Articles about Margins

man_inks_deal_channel signs contract services

Loss of Wales PSN gig? No worries, says Logicalis UK boss

Services-based reseller Logicalis is looking to fill the void left by losing the Wales Public Sector Network (PSN) gig to BT with more bite-sized projects. Well, that's the plan at least. The Slough-based firm is to be ousted by the Brit telco monopoly on a contract that could be worth up to £420m over the next seven years, …
Paul Kunert, 11 Nov 2014

The Schmidt hits the brand: Apple's iPhone 6 is a year late, scoffs smug search supremo

With Apple under fire for its bendy, broken iPhone 6es, Eric Schmidt at arch-rival Google is only too happy to put his boot in Cupertino. In an interview with Bloomberg TV, the Google chairman and former CEO needled his competitor down the peninsula. When asked what he thought about the hyped up iPhone 6 and iPhone 6 Plus, …
Shaun Nichols, 25 Sep 2014
Poster for Portsmouth Historic Dockyard

Waterfront flats plan for IBM's UK HQ as housing market goes bananas

Office space leased by IBM at its UK headquarters could become waterfront apartments – if a planning application submitted to Portsmouth City Council is approved. The North Harbour Unit Trust, which filed the paperwork, wants a ”partial change of use to 108 residential units" at Big Blue's base in the Lakeside development on …
Simon Sharwood, 21 May 2014
gTLD graphic

Newly public dot-dentist flogger Rightside's shares jump on strong domain sales

In its first earnings report since going public, domain-name specialist Rightside reported revenues of $48.8m, a 7 per cent revenue increase over the year-ago quarter, causing its shares to jump by 4.5 per cent. The company is now valued at $173m. Rightside is unique in the domain name industry in that it services every level of …
Kieren McCarthy, 08 Nov 2014
management project3

CSC set for ANOTHER re-org but no redundancies involved

Re-arranging the UK deck chairs on good ship CSC is the strategy the integrator has chosen after shelving plans to make further redundancies, according to numerous sources. The US-owned business does not generally shy away from making redundancies, axing 750 people from its Brit operation in late April and parting company with …
Paul Kunert, 10 Nov 2014

IBM, backing away from hardware? NEVER!

HPC Blog So, it looks like IBM has moved its chipworks over to Globalfoundries, as described by Reg hack Tim Worstall here. But what are the implications for IBM's systems business? I agree that the brutal and implacable economics of the chip business forced IBM’s hand here. Manufacturing microprocessors is a hugely capital intensive …
HTC Anatomy of an Android Update

iPhone 6: The final straw for Android makers eaten alive by the data parasite?

Analysis Today's long overdue update to Apple's iPhone line - which had been moribund for years - look set to squeeze some rival manufacturers to death. New iPhones at last means that Android, Google's smartphone middleware, will soon look attractive only for budget vendors selling into fast-growing emerging markets. The problem, in a …
Andrew Orlowski, 19 Sep 2014
SanDisk Extreme 120GB SDSSDX-120G-G25

Will SanDisk move into enterprise kit after its Fusion-io slurp?

Storagebod Can SanDisk make a go of moving into the enterprise with its $1.1bn purchase of Fusion-io? It is a very different market to the consumer space and although the margins are considerably higher, it brings with it many challenges. I think it’ll depend on the go-to-market strategy that SanDisk take and I fully expect them to carry …
StorageBod, 18 Jun 2014
Angry woman on mobile

Mobile giants: 4G is so yesterday. Better IT can kickstart revenue growth

Just as operators struggle to make direct profit improvements from LTE, so the vendors have long given up on 4G upgrades being the solution to all their problems. LTE is the most significant factor in driving revenue growth for the big five infrastructure suppliers, for sure, but the margins and differentiation in the equipment …
Wireless Watch, 07 Nov 2014
management strategy3

