NVIDIA's revenue hits a record $1.20 billion for Q3 powered by Tegra 3 tablets, Kepler GPUs

NVIDIA Reports Financial Results for Third Quarter Fiscal Year 2013
NVIDIA Initiates Dividend; Extends Share-Repurchase Authorization

Nov 08, 2012 (Marketwire via COMTEX) --NVIDIA (NASDAQ: NVDA)

Record revenue of $1.20 billion.
GAAP net income was $209.1 million, or $0.33 per diluted share. Non-GAAP net income was $245.5 million, or $0.39 per diluted share.
GAAP gross margin was a record 52.9 percent. Non-GAAP gross margin was a record 53.1 percent.
NVIDIA initiated quarterly dividend of 7.5 cents a share.

NVIDIA (NASDAQ: NVDA) today reported record revenue of $1.20 billion for the third quarter of fiscal 2013 ended Oct. 28, 2012, up 15.3 percent from the previous quarter and up 12.9 percent from a year earlier.

The company also announced that it is initiating the payment of a quarterly cash dividend, and extending its existing $2.7 billion share-repurchase program, initiated in August 2004, through December 2014.

"Investments in our new growth strategies paid off this quarter in record revenues and margins," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "Kepler GPUs are winning across the special-purpose PC markets we serve, from gaming to design to supercomputing. And Tegra is powering some of the most innovative tablets, phones and cars in the market."

He continued: "We are pleased to start paying our shareholders a quarterly cash dividend. We have confidence in our businesses and our continued ability to grow. Given our strong financial position and ongoing ability to generate cash, we are well positioned to continue investing in our future."

GAAP Quarterly Financial Comparison
(in millions except per share data) Q3 FY13 Q2 FY13 Q3 FY12 Q/Q Y/Y
Revenue $1,204.1 $1,044.3 $1,066.2 up 15.3% up 12.9%
Gross margin 52.9% 51.8% 52.2% up 1.1 p.p up 0.7 p.p
Operating expenses $384.4 $401.1 $359.6 down 4.2% up 6.9%
Net income $209.1 $119.0 $178.3 up 75.6% up 17.3%
Earnings per share $0.33 $0.19 $0.29 up 73.7% up 13.8%

Non-GAAP Quarterly Financial Comparison*
(in millions except per share data) Q3 FY13 Q2 FY13 Q3 FY12 Q/Q Y/Y
Revenue $1,204.1 $1,044.3 $1,066.2 up 15.3% up 12.9%
Gross margin 53.1% 52.0% 52.5% up 1.1 p.p up 0.6 p.p
Operating expenses $344.8 $342.5 $317.6 up 0.7% up 8.6%
Net income $245.5 $170.4 $217.0 up 44.0% up 13.1%
Earnings per share $0.39 $0.27 $0.35 up 44.4% up 11.4%

*Non-GAAP earnings excluded stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, a contribution expense in the second quarter of fiscal 2013, and the tax impact associated with such items.

Outlook

Our outlook for the fourth quarter of fiscal 2013 is as follows:

Revenue is expected to be between $1.025 billion and $1.175 billion.

GAAP and non-GAAP gross margins are expected to be flat relative to the prior quarter, 52.9 percent and 53.1 percent, respectively.

GAAP operating expenses are expected to be approximately $400 million; non-GAAP operating expenses are expected to be approximately $359 million.

GAAP and non-GAAP tax rates are expected to be approximately 20 percent and 19 percent, respectively, plus or minus one percentage point. This estimate excludes any discrete tax events that may occur during the quarter, which, if realized, may increase or decrease our actual fourth quarter GAAP and non-GAAP tax rates. If the U.S. research tax credit is reinstated into tax law, we estimate our annual effective tax rate for the fiscal year 2013 to be approximately 16 percent.

Depreciation and amortization for the fourth quarter is estimated to be approximately $58 million to $60 million. Capital expenditures are expected to be in the range of $60 million to $70 million.

Diluted shares for the fourth quarter are expected to be approximately 629 million.

Dividend and Share-Repurchase Program

The quarterly dividend of 7.5 cents per share, 30 cents on an annual basis, is equivalent to a yield of about 2.4 percent, based on the Nov. 7 closing price of $12.61. It will be payable on Dec. 14, 2012 to all shareholders of record on Nov. 23, 2012.

