Facebook’s total first-quarter revenue was US$3.54 billion, up more than 40 percent from a year earlier, the company reported Wednesday. That was a bit less than the consensus analyst estimate of $3.56 billion, as polled by Thomson Reuters.
With a bounty of personal data on its billion-plus members — many of whom now log in from their smartphones — Facebook’s mobile ad business has become a juggernaut.
During the quarter, which ended March 31, Facebook grew its mobile ad sales by 59 percent to $2.59 billion. After going public in mid-2012, Facebook faced questions from investors over its ability to grow its business on mobile, but the company eventually dispelled those doubts.
Net income came in at $512 million, down 20 percent, while earnings per share dropped 28 percent to $0.18.
On a pro forma basis, which excludes certain costs, such as share-based compensation and related payroll tax expenses, Facebook had earnings per share of $0.42, up from $0.35 last year, and beating the analyst consensus estimate of $0.40.
“This was a strong start to the year,” CEO Mark Zuckerberg said in a statement.
The company’s costs and expenses rose by more than 80 percent from a year earlier, to $2.61 billion.
The number of people who log in monthly to Facebook grew by 13 percent, to 1.44 billion. And the number of those people who log in from a mobile device grew faster, by 24 percent to 1.25 billion.
In addition to its primary mobile app, Facebook now operates a suite of apps including Instagram, Messenger and WhatsApp. But its flagship app generates by far the most mobile ad sales.
Facebook began placing ads in Instagram in 2013, but by its own admission has done so slowly and gradually. Neither Messenger nor WhatsApp carry ads yet.
IBM IS bringing its QRadar Security Intelligence technology to the cloud in a bid to help companies prioritize major security threats more quickly and free up critical resources to fight cyber attacks.
The offering is available through a cloud-based software-as-a-service model, and comes with an IBM Security Managed Services option for security experts with more advanced skills.
QRadar Security Intelligence comes in the form of two services. The first is IBM Security Intelligence on Cloud, which the firm said will help organisations determine whether security-related events are simple anomalies or actual threats.
“Built as a cloud service using IBM QRadar, enterprises can quickly correlate security event data with threat information from over 500 supported data sources for devices, systems and applications,” IBM explained.
“This is complemented by more than 1,500 pre-defined reports for use cases such as compliance, vulnerability management and security incident response.”
The second service is Intelligent Log Management on Cloud designed to simplify security and compliance data collection.
This is also powered by IBM QRadar technology, and uses analytics and a hosted, multi-tenant technology to integrate with existing infrastructure, working with real-time correlation and anomaly detection capabilities.
“Through support for more than 400 platforms, security managers can also capture logs from nearly any device in their security operation,” the firm added.
IBM said that the announcement is a reaction to the findings in the 2014 IBM Cyber Index, which revealed that organisations across the world deal with an average of 91 million potential security events every year, a problem that creates huge amounts of data that needs to be stored and analysed.
The cloud software announcement arrives just after IBM posted its Q1 2015 financial results, demonstrating strong growth in the cloud.
The results showed cloud revenues up 75 percent to $3.8bn from $2.3bn in the first quarter of 2014.
However, IBM posted an overall quarterly revenue decline of 12 percent owing to the effects of the strong dollar.
Revenues were $19.6bn for Q1, a figure that would have been equal to the $22.5bn that IBM made last year were it not for the effects of the dollar and moves to divest unprofitable parts of the business.
Overall the revenue drove IBM to profits of $2.4bn for the quarter. The company said that this was down five percent on the same period last year, although at that time IBM also reported profits of $2.4bn, suggesting that the original figure was raised at some point.
As part of the announcement, Citrix said that products including NetScaler and XenServer will be coming to OpenStack.
Citrix has been a contributor to OpenStack for some time, but this sponsorship announcement sees the company ramping up its involvement and integrating its core product lines.
Klaus Oestermann, senior vice president and general manager of delivery networks at Citrix, said: “We’re pleased to formally sponsor the OpenStack Foundation to help drive cloud interoperability standards.
“Citrix products like NetScaler, through the recently announced NetScaler Control Centre, and XenServer are already integrated with OpenStack.
“Our move to support the OpenStack community reflects the great customer and partner demand for Citrix to bring the value of our cloud and networking infrastructure products to customers running OpenStack.”
Citrix already supports the Apache Software Foundation and the Linux Foundation, and has pledged to continue investing in Apache CloudStack and CloudPlatform in addition to its work with OpenStack.
Jonathan Bryce, executive director of the OpenStack Foundation, added: “Diversity and choice are two powerful drivers behind the success of OpenStack and the growing list of companies that have chosen OpenStack as their infrastructure platform.
“We’re glad to see Citrix become a corporate sponsor, and we look forward to the contributions they can bring to the community as it continues driving cloud infrastructure innovation and software maturity.”
Canonical announced on Tuesday that the 15.04 edition of Ubuntu OpenStack will be the first commercially available product to be based on OpenStack Kilo, which is due for release at the end of the month.
