1st Quarter 2009 Results

This is the thread to post financial reports from the carriers and other major players in the mobility world.

Here's a brief report from mobileburn about HTC's 1st Quarter numbers:

HTC reports 30 percent drop in profit in first quarter 2009

Here's another take on HTC's 1Q numbers from the Wall Street Journal:

Profit Falls 30% at Handset Maker HTC - WSJ.com

 

Sony Ericcson 1st Qtr. Results

More info available @ Sony Ericsson - Press Release Overview

Q1 highlights:

• Income before taxes was a loss of Euro 358 million (excl. restructuring charges)
• Cost saving program progressing as planned and additional savings of Euro 400 million announced
• Launch of ‘Entertainment Unlimited’ consumer proposition and new generation of products well received by operator partners

Units shipped in the quarter were 14.5 million, a decrease of 35% compared to the same period of last year and in line with our March 20, 2009 interim announcement of approximately 14 million units. Sales for the quarter were Euro 1,736 million, a decrease of 36% from a year ago. Sales decreased primarily as a result of continued weak consumer confidence and de-stocking in the retail and distribution channels.

Gross margin declined both year-on-year and sequentially, reflecting a change in the product mix, material write-offs, and exchange rate volatility.
Income before taxes for the quarter excluding restructuring charges was a loss of Euro 358 million, within the range announced on March 20, 2009 (loss of Euro 340 - 390 million).
“As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand. We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible,” said Dick Komiyama, President, Sony Ericsson. “The management intends to pursue an additional cost saving program targeting a further annual operating expense reduction of Euro 400 million, to be completed by mid-2010.”

The company’s initial cost saving program targeting annual operating expense reductions of Euro 300 million by the end of the first half of 2009, including a workforce reduction of 2,000 headcount, has now been completed. A total of Euro 187 million restructuring charges have been recorded compared to the initial estimated costs of Euro 300 million.

In January 2009 an additional cost saving program was initiated to target annual operating expense reductions of Euro 180 million by the end of 2009. The cost of this program will be covered by the initial Euro 300 million restructuring costs announced in July 2008.

The additional cost saving program announced today will include a further reduction in the global workforce of approximately 2,000 people. It is estimated that new restructuring charges of Euro 200 million will be needed to complete this program.

As of March 31, 2009, Sony Ericsson retained a strong net cash position of Euro 1.1 billion.

Market share in the first quarter decreased and is now estimated to be around 6%, down two percentage points sequentially.

Sony Ericsson forecasts that the global handset market for 2009 will contract at least 10% from around 1,190 million units in 2008.

At Mobile World Congress in February 2009, Sony Ericsson announced a new consumer proposition, called ‘Entertainment Unlimited’ (EU), to build on Sony Ericsson’s leadership in music, imaging, gaming, content services, and applications to deliver unlimited opportunities for consumers. The company also announced the first Entertainment Unlimited phone with the concept name ‘Idou’ to be launched in the second half of 2009. The next EU announcement will take place on 28 May.

 

LG Electronics Exceeds 1Q Expectations Amidst Global Contraction

LG Electronics (LG), a leader in consumer electronics and mobile communications, announced unaudited consolidated earnings results of the three-month period ending March 31, 2009.

The Mobile Communications Company reported KRW 4.25 trillion (USD 3.02 billion) in sales, 16.8% higher than the previous year, and operating profit of KRW 255 billion (USD 181 million) with a margin of 6.0%. Handset sales accounted for KRW 3.92 trillion (USD 2.78 billion), up 22.6% YoY and operating profit saw KRW 263 billion (USD 187 million) at a margin of 6.7%. Sales remained strong in mid-tier models such as Cookie, a full touch screen phone, and LG-KS360, a QWERTY keypad messaging phone, among others. Shipments of handsets recorded a decline of 7% YoY and 12% QoQ to 22.6 million units due to seasonal effect and the global market contraction. With the global economic downturn expected to continue, LG sees the global market declining over 10% YoY to around 260 million in the second quarter. LG is targeting over 10% growth QoQ by focusing on high-tier, feature-rich products such as Arena, with a new S-Class UI, messaging phones such as Xenon and Neon, Viewty Smart, an 8 megapixel camera phone and GD900, with a transparent keypad.