Since NVIDIA initiated its repurchase program in August 2004, NVIDIA has spent $1.46 billion to repurchase 90.9 million shares of its common stock. NVIDIA is authorized, subject to certain specifications, to spend up to an additional $1.24 billion repurchasing shares of its common stock.

Any future repurchases would be made in the open market, in privately negotiated transactions or in structured share-repurchase programs, and may be made from time to time or in one or more larger repurchases. The program will be conducted in compliance with the Securities and Exchange Commission's Rule 10b-18 and applicable legal requirements and shall be subject to market conditions and other factors. The repurchases would be funded from available working capital.

Cash, cash equivalents and marketable securities at the end of the third quarter of fiscal 2013 were $3.43 billion.

Third Quarter Fiscal 2013 and Recent Highlights:

Microsoft launched its NVIDIA Tegra® 3-based Surface RT to critical acclaim.

NVIDIA's new energy-efficient Kepler™ GPU architecture continued to make excellent headway:

Kepler-based gaming was extended to new, lower price points with the launch of the GeForce® 660 Ti, GeForce GTX 660, GeForce GTX 650 Ti and GeForce GTX 650.
Kepler made further inroads in supercomputing, as Oak Ridge National Laboratory announced that it had completed Titan, the world's fastest open-science supercomputer. Titan gets 90 percent of its processing power from 18,688 NVIDIA Tesla® GPUs.
Kepler moved further into Apple's lineup, with the NVIDIA Quadro® K5000 for Mac Pro users.
NVIDIA launched the VGX™ K2 GPU, also based on the Kepler GPU, for cloud-based workstation graphics.

CFO Commentary
Commentary on the quarter by Karen Burns, NVIDIA interim chief financial officer, is available at www.nvidia.com/ir.

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T-Mobile USA Q3 2012 earnings: Revenue drops 6 percent to $4.9 billion, profit down 15 percent

Mobile USA Reports Third Quarter 2012 Operating Results

Net Customer Growth in the Third Quarter; Continued Year-on-Year Churn Improvements

Third Quarter 2012 Highlights

Operational Highlights:

-Net customer additions of 160,000 reflect strong net additions of 365,000 branded prepaid customers
-Branded contract churn of 2.3% improved 30 basis points year-on-year
-Rate of branded net contract customer losses in the third quarter of 2012 improved slightly sequentially (492,000 in Q3/12 compared to 557,000 in Q2/12) but increased year-on-year (389,000 in Q3/11) due to the impact of the iPhone 5 launch
-3G/4G smartphones sales accounted for 77% of units sold and increased 28% year-on-year to 2.3 million units
-The $4 billion 4G network modernization plan is well underway; first cities with HSPA+ on -1900 PCS spectrum launched in the third quarter of 2012
-New Unlimited Nationwide 4G Data plan, launched in September, is a key differentiator in the marketplace

Summary of Financial Results:

-Total revenues of $4.9 billion, a decrease of 6.4% year-on-year, reflecting higher equipment revenues from the Company's new Value plans; total service revenues were $4.3 billion, a decrease of 8.7% year-on-year
-Branded prepaid revenues increased to $450 million, a 38% increase year-on-year
-Growth in Monthly 4G plans drove prepaid ARPU to $27.35, up 12.5% year-on-year
-Branded contract data ARPU of $19.45 increased 10.4% year-on-year
-Branded contract ARPU declined 3.3% year-on-year to $56.59 in part due to the popularity of the Value plans, which now account for nearly one-quarter of branded contract customers
-Adjusted OIBDA of $1.2 billion decreased 15.2% year-on-year in the third quarter of 2012 largely due to higher advertising expenses
-Adjusted OIBDA margin of 29% declined 2 percentage points sequentially and year-on-year

BELLEVUE, Wash.--(BUSINESS WIRE)--T-Mobile USA, Inc. ("T-Mobile") today reported its third quarter 2012 results, which demonstrate that successful execution of the Company's Challenger Strategy continues to improve performance in key operational and financial areas. T-Mobile ended the third quarter of 2012 with 33.3 million customers, a net addition of 160,000 customers compared to the second quarter of 2012. The sequential improvement was driven primarily by the continued expansion of branded prepaid customers and a reduction in branded contract net customer losses. The Company's branded prepaid customer growth was its best quarterly performance of this year and exceeded the annual growth reported in 2011.

