Financial Update: Microsoft Profits Will Miss Forecasts. Oracle Beats Expectations. Red Hat Revenue Rises.

January 5, 2001

SHORT TAKES

MICROSOFT SAYS PROFITS WILL MISS FORECASTS

Seattle, WASH. — In an unprecedented earnings warning by the world’s top software company, Microsoft Corp. said that its quarterly profits would miss forecasts by 5 to 6 percent, dragged down by an industry-wide slump in consumer and business sales. The lower forecast rounded out a cycle of bad news for technology companies, including profit warnings by the world’s No. 1 PC maker Compaq Computer Corp. and the leading semiconductor manufacturer, Intel Corp. Microsoft, which makes the ubiquitous Windows operating system, projected Thursday that revenue for its second quarter ending Dec. 31 would come in at $6.4 billion to $6.5 billion, while earnings per share would be 46 cents or 47 cents, below the Wall Street consensus estimate of 49 cents per share. Microsoft projected earnings of $1.80 to $1.82 per share for the full fiscal year, below the average Wall Street forecast of $1.91 as compiled by First Call/Thomson Financial.

“We are seeing slowing global economic conditions, particularly in the U.S. Like many others in the industry, we are seeing accelerated slowing in PC sales as the quarter progresses,” Microsoft Chief Financial Officer John Connors told a conference call. “We are seeing some softness in the general level of spending in corporate IT (information technology) accounts, which is impacting our desktop software sales, and we are seeing an industry-wide slowdown in online advertising sales and subscription revenue growth, which is impacting our consumer segment,” Connors said. Microsoft also cut its revenue forecast for the full fiscal year to between $25.2 billion to $25.4 billion, about 5 percent lower than its previous estimate. The announcement after the close of U.S. markets knocked Microsoft shares down 6 percent to $52-1/4 in after-hours trading, their lowest level in a week. That followed a 3 percent drop to $55-1/2 in regular Nasdaq trading. Microsoft shares are down 8 percent this quarter and have tumbled from a year-high of $119-15/16 set last December. “This has the potential to freak out investors,” said Wit SoundView analyst Arnie Berman, saying the outright earnings warning cut to the core of Microsoft’s strong record of financial predictability. “It is certainly a watershed event.”

ORACLE PROFITS BEAT EXPECTATIONS

Palo Alto, CALIF. — Oracle Corp., the world’s No. 2 software maker, posted second quarter profits just ahead of the Wall Street consensus, helped by stronger-than-expected sales of its business management software. Oracle said its net income rose 62 percent to $623 million, or 11 cents per share, for its second quarter ended Nov. 30, from $384 million, or 6 cents a share, a year ago. Analysts had been calling for earnings of 10 cents per share, according to a survey by First Call/Thomson Financial. Redwood City, Calif.-based Oracle said revenues rose to $2.7 billion from $2.3 billion. “We’re already off to a great start … it looks like we’re going to have a very strong Q3,” Oracle founder and Chief Executive Larry Ellison said in a conference call with analysts.

Oracle’s sales of business management, or application software – closely watched by Wall Street – rose 66 percent to $279 million, coming in ahead of expectations. Analysts had expected sales to grow between 48 percent and 58 percent. Oracle stock, which had fallen 7/8 to $27-1/2 in regular Nasdaq trading, was $1 higher in after-hours trading. Shares remain well below a 52-week high of over $46. Wall Street has been fixed on Oracle’s applications software business and sales of its 11i e-business suite, which promises companies a way to manage all their disparate operations on the Internet. Applications are seen as key to Oracle maintaining its historic growth trajectory as the market for database software matures. “It was a good quarter not a great quarter,” said Thomas Weisel Partners Analyst Robert Schwartz, who said anticipated a stronger showing from Oracle’s core database business and noted a lack of notable customer wins for 11i. Oracle expects earnings per share in the third quarter of 12 cents per share, in line with Wall Street estimates, Chief Financial Officer Jeff Henley said in an interview. Henley told Reuters that second-quarter applications growth was strong across each geographic region and across all of the company’s product areas. He also told analysts that applications revenue growth could reach 75 percent or better in the third quarter.

RED HAT THIRD QUARTER REVENUE LEAPS 112%

Research Triangle Park, N.C. — Red Hat, Inc., a leader in developing, deploying and managing open source Internet infrastructure solutions, reported revenue of $22.4 million for the third quarter ended November 30, 2000, an increase of 112% versus the $10.5 million reported for the third quarter of fiscal 2000 and an increase of 21% over the second quarter of fiscal 2001. Gross margin was 60% for the third quarter fiscal 2001, versus 58% reported in the second quarter fiscal 2001 and 41.5% in the third quarter fiscal 2000.

The company reported an adjusted net loss of $900,000, or $0.01 per share, for the third quarter of fiscal 2001, compared to an adjusted net loss of $5.4 million, or $0.04 per share, for the third quarter of fiscal 2000. On a reported basis, the net loss was $21.4 million, or $0.13 per share, compared with a net loss of $6.3 million, or $0.05 per share. “We are seeing increasingly strong demand for Red Hat leadership solutions,” commented Matthew Szulik, President and CEO of Red Hat. “Solid results are being driven by customers consolidating their UNIX technologies to Red Hat Linux, increased demand from device manufacturers, and continued execution of a solid business model”.

