and Mark Potter
(Reuters) – Traffic growth on Baidu Inc’s mobile app helped drive higher-than-expected third quarter revenue as China’s biggest search engine operator places more emphasis on artificial intelligence (AI) and autonomous driving.
FILE PHOTO: A Baidu logo is seen at the Global Mobile Internet Conference (GMIC) at the National Convention Center in Beijing, China April 27, 2018. REUTERS/Damir Sagolj
Revenue rose to 28.2 billion yuan ($ 4.11 billion) from 23.49 billion yuan in the same quarter a year ago. That beat the average estimate of 27.53 billion yuan, according to Refinitiv data.
Baidu has been investing heavily in new business lines following tighter rules in China introduced in 2016 requiring search engines to make it clear which results are paid-for ads, but has said these projects may not help boost sales growth in the near term.
Baidu’s sales momentum has lagged technology peers Alibaba Group Holding Ltd and Tencent Holdings Ltd, and it has sold or closed several businesses over the past year which were in direct competition.
Baidu forecast fourth-quarter revenue of 25.48 billion yuan to 26.72 billion yuan, lower than financial analysts’ target of 27.69 billion yuan.
At the same time, Baidu has become one of China’s biggest names in AI, with its efforts endorsed by the government as well as international firms. This month, it became the first Chinese company to join an AI ethics group alongside members such as Apple Inc and Alphabet Inc’s Google.
“Baidu delivered a solid third quarter with impressive results from search, feed and new AI businesses,” said Baidu Chief Executive Robin Li.
He added that Baidu’s AI platform DuerOS saw strong adoption and Apollo, Baidu’s self-driving car technology, was now powering fully autonomous Apolong minibuses in over 10 locations.
Baidu said its AI system blocked over 430 million medical ads to combat misleading and low-quality medical advertisements in the third quarter. The stricter rules on Chinese internet advertising resulted from the death of a student who underwent an experimental cancer treatment which he found using Baidu.
Net income rose 56 percent from a year earlier to 12.4 billion yuan, the company said.
Excluding gains from the divestiture of its financial services business, Baidu posted adjusted earnings per share of 19.01 yuan versus Wall Street expectations of 16.70, according to Refinitiv data.
While the company said its Baidu App saw strong traffic in the quarter, its daily active user number dropped to 151 million in September from a peak of 161 million reached in August. The September number was up 19 percent year-on-year.
Baidu’s U.S.-listed stock was slightly lower following the results in after-hours trade on Tuesday. The stock is down over 20 percent since the beginning of the year amid a wider selloff of Chinese technology shares.
Reporting by Cate Cadell in Beijing and Jane Lanhee Lee in San Francisco; Editing by Meredith Mazzilli and Tom Brown
TAIPEI (Reuters) – A computer virus outbreak has hit third-quarter results at Taiwan Semiconductor Manufacturing Company Ltd, the world’s largest contract chipmaker, the company said on Sunday.
A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan October 5, 2017. REUTERS/Eason Lam
On Saturday, TSMC, a major supplier for Apple Inc, said that a number of its computer systems and fab tools had been infected by a virus, but the problem had been contained.
The company expects full recovery on Aug. 6, the company said in an updated statement on Sunday.
“TSMC expects this incident to cause shipment delays and additional costs. We estimate the impact to third quarter revenue to be about three percent, and impact to gross margin to be about one percentage point,” it said.
“The Company is confident shipments delayed in third quarter will be recovered in the fourth quarter 2018, and maintains its forecast of high single-digit revenue growth for 2018 in U.S. dollars given on July 19, 2018.”
The chipmaker has notified its customers and is working with them on the wafer delivery schedule. Details will be provided to each customer individually over the next few days, it said.
The virus outbreak occurred during the software installation for a new tool, which caused a virus to spread once the tool was connected to the company’s computer network, TSMC said.
“Data integrity and confidential information was not compromised. TSMC has taken actions to close this security gap and further strengthen security measures,” it said.