"The combination of T-Mobile USA and MetroPCS will further deepen the Company's LTE spectrum position in key metropolitan areas and provide a path to an at least 20 by 20 MHz LTE deployment in 90% of the top 25 U.S. markets"
In the quarter, the Company reported adjusted OIBDA of $1.2 billion and an adjusted OIBDA margin of 29%. As expected, third quarter 2012 adjusted OIBDA reflects higher advertising expenditures related to the Company's brand re-launch.

"We continue to make solid progress with our Challenger Strategy, as evidenced by our strong performance in prepaid services, the growing attractiveness of our Value and Unlimited plans, the execution of our network modernization program, and the expansion of our popular handset portfolio," said John Legere, President and CEO of T-Mobile USA. "Our strategy, including our ability to deliver more affordable, faster 4G services to more customers in more metropolitan areas, will be significantly accelerated by our proposed combination with MetroPCS. With MetroPCS, we aim to become the industry's leading value carrier – for both prepaid and contract service offerings – with the scale, spectrum and financial resources to aggressively compete with the other national carriers."

"The combination of T-Mobile USA and MetroPCS will further deepen the Company's LTE spectrum position in key metropolitan areas and provide a path to an at least 20 by 20 MHz LTE deployment in 90% of the top 25 U.S. markets," said René Obermann, CEO of Deutsche Telekom.

T-Mobile Strategic Initiatives Update

T-Mobile continues to make significant progress in executing its Challenger Strategy. In September, John Legere was named President and Chief Executive Officer of T-Mobile and has reiterated his strong commitment to the Company's Challenger Strategy.

Amazing 4G Services Highlights:

T-Mobile continues to advance its $4 billion 4G network modernization plan, which includes installing new advanced equipment that paves the way for the launch of Long Term Evolution ("LTE") service in 2013.
Las Vegas and Kansas City were the first cities where T-Mobile customers benefited from the launch of HSPA+ on 1900 PCS spectrum, which delivers enhanced voice and data coverage, as well as faster speeds on unlocked devices such as the iPhone; just yesterday, Washington DC, Baltimore, and Houston also went live. The Company expects to announce further network strengthening in many additional cities in the coming months.
In the third quarter of 2012, T-Mobile completed the transaction announced in June 2012 with Verizon Wireless for the purchase and exchange of AWS spectrum licenses in 218 markets across the U.S. This transaction improved T-Mobile's spectrum position in 15 of the top 25 markets nationwide.
T-Mobile continued to expand its compelling 4G smartphone portfolio, including adding more devices under the popular Samsung Galaxy lineup, such as the Samsung Galaxy Note 2, and announcing the upcoming availability of two Windows Phone 8 smartphones, including the exclusive Nokia Lumia 810.
Value Leader Highlights:

T-Mobile is a champion of "bring your own device (BYOD)" wireless, with affordable value plans that separate the cost of wireless service from the purchase of a new phone.
In early September, T-Mobile launched a new Unlimited Nationwide 4G Data plan that is a key differentiator in the marketplace.
Trusted Brand Highlights:

As part of its brand re-launch program, the Company increased investment in advertising to highlight its fast and reliable nationwide 4G network and its blazing fast data speeds in the U.S.

Multi-Segment Player Highlights:

In the Business-to-Business (B2B) segment, T-Mobile looks to serve as a trusted communications advisor, helping businesses develop cost-effective, high-value communications programs that meet their business objectives –through bring-your-own-device (BYOD), and mobile device management (MDM) programs as well as attractive international mobility and mobile broadband data plans. The Company continues to aggressively expand its B2B sales force.
T-Mobile launched three new Mobile Virtual Network (MVNO) partnerships during the quarter: Spot Mobile, Solavei, and UltraMobile, adding to its existing partnerships with TracFone/SIMPLE Mobile and Roam Mobility.
Challenger Business Model Highlights:

The Company continues with its efforts to drive operational efficiencies through the Reinvent program and is on track to achieve $900 million in annual gross cost savings, which the Company has started reinvesting in customer acquisition programs.
Combination with MetroPCS:

On October 3, 2012, Deutsche Telekom and MetroPCS announced their intent to combine T-Mobile and MetroPCS and create the premier "Challenger" in the U.S. wireless market and the value leader for contract and no-contract service offerings.
The complementary spectrum holdings of the two companies will enable a deeper LTE network deployment, with a clear path toward at least 20 by 20 MHz of 4G LTE in many areas of the country.
The combination will yield projected cost synergies of $6 to $7 billion.
A combined T-Mobile and MetroPCS will represent an attractive growth company with healthy projected growth rates, including a projected 7% to 10% EBITDA CAGR over the next five years.
Quarterly Financial Results:

For more detailed summary of third quarter 2012 financial results, please see the separate financial results release issued by T-Mobile today.
Forward-Looking Statements

This news release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this news release regarding the business outlook, expected performance and forward-looking guidance, as well as other statements that are not historical facts, are forward looking statements. The words "estimate," "project," "forecast," "intend," "expect," "believe," "target," "providing guidance" and similar expressions are intended to identify forward-looking statements.

Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer growth and retention, pricing, operating costs, the timing of various events and the economic and regulatory environment.

About T-Mobile USA

Based in Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless operation of Deutsche Telekom AG (OTCQX: DTEGY). By the end of the third quarter of 2012, approximately 131 million mobile customers were served by the mobile communication segments of the Deutsche Telekom group - 33.3 million by T-Mobile USA - all via a common technology platform based on GSM and UMTS and additionally HSPA+ 21/HSPA+ 42. T-Mobile USA's innovative wireless products and services help empower people to connect to those who matter most. Multiple independent research studies continue to rank T-Mobile USA among the highest in numerous regions throughout the U.S. in wireless customer care and call quality.

In order to provide comparability with the results of other US wireless carriers, all financial amounts are in US dollars and are based on accounting principles generally accepted in the United States ("GAAP"). T-Mobile USA results are included in the consolidated results of Deutsche Telekom, but differ from the information contained herein as, among other things, Deutsche Telekom reports financial results in Euros and in accordance with International Financial Reporting Standards (IFRS).

For more information, please visit http://www.T-Mobile.com. T-Mobile is a federally registered trademark of Deutsche Telekom AG. For further information on Deutsche Telekom, please visit www.telekom.de/investor-relations.

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Lenovo Q2 earnings reveal record high sales of $8.7 billion, highest-ever PC market share

LENOVO REPORTS SECOND QUARTER 2012/13 RESULTS
· Record pre-tax income of US$204 million
· Record quarterly sales of US$8.7 billion
· Record market share of 15.6 percent
· Basic EPS of 1.58 US cents, or 12.25 HK cents
· Net cash reserves of US$3.6 billion (as of September 30, 2012)

HONG KONG, November 8, 2012 – Lenovo Group today reported results for its second fiscal quarter ended September 30, 2012. Outgrowing the market in all geographies, Lenovo continued its push towards becoming the number one vendor in the PC industry, with record quarterly sales of $8.7 billion, an 11 percent increase year-over-year. While growing faster than the top four PC companies for three straight years, Lenovo also turned in another quarter of record pre-tax income at US$204 million, evidence that the Company continues to build upon its track record of profitable growth.

During the second fiscal quarter, Lenovo's worldwide PC shipments grew 10.3 percent, in a difficult market that was down eight percent year-over-year, the 14th quarter in a row that the company has grown faster than the PC industry as a whole. In this challenging environment, Lenovo achieved its highest-ever worldwide market share of 15.6 percent*, gaining share points in every geography, every product category in which it competes, and in every respective customer segment.

This balanced growth has become a hallmark of Lenovo over the past three years, and is the result of the Company's continued focus on its "protect and attack" strategy, whereby Lenovo strengthens its position in those places or markets where it enjoys a solid business, while simultaneously reaching outwards into new places or markets where opportunities to reach even more customers present themselves. Entering these new markets is essential to Lenovo continuing its position as a leader in the PC Plus era, where tablets, smartphones and smart TVs continue to gain traction and capture record customer acceptance.

In addition to its impressive share gains, Lenovo turned in net income of US$162 million in the second quarter, an increase of 13 percent year-over-year, with gross margin at 12.1 percent. Gross profit for the second fiscal quarter increased 11 percent year-over-year, to US$1.1 billion, while operating profit for the second quarter was US$206 million, a 24 percent increase year-over-year.

Basic earnings per share for the second fiscal quarter was 1.58 US cents, or 12.25 HK cents. Net cash reserves as of September 30, 2012, totaled US$3.6 billion. Lenovo's Board of Directors declared an interim dividend of 4.5 HK cents per share.

