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!

At SC19: What Is UrgentHPC and Why Is It Needed?

November 14, 2019

The UrgentHPC workshop, taking place Sunday (Nov. 17) at SC19, is focused on using HPC and real-time data for urgent decision making in response to disasters such as wildfires, flooding, health emergencies, and accidents. We chat with organizer Nick Brown, research fellow at EPCC, University of Edinburgh, to learn more. Read more…

By Tiffany Trader

China’s Tencent Server Design Will Use AMD Rome

November 13, 2019

Tencent, the Chinese cloud giant, said it would use AMD’s newest Epyc processor in its internally-designed server. The design win adds further momentum to AMD’s bid to erode rival Intel Corp.’s dominance of the glo Read more…

By George Leopold

NCSA Industry Conference Recap – Part 1

November 13, 2019

Industry Program Director Brendan McGinty welcomed guests to the annual National Center for Supercomputing Applications (NCSA) Industry Conference, October 8-10, on the University of Illinois campus in Urbana (UIUC). One hundred seventy from 40 organizations attended the invitation-only, two-day event. Read more…

By Elizabeth Leake, STEM-Trek

Cray, Fujitsu Both Bringing Fujitsu A64FX-based Supercomputers to Market in 2020

November 12, 2019

The number of top-tier HPC systems makers has shrunk due to a steady march of M&A activity, but there is increased diversity and choice of processing components with Intel Xeon, AMD Epyc, IBM Power, and Arm server ch Read more…

By Tiffany Trader

Intel AI Summit: New ‘Keem Bay’ Edge VPU, AI Product Roadmap

November 12, 2019

At its AI Summit today in San Francisco, Intel touted a raft of AI training and inference hardware for deployments ranging from cloud to edge and designed to support organizations at various points of their AI journeys. The company revealed its Movidius Myriad Vision Processing Unit (VPU)... Read more…

By Doug Black

AWS Solution Channel

Making High Performance Computing Affordable and Accessible for Small and Medium Businesses with HPC on AWS

High performance computing (HPC) brings a powerful set of tools to a broad range of industries, helping to drive innovation and boost revenue in finance, genomics, oil and gas extraction, and other fields. Read more…

IBM Accelerated Insights

Help HPC Work Smarter and Accelerate Time to Insight

 

[Attend the IBM LSF & HPC User Group Meeting at SC19 in Denver on November 19]

To recklessly misquote Jane Austen, it is a truth, universally acknowledged, that a company in possession of a highly complex problem must be in want of a massive technical computing cluster. Read more…

SIA Recognizes Robert Dennard with 2019 Noyce Award

November 12, 2019

If you don’t know what Dennard Scaling is, the chances are strong you don’t labor in electronics. Robert Dennard, longtime IBM researcher, inventor of the DRAM and the fellow for whom Dennard Scaling was named, is th Read more…

By John Russell

Cray, Fujitsu Both Bringing Fujitsu A64FX-based Supercomputers to Market in 2020

November 12, 2019

The number of top-tier HPC systems makers has shrunk due to a steady march of M&A activity, but there is increased diversity and choice of processing compon Read more…

By Tiffany Trader

Intel AI Summit: New ‘Keem Bay’ Edge VPU, AI Product Roadmap

November 12, 2019

At its AI Summit today in San Francisco, Intel touted a raft of AI training and inference hardware for deployments ranging from cloud to edge and designed to support organizations at various points of their AI journeys. The company revealed its Movidius Myriad Vision Processing Unit (VPU)... Read more…

By Doug Black

IBM Adds Support for Ion Trap Quantum Technology to Qiskit

November 11, 2019

After years of percolating in the shadow of quantum computing research based on superconducting semiconductors – think IBM, Rigetti, Google, and D-Wave (quant Read more…

By John Russell

Tackling HPC’s Memory and I/O Bottlenecks with On-Node, Non-Volatile RAM

November 8, 2019

On-node, non-volatile memory (NVRAM) is a game-changing technology that can remove many I/O and memory bottlenecks and provide a key enabler for exascale. That’s the conclusion drawn by the scientists and researchers of Europe’s NEXTGenIO project, an initiative funded by the European Commission’s Horizon 2020 program to explore this new... Read more…

By Jan Rowell

MLPerf Releases First Inference Benchmark Results; Nvidia Touts its Showing

November 6, 2019

MLPerf.org, the young AI-benchmarking consortium, today issued the first round of results for its inference test suite. Among organizations with submissions wer Read more…

By John Russell

Azure Cloud First with AMD Epyc Rome Processors

November 6, 2019

At Ignite 2019 this week, Microsoft's Azure cloud team and AMD announced an expansion of their partnership that began in 2017 when Azure debuted Epyc-backed instances for storage workloads. The fourth-generation Azure D-series and E-series virtual machines previewed at the Rome launch in August are now generally available. Read more…

By Tiffany Trader

Nvidia Launches Credit Card-Sized 21 TOPS Jetson System for Edge Devices

November 6, 2019

Nvidia has launched a new addition to its Jetson product line: a credit card-sized (70x45mm) form factor delivering up to 21 trillion operations/second (TOPS) o Read more…

By Doug Black

In Memoriam: Steve Tuecke, Globus Co-founder

November 4, 2019

HPCwire is deeply saddened to report that Steve Tuecke, longtime scientist at Argonne National Lab and University of Chicago, has passed away at age 52. Tuecke Read more…