Reporting by Jess Macy Yu, editing by Larry King
(Reuters) – Micron Technology Inc on Thursday played down the likely impact on its business of a temporary Chinese ban on some chip sales but said it would appeal a decision that has added to U.S.-China trade tensions.
The firm’s estimate that the ban imposed by a Chinese court in a patent infringement lawsuit would weaken quarterly revenue by just 1 percent drove its shares as much as 3.6 percent higher and lifted stocks of other U.S. chipmakers.
Shares in the sector had been shaken on Tuesday by the first reports of the ruling, which added to a growing list of intellectual property disputes between Washington and China in the technology sector.
Micron said the ruling by a Fuzhou Court in a lawsuit filed by rivals United Microelectronics Corporation (UMC) and Fujian Jinhua Integrated Circuit Co temporarily bans it from selling some memory chips and solid state drives in China.
The chipmaker said it would comply with the ruling, but would request the court to reconsider or stay its decision.
“The Fuzhou Court issued this preliminary ruling before allowing Micron an opportunity to present its defense,” said Joel Poppen, Micron’s general counsel.
The lawsuit followed Micron’s complaint in December against Chinese government-backed Fujian and UMC in a California court alleging misappropriation of its trade secrets and other misconduct.
China is trying to build its own semiconductor industry as part of its “Made in China 2025” strategy and as it seeks to lower its reliance on foreign companies, many of them U.S.-based.
The dispute follows a ban on U.S. firms supplying parts to China’s telecom equipment maker ZTE as well as the drawn-out wait for Chinese regulators to approve Qualcomm Inc’s $ 44 billion takeover of NXP Semiconductors.
“It certainly appears semiconductors could move to the prime time in negotiations between the Trump administration and China,” Evercore ISI analyst C.J. Muse said. “Near-term this could favor non-US chipmakers vs. US chipmakers.”
Several Chinese government-backed entities have poured billions into research and for buying companies with a trove of chip patents. Micron itself was the target of a failed takeover attempt by China’s Tsinghua Unigroup in 2015.
The Chinese ban on Micron targeted its products sold through retail outlets and represented only a small portion of the chipmaker’s revenue.
Analysts believe the ban is largely symbolic as hurting the U.S. chipmaker would end up creating more pain for local Chinese firms who would have to rely on Korean firms Samsung Electronics and SK Hynix, pushing up memory chip prices.
“At the end of the day, the Chinese government is not going to impact its own local companies,” said Kinngai Chan of Summit Insights Group.
Micron said it expects quarterly revenue to be within the previously guided range of $ 8.0 billion to $ 8.4 billion.
Shares of Micron, which fell 5.5 percent on Tuesday after the ban, was up 1.9 percent at $ 52.46 in afternoon trading on Thursday.
Other chipmakers also gained. Qualcomm Inc rose 3.2 percent, Broadcom Inc 2 percent and Intel Corp up 2.6 percent.
Reporting by Sonam Rai and Supantha Mukherjee in Bengaluru; Editing by Arun Koyyur
Executive Speakers Bureau is one of the most successful speakers bureaus in the U.S. and one of the only speakers bureaus to ever hit the Inc. 5000. Founded by Angela Schelp in Memphis in 1993 (husband and partner Richard Schelp joined as president and co-owner in 2001), Executive Speakers Bureaus offers and books hundreds of keynote speakers nationally and internationally and continues to grow at a pace rarely approached in this competitive industry, nearly doubling its overall revenue and number of bookings in just the last four years, while maintaining a reputation for customer service and community involvement that is widely viewed as second to none.
Micah Solomon, Inc.com: You’ve spoken in passing about the importance of your vision of success. Can you explain what this means specifically as it relates to commercial success?
Richard Schelp, President and Co-Owner, Executive Speakers Bureau: In order to succeed in a competitive marketplace, you need a true plan or strategy. Our ability to anticipate some of the challenges we have had to face in the industry and our understanding of how to address those challenges has kept us ahead of our competitors and driven our success in revenue and profitability.
