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5 Tech Companies More Profitable than Exxon Mobil
February 29, 2008
A lot has been said recently about the “Record Profits” of the oil industry. Words like “Price Gauging” and “Insane Profits” fall from the lips of would be pundits all over the Internet. what I would like to do today is show you that Exxon Mobil is not the big bad profiteering company many people think they are. In fact I am going to tell you about five companies in the Tech sector with larger profit margins than Exxon Mobil.
Exxon Mobil
Gross Profit Margin1: 43.3%
EBIT Margin2: 18.7%
EBITDA Margin3: 18.5%
Pre-Tax Profit Margin4: 18.6%
52 week Range on stock price: 69.02 - 95.27
Market Cap: 481.04B
Those numbers look very, very good, don’t they? With profit margins like those Exxon Mobil has been able to pull down record profits like no other public company in the world! Are those numbers insane? Should Exxon Mobil be punished for having such massive profits?
If you think Exxon Mobil should have its “insane” profits taxed by the government than you should also want these five tech companies taxed for their record profits too.
Apple Inc
Gross Profit Margin: 38.1%
EBIT Margin: 18.7%
EBITDA Margin: 17.7%
Pre-Tax Profit Margin: 18.7%
52 week Range on stock price: 83.75 - 202.96
Market Cap: 114.17B
Apple’s Gross Profit Margin is a little bit lower than that of Exxon Mobil but its Pre-Tax Profit Margin is better than that of Exxon Mobil. Let’s not forget that the stock price of AAPL took an amazing roller coaster ride over the past 13 months. Just before MacWorld 2007 APPL was trading in the $80 range. It passed $200 a share in 2007 before crashing down to its current $130 range today.
Gross Profit Margin: 69.3%
EBIT Margin: 32.2%
EBITDA Margin: 33.9%
Pre-Tax Profit Margin: 32.2%
52 week Range on stock price: 437.00 - 747.24
Market Cap: 148.98B
Look at those number. If anyone is guilty of profiteering should it not be Google? This Internet advertising juggernaut is blowing everyone away. Or, it was, last year. Google stock peaked a few months before Apple did and recent news has not helped it one bit. Still, look at those margins!
Yahoo
Gross Profit Margin: 66.6%
EBIT Margin: 16.7%
EBITDA Margin: 21.4%
Pre-Tax Profit Margin: 16.7%
52 week Range on stock price: 18.58 - 34.08
Market Cap: 39.26B
Even though Yahoo has suffered since Google began eating their lunch (breakfast, dinner, brunch, snacks, etc…) it is still a very profitable company. Its Pre-Tax Profit Margin is not looking so hot these days and they are suffering under a number of shareholder lawsuits (some tied to their declining Microsoft’s buy out offer). Yahoo also has problems with spending large amounts of money buying up web companies and then letting them die.
Intel Corp
Gross Profit Margin: 62.5%
EBIT Margin: 21.6%
EBITDA Margin: 32.8%
Pre-Tax Profit Margin: 21.5%
52 week Range on stock price: 18.05 - 27.99
Market Cap: 118.60B
Intel is old school tech. They have been a big player in the microchip industry for a long time. Fighting off competition from AMD and Texas Instruments is what this company does well. They have been around for a long time and likely will be around for even longer.
Microsoft
Gross Profit Margin: 81.4%
EBIT Margin: 39.3%
EBITDA Margin: 39.9%
Pre-Tax Profit Margin: 39.3%
52 week Range on stock price: 26.60 - 37.50
Market Cap: 259.94B
Microsoft, everyone seems to forget just how big this company is. Their Market Cap is a little over half of that of Exxon Mobil and their margins are even higher than that of Google! Even with the lukewarm reaction to the release of Windows Vista Microsoft has had no problem remaining profitable. This is due in part to the amazing Xbox line of video game consoles.
Conclusion
Now that you see the profit margins of these five tech companies compared to that of Exxon Mobil do you still think they are making insane profits? Do you think these five companies should suffer the same “windfall profit tax” that many in Congress want to befall the oil companies?
Exxon Mobil may be posting huge profits in regards to dollar amounts but, if they had the profit margins in place of any of these five tech companies they would be making even more money.
