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To: Gottfried who wrote (14401)4/15/2005 1:11:24 PM
From: Proud_Infidel  Read Replies (1) | Respond to of 25522
 
Samsung scores mixed Q1 results, sees same in Q2

Peter Clarke
EE Times
(04/15/2005 11:29 AM EDT)

LONDON — In mixed set of financial results Korean electronics giant Samsung Electronics Co. Ltd. announced that its first quarter 2005 net income slumped 18 percent from the fourth quarter of 2004.

Lower margins on mobile phones and a fall in the price of flat-screen televisions were blamed for the fall which came on the heels of disappointing financial results from Apple Corp., Sun Microsystems Inc. and IBM Corp..

Samsung said it does not expect the "challenging business conditions" to improve in the second quarter.

The company recorded overall sales of 13.8122 trillion won (about $13.6 billion), a 0.6 percent decrease from the previous quarter and net income of 1.4984 trillion won (about $1.5 billion), a drop of 18 percent from the previous quarter. While sales decreased, operating profits increased on the back of growth in NAND flash memory business, favorable mobile phone sales and efforts to reduce selling, general and administrative expenses, the company said.

However, sales and operating income in Samsungs' semiconductor business for the quarter decreased sequentially by 6 percent and 13 percent respectively to 4.4756 trillion won (about $4.41 billion) and 1.3851 trillion won (about $1.36 billion), respectively, because of seasonal factors and currency exchange rates.

With a record quarterly mobile phone shipment of 24.5 million units, the Telecommunication Network Business recorded sales of 4.8394 trillion won (about $4.77 billion), a 12 percent sequential rise, and operating income of 840.5 billion won (about $830 million). This performance is attributed to the company's strategy to expand output in the first quarter

The LCD business reported a 3 percent sequential drop in trade and a 20 percent drop compared to the same quarter a year before with revenue and operating income figures of 1.8983 trillion won (about $1.87 billion) and 23.1 billion won (about $22.7 million), respectively.

"While we do not expect conditions to improve in the second quarter, Samsung Electronics will strive to sustain its outstanding financial performance through new growth opportunities, such as the commercialization of DMB services and production commencement at our seventh generation LCD line," said Woosik Chu, senior vice president and general manager of the Samsung investor relations team, in a statement.



To: Gottfried who wrote (14401)4/15/2005 1:13:50 PM
From: Proud_Infidel  Read Replies (3) | Respond to of 25522
 
First-quarter PC shipments rise
Published: April 15, 2005, 9:39 AM PDT
By John G. Spooner
Staff Writer, CNET News.com

So-called emerging markets helped push the global PC market to double-digit unit shipment increases during the first quarter.

Total worldwide shipments rose 10.9 percent from the same quarter a year ago to reach 46.1 million during the first quarter, IDC said in a statement on Friday.

The firm said that continued growth in Europe, the Middle East and Asia, or EMEA, as well as in notebook PC shipments, drove the increase, which was about 1 percent higher than IDC's forecast for the quarter. EMEA, for its part, saw unit shipments rise 15 percent from the same quarter a year ago. The U.S. PC market basically met IDC's forecast, with growth particularly strong for laptops and in the small- and medium-business sector, IDC said.

Despite the rather upbeat quarterly results, IDC continued to express caution about the second half of the year. The firm, as well as market research rival Gartner, has said that growth will slow toward the end of this year, resulting in shipment increases of less than 10 percent. Ensuing years could be even tougher, Gartner has said, leading to more intense competition in the market, which has already seen Hewlett-Packard buy Compaq; IBM announce plans to sell its PC business to Lenovo Group, China's top PC company; and Gateway acquire eMachines.

Dell still king of the hill
"It's caution in the sense that we're coming off of higher growth last year and we need to see continued (business) spending" on PCs, said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker. "So far this quarter is a pretty good sign of that, but the market is maturing and we have forecast slower growth. I would approach (the future) in a measured fashion. I wouldn't be overly optimist or overly conservative."

Dell remained the worldwide PC market's king of the hill during the first quarter. The Round Rock, Texas, PC maker shipped just over 8.7 million PCs, the most in the world, giving it almost 19 percent market share. HP continued in second place, shipping 7.1 million units, and garnered just over 15 percent market share. The two companies grew by 13.6 percent and 10.6 percent, respectively, for the quarter. IBM was a distant third with 2.3 million units. It grew only 2 percent.

Apple Computer had a strong quarter, with unit shipment growth in the 40 percent range. IDC said the Mac Mini helped shipments, while the popular iPod music player likely added a halo effect to the Apple line. The company shipped 1.07 million units worldwide and 450,000 in the Unites States. It has 2.3 percent of the world PC market and 3.1 percent of shipments in the United States, IDC said.

Several PC market players also made moves in the United States' PC market, which saw shipments rise to 14.6 million, a 6.5 percent increase from a year ago, according to IDC.

Dell's shipments increased by about 8 percent to nearly 5 million and HP grew almost four percent to about 2.7 million units.

But Gateway, ranked third in the U.S., slipped. Despite signs that it's gaining at retailers in the United States, Gateway's combined Gateway-brand and eMachines-brand PC shipments dipped by about 23 percent from a year ago during the first quarter, IDC said.

IDC, which noted that it won't have final figures until after Gateway reports first-quarter earnings later this month, said the PC maker shipped 830,000 units.

IBM and Toshiba rounded out the top five with 627,000 and 509,000 units shipped, respectively, giving the two 4.3 percent and 3.5 percent of the U.S. market.