B&N, Microsoft team up on Nook, college businesses
April 30, 2012
NEW YORK (AP) — Books and bits united Monday as Microsoft provided an infusion of money to help Barnes & Noble compete with top electronic bookseller Amazon. In exchange, Microsoft gets a long-desired foothold in the business of e-books and college textbooks.
Read more here:
NEW YORK (AP) — Books and bits united Monday as Microsoft provided an infusion of money to help Barnes & Noble compete with top electronic bookseller Amazon. In exchange, Microsoft gets a long-desired foothold in the business of e-books and college textbooks.
With Microsoft Corp.’s $300 million investment, the two companies are teaming up to create a subsidiary for Barnes & Noble’s e-book and college textbook businesses. Microsoft is taking a 17.6 percent stake in the venture.
The agreement underscores the importance of electronic bookstores as traditional booksellers and technology companies jockey for position in the increasingly competitive market. While no definitive numbers exist, e-books are believed to account for some 20 percent of book sales in the U.S.
For Microsoft, the investment is a way to get back into the e-book business. It has dabbled in the field since at least 2000, but never developed much traction. It was Amazon that blew the market open with the 2007 launch of the Kindle, creating a potent challenge to Barnes & Noble’s brick-and-mortar bookstores.
Major Microsoft competitors Apple and Google now have their own e-book stores. All three companies are building businesses that encompass hardware, software and content in an “ecosystem,” and e-books and readers are part of the puzzle.
With that perspective, the deal is very important, said Walter Pritchard, an analyst with Citigroup. But he doesn’t expect any near-term financial impact from the deal, noting that even if the Microsoft-Barnes & Noble venture is successful, it leaves the Nook a distant second in the e-reader market, behind the Kindle.
The deal gives Barnes & Noble ammunition to fend off shareholders who have agitated for a sale of the Nook e-book business or the whole company, but the companies said Monday that they are exploring separating the subsidiary, provisionally dubbed “Newco,” entirely from Barnes & Noble. That could mean a stock offering, sale or other deal.
The deal also puts to rest concerns that Barnes & Noble doesn’t have the capital to compete in the e-book business with market leader Amazon.com Inc. and its Kindle, said analyst David Strasser at Janney Capital.
Barnes & Noble Inc.’s stock zoomed up $7.07, or 52 percent, to close trading at $20.75. The opening price of $26 was a three-year high. Microsoft’s stock rose 4 cents to $32.
The investment also means that Microsoft will own part of a company that sells tablet computers based on Google Inc.’s Android, one of the main competitors of Windows Phone 7, Microsoft’s smartphone software.
Microsoft also said the deal means that there will be a Nook application for Windows 8 tablets, set to be released this fall. The app is likely to get a favored position on Windows 8 screens.
There’s already a Nook application for Windows PCs, but none for Windows phones.
William Lynch, the CEO of Barnes & Noble, said Nook software will continue to be available on devices like the iPhone that compete with Windows Phone.
He declined to say whether it was Barnes & Noble or Microsoft that initiated the discussions, but he said the talks had been going on since before the beginning of the year.
“We have been circling the relationship for quite a long time,” added Microsoft president Andy Lees. “When you think of different types of reading and what’s going to happen when that goes digital, it’s really quite dramatic to be bringing that to Windows customers.”
The Nook has pleasantly surprised publishers, who worry about Amazon’s domination of the e-market. Unveiled to skeptical reviews in 2009, the Nook is estimated to account for about 25 percent of the U.S. e-book market. The Nook helped to cut Amazon’s share from what was believed to be 90 percent to around 60-65 percent. David Pogue in The New York Times called the initial device “an anesthetized slug,” but praised the new Nook Simple Touch as a “very big deal” that offers “spectacular, crisp pages to read in any light.”
Barnes & Noble investors have also been concerned about the recent government lawsuit against Apple and some leading publishers over alleged price fixing. When Apple launched its iPad in 2010, Simon & Schuster, Penguin Group (USA) and other publishers switched to an “agency” model that allowed publishers to set prices for e-books, a system many believe helped Barnes & Noble.
Amazon had been offering top-selling e-books for $9.99, a cost publishers, agents and writers believed was so low it could drive competitors out of business. Three of the five publishers sued— Simon & Schuster, HarperCollins and the Hachette Book Group — have already agreed to settle, meaning prices for their e-books likely will again drop on Amazon.