1Gross Profit Margin (Profit Margin After Cost of Goods Sold): Revenues minus cost of goods sold, divided by revenue, expressed as a percentage
2EBIT Margin: Earnings before interest and taxes, divided by revenue, expressed as a percentage.
3EBITDA Margin: Earnings before interest, taxes, depreciation and amortization, divided by revenues, expressed as a percentage.
4Pre-Tax Profit Margin: The pre-tax earnings from continuing operations (not including discontinued or extraordinary items) divided by revenue, expressed as a percentage.
* Disclaimer: The numbers used in this story are from the last quarter fully on record: 06/2007 and comes from data freely available via Forbes.com
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Rock Band Review
February 20, 2008
“Rock Band”, the pride and joy of Harmonix– the same studio that got the world hooked on Guitar Hero– is here, and it’s going head-go-head with its older sibling. How does Rock Band compare? Will the drums leave you totally enraptured, sticks in hand, eyes unblinking, glassy, and transfixed on the screen as an endless barrage of notes fly down the fretboard in the same way that Guitar Hero zombified millions? Will you be able to make it through singing “Creep” without taking any notice to the snarky remarks of your fellow wannabe-rockers?
Game Mechanics and Controls
The funny thing about Guitar Hero was the way that you could have one person totally veged-out on guitar while the surrounding couch potatoes, wall flowers, and floor dwellers could barely keep themselves constrained as they barked commands, shouted words of both encouragement and discouragement, and nearly jumped the zombified wannabe frontman, his moment of zen never unbroken despite such distractions as the deafening din of “USE YOUR STAR POWER” and “WHAMMY BAR! WHAMMY BAR!” Just so long as the music was louder than the madness, all was forgiven. This is one curious phenomenon that Rock Band has not left behind. If anything, the insanity has only intensified, and from time to time reaches a potentially dangerous fever pitch. My advice to anybody playing Rock Band is this: Keep your drummer isolated. Also, suggesting that he or she should “chill out” will almost invariably lead to even greater carnage.
Back to the original point. Even for those who are not playing, the game still seems to keep them in an inescapable choke hold. It’s not a bad thing, either, as the game does treat spectators to what is surely an unhealthily sweet serving of eye candy. All of the moves that are performed onstage are modeled off of those displayed by actual rockers using the same technology that was implemented in the Lord of the Rings movies for Gollum. Although the characters are a whole lot less static than those of Guitar Hero, I cannot help but notice that the movements seem more than a bit choppy from time to time. Also, the textures sorta remind me of play-doh. Welcome to the next generation! Harumph.
In lieu of Guitar Hero’s Star Power, which is turned on by jerking the guitar a bit, thus enabling you to effectively tune into your inner Jimi Hendrix, dropping you out of reality and sending you careening into a realm of sonic synaesthesia (and score multipliers), Rock Band Harbors “Overdrive” mode, which is basically the same thing. You still accumulate “Energy” (star power) which acts as fuel for your trip. Where the guitar still registers your gyrating with an internal gyroscope, the microphone and drum peripherals require different stimuli in order to kick into Overdrive mode. For both devices, a column of gold may momentarily and unexpectedly materialize, at which point you may either belt out whatever garbled-up gibberish you fancy (personally, I have a penchant for the “Chewbacca” call), or commence jammin’ on the drums (just be sure to hit the green note at the end of the column). While this works well enough, I would greatly prefer it if there were more of a choice as to when you may go into overdrive, instead of having to wait until the right moment.
Rock Band also features dedicated solo sections, which I love. For these portions, the fretboard is highlighted by a semi-transparent blue overlay. At the end of each solo, the percentage of notes hit is displayed, accompanied by “Solid Solo!”, “Great Solo!”, “Perfect Solo!” et cetera. I prefer to leave my digits perched atop the main keys, though not everybody seems to agree. “USE THE SOLO KEYS, JOSH!!!”
What will undoubtably be the most alien feature of Rock Band (at least to Guitar Hero veterans), is the vocal support. Your mission, should you choose to accept it, is to somehow lure a specimen of the narrow-shouldered, wide-hipped gender into your humble abode should you desire to take the position of vocalist seriously. I.E., if you don’t want to fail the world tour, get a girl to sing. A room full of guys will only result in disaster. No matter how talented you or your buddies may really be should they take singing seriously, I can guarantee you that it’s not going to happen. Remember the aforementioned Chewbacca call? Yeah. On the flip side, you would-be-Wookies are in luck, for as long as you sing in pitch, you may just have a chance. Heck, you could do nothing but hum if you want to. The only other advice that I have is this: Make sure that your premiere chanteur is over the age of 14.