The entire financial report available @ http://www.lge.com/ir/news_ir/detail

 

AT&T's First-Quarter Results Highlighted by Wireless Gains, U-verse TV Growth, Double-Digit Increase

Highlights

• EPS of $0.53 versus $0.57 for the year-earlier first quarter; incremental noncash pension/retiree benefit costs reduced first-quarter 2009 EPS by $0.05, consistent with full-year outlook

• 1.2 million net gain in total wireless subscribers to reach 78.2 million; 875,000 retail postpaid net adds, up 24.1 percent versus results in the year-earlier first quarter

• 26.0 percent wireless operating income margin, 40.9 percent wireless OIBDA service margin, with sequential expansion reflecting iPhone benefits and continued operational improvements

• Continued strong integrated device adoption including more than 1.6 million iPhone 3G devices activated during the first quarter; the number of AT&T postpaid wireless subscribers with integrated devices more than doubled over the past year

• 38.6 percent increase in wireless data revenues to $3.2 billion, more than double the total for the first quarter two years earlier; growth driven by messaging, Internet access, e-mail, access to applications and related services

• Fifth consecutive quarter with a year-over-year increase in wireless postpaid subscriber ARPU, up 2.1 percent versus the year-earlier quarter to $59.21

• Strong growth in AT&T U-verseSM TV subscribers, with a net increase of 284,000, nearly double the company's gain in the year-earlier first quarter, to reach 1.3 million in service

• 471,000 net increase in total broadband connections — wireline and wireless LaptopConnect cards — to reach 16.7 million in service

• 16.4 percent growth in wireline IP data revenues driven by rapid expansion in AT&T U-verse services and growth in business products such as Virtual Private Networks (VPNs) and managed Internet services

AT&T Inc. (NYSE:T) today reported first-quarter results highlighted by improved postpaid wireless growth with a substantial step up in integrated device penetration, double-digit increases in revenues from IP-based and strategic business services, and further AT&T U-verse TV subscriber gains. Advances in these areas and solid cost management largely offset continuing economic pressures on consumers and businesses.

AT&T's first-quarter revenues totaled $30.6 billion, net income attributable to AT&T was $3.1 billion, diluted earnings per share totaled $0.53 and cash from operating activities totaled $7.9 billion.

"These results demonstrate focused and disciplined execution as we work through a tough economy," said Randall Stephenson, AT&T chairman and chief executive officer. "Our cost-improvement initiatives are on track, earnings and cash flow were solid, our balance sheet and credit metrics continue to be strong.

"Most important, during this down cycle we continue to invest in key growth areas like mobile broadband, more bandwidth to the home through our all-IP AT&T U-verse platform, and advanced global business solutions delivered over AT&T's premier Internet backbone network. We have good momentum in all of these areas.

"I am particularly pleased with the success of our iPhone 3G initiative, which has driven strong high-end customer growth and delivered financial benefits ahead of our original outlook. Business and consumer expectations for mobility are on the rise, wireless innovation is flourishing and the opportunities ahead are substantial. AT&T is strongly positioned to lead in the next generation of wireless growth."

First-Quarter Financial Results

For the quarter ended March 31, 2009, AT&T's consolidated revenues totaled $30.6 billion versus $30.7 billion in the year-earlier quarter, as growth in wireless and wireline data services in large part offset pressures from the macro-environment, including continuing declines in wireline voice access lines and business voice revenues.

Compared with results for the year-earlier quarter, AT&T's operating expenses for the first quarter of 2009 were $24.8 billion versus $24.8 billion; operating income was $5.7 billion versus $6.0 billion; and AT&T's operating income margin was 18.8 percent, compared with 19.5 percent.

First-quarter 2009 net income attributable to AT&T totaled $3.1 billion versus $3.5 billion in the year-earlier quarter, and earnings per diluted share totaled $0.53, compared with $0.57 in the first quarter of 2008.

First-quarter 2009 results included incremental noncash pension and retiree benefit expenses of more than $400 million, or $0.05 per diluted share, consistent with the company's previously provided full-year outlook.

AT&T's cash from operating activities for the first quarter totaled $7.9 billion, capital expenditures totaled $3.4 billion and free cash flow (cash from operations minus capital expenditures) totaled $4.6 billion. Dividends paid totaled $2.4 billion.

