Intel on Tuesday reported first quarter sales gains despite tough competition for PC computers from tablet devices such as the Apple iPad. IBM posted a 6.7% fall in first-quarter hardware sales and flat overall revenue growth, despite gains in its consulting and software units. Meanwhile, Yahoo's revenue in the latest quarter rose just 1% from a year earlier to $1.22bn as it continued to see falls in its display advertising business. However, company's profit increased 28% to $286m, boosted by strong results at China-based Alibaba Group Holding Ltd., in which Yahoo holds a minority stake.
Intel Corporation, the world's leading chipmaker, reported quarterly revenue of $12.9bn, operating income of $3.8bn, net income of $2.7bn and EPS (earnings per share) of $0.53. The company generated approximately $3.0bn in cash from operations, paid dividends of $1.0bn and used $1.5bn to repurchase stock.
"The first quarter was a solid start to what's expected to be another growth year for Intel," said Paul Otellini, Intel president and CEO. "In the second quarter we'll see the first Intel-based smartphones in the market, ship products based on 22nm tri-gate technology in high volume, and accelerate the ramp of our best server product ever, providing a tremendous foundation for growth in 2012 and beyond."
IBM announced first-quarter net income was $3.1bn compared with $2.9bn in the first quarter of 2011, an increase of 7%. Operating (non-GAAP) net income was $3.3bn compared with $3.0bn in the first quarter of 2011, an increase of 9%.
Total revenues for the first quarter of 2012 of $24.7bn were flat (up 1%, adjusting for currency) from the first quarter of 2011.
"In the first quarter, we drove strong profit and earnings per share growth. We delivered another excellent software performance, expanded services margins, and continued the momentum in our growth initiatives," said Ginni Rometty, IBM president and chief executive officer. "Our investments in growth market countries continued to generate strong revenue growth across software, hardware and services while contributing to the company's ongoing margin expansion.
"Based on this performance, we are raising our 2012 full-year operating earnings per share expectations to at least $15.00."
Yahoo reported that revenue excluding traffic acquisition costs was $1.08bn for the first quarter of 2012, a 1% increase from the first quarter of 2011. Income from operations decreased 11% to $169m in the first quarter of 2012, compared to $190m in the first quarter of 2011.
Net earnings per diluted share increased 38% to $0.23 in the first quarter of 2012, compared to $0.17 in the first quarter of 2011.
"In the first quarter, Yahoo!'s results came in at the high end of our guidance range and beat consensus on revenue and profits," said Scott Thompson, new CEO of Yahoo!. "We also made changes to resize the organization and establish a new leadership structure to quickly deliver the best user and advertiser experiences at scale."
Results detail [pdf]
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Intel CFO on Q1 Earnings Surprise
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