Motorola announced their DROID smartphone today. It will launch on Verizon Wireless on November 6th.
-3.7 inch display
-slide-out keyboard
-5 mega-pixel camera with autofocus and dual-LED flash
-720X480 video capture at 24 fps
-Wi-Fi, Bluetooth
-6.4 hours of talk time
-16GB memory card
-Android 2.0 operating system with 12,000 apps
-$199.99 for 2 year contract
-Voice plans start at $39.99 with web/email at $29.99 Source
Google announced their new Google Maps Navigation software for the Android 2.0 OS. With this app on a smartphone like Motorola’s Droid, it basically replaces the functionality of a GPS automobile device.
-turn by turn navigation
-most recent map and business data
-search in plan English
-search by voice
-real-time traffic
-search along route
-satellite and street views
-no monthly GPS fees Source
-$79.99 unlimited talk, text, web no-contract (20% cheaper than 2 year contract-option, but you have to pay more for phone)
-$50 month for unlimited voice, no-contract Source
CHW has interviewed the CEO interview.
-Nvidia is a software company
-will exit the chipset market over 1.5 to 2 years as Intel using disruptive tactics with DMI for next-generation CPUs
-2/3rd of revenue comes from games, but 2/3rds of profits come from Quadro work-stations
-many Tegra smartphones will come out in Q1, Q2, Q3 2010
-big players out-side of Apple iPhone will use Tegra for smart-phones
Net-net: He is very bullish on Tegra in 2010 (no mention of the rumored design win for the next generation Nintendo DS).
Press Release
-revenue $12.92 billion (12.32B est), EPS 40c (32c est)
-adding deferred revenue from Windows 7 upgrade program revenue $14.39 billion, EPS 52c
-Windows 7 launched October 22nd, 2009
-$38.998 billion net cash, $4.34 net cash/share
Guidance
-Reducing operating expenses to $26.2-26.5 billion for FY2010
-Capex $2.0 billion, COGS up 1% y/y as percentage of revenue
-Tax rate 25%
Conference call slides
-revenue driven by Windows and Xbox demand
-PC market grew 0-2% y/y and up mid-teens q/q
-OEM units grew 6%, several points over PC market
-x86 server market weak -20%
-online advertising -3%
FY2010 Outlook
-Windows in-line with PC market
-Microsoft Business Division continue to lag PC market
-Server & Tools slightly faster than server shipments
-Online Services equal to better than market (excluding access)
-Entertainment and devices roughly flat
Conference call
-seeing signs of economic stabilization
-35% annuity, 30% OEM, 30% license
-renewals in-line with expectations
-U.S. consumer demand was strong
-PC hardware demand grew significantly during the quarter
-Q1 was the highest Windows quarter ever, September best month ever
-Gaming revenue +$100 million y/y
-corporate IT remains difficult, cautious about budget spend rest of the year
-FY2011 operating expense discipline will remain
-for rest of fiscal year expect to see continue good consumer demand and emerging market demand
-big variable is negative trends in business PCs, which can’t continue forever. hope and expect to see rebound next year
-Europe relatively weak, Chin/emerging markets strong, U.S. is recovering a bit
Net-net
-Solid quarter, much better than last one. Consumer and emerging markets were very strong, while the enterprise and European markets remain weak
-Key driver is an up-turn in business upgrades, hopefully in 2010
-I wouldn’t get too excited about the outperformance of the Xbox division as it was driven by the Halo ODST software title launch
-At $28.02 with $2 earnings power, the stock is trading at 11.8Xs ex-cash
-300 million Facebook users
-testing Facebook credits (Paypal for within Facebook)
-Zynga and Playfish started in 2007
-over 100 million Facebook users play games vs. 52.6 million Nintendo Wii owners
-Zynga’s Farmville has over 60 million users
-Zynga’s Mafia Wars has almost 26 million users
-Playfish’s Pet Societ has over 20 million users
-Playdom’s Sorority Life has 7.1 million users
Source
-Entertainment and Devices Division (Xbox, Zune, PC games): $1.89 billion in revenue flat y/y, $312 million operating income +96% y/y
-Sharp rise in profits due to decreased Xbox platform costs and lower headcount
-Shipped 2.1 million Xbox 360s in the quarter vs. 2.2 million a year ago
-Growth in 360 and PC game revenue off-set by lower sales in PC hardware and Zunes
-Overall gaming revenue was up $100 million, while hardware revenue were hit due to console price cuts
-World-wide installed base of Xbox 360s is almost 34 million consoles with a 8.7 software attach rate
-Xbox Live revenue grew >50%
JP Morgan has almost $80 trillion of notional derivatives exposure on the books followed by Goldman Sachs at $40.5 trillion.
Riverbed Tech RVBD $21.18 – Maker of systems improving corporate data and applications performance is in a “hot space.”
Brocade Comm BRCD $9.00 – Storage as well as networking equipment make it attractive to all the big companies.
Juniper Networks JNPR $27.31 - Unique in that it could be an acquirer or acquired. Needs to get bigger.
F5 Networks FFIV $48.02 – Products increase cost-efficiency of Web-driven server farms.
BMC Software BMC $37.07 – Business services software has good growth prospects.
Red Hat RHT $27.70 – Leading provider of open-source software based on Linux might appeal to full-service giants.
Citrix Systems CTXS $39.30 – Microsoft seen as most likely suitor for its desktop virtualization software.
CommVault Sys CVLT $20.56 – NetApp and Dell rumored to be interested in company’s fast-growing mix of storage wares.
3Par PAR $11.58 – Pioneer in systems that boost data capacity of existing corporate storage.
NetApp NTAP $28.78 – Big outfits expanding their offerings might want to snap up a pure play in the field. Source