Wireless Operational Highlights

AT&T's first-quarter wireless growth was highlighted by postpaid subscriber gains that were up significantly from year-earlier levels, continued rapid adoption of integrated devices (handsets with QWERTY or virtual keyboards in addition to voice functionality) and wireless data services, and substantial sequential margin expansion reflecting operational improvements and iPhone benefits. Highlights include the following:

• Strong Postpaid Subscriber Gains. AT&T posted solid organic wireless subscriber gains in the first quarter, driven by a significant step up in retail postpaid net subscriber additions, which were 24.1 percent higher than in the year-earlier quarter. Versus results for the first quarter of 2008, postpaid gross adds totaled 3.0 million, up 9.2 percent; postpaid churn was stable at 1.2 percent; and postpaid net adds totaled 875,000, up from 705,000. This marked AT&T's third consecutive quarter of double-digit year-over-year improvement in postpaid net adds. Total wireless subscribers increased by 1.2 million in the first quarter to reach 78.2 million in service, up 6.9 million over the past year.

• 38.6 Percent Wireless Data Revenue Growth. Powered by AT&T's premier wireless data network and an attractive device lineup, wireless data revenues increased by $884 million, or 38.6 percent, versus the year-earlier first quarter to $3.2 billion. Data represented 27.2 percent of AT&T's first-quarter wireless service revenues, up from 21.5 percent in the year-earlier quarter and 16.0 percent in the first quarter of 2007. Wireless text messages on the AT&T network totaled more than 94 billion in the first quarter, more than double the total for the year-earlier quarter. Internet access and media bundle revenues also continued their solid growth.

• More Than 1.6 Million Apple iPhone 3G Activations. AT&T's postpaid subscriber growth reflects continued success with iPhone 3G. In the first quarter, AT&T's iPhone 3G activations totaled more than 1.6 million, more than 40 percent of them for customers who were new to the company. AT&T's U.S. iPhone exclusive continues to deliver subscribers with ARPUs (average monthly revenues per subscriber) that are approximately 1.6 times higher and churn rates that are significantly lower than the company's overall postpaid subscriber base.

• Strength in Integrated Devices. Including the iPhone, AT&T markets a compelling array of integrated devices ranging from advanced multifunction handsets for business customers to attractive quick messaging devices. In the first quarter, integrated devices accounted for more than 100 percent of the company's postpaid net adds, reflecting strength in new customer sales. Over the past year, the number of integrated devices on AT&T's network more than doubled, and at the end of the first quarter, 31.7 percent of AT&T's 61.0 million postpaid subscribers had integrated devices.

• 3G Leadership. The number of 3G devices on AT&T's wireless network also more than doubled over the past year, and at the end of the first quarter, 40.8 percent of AT&T's postpaid wireless subscribers had a 3G device, up from 19.5 percent one year earlier. AT&T's 3G network is the nation's fastest, according to data compiled by leading independent wireless research firms. AT&T also offers the broadest global coverage of any U.S. provider, with voice roaming available in more than 200 countries; access to e-mail, the Web and other data applications in more than 170 countries; and access to mobile broadband 3G networks in more than 70 countries.

• Continued Retail Postpaid Subscriber ARPU Growth. Driven by strong wireless data growth, AT&T continues to expand postpaid wireless subscriber ARPU. Postpaid data ARPU was $16.48 in the first quarter, up $3.48 or 26.8 percent versus the year-earlier period. Total postpaid ARPU increased 2.1 percent versus the year-earlier first quarter to $59.21. This marked the ninth consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU.

• 40.9 Percent Wireless OIBDA Service Margin. Wireless operating income growth and wireless margins were also strong. Versus results for the year-earlier first quarter, wireless operating expenses totaled $9.5 billion, up 7.3 percent, and operating income was $3.3 billion, up 13.0 percent. AT&T's wireless operating income margin was 26.0 percent, up from 25.0 percent in the year-earlier quarter and 20.9 percent in the fourth quarter of 2008. AT&T's first-quarter wireless OIBDA service margin was 40.9 percent, compared with 41.7 percent in the year-earlier period, and up 510 basis points from 35.8 percent in the fourth quarter of 2008. In addition to solid revenue growth, sequential margin expansion was driven by the success of AT&T's iPhone strategy, continued operational improvements in network and support functions and typical seasonality. (OIBDA service margin is operating income before depreciation and amortization, divided by total service revenues.)

http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=26752

 

T-Mobile net adds drop by more than half in Q1

T-Mobile USA had less than half the net additions in the first quarter than it had in the year-ago quarter, with the weak economy and increased competition from low-cost carriers cutting into the operator's subscriber base. Deutsche Telekom, T-Mobile's parent company, said revenue increased 20 percent when calculated in euros, but that number dropped to 4 percent in U.S. dollars due to the dollar's increase in value against the euro.