As the PC Plus era continues to take shape, Lenovo made several bold moves during the second fiscal quarter to solidify its leadership position, announcing two significant acquisitions: CCE, widely known in Brazil as a leader in PCs and consumer electronics, which significantly expands Lenovo's presence in the world's third-largest PC market, including manufacturing capabilities; and Stoneware, a software company based in Indiana, focused on cloud computing, which will help Lenovo grow its capabilities for both commercial and consumer cloud offerings, particularly the ability to provide secure content across multiple devices in education and government sectors.

Both of these acquisitions came quickly on the heels of Lenovo's announcement of a global partnership with EMC, forming a server technology development program to help drive innovation and extend Lenovo's capabilities in x86 industry-standard servers. As part of this agreement, Lenovo will bring these servers to market on its own, and embed them in selected EMC storage systems over time. Just last week, Lenovo announced the formation of the Enterprise Product Group, a new business unit that will focus on expanding the Company's server, storage, networking and software offerings geared to a variety of commercial customers, including large enterprises, small/medium businesses and system integrators.

Also during the second quarter, Lenovo announced that it was opening a manufacturing line in North Carolina, creating 115 new manufacturing jobs, boosting its competitive position as a global company with strong local roots.

"With the strong execution of our Protect and Attack strategy, Lenovo has continued its strong and balanced growth momentum. Our global PC market share reached another historic high, moving us closer to our dream of becoming the worldwide PC leader. With four years' effort, our Consumer PC business has become the world's number one in this segment for the first time. Our smartphone business in China, which we started only two years ago, has again strengthened its number two position," said Yang Yuanqing, Chairman and CEO of Lenovo. "More importantly, we not only grew rapidly, but also improved our profitability consistently, with pre-tax income reaching a record high this quarter. As emerging markets outside of China and Mature Transactional business have entered the profitable growth stage, and as our smartphone and other MIDH (mobile internet/digital home) business continue to grow, Lenovo's overall profitability will continue to improve."

GEOGRAPHIC OVERVIEW
· Lenovo China achieved US$3.9 billion in consolidated sales in the second fiscal quarter, an increase of 20 percent year-over-year, accounting for 44 percent of the Company's worldwide sales. During the second quarter, Lenovo grew its number-one position in China, the world's largest PC market, to a leading market share of 34 percent, up 2.4 points year-over-year. Lenovo's PC shipments in China grew eight percent year-over-year in the quarter, a significant result given that the overall China PC market was flat. As the number one PC vendor in China, Lenovo's PC shipments are greater than that of the next top four vendors combined. Of particular note, is Lenovo's continued strength in China's emerging cities, and the Company continues to build its reputation with other product offerings such as smart phones, tablets and smart TVs, as it leads China's customers into the PC Plus era.

· In the Asia Pacific/Latin America region, Lenovo achieved a record market share of 11.5 percent in the second fiscal quarter, up 1.6 points year-over-year. In a PC market that was down ten percent year-over-year, the Company grew its PC shipments across the region by an impressive five percent. Lenovo was the leading PC vendor in Japan, the world's fifth largest PC market, and number one in India as well, where the Company grew 31.8 percent and gained 4.8 share points year-over-year. In the Latin America countries (not including Brazil), Lenovo recorded its first-ever overall double-digit market share, while picking up 4.1 share points year-over-year. Consolidated sales across the region totaled US$1.8 billion for 21 percent of Lenovo's worldwide sales.

· For the first-time ever, Lenovo in Europe Middle East/Africa achieved double-digit market share, ending the second fiscal quarter at 10.8 percent, an increase of 3.0 share points year-over-year. These gains helped Lenovo become the third-largest PC vendor in EMEA. Lenovo's share gains were consistent throughout the region, growing in all markets. Among the highlights for the second quarter were the Company's number one positions in Russia and Germany, where in the latter Lenovo gained 3.9 additional share points year-over-year. Although the overall industry was down eight percent across the region, Lenovo grew its PC shipments by 27 percent year-over-year, a stunning result. The Company had consolidated sales in the second quarter of US$1.8 billion, a year-over-year improvement of 12 percent, and good for 21 percent of Lenovo's total worldwide sales.

· Lenovo's PC shipments in North America in the second fiscal quarter increased eight percent year-over-year, in a market that fell badly by about 12 percent. In this environment, the Company picked up 1.6 share points to a record high market share in the U.S.A. of 8.3 percent. Consolidated sales grew seven percent year-over-year to US$1.2 billion in the second quarter, or 14 percent of Lenovo's total worldwide sales. Triggered by a ten-times increase in its retail presence throughout the U.S.A, Lenovo saw significant sales gains in its consumer business there. Commercial account growth was strong there as well.

