Apple Beats Estimates

Yesterday, Apple reported strong first quarter results that were driven by strong Mac sales and better-than-expected iPod sales. After IBM’s results this week, it is now Apple’s turn to beat analyst estimates and its guidance of last quarter. As usual, its outlook was short of analysts’ estimates. >>>

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eBay Worsening

Previous quarters’ doubts about eBay’s Q4 performance weren’t unfounded, as was evident in the company’s results announcement yesterday. eBay’s CEO, John Donahoe, called himself “frustrated” with the previous year’s user experience and search improvement initiatives failing to translate to much higher revenue and GMV growth. >>>

IBM’s Robust Performance Persists

Yesterday, IBM (NYSE: IBM), the world’s leading computer services provider, yet again reported strong earnings for its fourth quarter that beat analyst expectations. Amidst the gloomy market conditions, its upbeat outlook brought some cheer. >>>

A Sigh On January 20: Nortel’s Bankruptcy

On this historic day of President Obama’s inauguration, here is a sigh for the world economy.

The economic crisis claimed its first major victim in the technology sector when Nortel filed for bankruptcy protection on January 14 in the US and Canada. A leading supplier of networking solutions with annual revenue of $10.9 billion in 2007, Nortel had debt of $4.5 billion and was due to repay a $107 million interest debt on January 15. Nortel had $2.6 billion in cash but chose to file for bankruptcy protection. Let’s take a closer look at why. >>>

Intel Needs To Adjust With Pricing Trend

Many analysts believe that Intel is not only weathering the impact of a recession, but also battling the demand for “the same functionality for less price” phenomenon that is washing over the shores of the technology industry in every direction. I think there is a lot of truth to this, and it is a trend that will for sure impact Intel in a big way and will lead to significant restructuring and fat trimming. Let’s take a look.

On January 15, Intel Corporation (Nasdaq: INTC), the world’s largest chip maker, reported a weak fourth quarter that met Street estimates. For the first time since 2000, Intel reported a sequential decline in the fourth quarter as a result of reduced demand for PCs and servers as well as inventory contraction across the supply chain. The one bright spot in the results was the 50% increase in sales of Intel’s new Atom processor. >>>

India Looks To Infosys To Salvage Reputation

The Indian IT industry is going through turbulent times with Satyam’s (the fourth-largest player in the country) CEO reporting a $1 billion fraud. The results announced by the largest player, Infosys Technologies (INFY), did manage to bring some respite to the market. Narayan Murthy must be ashamed of his compatriot, Ramalinga Raju for jeopardizing India’s reputation. >>>

Micron’s Misery

On December 23, Micron Technologies, with annual revenue of $5.8 billion, reported results for the first quarter of fiscal 2009. Results were mixed, with stronger-than-expected sales and a wider-than-expected loss as DRAM and NAND ASP declines outpaced cost reductions. >>>

3Com Excels in China

Amidst the gloomy economic background, there is a bright spot in the form of 3Com, a major networking player with annual revenue of $1.3 billion. Last month, on December 18, in its Q209 results, the company reported another strong quarter that beat estimates. This is the second consecutive quarter that 3Com has reported a profit and beat estimates. In my recent Networking Sector Overview, we explored how 3Com, with its Chinese cost structure, could give Cisco a run for its money. >>>

Outsourcing: View From Accenture

The New Year doesn’t seem to be bringing any cheer to the market. Though the $20 billion consulting giant, Accenture, continued to beat the market’s expectations with its Q1 results, the company lowered its outlook for the coming year. >>>

Paychex Reflects Dismal Broader Economic Outlook

Right before the holidays, on December 17, Paychex, the leading payroll and personnel services provider with annual revenue of $2.06 billion, reported second quarter earnings that fell below analyst expectations. But what is even more telling is the gloomy snapshot Paychex provides of the economy. Let’s take a closer look. >>>