Articles about Margins

Monty Python Wafer Thin Mints

Secretive Chinese smartmobe colossus Xiaomi is on WAFER thin margins

Chinese smartphone giant Xiaomi is operating on the thinnest of margins to keep its handset prices low, according to a filing with the Shenzhen Stock Exchange. The Chinese phone-maker, that’s creeping up on Western manufacturers, made a profit of $56.2m on $4.3bn in revenue last year. That gives the firm operating margins of …

Ingram Micro: Damn you Europe for our ghastly margins

Weaker margins in Europe due to forex losses and cut-throat retail pricing was the only major blip in an otherwise decent end to the calendar 2014 for Ingram Micro. It was not a vintage year though. Sales in Q4 bounced 18 per cent to $13.95bn: Technology and Other Solutions grew ten per cent to $11.2bn and Mobility shot up 60 …
Paul Kunert, 27 Feb 2015

Crap turnover, sucky margins: TV is a 'terrible business' – Steve Jobs

Fanbois hoping to upgrade their Apple streaming set-top box to a fully fledged Apple TV set will have been disheartened by revelations in a new book claiming Steve Jobs did not support building an iTelly. According to former WSJ journo Yukari Iwatani Kane's book Haunted Empire: Apple After Steve Jobs, the fruity führer …
Jasper Hamill, 17 Mar 2014

Apple beats revenue estimates but margins are falling

Apple has beaten some of the gloomier analyst expectations in its second quarter's results filing, with revenues of $43.6bn for the quarter generating $9.5bn in profits. But margins are falling and the company warned that next quarter it may clear only $33.5bn to $35.5bn in revenues – its biggest fall in a decade. The company …
Iain Thomson, 23 Apr 2013
CarPlay

Glaring flaw in Apple car hype-gasm: The iGiant likes to make money

Despite rumblings of secret research projects and hiring sprees, Apple is not going to be building its own cars anytime soon, says one analyst. Edison Investment Research analyst Richard Windsor told The Register that Apple's preferred model of high profit margins wouldn't translate well into the world of auto manufacturing …
Shaun Nichols, 26 Aug 2015

Arista revenue rises to US$179 million in March quarter

Arista Networks has reported continuing growth, taking its revenue to US$179 million, but at the cost of a slimming of its margins to 65.8 per cent (down from 69.4 per cent a year ago). The revenue growth was strong at nearly 53 per cent higher than a year ago, but it slowed at the end of the period and was only 3.2 per cent up …

Cisco kicks off Robbins' reign by beating the street

Cisco's new CEO Chuck Robbins has had the pleasure of reporting ahead-of-expectation results for Q4 of 2014/15. In the quarter that saw Robbins take over the big office from the seemingly-eternal John Chambers, Cisco reported year-on-year growth for the quarter of 3.9 per cent (US$12.8 billion). Full-year 2015 revenue was …
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The NHS pays up to NINE TIMES over trade price for commodity kit

The UK’s National Health Service is paying through the nose for low-tech gear, including cables and USB flash drives, according to a poll of IT buyers. The health service came out on top in the league of prosperous procurements across 20 industry sectors, with one head admitting to coughing a margin of 920 per cent above trade …
Paul Kunert, 16 Jun 2015
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Acer: We ARE profitable – oh yes, we made £40k big ones in Q2

For the second quarter in a row, Acer's P&L accounts have remained in the black, though its operating margins must be a cause for concern – just 1.48 per cent, at the last count. And part of the reason for the slim pickings is partly the fault of those pesky chaps at Microsoft, the company reckons. The firm released turnover …
Paul Kunert, 07 Aug 2015
Unisys sets LinuxWorld alight

Unisys looks to ‘streamline’ as losses increase, sales fall

Losses at mainframe maker Unisys plunged deeper into the red in the company's first quarter of 2015, falling a further $10 million (£6.6 million) to $27.4 million (£18.1 million). First-quarter 2015 sales fell 5 per cent to $721 million (£476 million), when compared with the previous year. The company hopes to makes savings of …
Kat Hall, 24 Apr 2015
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Bytes' NHS deal loss hits revs – but biz margins rise