Microsoft has a long-standing interest in the e-book field. It launched e-book software in 2000, but was never able to build a substantial library of books. It’s discontinuing the software on Aug. 30.
Barnes & Noble, based in New York, currently runs 691 bookstores in 50 states. The companies said that the subsidiary will have an ongoing relationship with Barnes & Noble’s retail stores, but what that relationship will be is unclear.
“The whole reason the Nook business is expanding so rapidly is because bookstores are committed to it and know how to market the product in that environment,” said Michael Norris, an analyst at Simba information.
The possibility of a separation of Barnes & Noble’s digital and college businesses has been brewing.
In January, Barnes & Noble said it was considering options for its Nook business, including possibly spinning it off or expanding overseas, and said it expected the review to be complete by the end of the year.
And in March, private investment firm G Asset Management, a Barnes & Noble shareholder, offered $460 million for a 51 percent stake in the company’s college bookstore unit, Barnes & Noble College Booksellers LLC.
Under that plan, the college bookstore unit was proposed to begin as a private business but become public within a “reasonable” amount of time. G Asset’s offer was contingent upon Barnes & Noble keeping current management in place and separating its Nook e-business from the rest of the company. At the time the offer was made, Barnes & Noble declined to comment.
In 2009, Barnes & Noble Inc. bought the college bookstore unit from Chairman Leonard Riggio in a deal worth $596 million. The deal ended up costing Barnes & Noble $460 million after accounting for the unit’s cash on hand at the closing date.
___
AP Retail Writer Mae Anderson, Business Writer Michelle Chapman and AP National Writer Hillel Italie contributed to this report.
US stock futures dip on weak consumer spending
April 30, 2012
Associated Press – NEW YORK (AP) — U.S. stock market futures slipped Monday as consumer spending growth slowed last month and Spain officially slipped back into recession. Dow Jones industrial average futures fell 0.17 percent to 13,142
Continued here:
Associated Press –
NEW YORK (AP) — U.S. stock market futures slipped Monday as consumer spending growth slowed last month and Spain officially slipped back into recession.
Dow Jones industrial average futures fell 0.17 percent to 13,142. Standard & Poor’s 500 futures gave up 0.25 percent to 1,395, and Nasdaq 100 futures slipped 0.36 percent to 2,727.
The Commerce Department reported that spending growth slowed in March, while incomes rose 0.4 percent, slightly ahead of expectations.
Recent economic reports are generating concern that the recovery is slowing down. Since consumer spending makes up about 70 percent of the economy, a cutback in the rate of spending growth could be reflecting weak income gains and a slowing job market.
Problems in Europe aren’t helping.
European markets were mainly lower, weighed down by growing concerns over Spain. Data released Monday confirmed that Spain slipped back into recession in the first quarter. A new recession could make it harder for the government to cut its budget deficit, and raises the worry that the country might be locked into a downward financial spiral.
Ratings agency Standard & Poor’s on Friday downgraded Spain to just three notches above junk, following up the move on Monday by lowering its rating for 11 Spanish banks, which are loaded with bad debt from a collapsed housing market. Spain is the fourth-largest economy in the eurozone. There is worry that the continent’s bailout funds won’t be big enough to rescue Spain if it needs assistance.
Germany’s DAX was off 0.22 percent at 6,786. France’s CAC 40 was down 1.06 percent at 3,231. Britain’s FTSE 100, which often trades contrary to the rest of European markets, edged up 0.49 percent at 5,777.
Trading in Asia was light because of holidays in Japan and mainland China. Hong Kong’s Hang Seng rose 1.7 percent to 21,094.21, South Korea’s Kospi added 0.3 percent to 1,981.99 and Australia’s S&P/ASX 200 gained 0.8 percent to 4,396.60.
Investors in those markets focused on the U.S. economy and hopes that the Fed might sanction another round of bond-buying, known as quantitative easing, after figures last Friday showed the world’s largest economy grew less than expected in the first quarter.
U.S. stocks to watch include Barnes & Noble Inc. and Microsoft Corp., which are teaming to create a unit to house the digital and college businesses of the bookseller and include a Nook application for Windows 8. The companies said Monday that they may separate those businesses entirely. That could mean a stock offering, sale, or other deal could happen.
Barnes & Noble shares shot up more than 9 percent to $25.95 in premarket trading. Microsoft added 6 cents to $32.04.
