Lenovo Q3 revenue climbs 31% as device sales more than double
Hong Kong-based Lenovo Group beat analysts’ estimates for its third fiscal quarter ended Dec. 31, 2014, notching $14.1 billion in revenue on net income of $253 million.
The company said in a statement that, striving for balance, PCs now account for 65% of the company’s revenue, with mobile making up 24% and enterprise contributing 9%. One year ago, PCs accounted for 81% of Lenovo’s business.
The company’s mobile business sales, which include smartphones and tablets, more than doubled to $3.39 billion. Its newly acquired Motorola unit sold more than 10 million units in the quarter – a first – and is now re-entering the China market.
Combining shipments of Lenovo- and Motorola-branded devices has made Lenovo the third-largest vendor of smartphones behind Apple and Samsung, the company said. Together, the two brands had nearly 6.6% market share, up 78% year-over-year.
Teradata buys Appoxee, sees Q4 revenue drop
Teradata has acquired Appoxee, a mobile marketing software-as-a-service provider in an effort to accelerate its growth in the digital marketing space, according to Vanilla+.
Appoxee’s solutions will be integrated into the Teradata Integrated Marketing Cloud beginning immediately, and quickly integrated with Teradata Digital Marketing Center.
Appoxee will provide a full range of mobile capabilities, particularly in the area of omnichannel marketing and real-time customer interaction. This will allow Teradata Digital Marketing Center customers to be able to use a single solution to manage customer communications across e-mail, landing pages, text messages, social media and mobile push analytics. Future integration plans extend to Teradata Customer Interaction Manager and Teradata Real-Time Interaction Manager.
Also this week, Teradata saw its share price fall by more than 10% to $42.01 after the analytic data platform provider missed analysts’ estimates for revenue in the fourth quarter, and guided below estimates for full year 2015.
Teradata reported revenue of $761 million for Q4, a 0.3% increase from the year-ago quarter, but below analysts’ estimates. The company said it expects revenue to be flat or drop 2% for full-year 2015, compared to 2014. The estimate implies a range of about $2.68 billion to $2.73 billion for the year, below analysts’ revenue estimates of $2.83 billion.
Sprint revenue flat, earnings hit by one-time charge
Sprint earlier this year trumpeted strong customer growth during the final three months of 2014, which included nearly 1 million direct customer net additions – nearly double what it managed the previous year. However, we have now learned that the reported growth came at a price, as revenue dipped and expenses surged due to a one-time charge.
For its third fiscal quarter ending Dec. 31, 2014, Sprint reported $8.433 billion in wireless revenue, compared with $8.483 billion posted the previous year. Revenue was impacted by a steep drop in postpaid average revenue per user, which plunged from $63.44 in 2013 to $58.63 last year. That drop more than offset a slight increase in prepaid ARPU, which climbed 27 cents to $27.61.
Sprint ended 2014 with 55.9 million total connections on its network, which was an increase from the 55.4 million at the end of 2013, and just enough to hold off T-Mobile US as the nation’s No. 3 operator.
Sprint’s reported growth was a strong turnaround from the previous quarter in which Sprint lost 336,000 postpaid and 20,000 prepaid customers, numbers that were somewhat offset by gaining 840,000 connections via its wholesale and affiliate channels. Year-over-year, Sprint doubled the 477,000 net customer additions it posted for the final three months of 2013, which were mostly on the back of its direct prepaid operations as well as continued growth from affiliates and wholesale partners.
Investors appeared supportive of Sprint’s direction, sending the carrier’s stock price (S) up more than 3.5% in early Thursday trading.
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