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Layoffs.  Write-offs.  Weak Guidance. Turbulent Times. Uncertainty.  Foggy Futures. Cracked crystal balls.  Caution. Concern.  

In recent weeks, bad financial news has been like a mosquito you know is there but can’t swat.  It’s been a constant, inescapable drone to a market fearful and in need of reassurance; a market in need of Napoleon’s kind of leader.

Tuesday, though Steve Jobs doesn’t typically participate in earnings calls, Apple’s chief made a rare exception to try and offer just such reassurance.  About fifteen minutes in the conference call, he took the helm stating, “Against the backdrop of this global economic slowdown, it seemed a good time to make a few remarks.”

Together with CFO Peter Oppenheimer and COO, Tim Cook, Jobs helped deliver news that was at once both positive and, looking forward, prudently conservative. Click to Read More

Two weeks ago, Netflix provided a window into upcoming earnings with a pre-announcement to reset expectations for the reality of the current economy.  Today, the official results debuted.  New subscriber additions, as the company warned, were weak but net income was up thirty percent.

Reported net income was $20.4m or 33 cents a share for the third quarter, up from 15.7m (23c/share) for the same period last year. Revenues were in at $341m.

Analysts polled by Thomson Reuters had a consensus estimate of 31cents a share from revenue of $343m. 

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In July, the results failed to meet high expectations.  Now, its October, expectations were low and the results exceeded them.  Such is the sometimes awkward reality of predicting the performance of a company that refuses to give much in the way of forward guidance.

Thursday, Google reported third quarter results. They return showed sequential growth is decelerating, but overall the performance was more than enough to best expectations. Net income of $1.35b or $4.24 a share, good enough to best last year’s result of $1.07b (3.38/share) for the same period by 26%. Revenues were also up handsomely to $5.54b from $4.23b last year.   

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When conditions are stable and sentiment calm, it’s relatively simple to look backward on recent performance to make educated guesses on near term trends.   But when things start to change suddenly and systematically? Then the prediction game is altogether different.  What advertisers were spending three or six months ago, for example, offers little insight into what they’ll spend three months from now.   

In July, thirteen of the top twenty five Internet advisers by media value were classified as financial services companies (via TNS Media Intelligence).  Where we are today is a different place.  The old rules don’t apply.  Many of the big financial companies that were buying up internet ad real estate are gone; bought out, sold out or shut down.  Those that remain may or may not pick up spending to fill the void. One theory says they will – a rush to reassure the market and address consumer fears.  Another theory says they’ll hoard cash, control non-critical spending and remain cautious.

Around the entire advertising world, online and off, nobody is certain how much of a pullback there might be. Click to Read More

Now you see it, now you don’t.  Real Network’s newly launched DVD copying software platform, RealDVD, has gone from controversial to contained in the blink of an eye. You could say the software has been sequestered.

Friday, days following the program’s launch, with litigation already pending from both sides,  U.S. District Judge Marilyn Patel issued a temporary restraining order blocking all sales of the program pending a broader review of the software’s legality.

Tuesday, the TRO was extended.  The exact terms haven’t been made public but it appears the judge wants time to gain a more detailed understanding of how the software works and also, to allow the competing sides to prepare expert testimony.

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In 2007, News Corp paid $188m to buy 51% of VeriSign’s mobile content provider Jamba (aka Jamster in the U.S.).  Today, News Corp paid another $200m to acquire the rest.

VeriSign originally bought the mobile games and ringtone vendor in 2004 for about $273m.  The company was founded in Berlin in 2000.  Ringtones, and phone wallpaper are among its leading products.  Games and video excerpts are also offered. Jamba has been operating in the US and China since 2005 but also maintain a presence in Australia, Germany, Ireland, New Zealand and the UK.

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Entertainment industries are sometimes called recession proof.  When wallets tighten, retirement gets pushed back, or bills go unpaid, people will spend a little to escape fear and worry.  There’s a need for entertainment in tough times, the theory goes.   The reality is less forgiving: entertainment like anything else can fall victim to a weakening economy.  Entertainment industries are recession resistant not recession proof.   Glimpses of August data may be beginning to prove that point. 

Mirroring a surprise shortfall in August gaming sales, Netflix came out Monday with a surprise adjustment for their third and fourth quarter guidance.  A few weeks ahead of the actual earnings report (October 20th), the Los  Gatos company preannounced that third quarter revenue and EPS will fall within prior guidance but subscriber numbers will fall “just below” the low end of guidance.

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