PRODUCT OVERVIEW
· For the first-time ever, Lenovo became the world's largest supplier of Laptop PCs. The Company's laptop shipments worldwide in the quarter were up 11.3 percent year-over-year, helping Lenovo gain 2.6 share points and achieve a record-high laptop market share of 16 percent. Across the industry, laptop shipments were down seven percent year-over-year. Lenovo's laptopcomputers continued to be the largest contributor to the Company's sales worldwide, generating 53 percent of Lenovo's total sales revenue. Consolidated sales for Lenovo's laptop PC business worldwide in the second fiscal quarter totaled US$4.6 billion, an increase of three percent year-over-year. During the second quarter, Lenovo announced a breathtaking array of new products: ThinkPad X1 Carbon, ThinkPad T430u ultrabook, and ThinkPad Tablet 2, the company's first tablet specifically geared for Windows 8. Last month, Lenovo caught the industry's attention with its announcement of three new convertibles, Yoga 13, Lynx and Twist, tablets that flip, twist, fold and separate, and are designed for Windows 8.

· Consolidated sales of Lenovo Desktop PCs worldwide increased five percent year-over-year in the second fiscal quarter to US$2.8 billion, or 32 percent of Lenovo's total sales revenue. The Company's desktop PC shipments worldwide in the second quarter increased 8.8 percent year-over-year worldwide, compared to an overall industry decrease of nine percent worldwide. As a result, Lenovo gained 2.6 share points year-over-year and achieved a record-high market share of 15 percent. During the second quarter, Lenovo announced its new IdeaCentre A520, a new all-in-one desktop PC featuring a compact 23-inch frameless 1080p display that supports multi-touch with a widely adjustable screen angle (from -5 to 90 degress flat) with perfect picture at any angle so users can watch movies, play touch-based games or enjoy video chat in any position.

· Entering its second full year of operations, Lenovo's Mobile Internet Digital Home (MIDH) group is forging ahead in leaps and bounds, with consolidated sales of US$718 million, a 155 percent increase year-over-year in the second fiscal quarter, and eight percent of the Company's overall sales. With smartphones and tablets leading the Company's PC Plus charge, Lenovo has continued to outpace the hyper-growth in shipments in China, and is now the second largest vendor in China in each of these product categories. Lenovo has gained an incredible 12.5 share points in smartphones year-over-year in the second quarter for an overall market share of 14.2 percent in China. During the second quarter, Lenovo announced that it would begin selling smartphones in Indonesia, Philippines and Vietnam, and just last week, added India to the list.

ABOUT LENOVO
Lenovo (HKSE: 992) (ADR: LNVGY) is a US$30 billion personal technology company – and one of the top two PC makers in the world -- serving customers in more than 160 countries. Dedicated to building exceptionally engineered PCs and mobile internet devices, Lenovo's business is built on product innovation, a highly-efficient global supply chain and strong strategic execution. Formed by Lenovo Group's acquisition of the former IBM Personal Computing Division, the company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smart phones. Lenovo, a global Fortune 500 company, has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information see www.lenovo.com.

*See IDC data, 3Q 2012

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Qualcomm Q4 2012 earnings: $4.87 billion in revenue, $1.27 billion net profit

By Zachary Lutz posted Nov 7th 2012 10:23PM

With Qualcomm's powerful, versatile and efficient Snapdragon S4 taking the mobile world by storm, it should come as no surprise that the company's accountants are smiling more than ever. Today, the firm posted earnings for the fourth quarter of 2012, which includes a net income of $1.27 billion with revenues of $4.87 billion. In terms of profit, these figures represent a 20 percent year-over-year increase and a five percent bump when compared to the previous quarter. A peek inside Qualcomm's books reveal that the company is now sitting on $43 billion in assets and $9.4 billion in liabilities -- if only our own pocketbooks were overflowing in similar fashion. Feel free to count some beans for yourself at the source link below.

