Google results: $774m spent on IT, with more to come


Google results: $774m spent on IT, with more to come

Cliff Saran

Google has reported  a 10% increase in net income in the second quarter of 2012, reaching $2.79bn, compared to $2.51bn in the same period last year.

Revenue from the UK was  $1.18bn, representing 11% of Google sales. Total revenue was $12.21bn, up 35% year on year, including recent acquisitions. Advertising and other revenues grew 21% to $10.96bn. 

During the quarter the company spent $774m on IT infrastructure investments, including datacentres, servers, and networking equipment.

The company also completed the acquisition of Motorola Mobility, launched Google Drive and Google Maps Coordinate, as well as the ability to edit Google Apps documents off-line.

“Google standalone had a strong quarter with 21% year-on-year revenue growth, and we launched a bunch of exciting new products – in particular the Nexus 7 tablet, which has received rave reviews,” said CEO Larry Page.

The operating loss for Motorola was $233m - made up from $192m for the mobile segment and $41m for the home segment - equivalent to 19% of Motorola revenues in the second quarter of 2012.

CFO Patrick Pichette noted, “We can expect Motorola to continue to show some accounting variability, as is typical with the closing of such large transactions.”

In a transcript of the earnings call, Susan Wojcicki, senior vice president, advertising at Google, said the company was also improving its voice search capability: “Now with the Jelly Bean release [of the Android smartphone operating system], we have the ability not only to ask a question, but also to have the answers given back to you.”

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