Bytes Technology Group's (BTG) top line took a hammering in fiscal 2012 ended February from the loss of a Microsoft Enterprise Agreement with the NHS – but efforts to push up gross margins boosted the bottom line. The Surrey-based reseller saw sales fall 16 per cent to £125m for the 12 months as two NHS true-ups in the previous …
Paul Kunert, 16 Apr 2012
Huawei HQ

Huawei claims 30 per cent growth for H1 2015/16

Huawei's core smartphone and network infrastructure units have driven the Chinese behemoth's revenue past $28bn for the first half of financial year 2015-2016. In a result that will chill the likes of Cisco, Nokia/Alcatel-Lucent and Ericsson, the company's revenues hopped on an elevator to grow 30 per cent year-on-year, and …
Cray Research Cray 2

Q2 wins drag Cray back into profit territory

Cray Computer's commanding footprint in the high-performance computing (HPC) market has pitched the venerable vendor back into profitability. In its Q2 2015 results announced Thursday, the company reported US$186.2 million in revenue and $5.8 million in profit, both well above what was reported for the same period in 2014, …

Trustwave: Here's how to earn $84,000 A MONTH as a blackhat

Exploit kit traders and ransomware slingers are in one of the most profitable industries in the world, landing a whopping 1,425 percent profit margin for raiding legitimate trade. Figures from infosec firm Trustwave show the blackhats who are enjoying what appears to be a current boom can score outrageous amounts of money by …
Darren Pauli, 10 Jun 2015
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Hungry Advanced Computer Software gets swallowed for £725m

Acquisition-hungry Advanced Computer Software (ACS) has itself been acquired by private equity firm Vista for £725m. Vin Murria, chief executive of the healthcare and biz management software and services firm, said the deal would help ACS move to its "next stage of its growth". She said: "ACS' value has grown from £32m to £725m …
Kat Hall, 25 Nov 2014
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Nimble Storage revenues soar as mainstream rivals experience droop

Nimble Storage had another successful quarter in terms of revenue, beating its own estimates: the figure of $80.1m in its second fiscal 2016 quarter was 49 per cent higher than a year ago, and 12 per cent more than the previous quarter. Nimble_revs_to_Q2_fy2016 Nimble generated losses of $30.1m, 15 per cent worse than the $ …
Chris Mellor, 26 Aug 2015

Australia cracks tech giants' tax dodge code

Australia's Economics References Committee, which has been conducting hearings into corporate tax avoidance, looks to have made a breakthrough by eliciting a new method for taxing multinationals from the nation's Taxation Office. Recent hearings have revealed how the likes of Apple, Google and Microsoft manage to pay such low …
Simon Sharwood, 04 May 2015
Blingtastic Samsung Galaxy

Samsung S6: You might get a Sony camera in it - or you might not

When you buy a Samsung S6 you might get the impressive Sony IMX240 camera sensor ... or you might get the Samsung Isocell unit. In the published specifications for S6 and S6 Edge, Samsung doesn’t give any details on the camera sensor, saying just “16MP OIS(rear), 5MP (front)” but the two sensors are pretty different and there is …
Simon Rockman, 06 May 2015
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Ingram Micro feasts on European old-mobe specialists

First Ingram Micro dug deep to acquire handset seller Brightpoint and now it is buying up companies to deal with the devices in middle age and at the end of their life. The tech wholesaler has subsumed CANAI Group, which specialises in trade-ins, reuse, recycling and global redistribution. High Wycombe-based CANAI runs a …
Paul Kunert, 23 Jun 2015

Win10 PCs still stuck on slow boat from China, warehouses empty

Windows 10 consumer PCs will not show up in big numbers at Brit retailers’ stores until the middle of next month, multiple sources have told us. The reason for the scarcity is that Microsoft didn’t allow the OS to be pre-loaded on to PCs until launch day on 27 July, and lead times including sea shipment were eight weeks from …
Paul Kunert, 27 Aug 2015
£10 notes. Pic: Howard Lake