Net additions: T-Mobile USA had just 415,000 net additions in the first quarter, down from 981,000 in the year-ago quarter and 621,000 in the fourth quarter of 2008. The carrier, the nations fourth largest, has faced increasing competition from Sprint Nextel's Boost Mobile unit and regional flat-rate carriers Leap Wireless and MetroPCS at the $50 price point. T-Mobile began offering a $50 per month unlimited calling plan in March to customers who had been with the carrier for 22 months or more, but Deutsche Telekom said it would have to continue to be aggressive in terms of pricing in the future.

Churn: Contract churn fell to 2.3 percent, down from 2.4 percent in the fourth quarter of 2008. T-Mobile USA started a campaign in February to fight churn, and Deutsche Telekom said the plan has begun to show results.

Network: T-Mobile reiterated its intention to nearly double the coverage of its 3G UMTS network, from 107 million POPs covered up to 205 million.

Article continues @ T-Mobile net adds drop by more than half in Q1 - FierceWireless

 

Re: 1st Quarter 2009 Results for Apple

Best March Quarter Revenue and Earnings in Apple History

CUPERTINO, California—April 22, 2009—Apple® today announced financial results for its fiscal 2009 second quarter ended March 28, 2009. The Company posted revenue of $8.16 billion and a net quarterly profit of $1.21 billion, or $1.33 per diluted share. These results compare to revenue of $7.51 billion and net quarterly profit of $1.05 billion, or $1.16 per diluted share, in the year-ago quarter. Gross margin was 36.4 percent, up from 32.9 percent in the year-ago quarter. International sales accounted for 46 percent of the quarter’s revenue.

In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone™ and Apple TV® over their estimated economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $9.06 billion of “Adjusted Sales” and $1.66 billion of “Adjusted Net Income.”

Apple sold 2.22 million Macintosh® computers during the quarter, representing a three percent unit decline from the year-ago quarter. The Company sold 11.01 million iPods during the quarter, representing three percent unit growth over the year-ago quarter. Quarterly iPhone units sold were 3.79 million representing 123 percent unit growth over the year-ago quarter.

“We are extremely pleased to report the best non-holiday quarter revenue and earnings in our history,” said Peter Oppenheimer, Apple’s CFO. “Apple’s financial condition remains very robust, with almost $29 billion in cash and marketable securities on our balance sheet. Looking ahead to the third fiscal quarter of 2009, we expect revenue in the range of about $7.7 billion to $7.9 billion and we expect diluted earnings per share in the range of about $.95 to $1.00.”

Full Release @ Apple Reports Fiscal (Second) Quarter Results

 

So now it's clear Verizon has 86.6 total customers, which includes over 13 million from the Alltel acquisition (without the soon-to-be-divested portion of subscribers). I've been wondering what the actual number was considering all the different sub counts floated about before.

 

Yes. As of the end of 1Q09, Verizon has 86.6m customers, AT&T has 78.2m customers. VZ's been ahead since mid-January when the Alltel purchase was formally completed. I believe there was never an accurate sub count until after the end of the quarter because of the impending divestitures and other factors. Now we have the true picture of where they are.

 

Motorola Reports First-Quarter Financial Results

Motorola First-Quarter Financial Results

• First-quarter sales of $5.4 billion
• First-quarter GAAP net loss from continuing operations of .13 per share, including net charges of .05 per share from highlighted items, primarily related to cost-reduction initiatives
• Increased annual 2009 cost-savings target by $200 million to $1.7 billion
• Mobile Devices sales of $1.8 billion; shipped 14.7 million handsets
• Home and Networks Mobility sales of $2.0 billion; operating earnings of $115 million
• Enterprise Mobility Solutions sales of $1.6 billion; operating earnings of $156 million

