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It looks as though things have gone from bad to worse with Taiwanese smartphone maker HTC, with investors effectively saying HTC's "brand, factories and buildings were worthless", reports Bloomberg.
HTC's market price fell to $1.5 billion on Monday, below the $1.5 billion it had in cash at the end of June. Calvin Huang at Sinopac Financial Holdings Co. in Taipei told Bloomberg: "HTC's cash is the only asset of value to shareholders. Most of the other assets shouldn't be considered in their valuation because there's more write-offs to come and the brand has no value".
Q3 2015 isn't shaping up to be too good for HTC either, with the Taiwanese company forecasting 48% below analysts' estimations, after a 35% cut to projected revenues in the preceding period. There's one massive looming question I have: what about Vive? HTC's VR headset that it collaborated on with Valve, which could be the most exciting product HTC has ever made.
Tesla Motors might have one of the most exciting cars on the market with its Model S electric car, but the company lost a huge $359 million on the Model S last quarter alone.
$359 million over a three-month period is a hefty $4000 per car sold, with the company aiming to cut its production targets for the rest of this year, and into 2016. Elon Musk has even been tempted of raising more capital and also didn't rule out selling more stock. Tesla shares fell 9% on Thursday, and another 2% on Friday as investors begin to "weighed the risks of Musk's ambitious plans for expanding Tesla's auto and energy-storage businesses", reports Business Insider.
We all know HTC has been struggling for the last couple of years, but the company is on the precipice of releasing one of the most exciting products it has ever launched: Vive. But, that doesn't mean it's going to be a massive seller for the company, with plans on some extreme cuts to HTC's core business.
The Taiwanese giant has said that the next step to try and secure the future is to have layoffs, cost cutbacks, and a reduction of how many smartphone models it offers to consumers. Chief Financial Officer Chialin Chang talked with Reuters recently, saying that "the cuts will be across the board" and that "they will be significant". No exact number has been discussed, but we should expect to see it before Q2 2016.
NVIDIA has just posted its Q2 2015 financial results, beating analysts' expectations by a considerable amount. Analysts pegged NVIDIA to have revenues decline by 8%, but NVIDIA had an increase of 4.5% in revenues instead.
The increased revenues were thanks to strong GeForce sales, surely led by the super-impressive GeForce GTX 900 series of video cards. The company is expecting sales to drop in Q3, while NVIDIA's gaming revenue increased 59% thanks to big GeForce numbers. Wedbush Securities analyst Betsy Van Hees said: "The near term story continues to be PC gaming. That is the key driver for them and they continue to dominate in that area".
Another area where NVIDIA is working hard is in the automotive sector, where the company has said that there are 8 million cars on the road using their technology and that they're working with over 50 companies for its DRIVE chip, allowing self-driving cars.
All of this happened before Apple Music even launched, and revealed how powerful the 25-year-old is in the music industry. Swift recently praised Apple while criticizing Spotify:
"Apple treated me like I was a voice of a creative community that they actually cared about," Swift said in the September issue of Vanity Fair. "And I found it really ironic that the multi-billion-dollar company reacted to criticism with humility, and the start-up with no cash flow reacted to criticism like a corporate machine."
Music streaming service Tidal may not have been the greatest investment rap mogul Jay-Z has made, with several more music executives jumping ship. However, Tidal shoots down rumors that Jay-Z plans to step down from the company he purchased earlier this year:
Tidal is trying desperately to rebrand itself in a competitive streaming music market place, and several executives have left. The company's SVP of label and artist relations, Zena Burns, has left, following the earlier departures of the company CEO (twice), along with US and sales marketing manager David Solomon.
HTC is in hot water over its Sense Home application on some of its smartphones, with the Taiwanese giant using the push notifications to throw ads for the new Fantastic Four movie onto some users' devices.
A thread on Reddit has 'impersonaljesus' reporting that even though they were using a custom launcher, "this ad was pushed to my phone". You can disable notifications from the Sense Home app by going into the app settings and disabling the ability of push notifications, but you shouldn't need to be putting up with forced advertisement from HTC like this, no matter what setting is enabled or disabled.
With $1m AU set to be spread between three programs to assist disadvantaged and marginalized Aussies in gaining access to ICT services, the aim here is to promote these students to begin their own careers in IT.
Sent to not-for-profit organizations, this donation will ensure hands-on training can be supplied to approximately 10,000 students in total. One of the organizations involved and highlighted is Engineers Without Borders Australia and its 'Regioneering Roadshow' program, set to train regionally-located school age students, focusing on promotion of women in IT.
The Engineers Without Borders Australia director, Jane Hadjion, told iTnews about the wide variety of children that will benefit from this service, stating: "We're putting on 65 workshops in 38 locations over 12 months. We're reaching 6500 students, 470 teachers and 1400 parents."
Recently Steve Luczo, CEO of Seagate, told investors in a conference call that "There is no one that is using SSDs for storage," during talks about his companies fiscal third quarter earnings results.
This statement followed reports of Seagate earning a fiscal third quarter revenue of $3.3 billion at a gross margin of 28.7%, while posting a $3.4 billion profit at 28.2% margin over the same period in 2014. As mentioned in the title, the drop is certainly small and provides nothing for this HDD producing company to worry about just yet. But it makes you think, will Luczo's and his companies stance change if or when SSDs become more utilized by all consumers?
Luczo is happy with these results, stating in a recent press release that "In light of dynamic market conditions this quarter we are quite satisfied with our operational performance and ability to return value to shareholders," continuing "Near-term macro uncertainty is affecting certain areas of our addressable market however we remain optimistic that market demand for exabytes of storage will continue to increase over the long-term."
EA has posted its latest revenue numbers, where the company is seeing a huge 77% of its revenue in Q1 2015 arriving from online video game services and add-ons, some of which is thanks to DLC.
Now that EA is making big business from digital distribution, the company can invest the money it used to put into manufacturing and shipping physical retail copies of games into other things. With its Q1 2015 revenue hitting $693 million, 77% of that is a massive chunk of money courtesy of digital goods. EA also noted a 32% rise in profits over the previous year, securing itself $442 million.
EA has some big games in its wings waiting for release, with Star Wars Battlefront to be released in November, with analysts expecting over 10 million sales.