TECHNOLOGY GIANTS Google, Microsoft and Intel produced varying performances in quarterly figures released last night.
Google, owner of the world’s most popular internet search engine, reported fourth-quarter revenue that fell short of expectations, suggesting that stalled economic growth in Europe crimped advertising sales.
Sales excluding revenue passed on to partner sites were $8.13 billion (€6.27 billion), Google said on its website. The shares plunged as much as 10 per cent. Growth at Google, which gets more than half its revenue outside the US, was held back by a slowdown in Europe amid concerns about a sovereign-debt crisis in the region. The company has been working to offer customers more options in mobile and display advertising, faster-growing markets than traditional search-based adverts.
Microsoft said fiscal second-quarter profit fell slightly, as lower computer sales hurt its core Windows business. The world’s largest software company reported net profit of $6.624 billion, or 78 cents per share, compared with $6.634 billion, or 77 cents per share, in the year-ago quarter.
The per share figure rose as Microsoft had fewer shares outstanding in the most recent quarter. It beat Wall Street’s average forecast of 76 cents.
Sales rose 5 per cent to $20.9 billion, in line with analysts’ forecasts, helped by its office, server software and Xbox businesses.Microsoft shares rose 2.2 per cent after hours to $28.78. They closed at $28.12 on Nasdaq.
Intel, the world’s largest chipmaker, predicted first-quarter revenue that may top analysts’ estimates, signalling that the shortage of disk drives that throttled personal computer production may be ending. Sales in the current period will be $12.8 billion, plus or minus $500 million, said Intel.
Production is bouncing back after the worst flooding in seven decades in Thailand slowed manufacturing and prompted Intel to trim is fourth-quarter sales forecast last month. The company also benefited as businesses bought more servers and people outside the US and Europe flocked to PCs.
Intel gained less than 1 per cent to $25.63 at the close in New York, leaving the shares up 5.7 per cent this year. Shares gained in late trading. – (Bloomberg)