Sun shines on Datatec despite Logicalis' sales 'n' contract woes

It was the Westcon distribution arm that kept the tills ringing for parent Datatec, as integrator sub Logicalis was struck by a “significant” contract loss in Blighty and weaker product reselling. Across the group – which also includes consultancy Analysis Mason – revenues leapt by 13.3 per cent to $6.4bn for fiscal ’15, ended …
Paul Kunert, 13 May 2015

$17,000 Apple Watch: Pointless bling, right? HA! You're WRONG

Comment What's the point of Apple's $17,000 Christometer then? Apart from, you know, vulgar money? There's been a certain amount of quiet coughing and choking among the fanbois over the new Apple Watch Edition's Christometer's tag of $17,000 at the top end. That's a whole heap of Benjamins for a wrist computer, most especially as the …
Tim Worstall, 12 Mar 2015

America helps ease Ericsson's pain

Ericsson boss Hans Vestberg is breathing a sigh of relief, with America's demand for mobile broadband stabilising enough to help it beat forecasts for the second quarter. The company announced on Friday that the North American territory had finally stabilised after declining for three quarters, helping both sales and profit …
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Acer still rumbling along toward end of runway - but no sign of liftoff

Acer sales have slumped to a nine-year low, prompting senior industry figures to question if the once high-flying notebook maker is running out of runway. The Taiwanese firm has reported a 26.6 per cent year-on-year revenue decline for Q2 to NT$60.1bn (£1.24bn, $1.93bn), the lowest quarterly sales since 2006 when Acer was …
Paul Kunert, 14 Jul 2015

Bank of England CIO: ‘Beware of the cloud, beware of vendors’

The Bank of England is loosening up on IT delivery and recruitment, but not its resistance to public cloud. John Finch, CIO of the UK's central bank since September 2013, Wednesday ruled out the use of any public cloud by the bank for the foreseeable future. Cloud has however crept into the Bank’s IT margins, where it’s been …
Gavin Clarke, 25 Jun 2015
Sidewalk mobile phone lane in China

Xiaomi: It really ISN'T a biz-miracle idiot tax like Apple

Worstall on Wednesday The lads over at Business Insider seem to be getting a little over-excited about Xiaomi's latest fund raising exercise, claiming in their headline that it's the Apple of China. Well, no, not really, Apple is the Apple of China. Making cute kit and selling it in volume isn't the definitive point about Apple itself so a company …
Tim Worstall, 24 Dec 2014
Champagne Not Included

Capita cracks open the bubbly after 10 per cent sales jump

This year's huge Capita spending spree boosted the company's sales by 10 per cent to £2.28bn, according to the outsourcing giant's first-half results for 2015. During that period, the outsourcer splashed a total of £279m on 11 businesses, most recently snapping up Scottish business intel outfit Barrachd. Profits before tax …
Kat Hall, 29 Jul 2015
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Ultrabook prices to fall as manufacturers slash margins

Manufacturers are cutting their margins to the bone, and getting a subsidy from Intel, in an effort to make ultrabooks more affordable. Acer, Asustek Computer and Toshiba may be able to put out hardware below the critical $1,000 mark, unnamed sources told DigiTimes, and by 2012 prices could drop by up to 10 per cent. Intel is …
Iain Thomson, 30 Nov 2011
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Blighty's oldest tech distie feels a little punchy again

Death, taxes and Northamber’s continued sales slide once seemed three certainties in life, but no more – the UK’s oldest tech distie has grown for the first time in years and isn't losing nearly as much cash. It could well be that the new management strategy, led by commercial director Alex Phillips, son of chairman David, is …
Paul Kunert, 12 Mar 2015
storage arrays superimposed on cloudy sky

Seagate scoops Dot Hill for US$694 million

Seagate has announced it will acquire storage outfit Dot Hill for US$694 million. The canned statement announcing the deal says “Dot Hill’s external storage array-based systems and software products will complement and expand Seagate’s storage systems offerings and be offered as part of Seagate’s Cloud Systems and Electronics …
Simon Sharwood, 19 Aug 2015
AMD CEO Lisa Su speaking at the firm's 2015 financial analyst day

Rip up your AMD obits: Gaming, VR, embedded chips to lift biz out of the red by 2016, allegedly

Struggling chipmaker AMD hosted an all-day meeting in New York City on Wednesday to reassure financial analysts that its product portfolio is strong and it plans to return to growth this year. During the meeting – AMD's first in three years – CEO Lisa Su said she plans to return the company to profitability in the second half of …
Neil McAllister, 06 May 2015

What? EMEA PC sales dropped by HOW much?