Solomon: I’ve heard you and Angela speak about the power of your company’s culture and the pride you take in your employees. Can you speak a bit about this?
Schelp: From the beginning the culture of Executive Speakers Bureau has been built around respect for each other, a true sense of team, and the fact that both what we do within our business and in our community affects many people’s lives. Very few work environments can promise its employees this kind of value.
Our employees are some of the best you will see in any industry, and certainly in ours. It is not just a job to them. They are proud of where they work, and they truly feel responsible for the success of Executive Speakers Bureau. This is the reason why they want to stay. They want to see this thing through to the end.
Solomon: What in your and Angela’s prior background led you to be able to take this approach and succeed with the culture of your company and your relationship to your employees?
Schelp: Both Angela and I have a wealth of corporate experience (IBM, AT&T, and other big firms) in which we have both managed and worked for a number of people. When you have seen a lot of examples of great and terrible management, you start to get a feel for what works and what doesn’t. All of the previous managers that I respected established environments in which I felt comfortable going to them, and they were the primary reason for me enjoying my job.
Solomon: Your bureau has grown quite quickly. How is life different now that you are an agency of significant size and pull?
Schelp: Life at Executive Speakers Bureau is definitely a little bit different now that we are much bigger. With that does come a level of responsibility and respect. Because of our increased size, we now have a larger role within our industry association. As a matter of fact, I will become the president of the association next Spring.
Also, in the early years of our bureau we used to base our decisions about processes, documents, fee recommendations, etc. on what the larger bureaus were doing. Now we don’t check with others. We make our decisions based on what we know and what we think makes the most sense. Surprisingly many bureaus are following our lead, and they are calling us to ask how we do things.
Solomon: Many of my readers are entrepreneurs and business leaders themselves. It’s very helpful and enjoyable (!) for them to hear about mistakes you’ve made or tricky situations you’ve endured in the past, what went sideways and how you either dealt with it or learned from it.
Schelp: A few years ago I faced an extremely tricky situation that taught me so many lessons as a business owner in our industry. A high-profile sports figure was supposed to speak for me at a large convention in New York. He decided to fly in on his private plane the morning of the event. However, there was a terrible electrical storm that morning, and his plane was grounded, leaving me without a speaker. I received the call at 6:30AM and the speaker’s presentation was at 10:30AM. I had four hours to find a replacement for a great speaker and get him to the event on time. Immediately I went to work by calling all of the speakers and agents who were high quality and could get there-and, ultimately, I was fortunate enough to find a speaker who my client absolutely loved.
The lessons from this incident were numerous, but most importantly I realized just how crucial it is to have access to many resources, so that an emergency situation becomes doable, otherwise it is impossible. Also, I learned that as long as you are determined and efficient any task can be accomplished.
(Reuters) – Etsy Inc on Thursday raised its full-year revenue growth forecast, boosted by an increase in its transaction fee for sellers, sending shares of the company surging 35 percent to a record high.
The share jump pushed up the company’s market cap by $ 1.4 billion.
The site for handmade goods, which struggled after its initial public offering in 2015, began its turnaround effort after board member and former eBay executive Josh Silverman took charge as chief executive officer in May last year after ex-CEO Chad Dickerson stepped down.
Silverman came to Etsy amid concerns about slowing growth, poor functionality of the company’s website and the specter of competition from Amazon.com Inc, which launched a marketplace for handmade goods in 2015.
The company now expects revenue growth of 32 percent to 34 percent in 2018, up from its previous forecast of 22 percent to 24 percent. It also raised the higher end of its gross merchandise sales growth range.
Etsy’s share movement was in contrast to arts and crafts specialty retailer Michaels Cos Inc, which dropped 15 percent after it expected flat comparable sales in the second quarter and comparable sales growth of up to 1.5 percent in fiscal 2018.
