Thursday, October 1, 2015
Chipmaker AMD to cut about 500 global jobs
Struggling chipmaker Advanced Micro Devices Inc said it would cut about 500 jobs, or 5 percent of its global workforce, as the company looks to rein in costs amid weak demand for its chips used in personal computers and intense competition.The company said it would record $41 million of the expected $42 million charge in the third quarter ended September.AMD said it expected savings of about $58 million in 2016 from the restructuring plan.The restructuring includes outsourcing certain IT and application development services, the company said in a regulatory filing on Thursday. (1.usa.gov/1M4Dj2A) Sunnyvale, California-based AMD had about 9,700 employees at the end of last year, according to its latest annual filing from February.AMD, which sells central processing units and graphics chips used in personal computers, in July lowered its revenue estimate for the second quarter, citing weaker-than-expected demand for PCs. The company has also been shifting to gaming consoles and low-power servers, but progress has lagged Wall Street expectations due to intense competition from Intel Corp and newer companies. Shares of AMD were flat at $1.74 in after-hours trading. (Reporting by Sai Sachin R in Bengaluru; Editing by Sriraj Kalluvila)
Chipmaker Micron's profit, revenue beat estimates
T-Mobile says data breach at Experian unit may have hit 15 million customers
Fitbit attracts new attention from short-sellers
Short sellers cash in Apple bets as stock declines
Verizon launches new mobile video service 'go90'
Hackers attack forex broker FXCM
FXCM Inc, an online foreign exchange broker, said its systems were hacked and a "small number" of unauthorized wire transfers were made from customer accounts, sending the company's shares down 25 percent to a record low.All funds have been returned to the accounts that were compromised, the company said on Thursday.FXCM said it received an email from a hacker claiming to have illegal access to customer information and that it had notified the Federal Bureau of Investigation.An FBI spokeswoman said the bureau was "aware of the incident and is investigating." FXCM said it was working with a cybersecurity firm to determine the scale of the incident and identify affected customers.The company did not say when it was hacked or give any further details on the incident. FXCM did not immediately respond to a request for comment. FXCM is the latest U.S. corporation to become a victim of a cybersecurity attack, adding to a list that includes Target Corp, Apple Inc and JPMorgan Chase & Co.Accusations against China have increased amid growing concerns about national security. Last week, U.S. President Barack Obama and his Chinese counterpart Xi Jinping signed a pact to fight cyber warfare. FXCM's shares were down 4.6 percent, recouping some losses after hitting a record low of $6.51. The stock had fallen about 95 percent this year mainly due to losses stemming from the Swiss National Bank's removal of the cap on the Swiss franc in January. (Reporting By Sudarshan Varadhan in Bengaluru; Editing by Saumyadeb Chakrabarty and Savio D'Souza)
Apple appoints former Boeing CFO to its board
Autonomy's Mike Lynch counter sues HP over $11 billion deal
British entrepreneur Mike Lynch on Thursday said he would file a claim against Hewlett-Packard for $150 million in damages over allegations the U.S company made about his role in the acquisition of his software company Autonomy in 2011.Autonomy was a $11 billion bet on move into software for HP, but this strategy began to unravel only days after the deal was announced, documents have shown. Just over a year later, HP wrote off three-quarters of the deal's value, accusing Lynch and his colleagues of financial mismanagement.The two sides have been locked in an acrimonious battle ever since. (Reporting by Paul Sandle. Editing by Jane Merriman)
HP board approves split, expects completion on Nov. 1
Online retailer dreams of printing off bespoke shoes at home
The co-founder of Australian online retailer Shoes of Prey, which allows customers to design their own footwear, hopes to one day allow customers to print out pairs at home as technology improves and consumer demand grows for personalized products.Founded in 2009, Shoes of Prey allows women to create unique designs on its website, choosing from 300,000 trillion possible permutations of materials, colors, styles and sizes. It promises to deliver in four weeks but often manages two. Jodie Fox, who set up Shoes of Prey in 2009 with former Google Inc employees Michael Fox and Mike Knapp, expects consumer demand for faster delivery to keep rising."Ideally we would get to a point ... where we are able to (deliver) overnight a pair of shoes to you that you designed the day before," Fox said in a telephone interview from Sydney.That will only be possible once advances in 3-D printing technology allow the company, which currently ships worldwide from a factory in China, to set up small manufacturing hubs around the