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| Version 2 | Version 3 |
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| Google and Microsoft see a jump in profits | Google and Microsoft see a jump in profits |
| (about 7 hours later) | |
| Technology giants Google and Microsoft have both reported rising profits. | Technology giants Google and Microsoft have both reported rising profits. |
| Google's net profit climbed to $3.35bn (£2.19bn) in the first three months of the year, up 16% from a year earlier, boosted by online advertising revenue. | Google's net profit climbed to $3.35bn (£2.19bn) in the first three months of the year, up 16% from a year earlier, boosted by online advertising revenue. |
| Microsoft said it made $6bn in profit during the same period, a jump of more than 17% from a year ago. | Microsoft said it made $6bn in profit during the same period, a jump of more than 17% from a year ago. |
| Its earnings, which beat market forecasts, came despite a lukewarm reception for Windows 8 and a decline in global PC sales during the period. | Its earnings, which beat market forecasts, came despite a lukewarm reception for Windows 8 and a decline in global PC sales during the period. |
| Meanwhile IBM reported a fall in first quarter profits and revenues after the technology services company failed to complete deals in time and was hit by the depreciation of the Japanese yen. | |
| 'Fantastic' margins | |
| Analysts said that Microsoft's profits were boosted in part by changing the way its sold its products to corporate clients, as well as cost-cutting measures. | Analysts said that Microsoft's profits were boosted in part by changing the way its sold its products to corporate clients, as well as cost-cutting measures. |
| "Microsoft has successfully transitioned into an enterprise software company and these results show that," said Kim Caughey Forrest, a senior analyst at Fort Pitt Capital. | "Microsoft has successfully transitioned into an enterprise software company and these results show that," said Kim Caughey Forrest, a senior analyst at Fort Pitt Capital. |
| "The strength of server and tools, and the actual way they sell licences to business, is making up for the missing PC sales. | |
| "The margins are fantastic and the online services division seems to lose less money each quarter," she added. | "The margins are fantastic and the online services division seems to lose less money each quarter," she added. |
| Meanwhile Google's profits were driven up by growing income from online advertising, which helped boost overall revenues to nearly $14bn for the quarter. That is up from $10.7bn during the same period last year. | Meanwhile Google's profits were driven up by growing income from online advertising, which helped boost overall revenues to nearly $14bn for the quarter. That is up from $10.7bn during the same period last year. |
| The results also suggested that Google may be beginning to build confidence with advertisers. The amount paid per advert is still declining, but at a slower rate than last year. | The results also suggested that Google may be beginning to build confidence with advertisers. The amount paid per advert is still declining, but at a slower rate than last year. |
| Management changes | Management changes |
| Despite the stronger-than-expected numbers, Microsoft announced that its chief financial officer (CFO), Peter Klien, would be leaving the firm at the end of June. | |
| Mr Klein, who has been with the tech giant for 11 years, is the latest in a series of executives to leave the company. | |
| His departure comes just months after the Steven Sinofsky, the head of Windows division, quit the firm. | |
| The departures of the two senior figures have come as there have been questions over the leadership of chief executive Steve Ballmer. | The departures of the two senior figures have come as there have been questions over the leadership of chief executive Steve Ballmer. |
| These doubts have been driven in part by slowing growth, and amid concerns that Microsoft had not been able to make a significant impact in the new and fast-growing sectors such as the smartphone and tablet PC markets. | These doubts have been driven in part by slowing growth, and amid concerns that Microsoft had not been able to make a significant impact in the new and fast-growing sectors such as the smartphone and tablet PC markets. |
| The leading smartphone and tablet PC makers, such as Samsung and Apple, rely more on operating systems such as Android and iOS, rather than Microsoft's Windows, which has enjoyed a dominance in the traditional PC market. | The leading smartphone and tablet PC makers, such as Samsung and Apple, rely more on operating systems such as Android and iOS, rather than Microsoft's Windows, which has enjoyed a dominance in the traditional PC market. |
| The fear for Microsoft is that as more people use smartphones and tablet PCs to access the internet, it may see its market share decline. | The fear for Microsoft is that as more people use smartphones and tablet PCs to access the internet, it may see its market share decline. |
| These concerns have grown after Windows 8, which is designed to make PCs work more like tablet computers, was greeted with mixed reviews at its launch last October. | These concerns have grown after Windows 8, which is designed to make PCs work more like tablet computers, was greeted with mixed reviews at its launch last October. |
| More positively, analysts said that Mr Klien's departure from the firm suggested that an imminent departure of chief executive Steve Ballmer was unlikely. | More positively, analysts said that Mr Klien's departure from the firm suggested that an imminent departure of chief executive Steve Ballmer was unlikely. |
| "The CFO departure is a little bit troubling. We've had a lot of executives leaving Microsoft recently," said Brendan Barnicle, an analyst with Pacific Crest Securities. | "The CFO departure is a little bit troubling. We've had a lot of executives leaving Microsoft recently," said Brendan Barnicle, an analyst with Pacific Crest Securities. |
| "This also makes a departure by Steve Ballmer less likely. It would be very unusual to have a CEO leave soon after a CFO departure." | "This also makes a departure by Steve Ballmer less likely. It would be very unusual to have a CEO leave soon after a CFO departure." |
| Yen impact | |
| Also on Thursday, IBM reported first quarter earnings of $3bn, down 1% from a year earlier, with revenues falling 5% to $23.41bn - lower than analysts' expectations. | |
| IBM said its results had been hit by delays in completing deals, with about $400m worth of contracts that were expected to be counted in the first quarter of the year now being moved into the second. | |
| In addition, the company said that the recent weakening of the yen had affected its earnings. The depreciation of the yen means that it earns fewer dollars from sales in Japan. | |
| "Despite a solid start and good client demand, we did not close a number of software and mainframe transactions that have moved into the second quarter,'' said IBM's chief executive, Ginni Rometty. | |
| "The services business performed as expected with strong profit growth and significant new business in the quarter.'' | |
| IBM's chief financial officer Mark Loughridge said it was "hard to measure" whether the recent series of US budget cuts - the sequester - had affected the firm. | |
| "I can tell you that our US federal business was down 13%, which was certainly a drag on the US performance," he said. |