Mixed Results


Unimpressive Inside
Semiconductor products manufacturer and technology provider, Intel on the
back of record level fourth quarter
results, declared disappointing results for the first quarter of the new fiscal
ended March 2004. Revenues declined 7% sequentially from $8.7 billion to $8.1
billion as against a 20% growth year-on-year. Intel produces the silicon for its
microprocessors, chipset and flash memory components and supplies the computing
and communications industries with chips, boards, systems and software building
blocks, which are considered the ingredients of computers, servers and

The Asia-Pacific region continued to contribute major portion of revenues:
40% amounting to $3.3 billion followed by Americas, Europe and Japan
contributing 27%, 24% and 9% of the total revenues, amounting to $2.2 billion,
$1.9 billion and $717 million respectively. Net income for the quarter stood at
$1.7 billion, down 20% as compared to $2.2 billion sequentially. Y-o-y, the net
income was up 89% as compared to $915 million. Revenues in the second quarter
are expected to be between $7.6 billion and $8.2 billion. Intel currently trades
at $26 per share.


Window to Growth
Software, services and internet technology provider Microsoft announced the
results for the third quarter ended March 2004. The company reported revenues of
$9.2 billion, up 17% over the corresponding period of last year but down 9%
sequentially. The net income in the third quarter stood at $1.3 billion, down
39% y-o-y and 15% q-o-q. The company witnessed a decline in sales of Mobile and
Embedded devices by 3% q-o-q to $61 million and Home and Entertainment revenue
was down by 58% to $530 million. The Client Segment, which comprises Windows
Operating System, saw a 4% decrease in revenues to $2.9 billion. Server
platforms segment with the windows Server grew 2% sequentially to $2.2 billion.
Microsoft’s portal MSN that includes subscriptions and the network of Internet
products and services witnessed 8% growth to $591 million whereas revenues from
Business Solutions division fell 19% to $153 million. Going forward, Microsoft
expects to earn revenues of $8.9 billion to $9 billion for the next quarter
ending June 2004. The company expects to earn revenues of $37.8 to $38.2 billion
for the full year. The share of the company is traded at $26.

Advanced Micro Devices

Improving Results
California-based chipmaker Advanced Micro Devices registered a slow but
steady growth during the first quarter ended March 2004. The company reported
revenues of $1.2 billion as compared to $1.2 billion in the immediate previous
quarter. For the same quarter in the previous year, the revenues were up 73%
compared to $714.6 million. Net income was up marginally to $45.1 million, up
4.4% sequentially as compared to $43.2 million. The computation product segment,
which includes PC processors and chip-sets contributed 46% of the total revenues
earned during the first quarter amounting to $571 million, down 2% as compared
to $581 million earned sequentially. Revenues for sale of memory products that
includes the flash memory products amounted to $628 million, registering 11%
growth as compared to $566 million in the preceding quarter, contributing 51%.
The company recently announced that AMD64 processors would combine with the
Windows XP Service Pack to help computers to withstand attacks from certain
classes of viruses and worms. AMD currently trades at $15.


Cashing In
eFunds Corporation is a provider of transaction processing, risk management and
professional services to financial institutions, electronic fund transfer
networks, e-commerce providers and government agencies. For the quarter ended
December 2003, Arizona based company registered a mere 2% growth in revenues
amounting to $135.2 million as compared to $133.1 sequentially. Y-o-y, the
company revenues were up 3% as compared to $131.6 million. eFunds electronic
payments business segment, contributed 37% of the total revenues earned during
the quarter amounting to $50.2 million, up 11% sequentially. Revenues form the
ATM management services segment amounted to $33.4 million, down 8% sequentially,
contributing 25% followed by the decision support and risk management segment
contributing 24%, amounting to $32.2 million, down 7% sequentially and the
professional services segment contributing the balance 14% of the total revenues
amounting to $19.5 million, up 14% sequentially. Net income for the quarter was
$10.1 million as compared to $9.1 million, up 11% sequentially. During the
quarter, eFunds acquired of the assets of Oasis Technology Ltd, a Canadian
software service provider for a total purchase price of approximately $30
million, including a working capital adjustment funded from existing cash on
The share of the corporation is traded at $16.


Expanding In India
Unisys Corporation is a provider of IT services, consulting, systems
integration, outsourcing and infrastructure and server technology in vertical
markets like financial services, communications, transportation and media. The
company reported revenues for the quarter ended March 2004 amounting to $1.5
billion, declining 11% sequentially as compared to $1.6 billion but as compared
to the same quarter of the previous year, the revenues grew 5% from $1.4
billion. The net income for the first quarter stood at $28.9 million,
nose-diving 74% on a sequential basis. This decline in the net income is mainly
due to pension expenses of $22.2 million. On a geographic basis, revenue from US
grew 3% to $682 million and revenue in international markets increased 6% to
$780 million, as growth in Europe and South Pacific offsetting revenue declined
in other international regions. Unisys was awarded a five-year agreement worth
$345 million by the Department of Defense’s Counterintelligence Field
Activity, USA to help develop a system that integrates all counterintelligence
activities of US military services, defense agencies, joint staff and combatant
commands. The company recently announced expansion of its Indian operations
by launching a development center in Bangalore. Employing around 2,000 people,
the center is expected to
provide software development, maintenance, business process outsourcing and
technical help desk services. Unisys currently trades at $31.


Unimpressive Results
Syntel, a player in the custom outsourcing IT and ITES solutions space in
addition to providing services like e-Business development and integration,
wireless solutions, data warehousing and e-CRM. For the first quarter ended
March 2004, the company revenues declined 5% form $47.4 million to $45.1 million
on a sequential basis as against a 2% growth year-on-year wherein the revenues
were $44.1 million. The net income stood at $9.3 million, down 14% but up 12% as
compared to $10.9 million and $8.4 million sequentially and year-on-year
respectively. During the first quarter, Syntel’s business segment of
applications outsourcing accounted for 75% of total revenue amounting to $33.8
million, with e-Business contributing 19% amounting to $8.6 million, other
sourcing activities contributing 5%, amounting to $2.3 million and BPO segment
contributing a mere 1% amounting to $0.5 million. Syntel completed the
re-development of www.TheNewsMarket.com, a news video archive and distribution
channel based on Microsoft’s.NET framework targeted primarily at the global
television news community. A team at Syntel’s global development center in
India developed the technology for the project. The company is reiterating 2004
guidance in the range of $198 million to $208 million. The share of the Michigan
based company is currently traded at $20.

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