Archive for the ‘earnings’ Category
Apple’s Q3 2012 Earnings and the Enterprise
Apple announced their Q3 2012 earnings today with the highlights being 17M iPads sold (up 84%) and their $2.65 dividend per share.
But as usual, the enterprise is what matters to us…
26M iPhones were sold (up 28% y/y) with the number of iPhones in the Fortune 500 more than doubling.
Two examples were sited -
1) Pepsi Co has deployed thousands of iPhones with an in-house app for their field service personal to eliminate paper and provide real time sales and delivery information.
2) ERGO, a German insurance provider, has an in-house app to process insurance claims to eliminate paper and speed processing time.
17M iPads were sold (up 84% y/y) and the number of iPads in the Fortune 500 mre than tripled in the past year. Additionally the reduced price iPad2 saw large momentum in K-12 school districts with nearly 1M iPads sold.
Three examples were sited -
1) British Airways has a custom app to support their business across customer support at check-in to cabin service directors replacing paper printouts of customer preferences.
2) Homebuilder Dialogue House in Japan is building smart homes that are fully controlled by iPads. And their sales collateral is distributed via iPads to enable purchasers to select upgrades and other options.
3) Mansfield, Texas Independent School District has purchased 11,000 iPads. This fall every Mansfield High School student and teacher will receive an iPad under the districts Power Up initiative.
A cumulative 410M iOS devices have been sold making a large market for the Apple Developer community.
Overall, paperless workflow plays a huge role with iOS in the enterprise. At Moprise, we believe document workflow applications like Coaxion can give you the efficiencies experienced by these companies at price points, speed, and flexibility unattainability with custom solutions.
Microsoft’s Q2 2012 earnings - the Microsoft backoffice remains strong
Once again Microsoft reported better than expected revenue pf $20.9 Billion in this quarter. The business division reported $6.28B in revenue, a 7% increase over prior periods excluding one-time revenue. Revenue in SharePoint and Exchange grew by more than 10% and Lync and Dynamics CRM grew by 30%. No new results were issued for Office365 beyond the current 5M+ seats and 100,000+ businesses sold in 3 months ending November 2011 and 22M education users (100% y/y increase). All this reflects the continued strength of Microsoft’s technologies in the back office.
The PC market declined 2% to 4% reflecting a change in client computing from PC centric to mobile centric. This was especially apparent in the Consumer PC space which was down 6%. Business PC purchases grew 2% suggesting businesses are continuing to refresh their PCs while they evaluate mobile devices.
Apple’s Q4 2011 Earnings and the Enterprise
Apple once again released stellar earnings on October 18th. Let’s see what it means for the enterprise:
Apple sold 17.1M iPhones vs 14.1M in the previous September quarter – 21% growth. This was off because of rumors of the iPhone 4S release.
iPhone continues to be adopted as the standard across the enterprise with 93% of the Fortune 500 deploying or testing the device, up from 91% last quarter and 60% of the Global 500 testing or deploying iPhone, up from 57% last quarter. A recent example of iPhone’s enterprise success is Lowe’s. Lowe’s is in the process of rolling out over 40,000 iPhones with a custom application to allow their store associates to execute realtime inventory checks, product orders and interactive customers with how-to videos.
Additional examples of companies around the world supporting iPhone on their corporate networks include L’Oreal, Royal Bank of Scotland, SAP, Texas Instruments, Jacobs Engineering Group, Tenet Healthcare, Jaguar Land Rover, Takeda Pharmaceuticals, Lincoln National and CSX Corporation.
11.1M iPads were sold in the September quarter compared to 4.2M a year ago, 166% growth.
It’s been just 18 months since we introduced iPad and the pace at which businesses worldwide are adopting this technology is unprecedented. Today, 92% of the Fortune 500 are testing or deploying iPad within their enterprises, up from 86% last year. Internationally, 52% of the Global 500 are testing or deploying iPad, up from 47% last quarter.
Every day, we learn about innovative new ways our enterprise customers are using iPad. The airline industry is a great example of the momentum we’re seeing. United Continental Holdings is putting iPads in every cockpit to replace heavy, paper-based flight bags. In Japan, All Nippon Airways is now using iPad in training programs for flight attendants.
Sonic Automotive is using iPad for customer check-in at the service department and also to provide analytics to regional managers. Aflac, Biogen and General Mills have developed internal apps that their field sales teams leverage daily, and technicians of Siemens Energy are bringing iPads along when they do maintenance work at the top of their wind turbines.
Microsoft Q4 FY 11 Earnings and the Enterprise
Microsoft’s press release on their earnings is here. A link to the recorded conference call is also available from that page.
Overall, sales were up 12% and net profit was up 23% on record $17.37B in revenue for the quarter. But once again, we’re interested in how Microsoft is doing in the enterprise productivity space.
Business Division quarterly revenue was up 7% over last year and yearly revenue was $22B, a 16% increase over last years stellar numbers. All the business servers had double digit growth - 20% on average. Business purchases of Microsoft Office and Office Servers such as SharePoint, Lync, and Dynamics grew 27%. Office 365 is early, having released last month, but is doing well focused on the small and medium business but no specific numbers were announced. For larger enterprises, Office365 represents an option for making external collaboration easier.