Shares of health insurer Humana Inc. fell more than 4 percent to $84 after reporting a 21 percent drop in first-quarter profit, falling short of Wall Street expectations.
US stock futures dip on weak consumer spending
April 30, 2012
Associated Press – NEW YORK (AP) — U.S. stock market futures slipped Monday as consumer spending growth slowed last month and Spain officially slipped back into recession. Dow Jones industrial average futures fell 0.17 percent to 13,142
Continued here:
Associated Press –
NEW YORK (AP) — U.S. stock market futures slipped Monday as consumer spending growth slowed last month and Spain officially slipped back into recession.
Dow Jones industrial average futures fell 0.17 percent to 13,142. Standard & Poor’s 500 futures gave up 0.25 percent to 1,395, and Nasdaq 100 futures slipped 0.36 percent to 2,727.
The Commerce Department reported that spending growth slowed in March, while incomes rose 0.4 percent, slightly ahead of expectations.
Recent economic reports are generating concern that the recovery is slowing down. Since consumer spending makes up about 70 percent of the economy, a cutback in the rate of spending growth could be reflecting weak income gains and a slowing job market.
Problems in Europe aren’t helping.
European markets were mainly lower, weighed down by growing concerns over Spain. Data released Monday confirmed that Spain slipped back into recession in the first quarter. A new recession could make it harder for the government to cut its budget deficit, and raises the worry that the country might be locked into a downward financial spiral.
Ratings agency Standard & Poor’s on Friday downgraded Spain to just three notches above junk, following up the move on Monday by lowering its rating for 11 Spanish banks, which are loaded with bad debt from a collapsed housing market. Spain is the fourth-largest economy in the eurozone. There is worry that the continent’s bailout funds won’t be big enough to rescue Spain if it needs assistance.
Germany’s DAX was off 0.22 percent at 6,786. France’s CAC 40 was down 1.06 percent at 3,231. Britain’s FTSE 100, which often trades contrary to the rest of European markets, edged up 0.49 percent at 5,777.
Trading in Asia was light because of holidays in Japan and mainland China. Hong Kong’s Hang Seng rose 1.7 percent to 21,094.21, South Korea’s Kospi added 0.3 percent to 1,981.99 and Australia’s S&P/ASX 200 gained 0.8 percent to 4,396.60.
Investors in those markets focused on the U.S. economy and hopes that the Fed might sanction another round of bond-buying, known as quantitative easing, after figures last Friday showed the world’s largest economy grew less than expected in the first quarter.
U.S. stocks to watch include Barnes & Noble Inc. and Microsoft Corp., which are teaming to create a unit to house the digital and college businesses of the bookseller and include a Nook application for Windows 8. The companies said Monday that they may separate those businesses entirely. That could mean a stock offering, sale, or other deal could happen.
Barnes & Noble shares shot up more than 9 percent to $25.95 in premarket trading. Microsoft added 6 cents to $32.04.
Shares of health insurer Humana Inc. fell more than 4 percent to $84 after reporting a 21 percent drop in first-quarter profit, falling short of Wall Street expectations.
This $20 Trillion Rock Could Turn a Startup Into Earth’s Richest Company
April 26, 2012
By Chris Taylor | Mashable – Meet Amun 3554. Doesn’t look like much, right? Little more than a mile wide, it’s one of the smallest M-class (metal-bearing) asteroids yet discovered.
Read more from the original source:
By Chris Taylor | Mashable –
Meet Amun 3554. Doesn’t look like much, right? Little more than a mile wide, it’s one of the smallest M-class (metal-bearing) asteroids yet discovered. Unless it ever decides to smash into us — a theoretical possibility, but extremely unlikely over the next few centuries — it will continue orbiting the sun, unknown and unmolested.
[More from Mashable: World’s First Asteroid Mining Company will Blast Off in 2013 [VIDEO]]
That is, unless Planetary Resources has its way. Planetary Resources is the asteroid-mining company launched Tuesday in Seattle, with backing from Microsoft and Google billionaires, along with the equally prominent James Cameron and Ross Perot Jr.
Its object is to completely dismember poor little rocks like Amun.
[More from Mashable: Google Execs, James Cameron Plan Space Venture]
That’s because Amun is a goldmine — well, not gold so much. But it does contain a cool $8 trillion worth of platinum, an essential precious metal used in everything from jewelry to fuel cells to computers (and one that’s currently trading at the same rate as gold — $1500 an ounce.) On Earth, only a few hundred tonnes of the stuff are produced every year.