With tech distributors and retailers suffering PC inventory indigestion in EMEA, shipments into the region during Q2 were always likely to be bad, and they didn’t disappoint. Some 18.6 million desktops, notebooks and premium ultra mobiles found their way into outlets in the three months, that is down 15.7 per cent, or 3.47 …
Paul Kunert, 10 Jul 2015

Insight becomes latest victim of global currency conundrum

Not a month passes without US-based tech suppliers bemoaning the ruinous impact of unfavourable for-ex rates on their financial well-being, and Insight Enterprises is the latest to do so. The Microsoft enterprise licensing house reported sales of $1.42bn for Q2 that were marginally up year-on-year but would have risen seven …
Paul Kunert, 04 Aug 2015
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Buy a Tesla for the good of Australia, say country's dino-burners

Australia's energy industry, overwhelmingly dominated by the burning of dinosaurs, has decided the country needs more electric vehicles (EVs). Facing something of a crisis in demand, with renewables (particularly solar power) severely denting the lavish margins wholesalers formerly expected during daytime peaks, the Energy …

AT&T: Sorry vendors, SDN is eating your lunch

In news that will chill purveyors of big networking iron, AT&T last week told its earnings call it reckons its software-defined network (SDN) rollout will cut its capital expenditure. While reports last week focussed on the company's revenue (US$33 billion for the second quarter), margins (36.3 per cent), and operating income …
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Cisco exits set-top box biz, sheds US$1.8bn of revenue

Cisco's Connected Devices Division, a purveyor of set top boxen for service providers, is off to Europe having been acquired for €550 million / US$600 million by Technicolor. The French company, formerly Thomson (as most of its customer premises equipment/set-top boxes are branded), will take on the division first created by …

BT bemoans 'misconceived' SUPERFAST broadband regs

Ofcom is attempting to clip BT’s financial wings by proposing to regulate the margins it banks from superfast broadband sales to consumers, essentially to prevent the firm from future profiteering and elbowing rivals out of the market. The Brit telco monopoly is the largest provider of fibre broadband services over its network …
Paul Kunert, 15 Jan 2015

How do you sell fewer hard drives but make more profit? Let's ask ... Western Digital

Western Digital's third quarter of fiscal 2015, ended April 3, raked in sales of US$3.55bn – that's 4.1 per cent down on the year-ago quarter, and 8.7 per cent less than the previous quarter. It banked a profit of US$384m; that figure was US$375m a year ago, so that's a 2.4 per cent gain. WD recorded a profit of US$460m in the …
Chris Mellor, 29 Apr 2015
Nvidia GeForce

Pray harder for AMD

Graphics and mobile chip kingpin Nvidia posted unexpectedly solid results for the second quarter of its fiscal 2016 on Thursday and said it projected next quarter's numbers to be strong, as well. Total revenue for the three months ending on July 26 was $1.15bn, which trounced even Wall Street's most optimistic expectations. …
Neil McAllister, 06 Aug 2015
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Visa mobilises its money out of mobile money firm Monitise

Once a stock market darling, mobile money expert Monitise is to lose Visa Europe as a major shareholder. The finance multinational has announced that it will “reduce its shareholding over time”. Visa Europe has steadily bought into Monitise, spending £2.1m in August 2012 when shares were around 30p, £15.6m in August 2013 when …
Simon Rockman, 08 Jul 2015
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Cloud-engorged SAP's profits nosedive by a QUARTER