Multiyear enterprise commitments grew to $17.1B in deferred revenue - supporting the stickiness of enterprise commitment to Microsoft technologies.
Windows Server & Tools business grew 12% vs last year. Windows Server & System Center revenues grew 20%. SQL Server Premium revenue grew almost 20%.
Business PC growth was 8%. Windows 7 enterprise deployments increased 50% since March. 27% of enterprise desktops have Windows 7 and 90% committed to deploying it.
Overall, this data shows Microsoft remains a core part of every enterprise and they are extending their lead into small and medium businesses with their cloud services.
Apple’s Q3 2011 earnings and the Enterprise…
Apple’s press release announcing their Q3 2011 earnings is here.
Apple’s recording of their executive conference call is here.
Apple released their latest earnings which once again blew everyone away driving their stock price to an all time high of $400 in after hours based on $28.57B in revenue, $7.31B in profit, 20.24M iPhones, and 9.25M iPads. All massive increases over previous quarter and previous year.
But for us, what’s happening in the enterprise is most important. Here are the enterprise numbers and the color from the press release and the conference call.
iPhone:
91% of the Fortune 500 is deploying or testing iPhone. Up from 88% last quarter.
57% of Global 500 companies testing or deplying iPhone fueled by employee demand and custom app development.
Some companies deploying iPhone onto their corporate network include Crédit Agricole, Nestle, Dow Chemical, GlaxoSmithKline, Comcast, and SuperValue.
iPad:
86% of the Fortune 500 is deploying or testing iPad. Up from 75% last quarter.
47% of the Global 500 is deploying or testing iPad.
Corporate Scenarios:
Deploying to sales teams: Boston Scientific, XEROX, and SalesForce
Deploying in top hospitals: HCA and Cedars-Sinai
Using in retail stores: Nordstrom & Estee Lauder Clinique counters
Deploying custom apps: General Electric, SAP, and Standard Chartered deploying internal apps for training, currency tracking, business process management
Paperless cockpit: Alaska Airlines & American Airlines
Education: More iPads sold into K-12 schools than Macs
Apple has a dual pronged iPad/iPhone enterprise sales strategy. Apple’s primary channel is via the carrier sales force and Apple trains and provides best practices to the sales force. In some cases, Apple sells direct. Generally, they are still building out enterprise sales but doing it a bit better each quarter. Apple execs believe iPad penetration and adoption within the enterprise is phenomenal for a product only 15 months into its life cycle.
Moving forward, Apple’s attention is turning towards enterprise penetration (as opposed to trials) and is evident by the recent introduction of volume pricing for enterprise educational apps. The volume purchase program for businesses is “coming soon”.
Microsoft’s FY11 Q3 Earnings
Microsoft announced blow out FY11 Q3 earnings. There are two key themes emerging with respect to enterprise productivity:
1) The movement to include phones and tablets at the center of personal productivity and
2) The continued momentum with enterprise infrastructure on Microsoft services and cloud offerings.
At Moprise, we see a real opportunity to leverage the exponential growth in the demand for mobile productivity with the linear adoption curves of IT infrastructure.
The specific quotes from the earnings report are below.
“We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses,” said Peter Klein, chief financial officer at Microsoft.
Revenue in Microsoft’s Windows division fell 4 percent, slightly worse than the fall-off in PC shipments tracked by the research firm IDC.
Microsoft Business Division revenue grew 21% year-over-year. Since its release last spring, Office 2010 has become the fastest-selling version of Office in history, and the integrated innovation with SharePoint, Exchange, Lync and Dynamics CRM is driving significant growth for the division.
“We delivered strong third quarter revenue from our business customers, driven by outstanding performance from Windows Server, SQL database, SharePoint, Exchange, Lync and increasingly our cloud services,” said Kevin Turner, chief operating officer at Microsoft. “Office had another huge quarter, again exceeding everyone’s expectations, and the addition of Office 365 will make our cloud productivity solutions even more compelling. We continue to see strong adoption of our cloud-based services among the Fortune 500.”
Apple’s Q2 2011 Earnings and the Enterprise
Seeking Alpha’s Transcript of Apple’s Earnings Announcement
On April 20th, 2011, Apple announced their Q2 earnings. They blew us away with 18.65 million new iPhones sold (vs 8.8 million same quarter last year). This is over 110% growth and exceeds the overall smartphone growth of 74%. All these new iPhone users will begin searching for new applications and services to become more productive.
Apple announced 88% of the Fortune 500 are testing or deploying the iPhone. Some examples include Cisco, Prudential, Boston Scientific, General Motors, American Airlines, Deloitte, Yum! Brands and Xerox.
Apple announced they were selling all the iPad 2 devices they could make with 4.7 million sold during Q2. iPad 2 seems to be sold out and people who walk away empty handed from an Apple Store, return again when new shipments arrive. Quite simply, it is the best tablet available. Luckily, Tim Cook announced the iPad 2 supply problems will be solved this quarter.
In just over a year since its debut, 75% of the Fortune 500 are testing or deploying iPad within their enterprises. Some recent examples of enterprises that are deploying iPad include FORTUNE 500 companies such as Xerox, AutoNation, Yum! Brands, ADP, Boston Scientific, Estée Lauder, Disney, Stryker, Prudential Financial, Rite Aid and USAA.