The $8 trillion figure is an estimate based on observations by John S. Lewis, professor of planetary science, author of Mining the Sky: Untold Riches from the Asteroids, Comets, and Planets, and now a consultant to Planetary Resources. He also found 3554 Amun to contain another $8 trillion in iron and nickel, and a mere $6 trillion worth of cobalt.
So, the total payout from one unassuming asteroid? $20,000,000,000,000.
That’s what got Planetary Resources co-founder Peter Diamandis so excited. “There are $20 trillion checks up there waiting to be cashed,” he enthused at a space development conference in 2006.
Trillions and Trillions
And 3554 Amun is hardly alone; it’s just one of the few asteroids that has been submitted to rigorous chemical analysis. Another mile-wide Near-Earth Asteroid, known as 1986 DA, is said to contain 100,000 tonnes of platinum and 10,000 tonnes of gold. That’s worth another couple of trillion. Not too shabby.
How many of these mile-wide metal paydays are up there? We have only a vague idea. Nearly 9,000 Near-Earth Asteroids have been discovered so far. Planetary Resources’ best guess is that represents just 1% of the total.
That’s why the company is focusing its efforts on launching space telescopes first; they’ll do the prospecting, then report back on the lowest-hanging fruit. It’s not inconceivable that Amun could be worth pennies compared to its compadres. Then the asteroid retrieval and mining process — all done by robotic spacecraft — can begin in earnest.
Beating Apple with Ease?
To become the wealthiest company in the world, Planetary Resources need only capture one rock. Less than that, in fact.
Apple, currently the world’s most valuable company, has a market cap of $500 billion. To match that in resources, let alone market cap, Planetary Resources need only mine one-fortieth of 3554 Amun.
Of course, there’s a catch. You couldn’t offload all those metals on the world market at once, for fear of crashing their prices. But the company would still own that much in equity, which would allow them to borrow against it. They would be that wealthy, to all intents and purposes. That’s just how capitalism works.
Still, for all this wealth, platinum and gold may not be the most important thing the asteroid miners are hunting. The water on some ice-bound asteroids could count for more in the long run. Not only does it make the existence of life in space that much easier, but it can also be broken down into the perfect rocket fuels: hydrogen and oxygen.
The more Planetary Resources starts a gold rush, the more important water in space becomes. No wonder the company is already talking about building a chain of orbital and space-bound refueling stations. Ice from asteroids and comets could be the next oil industry.
Check out these interviews with the Planetary Resources team, and let us know in the comments: have they got what it takes to make it?
This story originally published on Mashable here.
FanCru Is a Sports Social Network With a Twist
April 25, 2012
By Sam Laird | Mashable – The Spark of Genius Series highlights a unique feature of startups and is made possible by Microsoft BizSpark. If you would like to have your startup considered for inclusion, please see the details here
Excerpt from:
By Sam Laird | Mashable –
The Spark of Genius Series highlights a unique feature of startups and is made possible by Microsoft BizSpark. If you would like to have your startup considered for inclusion, please see the details here.
[More from Mashable: Ex-NBA Star’s Awesomely Bad YouTube Rap Brings Out the Twitter Haters [VIDEO]]
Quick Pitch: A place for fans to connect with other supporters of the same teams, find the best places to watch games and get aggregated, team-specific tweets and articles.
Genius Idea: A back end platform for teams, businesses and brands to tap into that concentration of hardcore and cash-strapped sports fans.
[More from Mashable: 5 Things You Didn’t Know About Mark Cuban [VIDEO]]
With a seemingly ever-growing number of social-based services for sports fans, it can be hard for a startup to stand out. But Fancru co-founders John Wagner and Bill Diamond believe their app has what it takes to rise above the pack — thanks in large part to what outside businesses can do on top of the Fancru platform.
Fancru launched late last year, and has so far attracted about 10,000 users despite “zero marketing and zero PR,” Diamond says. Thursday morning, the company will begin a publicity push with the announcement of its most recently updated iOS app. An Android version is scheduled to arrived soon as well.
“It’s really cool to see how people are engaging because I feel like sports is just so social to begin with and apps overall have had a hard time allowing sports to embrace them,” Wagner says.
Fancru lets sports nuts connect with other fans of the same teams, find the best gathering places to watch games, check scores and other updates, and access filtered feeds of tweets and articles about relevant teams and sports.
