Android Invasion Coming Along Very Well, Google CEO Eric Schmidt

Android adoption is about to explode snapvoip.blogspot.com
During third quarter earnings conference, Google announced that after two flat quartes, third has been an UP, with revenues up 7 percent to $5.95 billion. Net income was up 27 percent to $1,64 billion, or $5.13 EPS, beating the expectations.

"Google had a strong quarter--we saw 7% year-over-year revenue growth despite the tough economic conditions, While there is a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us and now feel confident about investing heavily in our future, " said Eric Schmidt, CEO of Google during the conference.

The highlights of the financial are huge themselves but our interest lay in company's reaction towards Android story. The highlights of the financial info are at the end of the article. As far as the Mobile world is concerned there is 30% growth quarter over the previous. Android is enjoying a worldwide vista in 26 countries, 32 carriers with 12 Android based devices. The mobile searches are up by 30% and of course this translates into advertising and income and better the androids search, better the Google will off be. Google mobile apps are getting to be everyday tools rather than occasional.
The best thing was that Google made Android open source making wide adaptation of the product in platforms that will lead to increased searches, Yes

"Android adoption is about to explode. You have all the necessary conditions" said Schmidt.

Google 2009 Q3 Financial Highlights

Revenues - Google reported revenues of $5.94 billion in the third quarter of 2009, representing a 7% increase over third quarter 2008 revenues of $5.54 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.
Google Sites Revenues - Google-owned sites generated revenues of $3.96 billion, or 67% of total revenues, in the third quarter of 2009. This represents an 8% increase over third quarter 2008 revenues of $3.67 billion.
Google Network Revenues - Google's partner sites generated revenues, through AdSense programs, of $1.80 billion, or 30% of total revenues, in the third quarter of 2009. This represents a 7% increase from third quarter 2008 network revenues of $1.68 billion.
International Revenues - Revenues from outside of the United States totaled $3.14 billion, representing 53% of total revenues in the third quarter of 2009, compared to 53% in the second quarter of 2009 and 51% in the third quarter of 2008. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the second quarter of 2009 through the third quarter of 2009, our revenues in the third quarter of 2009 would have been $166 million lower. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the third quarter of 2008 through the third quarter of 2009, our revenues in the third quarter of 2009 would have been $297 million higher.
Revenues from the United Kingdom totaled $765 million, representing 13% of revenues in the third quarter of 2009, compared to 14% in the third quarter of 2008.
In the third quarter of 2009, we recognized a benefit of $39 million to revenues through our foreign exchange risk management program.
Paid Clicks - Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 14% over the third quarter of 2008 and increased approximately 4% over the second quarter of 2009.
Cost-Per-Click - Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our AdSense partners, decreased approximately 6% over the third quarter of 2008 and increased approximately 5% over the second quarter of 2009.
TAC - Traffic Acquisition Costs, the portion of revenues shared with Google's partners, increased to $1.56 billion in the third quarter of 2009, compared to TAC of $1.50 billion in the third quarter of 2008. TAC as a percentage of advertising revenues was 27% in the third quarter of 2009, compared to 28% in the third quarter of 2008.
The majority of TAC is related to amounts ultimately paid to our AdSense partners, which totaled $1.33 billion in the third quarter of 2009. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $229 million in the third quarter of 2009.
Other Cost of Revenues - Other cost of revenues, which is comprised primarily of data center operational expenses, amortization of intangible assets, content acquisition costs as well as credit card processing charges, decreased to $667 million, or 11% of revenues, in the third quarter of 2009, compared to $678 million, or 12% of revenues, in the third quarter of 2008.
Operating Expenses - Operating expenses, other than cost of revenues, were $1.64 billion in the third quarter of 2009, or 28% of revenues, compared to $1.72 billion in the third quarter of 2008, or 31% of revenues.
Stock-Based Compensation (SBC) - In the third quarter of 2009, the total charge related to SBC was $318 million, compared to $280 million in the third quarter of 2008.
We currently estimate SBC charges for grants to employees prior to October 1, 2009 to be approximately $1.2 billion for 2009. This estimate does not include expenses to be recognized related to employee stock awards that are granted after September 30, 2009 or non-employee stock awards that have been or may be granted.
Operating Income - GAAP operating income in the third quarter of 2009 was $2.07 billion, or 35% of revenues. This compares to GAAP operating income of $1.65 billion, or 30% of revenues, in the third quarter of 2008. Non-GAAP operating income in the third quarter of 2009 was $2.39 billion, or 40% of revenues. This compares to non-GAAP operating income of $2.02 billion, or 37% of revenues, in the third quarter of 2008.
Interest and Other Income (Expense), Net - Interest and other income (expense), net decreased to an expense of $7 million in the third quarter of 2009, compared to an income of $21 million in the third quarter of 2008.
Income Taxes - Our effective tax rate was 21% for the third quarter of 2009.
Net Income - GAAP net income in the third quarter of 2009 was $1.64 billion, compared to $1.29 billion in the third quarter of 2008. Non-GAAP net income was $1.88 billion in the third quarter of 2009, compared to $1.56 billion in the third quarter of 2008. GAAP EPS in the third quarter of 2009 was $5.13 on 320 million diluted shares outstanding, compared to $4.06 in the third quarter of 2008 on 318 million diluted shares outstanding. Non-GAAP EPS in the third quarter of 2009 was $5.89, compared to $4.92 in the third quarter of 2008.
Cash Flow and Capital Expenditures - Net cash provided by operating activities in the third quarter of 2009 totaled $2.73 billion, compared to $2.18 billion in the third quarter of 2008. In the third quarter of 2009, capital expenditures were $186 million, the majority of which was related to IT infrastructure investments, including data centers, servers, and networking equipment. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the third quarter of 2009, free cash flow was $2.54 billion.