Arrow steers boss of enterprise wing towards ops control room

A bit of top-level reshuffling at global distie Arrow has led to the recreation of a COO position. The slot will be filled by current president of the enterprise computing wing, Andy Bryant. The last person to sit in the chief operations role was current CEO Michael Long, and the appointment should free up the big boss to tinker …
Paul Kunert, 21 May 2014
parallels logo schematics

Parallels to line up with Linux containers

Parallels is working to bring its automation, security and management wares to the burgeoning world of Linux containerisation. The junior virtualiser finds itself in an interesting position vis a vis Linux containers and Docker, because it has long described its own Virtuozzo product as offering containers. But Virtuozzo is …
Simon Sharwood, 03 Sep 2014

RM to schools: You can have third-party kit, just not from us

Education supplier RM has told customers they can buy discounted third-party hardware from Misco after finally shuttering its own reselling operation and closing the PC production order book. A hardware referral agreement was always on the cards, as revealed by CEO David Brookes last month and Misco has beaten rivals to what was …
Paul Kunert, 03 Dec 2013

My TIGHT PANTS made my HUGE iPHONE go all BENDY!

Apple's new embiggened iPhone 6 Plus has been snapped up by buyers for, among other things, its thin case and its 5.5-inch touchscreen. But Apple didn't mention that it also appears to be the company's most flexible handset – whether you like it or not. A handful of early adopters have reported that after carrying the phablet …
Shaun Nichols, 23 Sep 2014
The Register breaking news

Google Wallet left on margins by ISIS tap-pay hookup

Visa, MasterCard, Discover and American Express have all signed onto US operator consortium Isis, leaving Google Wallet with just MasterCard as a payment partner. The US operator consortium – set up by AT&T, T-Mobile USA and Verizon – has announced that the four biggest payment processors will create mobile payment applications …
Bill Ray, 20 Jul 2011

C'mon, Brocade: QLogic's left the Fibre Channel game. Flat revenues again?

Analysis Brocade is a member of the flat revenue Earth society, with its mix of annual and quarterly Fibre Channel and Ethernet revenues hardly changing between last year and this year. Brocade’s fourth fiscal 2014 quarter revenues of $564m were up by one per cent year-on-year, up from $559m a year ago, and also up three per cent …
Chris Mellor, 25 Nov 2014

HTC warns of likely loss next quarter

Taiwanese mobile-maker HTC has warned that it may have its first ever operating loss in the third quarter, sending its shares sliding nearly seven per cent. HTC said in a statement announcing its Q2 results that its margins had been hit by "the relatively higher cost structure, lack of economy of scale and certain provisions …
Huawei E586

Three daddy Hutch has no interest in O2

Three network owner Hutchison Whampoa has ruled out making a bid for O2 in the UK. Hutchison agreed to take O2 Ireland off Telefonica's hands last year. The €850m deal is currently pending a final session of horse-trading before approval at the EU level. In an interview with the Telegraph, Three UK's CEO Dave Dyson said "We don …
Andrew Orlowski, 01 Apr 2014
Genie

Will fondleslab's fickle finger of fate help Windows 10?

Just two and half years ago Microsoft dropped Windows 8 on the world, playing Redmond’s card in the touch-tablet game against Apple’s iPad and Google’s Android. Windows 8 was remarkable for three reasons: the touch-inspired Metro interface, the fact Microsoft built its own-branded tablet running Windows, and it put Windows on …
Gavin Clarke, 21 Jan 2015

HP's axe swings AGAIN: 5,000 more staffers for the chop

Shape-shifting HP is to throw thousands more workers on the employment bonfire to free up cash for R&D and sales investments, the company confirmed as it provided more background on the pending corporate dissection. The Palo Alto titan yesterday went public over plans to divide the business in two, with the PC and printer …
Paul Kunert, 07 Oct 2014
Shane Robison

Flashy Fusion-io pleads the fifth – the fifth loss-making quarter, that is

Despite revenues rising steadily, Fusion-io cannot stem its cash bleed: it lost $30.7m in the third quarter of fiscal 2014, a 54 per cent increase on the loss it recorded in the same period a year ago. Revenues from the just-ended quarter were $100.5m, 15 per cent up on the year and six per cent more than the second quarter; …
Chris Mellor, 24 Apr 2014
Microsoft's Sharks Cove

