Tesla on track with Model S deliveries – new CFO from Google

The Californian electric car manufacturer Tesla (TSLA) announced yesterday evening its third quarter results. According to the press release, the deliveries of the sport utility vehicle (SUV) Tesla S-model is on track and the company said it will reach the year targets this year. Tesla said it has delivered a record of 11.603 new cars during the quarter and expect the shippings to be 17.000 – 19.000 vehicles during the last quarter.

Tesla said also that the orders related to the new luxury crossover Model X have been accelerated during the period. The shippings are expected to happen during the next year in Europe. Third quarter revenue were 936 million dollars, compared to 954 million dollars during the previous quarter. Gross margin was 25,1 percent. Loss before income tax was 228 million dollars compared to loss of 188 dollars during the previous quarter. The loss per share was 1,78 dollars.

The company also said it has updated about 40 000 cars with its new autopilot programm. It helps drivers to avoid risks related to front and side collisions and keep the car on the road. On the other hand Tesla is also thinking ways how to enhance the safety issues among drivers when using autopilot.

Company also announced a new CFO, Jason Wheeler, who will start his job during November. He is former executive in the Google´s Finance division.

During the conference call, an analyst from Morgan Stanley, asked about Tesla´s long term strategy related to ondemand autoplatform. The idea of this, if Tesla is seeking also new cash generated income models through sharing economies, like Tesla´s own on-demand autoplatform. CEO Elon Musk did not close any comment on that.

Tesla (TSLA) shares closed down 2,5 percent to 208,35 dollars, but after hour trading the share was up nearly 9 percent.

Business Tech

Nokia: Alcatel-Lucent merger is now closer – operating profit little down

Nokia (NOKIA), today published its third quarter interim report. According to the press release, the company says the merge with the French Alcatel-Lucent is now closer and they have received all the regulatory approvals to proceed with the public exchange offer. It is estimated to happen during the first quarter next year.

Nokia reported a turnover with 3036 million euros in July-September, declining 2 percent from the year earlier and increasing from the previous quarter. The operating profit was 475 million euros, up 4 percent from year earlier , but down 4 percent from the previous quarter. Earnings per share was 0,05 euros compared to 0,57 euros.

– I continue to believe that the acquisition of Alcatel-Lucent provides a very strong long-term value creation opportunity, the CEO Rajeev Suri said in the release.

The company also said it will raise the near term outlook. – The performance at Nokia Networks was the highlight of the quarter, and allowed us to raise our full-year outlook for that business, Suri said.

Nokia sold its HERE maps and location unit to German automakers Audi, BMW and Daimler in August 2015. According to Volkswagen (VOW:Xetra) press release yesterday, the company is expecting to close the deal during the next six months after the regulatory approvals. Audi´s share of the purchase price will be around 0,85 billion euros, according the release.

According to Nokia release today, HERE net sales amounted to 283 million euros in the third quarter 2015, compared to 236 million euros a year earlier. The operating profit was 20 million euros in the third quarter 2015, compared to an operating loss of 1 215 million euros in the third quarter 2014. On a non-IFRS basis and excluding the positive impact of stopping amortization and depreciation, HERE operating margin in the first nine months of 2015 was 10.1%, compared to 1.6% in the first nine months of 2014.

Nokia published also 7 billion euros program to optimize capital structure ahead of planned public exchange offer for Alcatel-Lucent securities. It also said that the 900 million euros synergies from the Alcatel-Lucent merge would be achieved in 2018, not in 2019 as earlier planned.

Business Tech

Gitex 2015 Tech fairs talk about innovation and internet of things

Technology fairs, Gitex 2015 in the Middle East is showing the best technology innovations in the areas of digital banking, 3D printing, robotics and autonumous vehicles. There are over 100 000 visitors from 150 countries. The visitors are mainly from the Middle East and Africa and they represent goverments, telecom, retailers and bankers.