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AT&T to spend $14 billion over the next three years on broadband, wireless infrastructure

AT&T to Invest $14 Billion to Significantly Expand Wireless and Wireline Broadband Networks, Support Future IP Data Growth and New Services

Improved Capital Structure is Foundation for Investment and Accelerated Growth

New York, New York, November 07, 2012

-4G LTE network expansion expected to cover 300 million people by year-end 2014
Wired IP broadband network expected to expand to 75 percent of customer locations in

-AT&T's 22-state wireline service area by year-end 2015
Fiber deployment expected to reach 1 million additional business customer locations, covering

-50 percent of multi-tenant office buildings in AT&T's wireline service area by year-end 2015

-99 percent of customer locations in wireline service area expected to have high-speed
IP Internet access via IP wireline and/or 4G LTE

-Investment expected to be approximately $14 billion over three years - $8 billion for wireless initiatives, $6 billion for wireline initiatives; Total capital spending expected to be approximately $22 billion for each of next three years

-Revenue mix following investment period expected to be 90 percent from high-growth areas – wireless, wireline data and managed IT services

-Consolidated revenue growth improves to GDP-growth-rate-plus 100 basis points, assuming stable economy

-EPS expected to grow mid-single digits next 3 years; opportunity for stronger growth going forward

-AT&T increases quarterly dividend 2.3 percent; 29th consecutive annual increase Note:

-AT&T's analyst conference will be webcast live via the Internet at 9 a.m. ET on Wednesday, November 7, 2012, at www.att.com/investor.relations.

AT&T* today announced plans to invest $14 billion over the next three years to significantly expand and enhance its wireless and wireline IP broadband networks to support growing customer demand for high-speed Internet access and new mobile, app and cloud services. The investment plan – Project Velocity IP (VIP) – expands AT&T's high-potential growth platforms, helping drive continued increases in revenues from existing and new products and services, and earnings per share.

"This is a major commitment to invest in 21st Century communications infrastructure for the United States and bring high-speed Internet connectivity - 4G LTE mobile and wireline IP broadband - to millions more Americans," said Randall Stephenson, AT&T chairman and chief executive officer. "We have the opportunity to improve AT&T's revenue growth and cost structure for years to come, and create substantial value for shareowners.

"Revenues in our key growth areas - wireless data, U-verse and strategic business services - are all growing at a strong double-digit rate. Project VIP expands our potential in these key platforms and makes them available to many more customers," Stephenson said. "With our strong balance sheet, these capital investments are manageable. We are very confident in our ability to execute this plan. These are things we've done before – logical extensions of proven technologies and already successful businesses.

"Given our confidence in our industry and in our future, today we increased our quarterly dividend for the 29th straight year. I'm confident we can continue to deliver for our owners as we invest to position AT&T for stronger growth in the years ahead," Stephenson said.

AT&T's Project VIP consists of several individual wireless and wireline initiatives, which are outlined below.

Investing in Mobile Internet Growth

4G LTE Expansion. AT&T plans to expand its 4G LTE network to cover 300 million people in the United States by year-end 2014, up from its current plans to deploy 4G LTE to about 250 million people by year-end 2013. In AT&T's 22-state wireline service area, the company expects its 4G LTE network will cover 99 percent of all customer locations.

Spectrum. AT&T has acquired spectrum through more than 40 spectrum deals this year (some pending regulatory review) and has plans to buy additional wireless spectrum to support its 4G LTE network. Much of the additional spectrum came from an innovative solution in which AT&T gained FCC approval to use WCS spectrum for mobile broadband. Between what the company already owns and transactions pending regulatory approval, AT&T expects to have about 118Mhz of spectrum nationwide. The company will continue to advocate with the FCC for release of additional spectrum for the industry's long-term needs.

Densification & Small Cell Technology. As part of Project VIP, AT&T expects to deploy small cell technology, macro cells and additional distributed antenna systems to increase the density of its wireless network, which is expected to further improve network quality and increase spectrum efficiency.

Investing in Wireline IP Network Growth

AT&T plans to expand and enhance its wireline IP network to 57 million customer locations (consumer and small business) or 75 percent of all customer locations in its wireline service area by year-end 2015. This network expansion will consist of:

U-verse. AT&T plans to expand U-verse (TV, Internet, Voice over IP) by more than one-third or about 8.5 million additional customer locations, for a total potential U-verse market of 33 million customer locations¹. The expansion is expected to be essentially complete by year-end 2015.

U-verse IPDSLAM. The company plans to offer U-verse IPDSLAM service (high-speed IP Internet access and VoIP) to 24 million customer locations in its wireline service area by year-end 2013.