globe.Longer-term, Fox can imagine being able to check the weather, choose an outfit and design a pair of matching shoes that can print out in her wardrobe while she takes a shower."To truly marry real customization and immediacy is a way bigger challenge," she said. "My dream of the future is manufacturing in the home." CUSTOM MADE Sportswear firms such as Nike and Adidas already allow fans to personalize sneakers ordered online and Adidas hopes to be able to produce a custom-made running shoe from scratch in store by next year. A survey by consultants Deloitte shows 37 percent of consumers are interested in buying personalized footwear, rising to 48 percent for those aged between 16 and 24.Fox said Shoes of Prey's sales had risen 120 percent in the last year, helped by the six design studios the brand has opened in the United States in upscale Nordstrom department stores.Fox, 33, said customers still prefer to buy shoes in store despite the advent of e-commerce. "We want to touch it, we want to see it, we want to understand it in its physical form before we buy it. That hasn't changed," she said.The top five materials her customers choose are all black, Fox said, and the most popular style is a three-inch stiletto, often with a personal twist like a colorful lining. Fox, who prefers either totally flat shoes or a heel at least four inches high, said her typical customer is a 25- to 35-year-old professional woman with above-average income, not surprising given a price tag of about $220 per pair. "Honestly, Shoes of Prey is not about shoes. It is about this whole idea of getting you what you want, when you want it, and that will extend into many products," Fox said.She said her Italian grandmother had laughed when she described her business, noting cobblers used to make made-to-measure shoes when she grew up in Sicily."We're reimagining something that was a product of days past with the capabilities we have today," Fox said. "That is why technology is so exciting." (Editing by David Holmes)
Toshiba may lay off appliances, TV and PC workers: CEO
Wednesday, September 30, 2015
LG Electronics says handset sales to improve starting in fourth quarter
SoftBank leads $1 billion investment in U.S. fintech startup SoFi
Toronto eyes ride-sharing rules in 2016; Uber asked to halt until then
Tencent, eBay join Kakao bid for new South Korean Internet bank
Kakao Corp, the operator of South Korea's largest mobile messaging app, said Tencent Holdings Ltd and eBay Inc have joined its bid for a new South Korean Internet bank license. Tencent and eBay will make their investments through subsidiaries, which are expected to take stakes of 4 percent or less in the bank should a license be gained, a Kakao spokesman said. He declined to comment on financial terms.South Korea is expected to grant one or two licenses for Internet banks this year. Kakao's bid is one of at least three known bids. An Internet bank provides banking and financial services without physical branches. (Reporting by Joyce Lee; Editing by Edwina Gibbs)
Argentina celebrates second satellite launch, technology milestone
With the launch of its second telecommunications satellite made in Argentina on Wednesday, President Cristina Fernandez celebrated the country's technology milestone and wants the South American nation to manufacture eight more over the next 20 years.Launched from French Guyana atop an Ariane 5 rocket, the satellite will provide telecommunications services across much of the western hemisphere. Argentina last year launched its first satellite which provided country-wide coverage.The geostationary satellite reduces Argentina's reliance on foreign satellites. Its construction is a source of national pride and a relatively new industry for the country, which hopes to export its technology.Fernandez's government, which has faced a drought of good news lately in view of double-digit inflation and a stagnant economy, has been celebrating the launch under the Twitter hashtag #satellitesovereignty.Argentines go to polls on Oct. 25 to elect a new president. While Fernandez cannot run for a third consecutive term, she has endorsed the candidacy of Buenos Aires Province Governor Daniel Scioli. Many Argentines expect she may run again in the future. "The future has arrived, today we saw it take off," Fernandez said in a televised speech. "And in parliament we are going to institutionalize it."Fernandez said her government was sending a new draft law to Congress to promote the satellite industry in Argentina, saying it would require investment worth $1.201 billion. She foresees building eight more satellites over the next 20 years, some of which will be sold abroad, adding that Buenos Aires had invested $1.05 billion in the satellite industry since 2003.Fernandez said the satellite launch was proof that the country had also left its 2001/02 economic crash far behind it. The president gave much of the credit to her predecessor and late husband Nestor Kirchner, who created Argentina's satellite company Arsat back in 2006 and oversaw strong economic growth during his 2003-2007 mandate. (Reporting by Sarah Marsh and Maximiliano Rizzi; Editing by Lisa Shumaker)