By Tiffany Trader

Supercomputer-Powered AI Tackles a Key Fusion Energy Challenge

August 7, 2019

Fusion energy is the Holy Grail of the energy world: low-radioactivity, low-waste, zero-carbon, high-output nuclear power that can run on hydrogen or lithium. T Read more…

By Oliver Peckham

Using AI to Solve One of the Most Prevailing Problems in CFD

October 17, 2019

How can artificial intelligence (AI) and high-performance computing (HPC) solve mesh generation, one of the most commonly referenced problems in computational engineering? A new study has set out to answer this question and create an industry-first AI-mesh application... Read more…

By James Sharpe

Cray Wins NNSA-Livermore ‘El Capitan’ Exascale Contract

August 13, 2019

Cray has won the bid to build the first exascale supercomputer for the National Nuclear Security Administration (NNSA) and Lawrence Livermore National Laborator Read more…

By Tiffany Trader

DARPA Looks to Propel Parallelism

September 4, 2019

As Moore’s law runs out of steam, new programming approaches are being pursued with the goal of greater hardware performance with less coding. The Defense Advanced Projects Research Agency is launching a new programming effort aimed at leveraging the benefits of massive distributed parallelism with less sweat. Read more…

By George Leopold

AMD Launches Epyc Rome, First 7nm CPU

August 8, 2019

From a gala event at the Palace of Fine Arts in San Francisco yesterday (Aug. 7), AMD launched its second-generation Epyc Rome x86 chips, based on its 7nm proce Read more…

By Tiffany Trader

D-Wave’s Path to 5000 Qubits; Google’s Quantum Supremacy Claim

September 24, 2019

On the heels of IBM’s quantum news last week come two more quantum items. D-Wave Systems today announced the name of its forthcoming 5000-qubit system, Advantage (yes the name choice isn’t serendipity), at its user conference being held this week in Newport, RI. Read more…

By John Russell

Ayar Labs to Demo Photonics Chiplet in FPGA Package at Hot Chips

August 19, 2019

Silicon startup Ayar Labs continues to gain momentum with its DARPA-backed optical chiplet technology that puts advanced electronics and optics on the same chip Read more…

By Tiffany Trader

Crystal Ball Gazing: IBM’s Vision for the Future of Computing

October 14, 2019

Dario Gil, IBM’s relatively new director of research, painted a intriguing portrait of the future of computing along with a rough idea of how IBM thinks we’ Read more…

By John Russell

Leading Solution Providers

ISC 2019 Virtual Booth Video Tour

CRAY
CRAY
DDN
DDN
DELL EMC
DELL EMC
GOOGLE
GOOGLE
ONE STOP SYSTEMS
ONE STOP SYSTEMS
PANASAS
PANASAS
VERNE GLOBAL
VERNE GLOBAL

Intel Confirms Retreat on Omni-Path

August 1, 2019

Intel Corp.’s plans to make a big splash in the network fabric market for linking HPC and other workloads has apparently belly-flopped. The chipmaker confirmed to us the outlines of an earlier report by the website CRN that it has jettisoned plans for a second-generation version of its Omni-Path interconnect... Read more…

By Staff report

Kubernetes, Containers and HPC

September 19, 2019

Software containers and Kubernetes are important tools for building, deploying, running and managing modern enterprise applications at scale and delivering enterprise software faster and more reliably to the end user — while using resources more efficiently and reducing costs. Read more…

By Daniel Gruber, Burak Yenier and Wolfgang Gentzsch, UberCloud

Dell Ramps Up HPC Testing of AMD Rome Processors

October 21, 2019

Dell Technologies is wading deeper into the AMD-based systems market with a growing evaluation program for the latest Epyc (Rome) microprocessors from AMD. In a Read more…

By John Russell

Rise of NIH’s Biowulf Mirrors the Rise of Computational Biology

July 29, 2019

The story of NIH’s supercomputer Biowulf is fascinating, important, and in many ways representative of the transformation of life sciences and biomedical res Read more…

By John Russell

Xilinx vs. Intel: FPGA Market Leaders Launch Server Accelerator Cards

August 6, 2019

The two FPGA market leaders, Intel and Xilinx, both announced new accelerator cards this week designed to handle specialized, compute-intensive workloads and un Read more…

By Doug Black

When Dense Matrix Representations Beat Sparse

September 9, 2019

In our world filled with unintended consequences, it turns out that saving memory space to help deal with GPU limitations, knowing it introduces performance pen Read more…

By James Reinders

With the Help of HPC, Astronomers Prepare to Deflect a Real Asteroid

September 26, 2019

For years, NASA has been running simulations of asteroid impacts to understand the risks (and likelihoods) of asteroids colliding with Earth. Now, NASA and the European Space Agency (ESA) are preparing for the next, crucial step in planetary defense against asteroid impacts: physically deflecting a real asteroid. Read more…

By Oliver Peckham

Cerebras to Supply DOE with Wafer-Scale AI Supercomputing Technology

September 17, 2019

Cerebras Systems, which debuted its wafer-scale AI silicon at Hot Chips last month, has entered into a multi-year partnership with Argonne National Laboratory and Lawrence Livermore National Laboratory as part of a larger collaboration with the U.S. Department of Energy... Read more…

By Tiffany Trader

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