How chips, PCs, services companies are faring

AP News
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Posted: Jul 18, 2012 6:19 PM
How chips, PCs, services companies are faring

IBM says its earnings grew despite weakness in Europe, while Qualcomm offered a weaker forecast because of supply issues.

Several other companies providing computers, components, services and related software are releasing guidance and quarterly earnings reports in the coming weeks.

Here's a look at how selected companies are faring:

— July 5: Seagate Technology PLC warns that its quarterly revenue will fall below expectations, after shipping fewer hard drives than expected partly because of a quality issue with a supplier for its business product lines. The company also said its rivals recovered faster than expected from disruptions caused by last fall's heavy flooding in Thailand. That meant Seagate had to cut back on shipments.

— July 9: Chipmaker Advanced Micro Devices Inc. says it's lowering its guidance because of weaker-than-expected sales in China and Europe and lackluster demand overall from consumers.

— July 12: Printer maker Lexmark International Inc. says it fared worse during the second quarter than management anticipated, providing the latest evidence of a weakening economy.

— Tuesday: Intel Corp., the world's largest chipmaker, says the weak global economy is slowing its growth, and revenue for the current quarter is likely to come in below Wall Street forecasts. Intel says consumer demand in North America and Western Europe is not recovering as fast as expected, while growth in emerging markets such as China and Brazil is slowing.

— Wednesday: IBM Corp. says its quarterly earnings rose 6 percent despite a 3 percent decline in revenue amid Europe's economic jitters. IBM has been able to boost its earnings even when revenue is weak by focusing more on businesses with higher profitability — software and technology services — rather than machines. Software was the only part of IBM's business that didn't register a decline from last year, with revenue remaining level. The turmoil in Europe hurt IBM's results as currencies there weakened, translating into fewer U.S. dollars.

Qualcomm Inc. says it had higher profit and revenue in the latest quarter, but it offers a weaker forecast for the current quarter because of supply issues. The company previously disclosed it has some limitations in getting chips made in the right size by outside suppliers. The mobile phone chip company insisted demand for its products remains high and earnings will improve by the end of 2012.

Coming up:

— Thursday: Microsoft Corp., Advanced Micro Devices Inc., SanDisk Corp.

— Friday: Xerox Corp.

— July 23: Texas Instruments Inc.

— July 24: Apple Inc., EMC Corp., SAP AG

— July 25: Western Digital Corp.

— July 30: Seagate Technology PLC (full report)

— Aug. 21: Dell Inc.

— Aug. 22: Hewlett Packard Co.