Also, NEEDS MOAR SONGS WITH FEMALE VOCALS.
Character Creation and Accessories
Of the two games, another feature that is exclusive to Rock Band is the ability to create and customize your own performers. No more are you constrained to using a few cliche characters based solely on the ideal archetypes of certain sub-genres of rock n’ roll. That’s right, instead of being forced to play as a generic Jimi Hendrix clone, you can instead create your very own true-to-life Jimi Hendrix! Or, like me, you can finally play as any and all of the different permutations and alter-egos of David bowie throughout his 40-year career. Elvis Costello! Freddy Mercury! Billy Corgan! The possibilities are truly expansive. there are even certain items in the Rock Shop that lend perfectly to this flavor of rock-star roll playing. For instance, take the “Costellos”, which are the signature thick-rimmed specs of everybody’s favorite miracle man. Other items include the “Mighty Mercurys” pants (which, for some utterly inconceivable reason, are filed under “Goth Garb” along with bondage pants and skeleton slacks), and “Ziggy’s Mullet”, just to name a few of the holy rock relics that are available for purchase.
One thing that I loathe regarding character creation is that, even if you have all of your characters under the same profile, all the money earned, clothes bought, and songs unlocked only count towards the little replicant that you used to attain all of that swag. For everybody else you have to repeat the exact same process. Though, doing it all over again as Alice Cooper does take the edge off a bit.
The hardware, should you buy the whole shabang
The Axe
The guitar, made to look like a gen-u-ine Fender Stratocaster, is fantastic, and really an big improvement over the new GHIII axe. First of all, it’s probably about 10% larger, which is great because the increased size really increases the believability of the already incredibly accurate instrument. Most noticeably, though, is the bare fret board. The headstock, complete with metal machine heads, is a nice touch, too. It really shows some great attention to detail, further reinforcing the whole role-playing aspect. The keys ARE indeed color coded, albeit on the edges as opposed to the entire keys, or the borders. This makes sense, since when the guitar is plastered to your stomach, you are naturally going to see the side first. So, really, the sacrifice of fully-colored keys does nothing to hinder the intuitiveness of the instrument, and has the added bonus of making the whole thing look a whole lot more authentic from a front-on vantage point. So far as how the buttons actually feel, I’ve got no beef with ‘em. They’re really just as good or better that the traditional Guitar Hero controllers. I’ve saved my favorite improvement for last, and that is the removal of the pesky clicky strum-button of the Guitar Hero controllers. It really does away with what was, to me, a huge annoyance. The new strum-button feels a lot more solid, and is totally silent.
The Drum Kit
For some odd reason, despite my showing them numerous pics of the drums before my purchasing of the kit, my parents really doubted the quality of the drum set– that is, up until I had unboxed everything and set it all up, at which point they were quite impressed. The build quality is really great considering the price of the set, which, considering all the stuff that was squeezed in, really seemed like quite a measly $170. Be warned, everybody, I repeat, EVERYBODY, no matter what, always feels compelled at first to hit those drums like the fist of an angry god. I’m really surprised that they held up alright– truly, this is testament to their durability. I did have a bit of a problem with the blue drum at first- sometimes it would just conk out and not register much of anything at all. Luckily for me, the problem seems to have subsided. Also luckily for me, and all other Rock Band owners, the game does come with a 60-day warranty, so that “In the unlikely scenario” that any accessory fails, I would imagine that you would be able to exchange the busted peripheral for a new one without much of a hassle.
Let’s now discuss the actual fun factor of the drum peripheral, now that the build quality has been dealt with. I don’t know if I mentioned it before or not, but the most difficult task presented by the drums is that presented by the foot pedal. It really does take some getting used to, as the game notifies you that the pedal is needed by a thin orange line that spans the fret board. Sometimes you pass it over entirely, as such a small indicator fails to break through the distraction of everything else around you. If you do notice it, your timing has got to be just right. If you’re not the most coordinated rocker-wannabe under the sun… well, that’s probably part of the reason as to why you’re a ‘wannabe.’ It also means that the drums will take more that a little getting used to.