Microsoft bakes a bigger Pi to cook Windows slabs

Microsoft is looking for a footprint in the mini-single-board-computer market dominated by the Raspberry Pi, with the launch of the Intel Atom-based 'Sharks Cove' machine it hopes will attract developers with an interest in tablets. That's an interesting move: the tablet market is hotly contested, with vendors entering and …

Experts gathered round corpse of PC market: It's ALIVE! Alive, we tell you

The XP replacement bonanza reviving the PC market isn't yet over, with estimates suggesting that one in five biz machines out in the wilds is still running the thirteen year-old OS, an HP exec has told The Channel. After eight consecutive quarters of declining sales, the commercial PC market returned to life in the first quarter …
Paul Kunert, 22 Jul 2014

How's the great dot-thing gold rush going? Well, coffee.club just sold for $100,000

The domain name coffee.club has been sold for $100,000 (£62,600), marking a growing acceptance – and value – in the market for new top-level domains. In a novel move, the coffee.club owner will also pay the domain's registry operator through an installment plan: 10 percent each year for the next decade, with no interest. "It is …
Kieren McCarthy, 04 Nov 2014
A boat full of Fail

Stock and awe: Top City biz takes £32m hit after software upgrade axed

A leading City firm has halted the roll-out of software that was supposed to streamline its business but became more trouble than it was worth. Specifically, £32m of trouble. Brewin Dolphin, in Smithfield St, London, alleged to investors it encountered “issues” with the "robustness" of a specialist financial application. It …
Gavin Clarke, 19 May 2014

IBM to cut '118k jobs worldwide' – report claims

Updated IBM is reportedly planning to jettison 118,000 workers to counter 11 quarters of declining sales and the impact of shifting industry demand – which, if true, would make it one of the biggest corporate culls on record. El Chan recently broke the huge divisional revamp at Big Blue in a worldwide exclusive, with a series of new …
Paul Kunert, 26 Jan 2015
grab_that_cash

Cisco Gold partner Cisilion boosts fiscal 2012 profits

Bottom-line boosting IT services worked well for Cisco Gold house Cisilion in its last fiscal year while hardware and software licensing margins tightened. Results just filed at Companies House show that in the year to 31 May 2012, sales at the Surrey-based network integrator grew 10 per cent to £26m, in line with management …
Paul Kunert, 08 Mar 2013
Brazil flag

Logicalis: World Cup and IBM kit drop-off hit us hard in H1

Excitable Brazilian firms initiated a network spending freeze during the World that led to a $50m drop-off in kit sales for Logicalis, the integrator’s parent company Datatec said today. Turnover for the first half of fiscal 15 ended August came in seven per cent below the same period a year ago at $714.4m, which when coupled …
Paul Kunert, 15 Oct 2014
sea_hp_sink

HP biz split latest: 'I'm excited!' says CEO as investors exchange nervous looks

HP performed about as well as the analysts expected for the fourth quarter of its fiscal 2014, which is to say it was another difficult quarter that put the cap on what has been a trying year for the tarnished tech titan. Revenues for the quarter were down 2.5 per cent from the year-ago period, at $28.4bn. That sum missed Wall …
Neil McAllister, 26 Nov 2014
Fight sticker

Toys fly from prams as HP rivals stoke FUD fires on its split

It's handbags at dawn in the PC market as rivals round on HP in a bid to sow the seeds of fear, uncertainty and doubt regarding the corporation’s plan to split the business in two. As world + dog knows, the Palo Alto titan is to create HP Inc to house its computer and printing businesses, and Hewlett Packard Enterprise to sell …
Paul Kunert, 09 Oct 2014

How's VMware doing? Like a bull in a China shop, boasts virty beast

VMware revenues have risen 17 per cent on the back of the company signing several lucrative multi-year licensing agreements. The virtualization giant reported its second quarter of 2014 financials [PDF] on Tuesday, with revenues of $1.46bn and earnings-per-share of $0.81 both beating analyst expectations of $1.44bn and $0.79 …
Jack Clark, 22 Jul 2014
box_shifting_channel