The idea was actually born several years ago, when Wagner was a displaced fan of Auburn University living in the Bay Area and trying to find where to watch his favorite team with like-minded supporters. Both tech-industry veterans, Wagner and Diamond began seriously building Fancru in mid-2011.
For all Fancru’s social capabilities, however, the co-founders believe the power of the app’s platform for other businesses is really what sets it apart.
“Our focus is with the consumer but, at the same time, we want to really give teams and brands the ability to reach these fans,” Wagner says.
Fancru’s back end allows others to create their own promotions and features within the app. For example, a team could offer deals on unsold stadium merchandise. A pub could track check-ins to, say, a televised college football game and offer free pints for every fan who once 20 people check in. Fancru already has ongoing promotional deals in place with about 20 bars in the greater New York City area, and has been discussing the possibility of partnerships with sports teams and leagues as well.
“It’s no more complicated than setting up a Facebook account,” Diamond says. “Any bar owner is capable of running these campaigns.”
Do you think Fancru has what it takes for longterm success? Let us know in the comments.
Series Supported by Microsoft BizSpark
Image courtesy of iStockphoto, adamkaz
This story originally published on Mashable here.
Smartphone Graphics to Soon Surpass Xbox 360? [VIDEO]
April 21, 2012
By Kate Freeman | Mashable – Want your phone’s graphics to match those of top gaming systems such as the Xbox 360 ? Just wait until about 2014 when graphics hardware giant NVIDIA estimates that smartphone graphics might whip those of the popular gaming console. [More from Mashable : Band to Take Requests via Text During Upcoming Concert] According to a chart showing yearly graphic performance of console, PC, and mobile devices, it looks like your smartphone could soon host the same type of graphics processing unit (GPU) as the Xbox 360
Link:
By Kate Freeman | Mashable –
Want your phone’s graphics to match those of top gaming systems such as the Xbox 360? Just wait until about 2014 when graphics hardware giant NVIDIA estimates that smartphone graphics might whip those of the popular gaming console.
[More from Mashable: Band to Take Requests via Text During Upcoming Concert]
According to a chart showing yearly graphic performance of console, PC, and mobile devices, it looks like your smartphone could soon host the same type of graphics processing unit (GPU) as the Xbox 360.
Apple’s new iPad, with its stunning Retina display, makes games such as Infinity Blade Dungeons look even crisper. But could your smartphone replace your Xbox gaming system? Maybe not yet — at the moment this is just speculation. Plus it’s been six years since Microsoft, Sony, and Nintendo have updated their consoles. It’s possible sharper graphics are on everyone’s “to-do” list.
[More from Mashable: How Green Is Your iPad? [INFOGRAPHIC]]
Would you prefer to play games on your smartphone, console or both, if the graphics were both top-notch? Tell us in the comments.
Photo courtesy of iStockphoto, TommL
This story originally published on Mashable here.
Earnings lift Wall St but tech, banks weigh
April 21, 2012
By Rodrigo Campos | Reuters – NEW YORK (Reuters) – U.S. stocks mostly rose on Friday, led by solid earnings from McDonald’s, General Electric and Microsoft , but declines in banks and technology shares pulled indexes from their day’s highs. The Nasdaq Composite fell as SanDisk Corp led a drop in semiconductor shares with an 11.3 percent slide after its second revenue warning in as many quarters.
See more here:
By Rodrigo Campos | Reuters –
NEW YORK (Reuters) – U.S. stocks mostly rose on Friday, led by solid earnings from McDonald’s, General Electric and Microsoft, but declines in banks and technology shares pulled indexes from their day’s highs.
The Nasdaq Composite fell as SanDisk Corp led a drop in semiconductor shares with an 11.3 percent slide after its second revenue warning in as many quarters. Apple Inc’s more than 2.4 percent fall also weighed.
As earnings season moves into high gear, the first wave of corporate results has been substantially stronger than expected. About 81 percent of S&P 500 companies that have reported so far have beat expectations, according to Thomson Reuters data.
The impressive rate of beats comes amid lowered expectations, but the earnings have helped stocks regain their footing after a recent pullback on less-than-inspiring U.S. economic figures and renewed worry about Europe’s debt crisis.
Analysts said the weakness heading into Friday’s close was in part because of caution ahead of an early indicator of China‘s industrial activity, expected late Sunday.
“We already know earnings are coming in better and the market has been up quite a bit,” said Doreen Mogavero, president and chief executive of Mogavero Lee & Co. in New York.