Like the guitar, the drums are fully compatible with any other aspect of the XBOX 360, limited only by some missing buttons here and there. This actually proves useful for some games, specifically Boom Boom Rocket. It’s so much more fun playing that game on the drums than with a controller, and I highly recommend it. The only catch is that the arrows no longer correspond with the actual drums (red and green switched around a bit), but once you’ve gotten used to it it’s pretty freakin’ cool.
The red-headed step child of the bunch Microphone
Once again, not the most desired role, but still admittedly fun. In order to navigate through the menus, you’ll have to use the controller (don’t see how it could work out otherwise, really). This aspect of the game works similarly to games like Karaoke Revolution. You’ve got a little bar that scrolls to the left, which presents you with these little marks that you have to hit, which is accomplished by adjusting the pitch of your voice. Works just like it should, and I have no really qualms regarding it.
The World Tour
World Tour mode is something that my fellow band mates and I have yet to master. It’s not something that we’re really taking all that seriously right now, as we utilize the “Band Quick Play” mode far more frequently than World Tour mode- the only reason that we really care about WTM is because it’s kinda necessary to unlocking more songs. You know, I’ve never been one to obsess over high scores and whatnot, so it really doesn’t appeal to me. What I look for in Rock Band is a good time that doesn’t take forever to set up and figure out. Call me simple if you will– it’s true that my VCR still blinks 12:00, so you won’t be wrong in saying so. Maybe it’s simplicity, maybe it’s just laziness. Either way, you decide.
While WTM doesn’t do it for me, for those of you who do give a damn will find that there is a LOT there for you to explore, and it truly is incredibly involved. If you’re the type of person who like that kinda thing, you’ll be generously rewarded. There’s really a lot of micro management to be had, from creating your own setlist to managing the band itself, which is perhaps the greatest challenge of all. Things can get quite rowdy very quickly indeed.
The Verdict
Rock Band is without a shadow of a doubt one of the, if not THE best party games EVAR (or more realistically, up to this point in time). Do away with any doubts as to the game’s value, as the hours upon hours of straight-up playtime with a bunch of good friends are truly priceless. Like all great games, Rock Band cannot be fully appreciated until you’ve wrangled up a bunch of your best mates, some snacks, a large area to play in, and a big TV. Especially the big TV. You know what, to hell with your friends, the bigass TV is without a shadow of a doubt the most important factor in the equation that equals a great jam session with Rock Band. If there’s one problem that I have with the game that overrides everything else… it’s that the game does not include the “Ronery” song as made famous by Kim Jong Il. It would have fit Harmonix’s sense of humor to an absolute T! Ah, well. There’s always the Download Center route! Who knows, it could surface someday.
Images courtesy of Harmonix.
Nintendo Announces Two Wii Ware Titles
February 20, 2008
Now that the Nintendo Wii Ware program has been given a release date in the US (May 12, 2008) Nintendo is beginning to tell us about what sort of titles we will see there. Currently two titles have been announced:
Square Enix is creating FINAL FANTASY CRYSTAL CHRONICLES: My Life as a King, a simulation game for all ages.
Looking at those screen shots I have to wonder how big the game will be (memory size) and how you are going to fit that on the little bit of space provided by the 512MB of memory inside the Wii. I know Nintendo’s position has been that once you buy you can always delete and download the game again but… What about games with save game data?
Up-and-coming developer Frontier will be releasing its enchanting platform adventure LostWinds.
From the developer’s page:
LostWinds™ is an enchanting adventure bursting with new gameplay ideas that embrace the innovative controller of the Wii™ - it puts “the power of the wind in the palm of your hand”.
You wield the awesome powers of Enril the wind spirit - from raging tornados to the gentlest breeze – to guide and protect Toku, a young boy who is the only one who can help you release the curse placed upon the world of Mistralis by evil Balasar. Mistralis is a stunningly presented, magical land full of wonder and intrigue that bursts to life with your every action and exploration. History of Mistralis.
The game’s novel, playful control mechanism lets you use Enril’s elemental powers to help Toku in your quest to overcome Balasar – powering his jumps and glides through Mistralis’ different regions, buffeting and smashing enemies, and solving puzzles.
LostWinds is self-published and developed by Frontier and will be available via Nintendo’s WiiWare™ game download service, exact release date and pricing to be announced.