Sales dive at UK's oldest tech wholesaler: PC crash splashes Northamber in red

UK wholesaler Northamber swung to a dramatic loss in fiscal '13 caused by a costly restructure, sliding commodity product sales and eroding margins. The Surrey-based distie – Blighty's oldest tech wholesaler – today reported an operating loss of £1.15m for the year to 30 June, compared to a profit of £97,000 in the previous 12 …
Paul Kunert, 08 Oct 2013

Northamber grabs ladder, claims PC market burning

Northamber's colourful chairman is forecasting a "more worthwhile future" - one that is less dependent on tech hardware - but the latest financials still bear the scorch-marks of attempts to put out its burning PC biz. The UK's oldest tech wholesaler has been rather more quiet since listing on AIM, which means the company no …
Paul Kunert, 07 Mar 2014
Hairy Dalek's Lego ZX81

2014: The condensed conference keynotes

Reg hacks travel the world and then ignore the local sights in order to attend giant, dark auditoria and listen to "industry champions" deliver "thought leadership". After a trans-continental telepathy session, here's our collective distillation of this year's C-level wisdom, as delivered from our industry's biggest stages. - Ed …
Simon Sharwood, 24 Dec 2014

How Google's Android Silver could become 'Wintel for phones'

Analysis In the 1990s, Intel and Microsoft dominated the "open" PC standard – and it appears that Google now wants to do the same for its Android system, via its Silver programme. Silver has yet to be announced, but industry sources have confirmed the details to us. While the comparison between Google today and Wintel then isn’t …
Andrew Orlowski, 07 May 2014
hands waving dollar bills in the air

Facebook haters, look away now: BABY SNAP site's profit is up 138%

Facebook shares have rocketed after the social network biz reported record-setting growth, revenue and margins as it wrung cash from hundreds of millions of mobile users. The Menlo Park ads website reported second-quarter revenues of $2.910bn on Wednesday, beating the $2.81bn Wall Street analysts had been expecting, and up 61 …
Jack Clark, 23 Jul 2014
Honshu Tsunami Wave Propagation

Keep an eye on those Object Storage critters, y'hear?

Storagebod So as another year draws to a close, it appears that everything in the storage industry is still pretty much as it was. There have been no really seismic shifts in the industry, yet. Perhaps next year? The flashy start-ups still continue to make plenty of noise and fizz about their products and growth. Lots of promises about …
StorageBod, 17 Dec 2014
management big_data4

The channel is changing – but if you're prepared, there's no need to fear

What keeps channel professionals awake at night? From resellers to distributors to vendors, they are all concerned about when “traditional IT” will finally shuffle off this mortal coil. The channel is a delicate ecosystem of various vested interests — alliances, partnerships and deals – where each individual player is trying to …
Apple iMac

Want a cheap iMac? TOO BAD. But you can have a slow one for $1,099

Apple is adding a lower price point to its iMac line with the introduction of a $1,099 (£899) model, which drops the entry level on the all-in-one line by $200. The company said that the new model would sport the same 21.5-inch display as the other iMac configurations while being equipped with cheaper internal hardware. Where …
Shaun Nichols, 18 Jun 2014
HP cloud

HP rides data center growth out of sludgy IT market

HP has reported better than expected financial results on the back of strong server sales and – unexpectedly – good performance in the struggling PC market. The IT company reported an earnings-per-share of $0.90 and a net revenue of $28.2 billion on Thursday for its first fiscal quarter results, beating analyst expectations of $ …
Jack Clark, 20 Feb 2014

Vodafone, Moneygram hook up to create mobe money MONSTER

+Comment A deal struck between Vodafone and Moneygram has added 334,000 international agents from whom you can send money to Vodafone's M-Pesa. This will allow migrant workers in around 200 countries to send funds home to the Democratic Republic of Congo, Egypt, Fiji, India, Kenya, Lesotho, Mozambique, South Africa and Tanzania. There …
Simon Rockman, 12 Feb 2014