============================================================

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

House Bill Seeks Study on Quantum Computing, Identifying Benefits, Supply Chain Risks

May 27, 2020

New legislation under consideration (H.R.6919, Advancing Quantum Computing Act) requests that the Secretary of Commerce conduct a comprehensive study on quantum computing to assess the benefits of the technology for Amer Read more…

By Tiffany Trader

$100B Plan Submitted for Massive Remake and Expansion of NSF

May 27, 2020

Legislation to reshape, expand - and rename - the National Science Foundation has been submitted in both the U.S. House and Senate. The proposal, which seems to have bipartisan support, calls for giving NSF $100 billion Read more…

By John Russell

IBM Boosts Deep Learning Accuracy on Memristive Chips

May 27, 2020

IBM researchers have taken another step towards making in-memory computing based on phase change (PCM) memory devices a reality. Papers in Nature and Frontiers in Neuroscience this month present IBM work using a mixed-si Read more…

By John Russell

Australian Researchers Break All-Time Internet Speed Record

May 26, 2020

If you’ve been stuck at home for the last few months, you’ve probably become more attuned to the quality (or lack thereof) of your internet connection. Even in the U.S. (which has a reasonably fast average broadband Read more…

By Oliver Peckham

Hats Over Hearts: Remembering Rich Brueckner

May 26, 2020

It is with great sadness that we announce the death of Rich Brueckner. His passing is an unexpected and enormous blow to both his family and our HPC family. Rich was born in Milwaukee, Wisconsin on April 12, 1962. His Read more…

AWS Solution Channel

Computational Fluid Dynamics on AWS

Over the past 30 years Computational Fluid Dynamics (CFD) has grown to become a key part of many engineering design processes. From aircraft design to modelling the blood flow in our bodies, the ability to understand the behaviour of fluids has enabled countless innovations and improved the time to market for many products. Read more…

Supercomputer Simulations Reveal the Fate of the Neanderthals

May 25, 2020

For hundreds of thousands of years, neanderthals roamed the planet, eventually (almost 50,000 years ago) giving way to homo sapiens, which quickly became the dominant primate species, with the neanderthals disappearing b Read more…

By Oliver Peckham

$100B Plan Submitted for Massive Remake and Expansion of NSF

May 27, 2020

Legislation to reshape, expand - and rename - the National Science Foundation has been submitted in both the U.S. House and Senate. The proposal, which seems to Read more…

By John Russell

IBM Boosts Deep Learning Accuracy on Memristive Chips

May 27, 2020

IBM researchers have taken another step towards making in-memory computing based on phase change (PCM) memory devices a reality. Papers in Nature and Frontiers Read more…

By John Russell

Nvidia Q1 Earnings Top Expectations, Datacenter Revenue Breaks $1B

May 22, 2020

Nvidia’s seemingly endless roll continued in the first quarter with the company announcing blockbuster earnings that exceeded Wall Street expectations. Nvidia Read more…

By Doug Black

Microsoft’s Massive AI Supercomputer on Azure: 285k CPU Cores, 10k GPUs

May 20, 2020

Microsoft has unveiled a supercomputing monster – among the world’s five most powerful, according to the company – aimed at what is known in scientific an Read more…

By Doug Black

HPC in Life Sciences 2020 Part 1: Rise of AMD, Data Management’s Wild West, More 

May 20, 2020

Given the disruption caused by the COVID-19 pandemic and the massive enlistment of major HPC resources to fight the pandemic, it is especially appropriate to re Read more…

By John Russell

AMD Epyc Rome Picked for New Nvidia DGX, but HGX Preserves Intel Option

May 19, 2020

AMD continues to make inroads into the datacenter with its second-generation Epyc "Rome" processor, which last week scored a win with Nvidia's announcement that Read more…

By Tiffany Trader

Hacking Streak Forces European Supercomputers Offline in Midst of COVID-19 Research Effort

May 18, 2020

This week, a number of European supercomputers discovered intrusive malware hosted on their systems. Now, in the midst of a massive supercomputing research effo Read more…

By Oliver Peckham

Nvidia’s Ampere A100 GPU: Up to 2.5X the HPC, 20X the AI

May 14, 2020

Nvidia's first Ampere-based graphics card, the A100 GPU, packs a whopping 54 billion transistors on 826mm2 of silicon, making it the world's largest seven-nanom Read more…

By Tiffany Trader

Supercomputer Modeling Tests How COVID-19 Spreads in Grocery Stores

April 8, 2020

In the COVID-19 era, many people are treating simple activities like getting gas or groceries with caution as they try to heed social distancing mandates and protect their own health. Still, significant uncertainty surrounds the relative risk of different activities, and conflicting information is prevalent. A team of Finnish researchers set out to address some of these uncertainties by... Read more…

By Oliver Peckham

[email protected] Turns Its Massive Crowdsourced Computer Network Against COVID-19