Two New Items Coming to the Wii Menu System
February 20, 2008
The Nintendo Wii has been a raging success. Everyone is buying the console and if you don’t get to the store when they come in you just can not buy one.
Just the other day I was taking a break at work when one of the guys i worked with started talking about the Wii. He knew I was a video game geek so he started going on and on about how some lame party he was at was saved by a girl down the hall proclaiming she had a Wii in her apartment.
After talking he got the notion that he should buy his own Wii. He said it would be there for when his nieces and nephews come over but I could see right through him. I had to break the news to him that you can’t just walk into a store and buy one, you have to actively look for them and it can take weeks to buy one. Not believing me he picked up the phone and started calling around.
After 20 minutes of calls he located a GameStop store two towns over that had one in stock. He called a friend of his who worked near there and asked him to get it for him. Before the friend could get there it was already sold. Yeah, he is still without a Wii.
Nintendo has just announced dates for new additions to the Wii Menu system:
- WiiWare (launches May 12): WiiWare is a new game download service for consumers which offers fresh game play experiences and new opportunities for creators. Creative new games will be added regularly from developers big and small.
This one is going to be inside the Shopping Channel and will offer people the chance to buy games in the same way the virtual Console titles work. My only concern is the size of these titles. The Wii only has 512MB of internal flash memory and you can not use the SD card for running Virtual console titles. If we are lucky nintendo will note this and allow us to download WiiWare titles to the SD card.
- Wii Fit Channel (available May 19): This channel appears on the Wii Menu when people first use Wii Fit™, which combines fun and fitness. It’s an easy way for every member of the family to keep active and play together. In a first for a Wii game, owners of Wii Fit can access the channel to perform basic daily workouts and fitness checks, even if the Wii Fit game disc is not inserted.
I have been eagerly WiiWare to become available in the US, more so than the release of Wii Fit. I have to say being able to do some minor things without the Wii fit disc being in is also pretty cool.
Vollee Brings ‘Second Life’ to Mobile
February 19, 2008
SAN FRANCISCO –(Business Wire)– Feb. 18, 2008 The Second Life(R) experience is coming to mobile. The 3D virtual world platform, created by Linden Lab(R) will soon be available on 3G handsets via Vollee’s streaming mobile games service. Beta trials for Vollee’s new mobile offering for the Second Life Grid platform (an inter-connected platform which extends beyond the mainland of Second Life itself) will be open to those who pre-register by visiting http://www.vollee.com/secondlife.
Vollee’s Second Life mobile service will enable access to the virtual world of Second Life for Residents to explore, interact and communicate on-line. The Second Life mobile experience reformats the online world to fit on mobile phone screens while mapping the keys on handsets to commands in-world. Existing Residents can simply log-in and people new to Second Life can also try out the online world for the first time through the mobile service. With a simple download to their 3G mobile handset, anyone can enjoy their online Second Life session while on the move.
“What we have developed is a service which, for the first time, allows you to access a rich persistent virtual 3D world the way it is supposed to be experienced on your phone,” said Martin Dunsby, CEO, Vollee. “This is a true ‘before and after moment’ in which mobile is living up to its potential in serving as an always on, connected platform.”
“For Linden Lab, this represents an intuitive way to extend the reach and accessibility of the Second Life Grid platform,” said Chris Mahoney, Business Development Manager, Linden Lab. “This is a great way for Second Life Residents to stay connected to their friends, business and experiences in-world, wherever they are.”
Vollee’s proprietary solution is the only one on the market that can stream any high-end PC title to mobile, including popular massively multiplayer online role playing games. The company’s technology takes into account the screen size, the key layout and makes sure all the fun of playing the original game remains. Vollee’s interactive video streaming platform optimizes compression to minimize bandwidth requirements and also leverages the 3G mobile networks in such a way that gamers can not only navigate virtual worlds but also play fast paced, high quality video games previously impossible on mobile. A single software download to a 3G handset provides access to Vollee streamed titles, enabling gamers to find and play mobile games more easily than ever.
Vollee’s Second Life mobile beta trials will begin in May 2008, but fans can pre-register beginning today by visiting http://www.vollee.com/secondlife. More information about the Second Life Grid is available at http://secondlifegrid.net.
