Tech Business Roundup: Intel Goes Mobile, EMC Earnings
Deutsche Telekom (DTEGY.PK) the parent company for T-Mobile, if approved by the Federal Communications Commission to do so, will have $1 billion in wireless airwaves transferred to it from AT&T (NYSE:T). AT&T promised to turn over the airwaves and $3 billion in cash after the failure of its $39 billion T-Mobile bid.
Nokia (NYSE:NOK) shares fall dramatically premarket. One of the Finnish firm’s suppliers warns of low sales. STMicroeletronics (NYSE:STM) says that its first quarter revenue will fall as much as 10% quarter-over-quarter. Lagging sales at a joint venture that makes components for Nokia phones is partly to blame.
Investing Insights: AMD Earnings Consensus Estimate at $.16 EPS.
EMC (NYSE:EMC) achieved record results during the fourth quarter in a variety of metrics, including net profit. A jump of 16% to $1.07 billion was seen. The firm expects $22 billion in 2012 revenue, and adjusted earnings per share of $1.70 versus estimates of $22 billion and $1.71. EMC is benefitting from cloud computing “transforming the way we work and live.”
Meredith (NYSE:MDP) is acquiring Allrecipes.com for $1.75 million. Meredith believes Allrecipes.com is the number one digital food site, and expects the acquisition to dilute the fiscal year 2012, which ends in June earnings per share by $0.10. However, it will be “modestly accretive” to fiscal year 2013 earnings per share. Meredith also reported second fiscal quarter revenue of $328.7 million, which was down 10% year-over-year, and earnings per share of $0.70. Both missed by $13.5 million and $0.03, respectively.
Investing Insights: Yahoo! Earnings Consensus Estimate at $.24 EPS.
Intel (NASDAQ:INTC) has never been a major player in mobile base station processor space. Qualcomm Inc. (NASDAQ:QCOM), Texas Instruments Incorporated (NYSE:TXN) Freescale Semiconductor Holdings I, Ltd. (NYSE:FSL), and several network processor specialists have all previously dominated the market. An initiative called Cloud-RAN could give Intel a foothold however. Cloud-RAN involves a base station processing which is shifted to data centers. Intel’s vision of Cloud-RAN would allow for its Xeon CPU’s to handle the processing rather than specialized chips.
Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Google (NASDAQ:GOOG) have suspicion looming about the privacy protections offered by their cloud services. The European Union specifically is raising concerns for these United States company services. The Patriot Act, in the view of the European Union, could grant the United States government access to such data, even if it belongs to the citizens of Europe and is hosted overseas. The United States claims that its privacy protections are solid, and InfoWorld’s David Linthicum thinks protectionism is at work.
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