The fairs are full of new technology boosters like the internet of things. Here in this video a SAP representative gives his greetings to the fairs:

Tech

Dutch Innovation in Wind Energy – new design and architecture planned in Rotterdam

The Dutch have combined sustainable innovations, energy efficiency and high-class design in a new architecture modell called ” the Dutch Windwheel”. This model consists of steel, glass and the building itself produces the energy needed. The new design has got inspirations from the London Eye.

The building hub is planned to be build in the port of Rotterdam, Holland and for example parts of the building are underwater. This new modell is designed by a consortium by BLOCK, DoepelStrijkers and Meysters. The building would include panorama restaurant, sky lobby, hotel, apartments and commercials. Some of the “rollcoaster or cabins” are embedded with smart walls that is touch-screen glass panels for different kind of data and information.

It is estimated that this building would be visited by 1,5 million people per year and the consortium believes that the building would be break-even in 10 years. The construction is about to start in 2018 and end between 2020 and 2022.

New Wind Engine Picture Holland

Design Tech

Tesla to fund the growth – 500 million dollars stock offering

Tesla Motors Inc. (TSLA) has announced a 500 million dollars stock offering. According to the company release this public offering will accelerate the growth of Tesla Energy, development of the new Model 3 and the Gigafactory.

Underwriters for this offering are Goldman Sachs, Morgan Stanley, JP Morgan Chase, Deutsche Bank, Bank of America and Wells Fargo.

Elon Musk, the CEO of the company, will buy shares worth 20 million dollars. The company made the IPO in June 2010 and raised capital worth 226 million dollars. After that the company has raised debt offerings including also the credit line of max 750 million dollars in June 2015.

According to the company interim report in early August 2015 the company said it will expand its network of Tesla Stores, service centers and Supercharges. The new model of Tesla car, the Model 3, is expected to the markets during 2016 and the world´s largest battery manufacturing facility is expected to be ready during 2017. The factory is based in Nevada and the initial investment of the facility and equipment was 5 billion dollars.

Finance Tech

Microsoft sold 8,4 million Lumia smartphones – loss after writeoffs

Microsoft (MSFT) revenue was stable during the three months period ending in June 2015. The company made 22,2 billion dollars revenue compared to 23,4 billion dollars a year ago.

On the other hand the company made 8,4 billion dollars writeoffs and the operating loss was 2 billion dollars compared to 6,4 billion dollar profit year ago. Loss per share was 0,40 dollars. The biggest impairment test was done in the former Nokia Devices Unit with the amount of 7,5 billion dollars plus restructuring charge of 780 million dollars.

Research and Development stayed at the same level and was 3 billion dollars during that quarter.

The company sold 8,4 million Lumia smartphones during that period. The growth was over 10 percent over prior year full quarter sales, 5,8 million units post-acquisition and 1,7 million units pre-acquisition. On the other hand revenue from Lumia smartphones declined.

The company is not making any forward looking financial statement.

Microsoft share closed to 47,28 dollars, up 0,77 percent in New York.

Business Tech

Apple sold 47,5 million iPhones – sales fell in China

Apple (AAPL) sold 47,5 million iPhones during the last quarter ending in June. According to the company the revenue during that period was 49,6 billion dollars and net profit was 10,7 billion dollars, 1, 85 dollars per share. 64 percent of the sales came from international markets.

According to the company guidance for the fiscal 2015 fourth quarter, Apple expects the revenue to be between 49 and 51 billion dollars and gross margin between 38,5 and 39,5 percent.

The sales in China fell during the third quarter to 13,2 billion dollars compared to 16,8 billion dollars a quarter earlier. This is a clear sign of the Chinese markets economy slowdown.

– We generated very strong operating cash flow of 15 billion dollars and we returned over 13 billion to shareholders through our capital return program, the company said in the statement.

During the reported period Apple also increased its R&D expenses to 388 million dollars compared to 313 million dollars year ago. Also the cost of sales rose to 148 million dollars compared to 115 million dollars year ago.

Apple is not publishing its Apple Watch figures but the company states in the press release that they are very confident and happy about the market debut. The company is also going to launch its Apple Pay in the UK during the couple of weeks.

The company share fell to 130,75 dollars, down 1,0 percent in New York.

Business Tech