Super Smash Bros. Tournament Dates
February 15, 2008
REDMOND, Wash., Feb. 13, 2008 - Attention all Smash fans: Put up your dukes! Just before the launch of the much-anticipated Super Smash Bros.® Brawl, Mario™ and friends are hosting four regional Wii™ tournaments. The competitions will visit Los Angeles, San Francisco, Boston and finally New York for a Midnight Madness Launch event at the Best Buy store at 622 Broadway in New York. All of the 256 participants at each location will receive a $10 Best Buy gift card. One lucky grand prize winner will receive a custom-designed, crystal-covered Wii, a home theater system from Best Buy and other prizes.
“Super Smash Bros. is one of the world’s most popular game franchises because it draws in characters from across the Nintendo universe and beyond for some all-out fighting fun,” said Cammie Dunaway, Nintendo of America’s executive vice president of sales & marketing. “Super Smash Bros. Brawl has extreme appeal among our core audience, but these tournaments are a great way to get new fans involved as well - before the game is even available in stores.”
Each regional tournament will provide the first 256 people in attendance the chance to “brawl” one-on-one with other contestants in a single-elimination tournament to determine a winner in each market. Regional winners will face off in a final multiplayer “brawl” at the New York City tournament.
The grand prize winner will receive a crystal-coated Wii with a design from Super Smash Bros. Brawl, a home theater system from Best Buy and a copy of the game. The second-place finisher will receive one Wii system and Wii Remote, one copy of Super Smash Bros. Brawl and a $1,000 Best Buy gift card. The third-place finisher will receive a Wii and Wii Remote, a copy of the game and a $500 Best Buy gift card. The fourth-place finisher will receive a Wii, an extra Wii Remote, a copy of the game and a $250 Best Buy gift card. For more information about the tournaments, visit Nintendo.com.
The tournaments will take place at the following times and locations:
Feb. 16
Doors open at 3 p.m.
Orpheum Theater
842 S. Broadway
Los Angeles, CA 90014
Feb. 23
Doors open at 2 p.m.
Ten15 Folsom
1015 Folsom St.
San Francisco, CA 94103
March 1
Doors open at 3 p.m.
Worcester Polytechnic Institute
Olden Hall
100 Institute Road
Worcester, MA 01609
March 8
Doors open at 5 p.m.
Best Buy (NOHO)
622 Broadway
New York, NY 10012
Guitar Hero Goes Handheld
February 12, 2008
One of the biggest hits of Christmas ‘07 has to be Guitar Hero III. Today the battle persists between the Guitar Hero franchise and the newcomer Rockband. Guitar Hero just got a leg up in the battle because toy maker Basic Fun will be launching a handheld version of the game at the International Toy Fair, February 17th – 20th at the Javits Center, New York, NY.
Basic Fun’s Guitar Hero Carabiner features a playable and portable take on the original Guitar Hero with a few noticeable differences. The first is the size – the Guitar Hero Carabiner, at about 75% the size of the original, measures 7 ¾” X 3”. The second is the price. Basic Fun’s Guitar Hero Carabiner retails for a suggested $14.99.
“Basic Fun has worked with Activision and Red Octane, the game’s original developer, to bring the Guitar Hero experience to this unique, pocket sized format,” said Basic Fun President Alan Dorfman.
I don’t know about you but I have never been a fan of these handheld LCD games. I remember playing the sports ones as a kid but I never liked them much. It might have been because my brother always kicked my ass on the football game we had.
No word on song selections but don’t expect stereo sound or MP3 riffs coming out of this thing.
Professor Layton comes to New York
February 12, 2008
On February 10, 2007 Nintendo released Professor Layton and the Curious Village™ in America. This puzzle game takes place in the curious village of St. Mystere, where a wealthy baron has passed away. Upon reading his will it is discovered that the baron hid a great treasure somewhere in town with a list of clues in his will. With the family unable to decipher these clues Professor Layton is called in. While investigating the clues another member of the baron’s family dies. This leaves the Professor with two puzzles to solve.
The game play features brain twisting puzzles and a weekly puzzle update via Nintendo WFC. No word yet on how long Nintendo will support the bonus download puzzles or how many you can save on your cart. There is also no word on whether or not you can download older puzzles.
No Nintendo event is complete without a selection of photographs from the Nintendo World Store in New York city where the launch event was held.
I would not be surprised if those cool looking hats end up on eBay.
