Tag Archives: technology

Microsoft, Google Bury The Hatchet Amid EU Regulatory Probe

Microsoft ( MSFT ) and Alphabet ’s ( GOOGL ) Google have agreed to withdraw regulatory complaints against one another, following up on an agreement to end patent infringement litigation last September. The move to withdraw regulatory complaints comes as the European Union’s antitrust chief intensifies a probe into Google’s Android software business. The EU also is investigating whether Google favors its own shopping service in Internet searches. Microsoft says that it’ll now stay out of any regulatory inquiries in Europe and other regions that involve Alphabet and Google. “Microsoft has agreed to withdraw its regulatory complaints against Google, reflecting our changing legal priorities. We will continue to focus on competing vigorously for business and for customers,” Microsoft said in a statement . Google also issued a statement that said: “Following our patent agreement, we’ve now agreed to withdraw regulatory complaints against one another.” Microsoft will drop its membership in two groups that have lobbied vs. Google, says a Re/Code report . The EU antitrust chief is also probing contracts with mobile phone makers as well as wireless service providers that sell devices using Android software. Both companies late Thursday posted Q1 earnings misses that sent shares of both down in the stock market today . Microsoft stock was down 7.5% Friday afternoon, and Alphabet stock was down 5.5%. Losses widened for Alphabet’s “Other Bets” moonshot projects, while Microsoft’s talk of weakness in the global economy surprised at least one analyst.

Maxim Q4 Guidance ‘More Impressive’ On Likely Flat Samsung Sales

Maxim Integrated Products ( MXIM ) is offsetting Samsung’s expected flat June quarter with wins in fitness wearables, tablets and smartphones, CEO Tunc Doluca told analysts late Thursday during the firm’s fiscal Q3 earnings conference call. In afternoon trading on the stock market today , Maxim stock was up more than 1.5%, above 37. Shares hit an all-time high of 42.01 on Oct. 28, but dipped in January and February before a pint-size recovery. Maxim stock is down 4% for the year. For its fiscal Q3 ended March 26, Maxim reported 41 cents earnings per share minus items on $555.3 million in sales. EPS climbed 2.5% year over year, but sales dipped 4%. Maxim’s EPS topped by a penny the consensus of 27 analysts polled by Thomson Reuters and sales were in line, and both metrics touched the midpoints of Maxim’s earlier guidance. On a year-over-year basis, Maxim’s consumer, communications/data center and computing sales were down 9%, 10% and 30%, respectively. Industrial sales were flat, but automotive grew 25%. Current-quarter guidance for $555 million to $959 million in sales and 45-51 cents EPS minus items would be down a respective 1% and 12%. Consumer and automotive segments are expected to be “strongly up.” At least three analysts boosted their price targets Friday on Maxim stock. Pacific Crest analyst Michael McConnell noted Maxim’s Q4 guidance was “even more impressive” considering likely slow sales at Samsung. Samsung comprises about 15% of Maxim’s sales, McConnell estimates. This is “a sign that Maxim’s diversification strategy is paying dividends,” McConnell wrote in a research report. He boosted his price target on Maxim stock to 41 from 37 and reiterated his overweight rating.