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Google First-Quarter Profit Rises 60%

Laptop Battery By Dave Porter

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Thinkpad (AXcess News) Reno, NV - Google Corp. (Nasdaq: GOOG) reported its first-quarter results Thursday, beating analysts estimates. In the First-quarter, Google's net profit rose 60 percent, reporting $592.3 million in net income, or $1.95 a share,compared to$369.2 million, or $1.29, a year earlier.

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Microsoft The news surprised analysts who were expecting Google to report first-quarter net profit of $1.97 per share. While Google's actual net income fell below that figure, it excludes stock options which are now expensed under new FASB rules. Before the cost of the non-cash item, Google earned $2.29 per share.

Back in the proverbial "stone age" it was a truism that he who controlled the corporate data center controlled the corporate data. Since then we've seen the explosive growth of desktop computers, laptops, personal data assistants, cell phones that can run corporate applications, and removable USB drives that hold from 16 MB to 120 GB. Today, some 60 percent of all corporate data lives outside the data center on users' computers and devices. Today, nothing defines the modern road warrior more than his or her laptop and gadgets.

Laptop Computers Revenue rose at the world's largest search engine 79 percent in the period. Google reported revenue for the first-quarter of $2.25 billion, compared to $1.26 billion, a year earlier. Excluding ads sold on other Web sites, revenue rose to $1.53 billion in the first-quarter. Analysts estimated the figure to be $1.4 billion.

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Laptop Computer Google's move into the international markets are starting to show results. Revenues from outside of the United States contributed 42% of total revenues, compared to 38% in the fourth quarter of 2005 and 39% in the first quarter of 2005.

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Desktop Computer Google-owned sites generated revenues of $1.30 billion, or 58% of total revenues. This represents a 97% increase over first quarter 2005 revenues of $657 million and an 18% increase over fourth quarter 2005 revenues of $1.10 billion.

Notebooks Google's partner sites generated revenues, through AdSense programs, of $928 million, or 41% of total revenues. This is a 59% increase over network revenues of $584 million generated in the first quarter of 2005 and a 16% increase over fourth quarter 2005 revenues of $799 million.

Lenovo "Google had an exceptional quarter with strong growth and profitability, from both Google properties and the network," said Eric Schmidt, CEO of Google. "We are driving this growth through investments in our infrastructure and our people, product innovations that attract new users, and relationships with advertisers and partners around the world."

Hard Drive Google recently launched a financial site that puts Yahoo! Finance to shame. In other developments, Google is seeing interest in its a tool for creating Web pages and a new version of its software for searching personal computers, which are contributing to Google's growth.

Travelstar Both Google and Yahoo! (Nasdaq: YHOO) have reported strong results for the period as online sales grow, though Yahoo's results were more affected by the new FASB accounting rules.

Gateway According to a report today from the Interactive Advertising Bureau and PricewaterhouseCoopers LLP, Internet ad spending in the U.S. rose 30 percent to $12.5 billion in 2005. Yet Borrell & Associates report, which includes local advertising from several thousand newspaper sites, puts the figure closer to $17.3 billion.

Laptop Parts Borrell & Associates report, released two days prior to IAB's, is the fourth annual report to be produced by the independent research organization. AXcess News reported on Borrell's findings last year and noted that IAB's report only covered IAB-paying members and not the independents that are showing greater growth in comparison.

Software Shares of Google were up $4.50, or 1.1 percent, to close at $415.00. But in after-market trading, investors pumped by Google's results, pushed the search engine's shares up $29.75, or 7.17 percent, at $444.75.

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