RIM is already replacing Laptops

Yet another smartphone company that I expect will continue to do well in 2008 is RIM (Nasdaq: RIMM). Most importantly, it is validating one of my hypothesis of the smartphone gradually becoming a laptop replacement device.

It had a fantastic year owing to the momentum in the smartphone market catalyzed by the iPhone launch. It recently shipped its 20 millionth Blackberry in Q2. For Q3 2008 that ended December 1, revenue was $1.67 billion, up 100% y-o-y and 22% sequentially. Net income was $370 million or $0.65 per diluted share. It added 1.65 million BlackBerry subscriber accounts in Q3 bringing the total to 12.15 million accounts.

100% y-o-y growth is not something we see often at these revenue ranges, unless the company has an absolute hot product line. RIM, clearly, does. >>>

Apple of Our Eye

2007 was a big year for Apple. With the launch of the iPhone, it has galvanized the convergence device movement and changed the landscape of the mobile industry, as well as my blog.
Shares hit $200 for the first time, recently, although it is now back down to around $195. Conceivably, the stock price will spend a lot more time in the above $200 zone this year, especially after the holiday quarter results are out. >>>

Convergence Device Components: Unwisely Beaten Up?

I had earlier covered Broadcom, Marvell, Micron, and National Semi in the series on iPhone’s component ecosystem. Broadcom and Marvell were covered in the iPhone and the Future series as well. And this week, Vijay Nagarajan launched his deep-dive on Broadcom. Lets take a look at the financials in this post. >>>

Intuit Is Not Getting SaaS Credit

In my last post on Intuit, I said I wanted to see an International strategy from the company. There has been no progress on that front. But Intuit will now have a new CEO Brad Smith and a new CFO, Neil Williams. >>>

Seagate and Online Video

On October 16, Seagate Technology (NYSE: STX) reported its financial results for Q1 fiscal 2008. Earlier post on the company, part of the Online Video Beneficiaries series, is available here.

For the quarter ended September 28, 2007, revenue was $3.3 billion, up 18% y-o-y and 20.5% q-o-q. GAAP net income was $355 million and diluted net income per share was $0.64. Seagate has declared a quarterly dividend of $0.10 per share. It bought back 10.3 million of its common shares for approximately $250 million. Under the current stock repurchase program, it is authorized to buy approximately $725 million worth of more shares. >>>

SaaS Companies Growing Nicely

I had earlier covered Omniture, Concur, Right Now, Taleo, and Citrix as part of the Enterprise 3.0 series. Let us now look at how they have fared since then.

On October 30, Omniture, Inc. (NASDAQ: OMTR) (previous coverage here) reported its financial results for Q3 2007. Revenue was $37.4 million, up 78% y-o-y and 12% sequentially. GAAP net loss was $1.1 million or $0.02 per diluted share, compared to a net loss of $1.3 million, or $0.03 per diluted share, in Q3 2006. Its total customers increased by 240 to nearly 2,700. >>>

Apple Has Too Much Cash

Apple has too much cash, says Fortune. $15 Billion to be specific. So what should Apple buy?

Oh, I like the Netflix idea, but perhaps it’s time for some radical thinking.

Why not buy Dell, and take the idea of vertical integration to the extreme? Think about all the enterprise customer relationships, the PC market share, the channels … And think about Michael Dell working for Steve Jobs … Ultimate combination of creativity and operational excellence!

Akamai will be Essential for Hotspot Prevention

I had earlier written on Akamai as an Online Video beneficiary and the impact of Level 3’s price cuts on Akamai. You can also read my interview with its founder to see why I think guys like Howard Lindzon are rushing too soon in shorting Akamai.

On October 24, 2007, Akamai Technologies, Inc. (NASDAQ: AKAM) reported its financial results for Q3 ending September 30, 2007. Revenue was $161.2 million, up 6% q-o-q and 45% y-o-y. GAAP net income was $24.3 million, or $0.13 diluted EPS, up 12% q-o-q and 73% y-o-y. GAAP gross profit margin was 73%, about a point lower than Q2. >>>