Tech Business Review: Dell’s New Deal, Nokia’s Last Laugh
Was the Easter Sunday launch of Nokia’s (NYSE:NOK) Lumia 900 Windows Phone such a bad idea after all? The Phone has moved to the top of Amazon’s list of best selling cell phones, bettering the devices offered by Samsung, HTC, and Motorola.
Attributing the move to “solid order momentum and an improved outlook from our customers across the board”, Semiconductor Manufacturing International (NYSE:SMI) raises its first quarter forecast. The company now projects an increase in revenue of between 14 and 15 percent, which is up from a previous forecast of 7 to 9 percent, and it raises gross margin guidance from between 4 and 7 percent to 10 to 12 percent.
Don’t Miss: Qualcomm Invests in Android.
Shares of Dell (NASDAQ:DELL) move up early as its partnership with Lockheed Martin (NYSE:LMT) is announced. As part of the U.S. government’s largest information tech contract (five years, $7.5 billion), Dell would provide computers and support services, according to the general manager of Dell’s federal government business.
In an all-stock deal, Wizzard Software (AMEX:WZE) expects to buy Digital Entertainment International, which is a licensor and distributor of copyright-protected digital media content in China. The 2011 net income for Digital was $15.3 million, with revenues totaling $70.9 million; the price of the Wizzard acquisition was unreported.
Don’t Miss: Intel Eyes the Developing World.
A complication in Microsoft’s (NASDAQ:MSFT) $1 billion purchase of AOL’s (NYSE:AOL) patents is the huge break-up fee ($211 million, which is 20 percent of the deal price), if the transaction does not close ‘in a timely manner’. Apparently AOL was more concerned with the specific terms of the purchase than the price tag, amidst a “really competitive” auction process, says The Wall Street Journal. Meanwhile, AOL has a problem coming from activist investor Starboard; although the value of the group’s shares has jumped about 43 percent since last week, Starboard has written that the divestiture of the patents “does little to address our serious concerns” with AOL’s operating performance and losses in the display advertising business.
Yahoo (NASDAQ:YHOO) laid off 2,000 employees and rearranged its structure regarding three divisions. However, investors also want some closure around YHOO’s Asian assets and indication that the new CEO Scott Thompson possesses a clear strategy for moving forward.
Don’t Miss: Here’s New Traffic Data for the iPad 3.