IT Q3 Report Card: Financials Results Chart Progress and Decline

 
 
By Chris Preimesberger  |  Posted 2008-10-30 Email Print this article Print
 
 
 
 
 
 
 

Silicon Valley and IT weathered the third quarter better than other industries, but not without casualties. While VMware, Google, Apple, Cisco, IBM, Microsoft, EMC, Symantec and others made good speed, AMD faltered and Yahoo floundered.

For IT and Silicon Valley, the early part of the financial nosedive hasn't been so much a crash as a dent.

The following is a quick look at the some of the key IT companies and their financial results reported in the third quarter.

Good

VMware: Revenue growth climbed 32 percent from the third quarter of last year to $472 million. Of course, it wasn't too long ago that VMware's revenue was rising at an 80 percent-per-year clip and that CEO/co-founder Diane Greene was let go after she warned that revenue would "only" be going up 50 percent this next year.

Google: Third-quarter profit rose 26 percent to $1.35 billion from the year-ago period. The company just keeps sailing along, apparently unaffected.

Apple: Apple posted revenue of $7.9 billion and net quarterly profit of $1.14 billion, compared with revenue of $6.22 billion and net quarterly profit of $904 million in the year-ago quarter.

IBM: The company had a solid quarter, with revenue up 5 percent and profits up 20 percent over the same period a year ago. 

Symantec: Symantec posted a comfortable increase. While Symantec's bread-and-butter security and compliance business grew only 1 percent when compared with the same quarter last fiscal year, the Veritas storage business grew by 12 percent, and its services business increased 16 percent.

EMC: Total consolidated revenue for the third quarter of 2008 was $3.7 billion, an increase of 13 percent over the $3.3 billion reported for the third quarter of 2007.

Microsoft: The Big Software Kahuna announced revenue of $15.06 billion for the quarter, a 9 percent increase over the same period in 2007.

Cisco Systems: It isn't reporting its quarterly numbers until Nov. 5, but they will be good. CEO John Chambers has already announced the company will increase its IT budget by at least 10 percent in 2009.

Bad

AMD posted a net loss for the quarter of $67 million. But there is some perspective needed here: The company posted a loss of $396 million in the same quarter a year ago. So, it was much better news than most analysts had anticipated.

Ugly

Yahoo: The company said it would slash 1,400 jobs in the wake of a 64 percent profit drop. Yahoo, which is trying to keep its search engine and other Internet properties afloat, says income for the third quarter tumbled to $54.3 million from $151 million in the same period a year ago.


 
 
 
 
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz
 
 
 
 
 
 
 

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