SCHAUMBURG, Ill. – April 30, 2009 – Motorola, Inc. (NYSE: MOT) today reported sales of $5.4 billion in the first quarter of 2009. The total GAAP net loss in the first quarter of 2009 was $231 million, or .10 per share, which includes net income of .03 per share from discontinued operations. The GAAP net loss from continuing operations was $291 million, or .13 per share. The GAAP net loss from continuing operations includes net charges of .05 per share from highlighted items, primarily related to cost-reduction initiatives.Total cash* at the end of the first quarter was $6.1 billion, down from $7.4 billion at the end of 2008. The cash decline was driven in large part by a $700 million reduction in accounts receivable sold and approximately $200 million in restructuring-related payments. The Company expects to generate positive cash flows in the second half of the year through improved earnings and continued working capital improvements.

Greg Brown, president and co-CEO of Motorola and CEO of Broadband Mobility Solutions, said, “Our Broadband Mobility Solutions businesses performed well in a challenging environment, by delivering value for our customers and adding to an already impressive portfolio of products. We will continue to manage our costs to ensure alignment with current market conditions. We are executing with operational and financial discipline while we make targeted investments for our future.”

Sanjay Jha, co-CEO of Motorola and CEO of Mobile Devices, added, “In the quarter at Mobile Devices, we implemented aggressive actions to reduce costs and also gained solid traction on improving operational effectiveness. Customer feedback on our smartphone roadmap remains very positive, and we plan to have differentiated Android-based devices in stores in time for the fourth-quarter holiday season. We significantly reduced the operating loss in Mobile Devices compared with the fourth quarter of 2008 and have increased the 2009 annual cost-reduction target to more than $1.3 billion.”

Operating Results

Mobile Devices segment sales were $1.8 billion, down 45 percent compared to the year-ago quarter. The GAAP operating loss was $509 million, compared to an operating loss of $418 million in the year-ago quarter. The segment reduced its operating loss sequentially from $595 million in the fourth quarter of 2008. During the quarter, Mobile Devices shipped 14.7 million handsets and estimates its share of the global handset market was 6.0 percent.
Mobile Devices highlights:

• Continued progress on differentiated smartphone devices targeted to launch in the fourth quarter of 2009
• Launched seven new phones, including three GSM devices, two 3G devices and two CDMA devices
• Launched MOTOSURF A3100, featuring 3G and Wi-Fi; and Evoke QA4, Motorola’s latest social networking feature phone
• Introduced and began shipping MOTO™ W233 Renew, the world’s first phone made with recycled plastics

Home and Networks Mobility segment sales were $2.0 billion, down 16 percent compared to the year-ago quarter. GAAP operating earnings were $115 million, compared to operating earnings of $153 million in the year-ago quarter.
Home and Networks Mobility highlights:

• Shipped more than 4.3 million digital entertainment devices
• Introduced industry’s first commercial receiver/decoder (IRD) to deliver three-channel MPEG-4 to MPEG-2 High Definition TV
• Developed DVR solution with Time Warner using Tru2Way™ software that enables consumers to share content throughout the home
• Announced major GSM network expansion awards with Mobily in Saudi Arabia and MTN Ghana
• Continued momentum with launch of WiMAX network in Jordan and introduction of first WiMAX outdoor customer premise equipment (CPE) with integrated VoIP

Enterprise Mobility Solutions segment sales were $1.6 billion, down 11 percent compared to the year-ago quarter. GAAP operating earnings were $156 million, compared to operating earnings of $250 million in the year-ago quarter.
Enterprise Mobility Solutions highlights:

• Celebrated delivery of one-millionth TETRA terminal
• Expanded public safety portfolio with new ASTRO 25 Express system, a single-site Project 25 voice trunked system
• Introduced MC55 enterprise digital assistant, empowering mobile workers by bringing data, voice and applications to the point of business activity
• Secured public safety awards for State of Mississippi, Pernambuco State in Brazil and Danish Police
• Completed sale of Biometrics business to SAFRAN

Second-Quarter 2009 Outlook
The Company’s outlook for the second quarter is a net loss from continuing operations of .03 to .05 per share. This outlook excludes charges associated with the Company’s operating expense reduction initiatives, as well as any other items of the variety typically highlighted by the Company in its quarterly earnings releases.

Motorola Media Center

 

It will be interesting to see if, after the 2nd quarter, the Boost juggernaut will be affected by the texting issues plaguing them right now.