Etsy, however has beaten average analysts’ estimates in every quarter since Silverman’s appointment to the helm. It missed estimates in the four quarters prior to his arrival.
The company’s shares have more than doubled in the last 12 months.
“Etsy management has improved its merchandising, which in turn has led to stronger merchant sales. As Etsy is doing more for the merchants, Etsy is able to charge more, especially since the fees were relatively cheaper than competitors,” analyst Ronald Bookbinder of IFS Securities said.
Etsy said it would increase the transaction fee it charges when a seller makes a sale to 5 percent from 3.5 percent. The new fee would apply to the cost of shipping.
The company said it plans to increase direct marketing spending by at least 40 percent in 2018 and revamp community platforms.
Etsy has shifted its focus to areas that are showing the most growth for the handmade marketplace, particularly on its core e-commerce site.
The company has improved its website’s search function and uses artificial intelligence to provide better product recommendations for customers. In 2017 the company also ran holiday promotions for the first time.
“They took that really good business model and fine tuned the engine and now they have got that engine firing on all cylinders,” D.A. Davidson & Co. analyst Tom Forte said.
Reporting by Arjun Panchadar in Bengaluru; Editing by Bernard Orr and Shounak Dasgupta
(Reuters) – Advanced Micro Devices Inc on Tuesday flagged competitive pressures with a forecast that pointed to the first revenue drop in seven quarters, sending the chipmaker’s shares plunging 11 percent in after-hours trading.
The company, which has gained from a surge in demand for its chips from cryptocurrency miners, also sought to tamp down expectations of benefits from the boom.
“We’re also predicting that there will be some leveling off of some of the cryptocurrency demand,” said Chief Executive Lisa Su on a post-earnings call.
AMD’s underwhelming forecast overshadowed a strong third-quarter performance, which was aided by a slew of launches this year such as the Epyc processors for servers and a new range of Ryzen desktop processors.
The company said it expects fourth-quarter revenue to fall about 12 percent to 18 percent from the third quarter. This implies a revenue of about $ 1.35 billion to $ 1.44 billion, according to Reuters calculation.
“AMD has headwinds with competition from Intel and Nvidia among other worries,” Daniel Ives, chief strategy officer at GBH Insights said.
Bigger rival Intel Corp recently launched its new line of Coffee Lake processors, which analysts said could challenge AMD’s Ryzen processors.
AMD’s total revenue surged 25.7 percent to $ 1.64 billion in the third quarter, beating analysts’ average estimate of $ 1.51 billion.
Sales in its graphics and computing business, which makes processors for servers and gaming consoles such as Microsoft Corp’s Xbox and Sony Corp’s PlayStation, surged 73.5 percent to $ 819 million.
“We anticipate seasonal demand to remain healthy as our customers enter the holiday sales cycle with Sony’s PlayStation 4 Pro and Microsoft’s Xbox One X,” Lisa Su said on the call.
France-based company Atari said last month that its latest gaming console Ataribox would feature AMD’s customised processor Radeon.
AMD reported a net income of $ 71 million, or 7 cents per share, in the quarter ended Sept. 30, compared with a loss of $ 406 million, or 50 cents per share, a year earlier.
Excluding items, the company earned 10 cents per share, topping analysts’ estimate of 8 cents, according Thomson Reuters I/B/E/S.
AMD’s shares have risen 25.7 percent this year, outperforming the S&P 500’s nearly 15 percent increase but underperfoming the Philadelphia semiconductor index’s 37 percent gain.
Reporting by Laharee Chatterjee in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila
Intel sales rose more than expected, helped by orders for processors that power data-center servers—the machines at the heart of cloud computing.
… is expected to highlight the growth of Single’s Day and the success of new business lines, such as its cloud computing and data center businesses.
The growth is attributed to the expansion of IBM’s key businesses, which includes cloud computing and AI solutions. ( Ethan Miller | Getty Images ).