Early adopters will get the release candidate, and the full version will follow days after.
Citrix is joining the alliance at an interesting time. Earlier this year, it was revealed that HP has become the largest single contributor to the current OpenStack version, Juno, overtaking Red Hat.
A number of alliances are forming within the OpenStack community to try and gain the upper hand. HP has buddied up with telecoms companies including AT&T and BT, while Juniper and Mirantis have joined forces, though the latter has confirmed that this is not a snub to VMWare.
Citrix coming aboard with its existing ties to Apache and Linux seems to represent another example of the cross-pollination of the OpenStack movement across the industry, with companies clamoring to back it either as a first or second line of opportunity.
Defense contractor Raytheon is acquiring Websense, which it will combine with its own security unit to create a new, separately operated business to battle criminal networks and state-funded espionage.
Today’s Internet attacks “are becoming increasingly more sophisticated and are being perpetuated by state sponsored groups, criminal organizations, hacktivists and insiders,” said David Wajsgras, president of Raytheon intelligence, information and services business, in a conference call Monday announcing the acquisition. “Our goal is to provide defense-grade solutions that allow our customers defend against [attacks], detect them early, decide how to counter and defeat such attacks in real-time.”
Raytheon plans to spend $1.9 billion in a deal to get 80 percent ownership of the new business based on Websense. It will then create the new company by combining Websense with its own cyberproducts business unit, valued at approximately $400 million. Vista Equity Partners, Websense’s current owner, will purchase a 20 percent stake in the new, combined company, for approximately $335 million.
The joint venture will be a separately operated Raytheon business segment. John McCormack, current CEO of Websense, will serve as chief executive of the new business. The name of the new company will be disclosed when the deal closes, by the end of the second quarter, the companies said.
Websense’s Triton line of secure Web gateway products guard internal networks against malware, data theft and Internet-based snooping. The new company will combine Triton with Raytheon’s own SureView portfolio of security products, which can watch for unusual user activity, protect against known vulnerability attacks, and detect hidden anomalies using machine-learning technologies.
The two companies also have a complementary customer base. Raytheon has focused largely on serving U.S. defense agencies — it generated sales of $23 billion in 2014, which was mostly from large-scale systems work. Websense has a strong presence in the commercial enterprise market. It serves 21,000 customers and has relationships with over 2,200 channel partners.
The Internet company has hired advisers to help it evaluate options for the stake, Chief Executive Officer Marissa Mayer told investors on a conference call on Tuesday. It will not be included in the planned spin-off of its stake in China’s Alibaba Group Holding Ltd, she said.
Investors have been urging Mayer to monetize the Yahoo Japan stake separately, after she announced plans to spin off the Alibaba stake in January, which could be worth $40 billion.
The advisers will help Yahoo “determine the most promising opportunities to maximize value” for the Yahoo Japan stake, said Mayer.
But Wall Street remained broadly cautious about the plan.
“They are taking the slow train, stressing the process,” said Colin Gillis, an analyst BGC Partners, who warned that a deal, if any, could be a long way down the line. “Engaging advisers doesn’t mean spinning it out.”
Yahoo owns about 35 percent of Yahoo Japan Corp, which has a market value of almost $25 billion on the Tokyo Stock Exchange. Japanese internet company SoftBank Corp is the biggest shareholder, with about 36 percent, according to Thomson Reuters data.
Last month Yahoo shareholder Starboard Value LP said the Alibaba spin-off was a “good first step” but urged Yahoo to also spin off its Yahoo Japan stake in a tax-efficient manner. Starboard did not reply to a request for comment.
Chip designer ARM reported a 36 per cent rise in first-quarter net profit amid strong demand for its technology.
The British company said that expects 2015 revenue to meet the expectations of the cocaine nose jobs of Wall Street.
ARM recorded net profit of $126.7 million for the three months to March 31 and revenue rose 22 percent.
Shares in ARM, which makes money by licensing its designs to chip makers, then collecting royalty revenue when the chips ship, were up by more than 5 per cent on the back of the news.
Processor-royalty revenue in dollar terms, a much-watched figure, rose 31 per cent on the year, the company said, adding that it has signed 30 processor licenses for a broad range of applications.
ARM CEO Simon Segars said: As the world becomes more digital and more connected, we continue to see an increase in the demand for ARM’s smart and energy-efficient technology, which is driving both our licensing and royalty revenues.@
Processor-licensing revenue was down 2 per cent in the quarter, which was in line with expectations following strong growth previously. Chief Financial Officer Tim Score told journalists he expects it to grow in future quarters.
Aside from smartphones and tablets, ARM said it is also seeing demand for its processors to be used for servers and networking and for the “Internet of Things”, a term used for the growing tendency for more items to be wirelessly connected.
ARM expects to benefit from the growth of the Internet of Things in areas such as health and in cars, Score said.
Certicom, a subsidiary of BlackBerry and an industry pioneer in elliptic curve cryptography, announced a new offering that it contends will secure millions of devices, expected to be part of the growing Internet of Things (IoT) sphere.
