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Google revenue is up 27 per cent
INTERNET GIANT Google has posted its financial results for the first quarter of 2011, revealing a 27 per cent increase in revenue compared to the same period in 2010.
The company brought in $8.58 billion in revenue for the first three months of the year, while GAAP operating income was 33 per cent of that at $2.8 billion. Net income was $2.3 billion, up from $1.96 billion a year prior.
Earnings per share came in at $7.04 for GAAP and $8.08 for non-GAAP, up from $6.06 and $6.76 respectively.
Despite the substantial revenue increase, the company failed to meet Wall Street forecasts, primarily due to high spending as it recruited thousands of additional staff. That's not going to slow Google down, however, as it indicated that it expects to "continue to make significant capital expenditures."
Operating expenses were up from $1.84 billion a year ago to $2.84 billion. This accounted for 33 per cent of revenue, compared to 27 percent previously. Much of this boiled down to a 10 per cent pay increase for staff and the hiring of 1,916 new employees. Google now has a workforce of 24,400.
Google also reported that the number of installed apps on Android devices has crossed the three billion milestone. It wasn't all that long ago that it hit the two billion mark, suggesting the momentum for Android is continuing to quicken. In fact, downloads of Android apps have also increased by 50 per cent compared to the last quarter of 2010.
The poorer than expected performance for Google's first quarter led to a drop in its share price of $30.51 or 5.27 percent by market close yesterday. The stock price has improved slightly today with an increase of $2.23 or 0.39 percent to $578.51 before the market opens. µ
Tags: Google
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Google aren't going to profit on Android. Their OS move is solely defensive to prevent Nokia/Apple/RIM/Microsoft from permanently locking them out of the search and ad market on smart phones and tablets. Apple were well on their way to doing this on iPhone before they started getting their ass kicked.
There are a few major problems with Android:
1) Being sued by oracle who own Java, which Android is based on.if Google loose this means no more free Android OS for manufacturers
2) Android actually infringes on 36 patents owned by companies like Microsoft, Apple, Oracle, etc
3) Google Has just locked down Android to specific hardware spec's, manufacturers are not happy
4) Companies such as Samsung, Motorola, HP, are developing there own OS to compete against Google
5) Android store is insecure and filled with viruses
Also remember that just because Androids market share is increasing this does not mean more money for Google!!!!!! Google gives the OS away for free.
People get confused between large market share and profits, this is not the case!!!!!
Android is great BUT!!!!!!!
How are Google going to REALLLLY profit from this, with thier Open Source method they have made the world think that Apps on android are free and should be (take angry birds). THey are hoping for all browsers to use google but bing is on the climb..... how many apps you say? how many of them actually put cash into googles pccket I say?
Its a nice model,,, open source os, we are not evil crap... but come on, its a business and when at the top,, all you can do is fall,, I'm waiting to see how fast or slow