Profit plunged by 23 per cent to €413m (£296m) at Teutonic wannabe cloud-purveyor SAP for its first quarter as the company attempts to move away from its traditional on-premise software products. Revenue increased 22 per cent to €4.5bn (£3.2bn), compared with the same period last year. Cloud subscriptions and support revenue …
Kat Hall, 21 Apr 2015
NetSuite CEO Zach Nelson

Sorry about that profit, says NetSuite, our costs should be higher

NetSuite CEO Zach Nelson has attributed last week's estimates-busting results are partly due to enthusiasm for cloudy software, but also partly due to difficulties finding people to hire. The company hauled in US$143.7 million for the quarter, a small matter of 34 per cent more than the corresponding quarter in 2013. But the …
Simon Sharwood, 28 Oct 2014
BBC Testcard

Vodafone Pay TV launch rumoured for November

Vodafone is gearing up to offer a pay TV service, the latest global telco to move into the four-play arena, and the scuttlebutt is that consumer offerings will go on sale in November. Vodafone has offered broadband before but sold the business to BT’s Plusnet in 2007. The mobile phone giant announced that it would re-enter the …
Simon Rockman, 16 Mar 2015
Motorola Moto G 4G

Vodafone UK rocks the bloat with demands for vanilla Android

Vodafone UK wants to sell Android phones which are as close to stock (as Google intended) as possible, and the red company's favourite device for this is the Moto G. Writing on the Vodafone company blog, Motorola senior marketing director Marcus Frost unsurprisingly extoled the virtues of the new phone – but he's not just …
Simon Rockman, 25 Aug 2015
Huawei HQ

Huawei bellows big revenue jump thanks to brisk 2014 phone sales

Huawei – which was backed by Britain last week despite repeated claims that the Chinese company's network kit could endanger national security – saw a 33 per cent leap in net profit for 2014. The privately held, employee-owned telecoms giant reported its full-year results this morning, when the firm's rotating CEO Ken Hu …
Kelly Fiveash, 31 Mar 2015

Citrix CEO retires as activist investor Elliott snatches the wheel

Citrix chief exec Mark Templeton has said he will retire, as activist investor Elliott Management takes a larger role in the company. Templeton joined Citrix in 1995 and has served as its CEO since 2001. But hedge fund Elliott has been among the most vocal in calling for change following what it describes as years of …
Neil McAllister, 29 Jul 2015

PeopleSoft p0wnage possible with a day of GPU brute-forcing

ERPScan researcher Alexey Tuyrin says hundreds of Oracle PeopleSoft users, including banks, are running publicly-exposed services that are open to a token-plundering vulnerability. The penetration tester says a breach could be worse than that of the Office of Personnel Management which recently lost millions of records in a hack …
Darren Pauli, 02 Jul 2015
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Legal biz Irwin Mitchell outsources majority of IT to Esteem

Law firm Irwin Mitchell is to outsource IT operations to Esteem from Monday, with the “majority” of staff expected to be TUPEd across, although some are refusing to relocate 200 miles to the Woking call centre The desktop support function was already contracted to Esteem at the end of 2012 for £1.7m with 15 people joining the …
Paul Kunert, 13 Apr 2015
Uber launch party by https://www.flickr.com/photos/5chw4r7z/ CC2.0 sharelalike attribution https://creativecommons.org/licenses/by-sa/2.0/

Why does Uber keep its drivers' pay so low? Ex-CFO: 'Cos we can'

In an interview on Sunday's episode of Wall Street Week, Mike Novogratz, principal and director of investment firm Fortress Investments, who was speaking about corporate greed and income inequality, explained his thoughts with an anecdote about former Uber CFO Brent Callinicos. Callinicos, who had previously been a bean-counter …
Graph of US dollar going up CC 2.0 https://www.flickr.com/photos/68751915@N05/ 401kcalculator.org.

Surging US dollar curbs global IT budgets

Global IT spending is projected to fall 5.5 per cent to total $3.5tn in 2015 - but only because of the strong US dollar. Translated into constant currency, the worldwide IT market will grow 2.5 per cent compared with 2014, according to Gartner’s latest IT spending projections. So will US vendors raise prices outside their own …
Drew Cullen, 30 Jun 2015