Written by Naveen Selvaraj
IBM Corp. has announced better than expected results for 2Q08. While Business and Technology Services continue to dominate IBM’s revenue streams, Software revenue has also shown impressive growth. read more…
Gridstone Research Notes
July 21st, 2008
Written by Naveen Selvaraj
Written by Naveen Selvaraj
July 18th, 2008
Written by Naveen Selvaraj
Written by Naveen Selvaraj
Microsoft Corp.(MSFT) reported 4Q08 Operating income growth of 42% Yoy. Excluding the $1.1 billion charge in 4Q07 related to the expansion of Xbox 360 warranty coverage, Operating income has increased only 12% Yoy. Xbox had some part in this poor earnings growth. read more…
April 18th, 2008
Written by Naveen Selvaraj
Written by Naveen Selvaraj
Satyam Kumar also contributed to this note.
With technology bellwethers like INTC, IBM kick- starting the earnings seasons with impressive results, it remains to be seen how software companies would perform. IBM has reported 14% Y-o-Y growth in software revenues and ~20% growth in Core Infrastructure products like middleware for the QEMar08. Our analysis of the Y-o-Y revenue growth achieved by software firms in 2007 and their corresponding guidance for 2008 indicates that most companies have lowered their Y-o-Y growth expectations.
We also looked at the guidance from software vendors based on the product categories they operate in and our analysis suggests that core infrastructure and enterprise applications would outgrow productivity applications like PLM, CAD/CAM. Further,2Q08 could turn out many positive surprises in software considering the lower growth rates forecast and the generally upbeat Tech earnings reports so far. read more…
May 21st, 2007
Written by Chris Montano
Written by Chris Montano
How does a leading company keep growing? Long after competitive dominance is established and competitors benchmark a firm as ‘the company to beat’, how does a management team find new avenues for growth? One tried and true method is seeking growth through acquisitions.
Since acquiring PeopleSoft, January, 2005 ORCL management has made 30 additional acquisitions. The strategy appears to be working. ORCL has posted net revenue growth (on a trailing 12 month basis) of 25% and 27% the last two reported quarters. And investors have responded enthusiastically and bid up ORCL’s stock to levels not seen since mid 2001. This leaves us wondering, “Given the shares’ nearly 35% appreciation in the last 12 months what catalyst can drive the shares higher?” read more…