Speed Upgrades. The Project VIP plan includes an upgrade for U-verse to speeds of up to 75Mbps and for U-verse IPDSLAM to speeds of up to 45Mbps, with a path to deliver even higher speeds in the future.
In the 25 percent of AT&T's wireline customer locations where it's currently not economically feasible to build a competitive IP wireline network, the company said it will utilize its expanding 4G LTE wireless network -- as it becomes available -- to offer voice and high-speed IP Internet services. The company's 4G LTE network will cover 99 percent of all in-region customer locations. AT&T's 4G LTE network offers speeds competitive with, if not higher than, what is available on wired broadband networks today. And in many places, AT&T's 4G LTE service will be the first high speed IP broadband service available to many customers.

Fiber to Multi-Tenant Business Buildings. AT&T plans to proactively expand its fiber network to reach an additional one million business customer locations – 50 percent of the multi-tenant business buildings² in its wireline service area. AT&T expects the proactive fiber deployment to increase business revenue growth, accelerate provisioning and facilitate the installation of distributed antennas systems and small cell technology to help offload wireless network traffic.

Project VIP Supports New Growth Initiatives

Expanding AT&T's 4G LTE network to 300 million people, combined with its leadership in smartphones and data access, provides a large platform for the next wave of growth in mobility, including:

AT&T Digital Life. A nationwide all IP-based home security and automation service set to launch in 2013 that will let consumers manage their home from virtually any device - smartphone, tablet or PC.

Mobile Premise Solutions. This new nationwide service, available today, is an alternative for wireline voice service and in the future will include high-speed IP Internet data services.

Mobile Wallet. AT&T is participating in the ISIS mobile wallet joint venture. Market trials are underway in Austin, Tex. and Salt Lake City today.

Connected Car. More than half of new vehicles are expected to be wirelessly connected by 2016. AT&T is positioned to lead the industry as the company's capabilities expand from vehicle diagnostics and real time traffic updates to consumer-facing applications that tie into retail wireless subscriber data plans. AT&T already has deals with leading manufacturers such as Ford, Nissan and BMW.

With business customers, AT&T expects Project VIP will strengthen its ability to pursue multiple new billion-dollar business opportunities in four key growth areas: strategic network services, cloud, security and mobility solutions.

Investment for Growth

Driven by Project VIP and assuming a stable economy, AT&T expects that during the investment period:

Earnings per share³ will grow in the mid-single-digit or better range, with an opportunity for stronger growth going forward.

Consolidated revenues will grow to GDP plus 100 basis points. AT&T expects its growth drivers - wireless, wireline data and managed IT services - will comprise 90 percent of total revenues by 2016, up from about 80 percent today.

Consolidated margins will expand.

AT&T has taken significant steps to further improve its capital structure and strengthen its balance sheet, which provides a financial footing to invest for growth. Over the last three years, the company has reduced its debt by approximately $9 billion, has taken advantage of historically low interest rates to refinance $20 billion in debt, and has reduced its cost of debt by 60 basis points. AT&T recently filed a proposal with the U.S. Department of Labor to contribute a preferred equity interest in its wireless business, valued at $9.5 billion, to the company's pension trust, which will substantially improve the funded status of the plan.

AT&T expects to increase its capital intensity to the high end of the mid-teens as a percentage of revenues in the next two years, returning to normal levels in 2015. AT&T expects capital spending to be approximately $22 billion for each of the next three years, then return to pre-Project VIP levels.

AT&T expects to complete in 2012 its December 2010 share repurchase authorization of 300 million shares and to continue to buy back shares as market conditions allow under its July 2012 300 million share repurchase authorization. Through October 19, 2012, AT&T had repurchased 271 million shares.

Over the next two years, AT&T expects its net-debt-to-EBITDA ratio to move from 1.42 at the end of third-quarter 2012, up to the 1.8 range, aligning with lower interest costs and debt capacity. The company expects this ratio to trend back down in 2015. The company anticipates tapping the debt markets to take advantage of historically low interest rates, with a long-term goal of maintaining its credit rating in the "A" range or higher.

And AT&T remains committed to returning value to shareholders. Year to date the company has returned more than $19.6 billion to shareholders through dividends and share repurchases. And today, AT&T announced it will increase its quarterly dividend for the 29th consecutive year. The AT&T board of directors increased the quarterly dividend rate from $0.44 to $0.45 a share on a quarterly basis, which would be an increase from $1.76 to $1.80 a share on an annualized basis. The dividend will be payable on Feb. 1, 2013, to common stockholders of record on Jan. 10, 2013.

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