Tag Archives: Thirdquarter
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
HONG KONG (Reuters) – Chinese smartphone maker Xiaomi Inc said on Monday it swung to a net profit in the third quarter, beating analyst estimates, driven by robust sales in India and Europe.
Xiaomi branding is seen at a UK launch event in London, Britain, November 8, 2018. REUTERS/Toby Melville
Profit for the three months through September reached 2.48 billion yuan ($ 357.23 million), versus an 11 billion yuan loss in the same period a year earlier. That compared with a 1.92 billion yuan average of five analyst estimates compiled by Refinitiv Eikon.
Xiaomi also said operating profit sank 38.4 percent to 3.59 billion yuan in the third quarter. Revenue rose 49.1 percent to 50.85 billion yuan.
The mixed results come amid a slowdown in smartphone purchases both in China, where Xiaomi once was the top-selling handset brand, and overseas.
Nevertheless Xiaomi, along with fellow low-cost handset makers Oppo and Vivo, accounted for around a quarter of the global smartphone market in the first half of 2018, showed data from researcher IDC.
Xiaomi’s fastest-growing markets are India, where it has had success with its budget Redmi phone series, and Europe, where it entered in 2017 with launches in Russia and Spain. Earlier this month it released its flagship Mi 8 Pro device in Britain.
But to weather the global market slowdown, analysts said Xiaomi needs to expand to new markets and also sell more higher-priced devices with wider profit margins.
The firm has been adding new brands to its smartphone portfolio to target niche consumers. Concurrent with today’s earnings, it announced a partnership with Meitu Inc, a maker of a photo app popular with young women, to sell phones under its brand. Earlier this year it launched Black Shark, a phone targeted at gamers, and Poco, a value-for-money device aimed at India.
Mo Jia, who tracks China’s smartphone makers at research firm Canalys, said attempts to sell more expensive devices requires changing its brand perception.
“It’s still very hard for Xiaomi to change its perception of being a low-end device manufacturer as the majority of its smartphone shipments are the Redmi series.”
Xiaomi also aims to transform itself from a smartphone firm into a software company. As the firm prepared for its IPO, founder Lei Jun touted internet services – namely advertisements placed on the firm’s in-house apps – as its future and key differentiator from other handset brands.
In the third quarter, Xiaomi’s smartphone division grew revenue by 36.1 percent while its internet service division grew 85.5 percent. But phones made up 64.6 percent of total sales, while internet services made up 9.3 percent.
The results are the second set released by Xiaomi since the smartphone maker raised $ 4.72 billion in an initial public offering (IPO) in June, valuing the firm at about $ 54 billion – around half of some earlier industry estimates of $ 100 billion.
Its shares have fallen roughly 20 percent since they started trading in July amid a broader Chinese stock market sell-off and concern about a slowdown in China’s tech industry.
Reporting by Josh Horwitz; Editing by Christopher Cushing
SEOUL (Reuters) – South Korea’s SK Hynix Inc posted record third-quarter operating profit on Thursday, beating expectations thanks to a seasonal sales boost for mobile devices and strong server demand.
FILE PHOTO: The logo of SK Hynix is seen at its headquarters in Seongnam, South Korea, April 25, 2016. REUTERS/Kim Hong-Ji/File Photo/File Photo
The world’s second-biggest memory chipmaker behind Samsung Electronics Co Ltd said July-September profit rose 73 percent year-on-year to 6.5 trillion won ($ 5.7 billion). That compared with a 6.3 trillion won average forecast drawn from 19 analysts, according to Refinitiv data.
Reporting by Ju-min Park and Heekyong Yang; Editing by Stephen Coates
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