Germany may have won the World Cup... but it dropped the ball for Computacenter

The German nation lifted the World Cup last weekend but those working for Computacenter will not have cheered the local team's performance this morning – when calendar Q2 financials were released to the City. A nasty crash in product sales across CC Germany unpicked momentum in Blighty and progress made in the French arm, …
Paul Kunert, 17 Jul 2014
JassyAWs

Amazon HALVES cloud storage prices after Google's shock slash

Amazon has cut its cloud prices – but not far enough to bring the cost of using its online services entirely below that of rival Google. Prices for Amazon Web Services' mainstay S3 storage will fall by about 51 per cent, said the company's senior vice president Andy Jassy at the Amazon Web Services summit in San Francisco on …
Jack Clark, 26 Mar 2014
chart

It's a bad day to be Serco's CEO... or an investor, come to that

Scandal-hit integrator Serco today issued its fourth profit warning of this fiscal and calendar year, confirmed a £1.5bn write-down and provision to cover to loss-making contracts and effectively exited private sector business process outsourcing. The financial markets reacted negatively, sending the company’s share price …
Paul Kunert, 10 Nov 2014
Motorola StarTAC

HELLO LENOVO. Do you really, really want to make smartphones?

Analysis Lenovo has bought third place in today's smartphone market by acquiring fallen giant Motorola. Not a bad performance since it only created its 'MIDH' mobile division three years ago. But is this really a prize worth fighting for? Lenovo took the No.1 spot in PCs last year from HP with a huge home advantage in China, where it …
Andrew Orlowski, 31 Jan 2014

Westcon Group consumes sister biz Intact Integrated Services

Datatec-owned enterprise distie Westcon Group (WG) is to swallow sister company Intact Integrated Services to beef up margins by selling project, support and managed services, primarily on Cisco kit. The move is part of a wider play to consolidate all services operations under a single roof, and highlights efforts by WG to give …
Paul Kunert, 24 Apr 2014
Apple CEO Tim Cook on the cover of Bloomberg Businessweek

You're spending WHAT on iPhone 6? Wells Fargo downgrades Apple stock

Analysts at Wells Fargo have downgraded their outlook on Apple shares for this year, taking it down from "outperform" to "market perform". A report on the fruity firm stuck to a valuation of between $536 and $581 a share, but it pointed out some concerns about the gross margin of profit on the upcoming iPhone 6 as well as …

Apple to maintain phone profit lead through years of 'enormous transition' – report

Some observers have said that the high-profit party is over for Apple's iPhone now that the global smartphone market is becoming saturated, but the market researchers at IDC would beg to disagree. IDC projections of smartphone average selling prices through 2018 – graph There are low-cost Android phones and expensive ones – but …
Rik Myslewski, 28 Feb 2014

Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales

Gigantic retailer Amazon grew sales 23 per cent, year on year, in its second quarter of 2014 – and managed to lose even more money than usual. The e-retailer and cloud giant reported an operating loss of $0.27 per share on Thursday on revenues of $19.34bn for the three-month period, compared with analyst expectations of a loss …
Jack Clark, 24 Jul 2014

Ballmer leaves Microsoft board to spend more time with his b-balls

Former Microsoft CEO Steve Ballmer is today stepping down from the Windows giant's board of directors – just six months after he was succeeded by incoming chief exec Satya Nadella. Ballmer announced his retirement in August last year, but remained at the helm until Nadella took over in February. Shy-and-retiring Ballmer also …
Chris Williams, 19 Aug 2014

Activist investors force Riverbed into climbdown over cash 'n' costs

Comment Another one bites the dust as activist investor Elliott Management forces networking biz Riverbed into a strategic review of its options. Despite announcing good second and third quarter results with increasing revenues and profits, Riverbed has had to bow to activist investors' concerns about shareholder value by initiating a …
Chris Mellor, 24 Oct 2014