“The private-sector manufacturing data from China will be setting the pace for next week, so people are taking some profits off the table,” she said.
A weaker level in China’s HSBC flash purchasing managers index late in March sent equity and other risk markets lower.
The Dow Jones industrial average rose 65.16 points, or 0.50 percent, to 13,029.26. The S&P 500 Index gained 1.61 points, or 0.12 percent, to 1,378.53. The Nasdaq Composite dropped 7.11 points, or 0.24 percent, to 3,000.45.
For the week, the Dow gained 1.4 percent, the S&P 500 added 0.6 percent and the Nasdaq fell 0.4 percent, down for a third week running.
Bank of America Corp fell 4.7 percent to $8.36 after a downgrade from CLSA analyst Mike Mayo. The shares led declines in the S&P financials group, the second-worst performing among the S&P 500 top 10 sectors.
Microsoft Corp jumped 4.5 percent to $32.42 and was the top boost to the Dow on Friday, a day after its profit report beat Wall Street’s expectations.
General Electric Co’s results drove buying in industrial shares. The company said it expects double-digit earnings for the year, which helped shares rise 1.1 percent to $19.36.
Industrial conglomerate Honeywell International Inc reported higher quarterly profit and raised its 2012 earnings forecast. The stock rose 2.4 pct to $59.39.
The S&P industrial sector index, up 0.8 percent, was a top boost to the S&P 500.
McDonald’s Corp edged up 0.7 percent to $95.94 after the world’s No. 1 fast-food chain reported higher quarterly profit, helped by strong U.S. sales.
About 6.7 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE Amex, just shy of the 6.78 billion daily average so far this year.
Almost two issues rose on the NYSE for every one that fell, and despite the day’s decline, three issues rose for every two that fell on the Nasdaq.
Microsoft’s Windows propels pleasant 3Q surprise
April 19, 2012
By MICHAEL LIEDTKE | Associated Press – SAN FRANCISCO (AP) — Microsoft produced a surprisingly strong quarter to start the year, pleasing investors looking forward to even bigger things from the software maker’s much-anticipated overhaul of Windows operating system next fall. The performance announced Thursday defied the conventional thinking that Microsoft would have trouble selling more Windows licenses as more people snapped up tablet computers , such as Apple Inc
See the original post here:
By MICHAEL LIEDTKE | Associated Press –
SAN FRANCISCO (AP) — Microsoft produced a surprisingly strong quarter to start the year, pleasing investors looking forward to even bigger things from the software maker’s much-anticipated overhaul of Windows operating system next fall.
The performance announced Thursday defied the conventional thinking that Microsoft would have trouble selling more Windows licenses as more people snapped up tablet computers, such as Apple Inc.‘s trendsetting iPad, while other prospective personal computer buyers delayed making their purchases until the next version of Microsoft’s operating system hits the market.
That didn’t turn out to be the case during the three months ending in March as revenue at Microsoft’s Windows division edged up by 4 percent from last year to $4.6 billion. Microsoft attributed the gain to an uptick in businesses who bought licenses for Windows 7. It marked only the second time in the past six quarters that Microsoft has registered a year-over-year gain in the Windows division.
“We’re driving toward exciting launches across the entire company, while delivering strong financial results,” said Microsoft CEO Steve Ballmer.
High hopes are riding on the revamped system, Windows 8, because Microsoft designed it to run on devices that can be controlled by touch, as well as keyboards and computer mice. That means Windows 8 can serve a dual purpose: it could help spur the development of sleeker PCs that spur more sales and also give Microsoft a chance to grab a piece of the rapidly growing tablet computer market.
Although Microsoft hasn’t announced a target date yet, most analysts believe Windows 8 will go on sale in September or October.
Microsoft Corp. earned $5.1 billion, or 60 cents per share, during the period marking first three months of the year — the Redmond, Wash company’s fiscal third quarter. That was a 2 percent decline from net income of $5.2 billion, or 61 cents per share, a year ago.
Last year’s results were boosted by a tax benefit of $461 million, or 5 cents per share.
Revenue rose 6 percent from last year to $17.4 billion
Analysts had anticipated earnings of 58 cents per share on revenue of $17.2 billion, according to a FactSet survey.
Microsoft’s shares gained 87 cents, or nearly 3 percent, to $31.88 in Thursday’s extended trading.