As Twitter, Square interests converge, CEO Dorsey risks conflicts
If Jack Dorsey becomes permanent CEO of both Twitter Inc and mobile payments company Square, he could struggle with conflicts of interest in the business that is key to both companies' futures: e-commerce.Corporate governance experts and some investors have already expressed concern that Dorsey faced tough choices in his role as interim Twitter chief and head of Square. That intensified on Wednesday after a report by technology news website Re/code that Dorsey is expected to be named permanent chief executive at Twitter as early as Thursday, while keeping his job at Square. “The biggest conflict would simply be the allocation of his time,” Esther Dyson, an early Square investor who holds several board and advisory positions at tech companies, told in an email on Tuesday. “CEO is a full-time job.” Neither company commented on the Re/code report. Dorsey has acknowledged the risk of a conflict of interest, publicly saying he recuses himself from decisions involving both companies. Still, that leaves him out of discussions in a key area of growth.Twitter has increased its payments and e-commerce options since Dorsey took the helm as acting Twitter chief on July 1. Earlier this month, Twitter announced a partnership with Square that would enable users to make political donations directly through the site. And on Wednesday, Twitter said it was partnering with U.S. retailers to help them sell products through a "buy now" button in tweets, a feature that does not involve Square, and relies on potential rivals to Square's service. The clearest conflict would be if Twitter continues to roll out payments and e-commerce features in partnership with Square. Dorsey would have a fiduciary duty to pursue both parties' best interests, lawyers said, which could pose problems."The list of conflicts is as long as the imagination will permit," said Lawrence Hamermesh, professor of corporate and business law at Widener University School of Law. "Every waking moment, Dorsey is going to have to decide, 'Am I going to work on Twitter or Square?'"Slow user growth and muted response to a new advertising feature led Twitter to lower its revenue forecast for the year in April. Its shares went public in 2013 and gained as much as 60 percent that year but have since fallen to near the initial public offering price. "There might come a time where (accepting payments) is so important to (Twitter's) strategic vision that the challenge becomes too great," said Stanford law and business professor Robert Daines. Both companies declined to comment on the conflict of interest issue.DUAL CEOS Dorsey would not be the first person to run two major companies. Steve Jobs led Apple Inc and animated movie studio Pixar for several years. Elon Musk runs electric car pioneer Tesla Motors Inc and rocket maker SpaceX. Twitter shares rose on the Re/code report, and some investors voiced confidence that Dorsey could run both companies long term, pointing to faster product rollouts at Twitter since he returned as interim leader."After watching Jack execute on his vision at Square, and more recently at Twitter as CEO, we are highly confident in Jack's ability to serve as CEO of both companies," said Justin Dini, spokesman for Rizvi Traverse Management, an investor in both Square and Twitter. Yet Twitter and Square's interests overlap more frequently than those juggled by Jobs and Musk, corporate lawyers and payments executives said. Square is also expected to file for an IPO later this year, which will require substantial time from Dorsey.Moreover, Twitter's president of global revenue and partnerships, Adam Bain, is a clear number two to Dorsey, while Square's management structure has no such backup. One potential solution is for the two companies to merge or form a deeper partnership. "It could result in the two companies combining at some point," said FBN Securities analyst Shebly Seyrafi. (Reporting by Yasmeen Abutaleb; Additional reporting by Heather Somerville and Devika Krishna Kumar; Editing by Peter Henderson and Bill Rigby)
News Corp sells digital education brand Amplify
News Corp said it sold its digital education brand, Amplify, to a management team supported by a group of private investors following slowing growth in the digital curriculum market.The company did not disclose financial terms of the deal.News Corp said in August that it was reviewing strategic options for Amplify and that it was in the final phase of talks with a potential acquirer for the business. Larry Berger, chief executive of Amplify Learning division, will lead the new company, according to an internal memo seen by . Amplify also said there were job cuts but did not specify the number. (Reporting By Arathy S Nair in Bengaluru and Liana B. Baker in New York; Editing by Maju Samuel)
Microsoft, Google stand down in patent battles
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