March 16, 2020

For gamers, fighting against a global crisis is usually pure fantasy – but now, it’s looking more like a reality. As supercomputers around the world spin up Read more…

By Oliver Peckham

[email protected] Rallies a Legion of Computers Against the Coronavirus

March 24, 2020

Last week, we highlighted [email protected], a massive, crowdsourced computer network that has turned its resources against the coronavirus pandemic sweeping the globe – but [email protected] isn’t the only game in town. The internet is buzzing with crowdsourced computing... Read more…

By Oliver Peckham

Global Supercomputing Is Mobilizing Against COVID-19

March 12, 2020

Tech has been taking some heavy losses from the coronavirus pandemic. Global supply chains have been disrupted, virtually every major tech conference taking place over the next few months has been canceled... Read more…

By Oliver Peckham

DoE Expands on Role of COVID-19 Supercomputing Consortium

March 25, 2020

After announcing the launch of the COVID-19 High Performance Computing Consortium on Sunday, the Department of Energy yesterday provided more details on its sco Read more…

By John Russell

Supercomputer Simulations Reveal the Fate of the Neanderthals

May 25, 2020

For hundreds of thousands of years, neanderthals roamed the planet, eventually (almost 50,000 years ago) giving way to homo sapiens, which quickly became the do Read more…

By Oliver Peckham

Steve Scott Lays Out HPE-Cray Blended Product Roadmap

March 11, 2020

Last week, the day before the El Capitan processor disclosures were made at HPE's new headquarters in San Jose, Steve Scott (CTO for HPC & AI at HPE, and former Cray CTO) was on-hand at the Rice Oil & Gas HPC conference in Houston. He was there to discuss the HPE-Cray transition and blended roadmap, as well as his favorite topic, Cray's eighth-gen networking technology, Slingshot. Read more…

By Tiffany Trader

Honeywell’s Big Bet on Trapped Ion Quantum Computing

April 7, 2020

Honeywell doesn’t spring to mind when thinking of quantum computing pioneers, but a decade ago the high-tech conglomerate better known for its control systems waded deliberately into the then calmer quantum computing (QC) waters. Fast forward to March when Honeywell announced plans to introduce an ion trap-based quantum computer whose ‘performance’ would... Read more…

By John Russell

Leading Solution Providers

SC 2019 Virtual Booth Video Tour

AMD
AMD
ASROCK RACK
ASROCK RACK
AWS
AWS
CEJN
CJEN
CRAY
CRAY
DDN
DDN
DELL EMC
DELL EMC
IBM
IBM
MELLANOX
MELLANOX
ONE STOP SYSTEMS
ONE STOP SYSTEMS
PANASAS
PANASAS
SIX NINES IT
SIX NINES IT
VERNE GLOBAL
VERNE GLOBAL
WEKAIO
WEKAIO

Contributors

Fujitsu A64FX Supercomputer to Be Deployed at Nagoya University This Summer

February 3, 2020

Japanese tech giant Fujitsu announced today that it will supply Nagoya University Information Technology Center with the first commercial supercomputer powered Read more…

By Tiffany Trader

Tech Conferences Are Being Canceled Due to Coronavirus

March 3, 2020

Several conferences scheduled to take place in the coming weeks, including Nvidia’s GPU Technology Conference (GTC) and the Strata Data + AI conference, have Read more…

By Alex Woodie

Exascale Watch: El Capitan Will Use AMD CPUs & GPUs to Reach 2 Exaflops

March 4, 2020

HPE and its collaborators reported today that El Capitan, the forthcoming exascale supercomputer to be sited at Lawrence Livermore National Laboratory and serve Read more…

By John Russell

‘Billion Molecules Against COVID-19’ Challenge to Launch with Massive Supercomputing Support

April 22, 2020

Around the world, supercomputing centers have spun up and opened their doors for COVID-19 research in what may be the most unified supercomputing effort in hist Read more…

By Oliver Peckham

Cray to Provide NOAA with Two AMD-Powered Supercomputers

February 24, 2020

The United States’ National Oceanic and Atmospheric Administration (NOAA) last week announced plans for a major refresh of its operational weather forecasting supercomputers, part of a 10-year, $505.2 million program, which will secure two HPE-Cray systems for NOAA’s National Weather Service to be fielded later this year and put into production in early 2022. Read more…

By Tiffany Trader

Summit Supercomputer is Already Making its Mark on Science

September 20, 2018

Summit, now the fastest supercomputer in the world, is quickly making its mark in science – five of the six finalists just announced for the prestigious 2018 Read more…

By John Russell

15 Slides on Programming Aurora and Exascale Systems

May 7, 2020

Sometime in 2021, Aurora, the first planned U.S. exascale system, is scheduled to be fired up at Argonne National Laboratory. Cray (now HPE) and Intel are the k Read more…

By John Russell

TACC Supercomputers Run Simulations Illuminating COVID-19, DNA Replication

March 19, 2020

As supercomputers around the world spin up to combat the coronavirus, the Texas Advanced Computing Center (TACC) is announcing results that may help to illumina Read more…

By Staff report

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This