While the Windows division held up better than expected, one of Microsoft’s recent strongholds weakened. The deterioration occurred in the entertainment division as Microsoft’s shipments of its Xbox 360 video game console plunged by nearly 50 percent to 1.4 million units. The sagging demand occurred as more people are playing games on phones and tablet computers. Revenue in the entertainment division declined 16 percent from last year to $1.6 billion.
Microsoft’s long-suffering online division, which has struggled for years to compete against Internet search leader Google Inc., managed to narrow its losses in the latest quarter. The division, which includes its Bing search engine, posted an operating loss of $479 million compared to a loss of $776 million at the same time last year. Microsoft’s online revenue totaled $707 million, a 6 percent increase. By comparison, Google’s revenue during the same period surged by 24 percent.
Microsoft’s Windows propels pleasant 3Q surprise
April 19, 2012
By MICHAEL LIEDTKE | Associated Press – SAN FRANCISCO (AP) — Microsoft produced a surprisingly strong quarter to start the year, pleasing investors looking forward to even bigger things from the software maker’s much-anticipated overhaul of Windows operating system next fall. The performance announced Thursday defied the conventional thinking that Microsoft would have trouble selling more Windows licenses as more people snapped up tablet computers , such as Apple Inc.
Read the original here:
By MICHAEL LIEDTKE | Associated Press –
SAN FRANCISCO (AP) — Microsoft produced a surprisingly strong quarter to start the year, pleasing investors looking forward to even bigger things from the software maker’s much-anticipated overhaul of Windows operating system next fall.
The performance announced Thursday defied the conventional thinking that Microsoft would have trouble selling more Windows licenses as more people snapped up tablet computers, such as Apple Inc.‘s trendsetting iPad, while other prospective personal computer buyers delayed making their purchases until the next version of Microsoft’s operating system hits the market.
That didn’t turn out to be the case during the three months ending in March as revenue at Microsoft’s Windows division edged up by 4 percent from last year to $4.6 billion. Microsoft attributed the gain to an uptick in businesses who bought licenses for Windows 7. It marked only the second time in the past six quarters that Microsoft has registered a year-over-year gain in the Windows division.
“We’re driving toward exciting launches across the entire company, while delivering strong financial results,” said Microsoft CEO Steve Ballmer.
High hopes are riding on the revamped system, Windows 8, because Microsoft designed it to run on devices that can be controlled by touch, as well as keyboards and computer mice. That means Windows 8 can serve a dual purpose: it could help spur the development of sleeker PCs that spur more sales and also give Microsoft a chance to grab a piece of the rapidly growing tablet computer market.
Although Microsoft hasn’t announced a target date yet, most analysts believe Windows 8 will go on sale in September or October.
Microsoft Corp. earned $5.1 billion, or 60 cents per share, during the period marking first three months of the year — the Redmond, Wash company’s fiscal third quarter. That was a 2 percent decline from net income of $5.2 billion, or 61 cents per share, a year ago.
Last year’s results were boosted by a tax benefit of $461 million, or 5 cents per share.
Revenue rose 6 percent from last year to $17.4 billion
Analysts had anticipated earnings of 58 cents per share on revenue of $17.2 billion, according to a FactSet survey.
Microsoft’s shares gained 87 cents, or nearly 3 percent, to $31.88 in Thursday’s extended trading.
While the Windows division held up better than expected, one of Microsoft’s recent strongholds weakened. The deterioration occurred in the entertainment division as Microsoft’s shipments of its Xbox 360 video game console plunged by nearly 50 percent to 1.4 million units. The sagging demand occurred as more people are playing games on phones and tablet computers. Revenue in the entertainment division declined 16 percent from last year to $1.6 billion.
Microsoft’s long-suffering online division, which has struggled for years to compete against Internet search leader Google Inc., managed to narrow its losses in the latest quarter. The division, which includes its Bing search engine, posted an operating loss of $479 million compared to a loss of $776 million at the same time last year. Microsoft’s online revenue totaled $707 million, a 6 percent increase. By comparison, Google’s revenue during the same period surged by 24 percent.
Apple stock losses drag down the Nasdaq
April 16, 2012
Apple stock has propelled the Nasdaq composite index forward for most of the year. But in the past few days, Apple stock has done just the opposite. For most of the year, Apple stock has propelled the Nasdaq forward.
Read more from the original source:
Apple stock has propelled the Nasdaq composite index forward for most of the year. But in the past few days, Apple stock has done just the opposite.
