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The new cable, Internet, and entertainment entity known as AOL Time Warner (NYSE: AOL) reported combined fourth-quarter results this morning. This is the first financial report from the two companies since they completed their merger on January 11. The fourth quarter results were presented as pro forma -- that is, as if America Online and Time Warner had been merged for the fourth quarter. Revenues at AOL Time Warner increased to $10.23 billion from $9.46 billion. The company had a net loss of $1.09 billion, or $0.25 a share. This compares to a loss of $194 million from the previous quarter, or $0.05 a share. Earnings before interest, taxes, and amortization, or cash flow, rose 14% to $2.4 billion from $2.1 billion. Results for AOL Time Warner were boosted by an increase in subscribers for America Online's Internet service. AOL added 2 million subscribers during the quarter. Also, the number of AOL members outside the United States surpassed the 5 million mark in the fourth quarter. Time Warner didn't help things, though, as some of its films had disappointing results and slower advertising sales at its cable-TV networks weighed down results. Time Warner warned the Street on December 18 that its fourth-quarter cash flow would be lower than was expected because of these factors. For 2001, AOL Time Warner forecasts revenues of $40 billion, and cash flow of $11 billion. Amazon Tempers 2001 Run, PeopleSoft, Run Today, The Motley Fool unveils its new and improved disclosure policy. Read what it's all about in this letter from Fool co-founders Tom and David Gardner. News to Go
Software company Adobe (Nasdaq: ADBE) told the Street yesterday that a slowing economy will likely affect its first-quarter revenues. The company plans to watch its spending carefully so that it reaches its profit goals for the quarter. Adobe said that sales across all products and in all regions are feeling the pinch. Adobe will report first-quarter earnings after the market's close on March 15. Applied Materials (Nasdaq: AMAT), the chip equipment company, will miss first-quarter sales and earnings targets. The company said that revenues will be 7-10% lower than the expected level of $2.9 billion to $2.95 billion. Due to slower economic growth, lower-than-expected personal computer sales, and inventory build-ups, the company also won't make its earnings number. The current consensus estimate according to First Call/Thompson Financial is $0.74 a share. Consumer products company Clorox's (NYSE: CLX) second-quarter net income before special charges fell 7.5%. The company earned $74 million, not including the charges. It earned $80 million in the year-ago period. On a per-share basis, excluding the charges, Clorox earned $0.31 versus $0.33. The company warned in December that it would not meet the then-expected earnings per share number of $0.38. Analysts revised downward and expected the company to report $0.30 a share today. Sales for Clorox in the second quarter fell 6% to $899 million. Check out all of yesterday's market Foolishness with a single click. LouAnn Lofton lives, works, and plays in Old Town Alexandria, Virginia. She loves coffee, chocolate, and MTV more than just about anything. At the time of publication, the writer did not own shares of any of the above companies. To see her stock holdings, click here. After-hours Coverage
Amazon reported fourth-quarter and year-end results that were a mixed bag. Sales rose 44% in the fourth quarter to $972 million. Losses met expectations. For the year, gross margin rose to 23.7% from 17.7% in 1999. The company expects pro forma operating profits in the fourth quarter of 2001, but expects sales to grow only 20% to 30%.
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PeopleSoft beat Street expectations in the fourth quarter with 34% year-over-year revenue growth. Few companies can now compare to PeopleSoft's product breadth, and while new customer additions will be important, the company's installed base has provided sufficient growth and should continue to do so into the next couple of quarters.
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