For most of the year, Apple stock has propelled the Nasdaq forward. In the past few days, it’s done just the opposite.
Skip to next paragraph
The Nasdaq composite index, of which Apple accounts for 12 percent, was down Monday afternoon, dragged lower by Apple’s fifth straight day of declines. That was a sharp contrast to the other two major indexes. The Dow Jones industrial average, which doesn’t include Apple, rose throughout the day and was up 112 points in afternoon trading. The Standard & Poor’s 500, which does include Apple but gives it a much lower weight than the Nasdaq does, wavered between small gains and losses.
Apple has been on a charmed run for the first three months of the year thanks to the huge popularity of its iPhones and iPads. From January through March the stock shot up 48 percent, to nearly $600 from $405, and drove the Nasdaq’s 19 percent rise.
“It’s been a very quirky market because it’s been a few (big) companies that have delivered most of the rally this year,” said Mark Lamkin, CEO of Lamkin Wealth Management in Louisville, Ky. “It’s not been a broad-based rally.”
The five-day losing streak is Apple’s longest slump since October, but it’s not clear if the recent decline is a short-term aberration or a sign of deeper problems. The company has been smoothing over allegations about poor working conditions at its factories in China. Phone companies are getting tired of subsidizing sales of the iPhone, which gets customers in the door but saps those companies’ profit margins. The Department of Justice last week filed an antitrust lawsuit over the way it allegedly prices e-books. While that’s not a huge part ofApple’s business, it is a signal that the government has some qualms about Apple’s dominance of all things “e.”
Others think it’s simply a matter of investors getting out because they’re already made big money on Apple. Even after the five-day decline, which brought Apple’s share price down from $636 to $586 as of Monday afternoon, the stock of the world’s most valuable company is still up about 45 percent for the year.
“It’s had a huge run,” said Burt White, chief investment officer of LPL Financial in Boston. “Some investors probably said, ‘Might as well take some profits.’”
Apple reports quarterly earnings on April 24.
Tech stocks fell the most of any group in the S&P 500, 3.6 percent. Utilities, consumer staples and financials all rose more than 2 percent.
Google, which makes up 3.5 percent of the Nasdaq composite index, was down for the second day in a row. The company went to trial Monday with Oracle, which accuses Google of copyright infringements related to its Android phone. Late Friday, the government fined Google for allegedly blocking an investigation into Google’s data collection of street-level images for mapping.
Apple makes up more than 4 percent of the S&P 500. Along with IBM and Microsoft, it makes up more than 8 percent of the index, according to estimates by Sam Stovall, chief equity strategist of S&P Capital IQ. Stovall, who refers to a decline in Apple stock as “a Newtonian event,” points out that that’s the equivalent of the index’s smallest 192 companies.
The Dow, which doesn’t include Apple or Google, was up 0.9 percent at 12,961.
The Standard & Poor’s 500 wavered between small gains and losses most of the day and was up four points at 1,374. The Nasdaq lost as much as 35 points and was down 15 points in the early afternoon to 2,996, below the closely watched 3,000 mark.
The Dow was driven higher by a stronger-than-expected report about March retail sales. The government reported that sales rose 0.8 percent in March compared to the previous month, twice was analysts had been expecting.
Skeptics noted that the results were still less than February’s 1 percent increase, and they wondered if the results were a quirk of the mild winter, rather than a sign of recovery. The category that enjoyed the biggest jump was the seasonally-driven building materials, at 3 percent. Because people are buying lawn mowers and other warm-weather goods earlier in the year, that could mean those sales will soon peter out rather than provide the usual jump later in the spring.
“It’s nice to see the retail sales were strong, but it’s one month and it’s one data point and it’s not even the biggest data point,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research in Cincinnati. “Honestly, jobs are much more important.”
Earlier this month, the government reported that the U.S. added only 120,000 jobs in March, about half the pace of the previous three months.
Signs that Europe’s debt crisis could reignite have also hurt stocks. On Monday Spain’s borrowing costs climbed above the closely watched 6 percent mark, which means investors are worried about the country’s ability to pay its debts. Seven percent is usually considered the rate at which a country can no longer raise money. Sweden cuts its economic forecast for the year, saying that the euro zone’s problems were spreading its way.
The yield on the 10-year Treasury note fell to 1.97 percent. That means investors are plowing money into government bonds, which they tend to do when they’re nervous about the economy.