The company said it has already won a contract in Britain to issue certificates for the smart meter initiative there with more than 104 million smart meters and home energy management devices.
The service will make it much easier for companies rolling out such devices to authenticate and secure them, the company said.
Separately, BlackBerry also outlined a plan to expand its research and development efforts on innovation and improvement in computer security.
The initiative is being dubbed BlackBerry Center for High Assurance Computing Excellence (CHACE).
Increased network and device security has become a huge focus for large North American corporations in the face of costly and damaging security breaches.
U.S. retailer Target Corp is still recovering from a major breach in 2013 in which 40 million payment card numbers and 70 million other pieces of customer data such as email addresses and phone numbers were stolen.
Michaels Stores, the biggest U.S. arts and crafts retailer, said last year it had suffered a security breach that may have affected about 2.6 million payment cards.
BlackBerry said the fail-then-patch approach to managing security risk has become a widely accepted practice, but through CHACE it plans to develop tools and techniques that deliver a far higher level of protection than is currently available.
Samsung has recently described the first week of Galaxy S6 and Galaxy S6 Edge sales as “impressive” and predicted overall sales for both devices will break a record, passing 70 million globally for both.
That projection, offered by an unnamed Samsung executive in a recent Korea Times report from Seoul, would be welcome, indeed, after the company’s problems selling the Galaxy S5.
A Samsung spokeswoman could not immediately confirm the sales estimate. Both phones went on sale April 10 in the U.S. and other major markets.
The 70 million in sales for both phones would compare to reported sales of 70 million for each of the Galaxy S3 and Galaxy S4 phones. The Galaxy S5′s sales fell 40% below expectations, as measured last November, leading to an executive shakeup.
Samsung has been using the Edge device as a kind of promotion for both phones, which are reportedly sold to carriers in a ratio deal: When a carrier buys 10 Galaxy S6 phones to resell, the carrier gets the right to buy five Edge phones to resell.
The Edge is the first smartphone with two curved front display edges on either side, something Samsung expected would be a crowd pleaser. Some reports have said there were a record high 20 million pre-orders for both new phones and that some retailers sold out within a day of availability.
Samsung is apparently seeing good early sales despite user complaints of a problem with the auto-rotate feature on some Edge devices. Some images and apps remain stuck in the portrait mode (vertical) and won’t rotate as they should to landscape mode (horizontal), according to dozens of users in forums.
Samsung and U.S. carriers have offered no public explanation for the problem or its fix, nor have they said how many units are affected. Some customers have returned an Edge device only to have a second one fail. Sprint referred all queries on the matter to Samsung, while Verizon and AT&T have not commented.
Nokia Technologies, which controls thousands of technology patents, plans to re-enter the mobile phone market in 2016, according to unnamed sources cited by Re/code.
Such plans would be ambitious, especially given the super-competitive global smartphone and feature phone market. It isn’t clear precisely what Nokia Technologies is up to, and at least two analysts are skeptical it will work.
“People loved Nokia [in previous years], but I am not sure consumers will think that this is the same Nokia,” said Carolina Milanesi, chief of research for Kantar WorldPanel ComTech via email. “From a business perspective, it will be hard to see how they can be competitive against white box players.”
It is also hard to see how devices will fit into Nokia’s overall business strategy, she said. Milanesi assumed the devices would be built on the Android platform, but that hasn’t been confirmed.
“The Nokia brand is a well-recognized brand, but I would think their re-entering the phone market is not going to happen,” added Jack Gold, an analyst at J. Gold Associates.
“They certainly will be fighting an uphill battle,” said Jitesh Ubrani, an analyst at IDC. “Nokia doesn’t have the brand catchet it once had and the phone market has gotten increasingly competitive as Chinese vendors like Xiaomi, Huawei, ZTE, etc., continue to gain share of wallet and mind, while driving down prices.”
Under terms of the $7 billion sale to Microsoft, Nokia can’t sell any phones under the Nokia brand through 2015 and can’t license the brand until the third quarter of 2016.
So far, it doesn’t appear that Nokia would manufacture any phones, but would instead design products and license those designs and the Nokia brand to other companies. The N1 Android tablet from Nokia Technologies was licensed to a Chinese manufacturer under that scheme.
Microsoft is going great guns in the server market having recently announced the Nano Server, a “minimal footprint” Windows Server, and Hyper-V containers, which provide virtual machine isolation capabilities to containers.
Nano Server is even more stripped-down than Windows Server Core with the GUI stack, 32 bit support (WOW64), MSI and a number of default Server Core components all being put in the dustbin.
You can’t do local logons, Remote Desktop and WMI and PowerShell are the only tools available to manage the creature.
Microsoft is also working on better remote tooling and is coming up with a set of management tools for the nano. It is planning work on PowerShell’s Desired State Configuration, file transfers and script authoring and debugging.
Cutting all this stuff out has made it more efficient, secure and availability. Redmond said that the Nano Server has 93 percent lower VHD (Virtual Hard Disk) size.
It also gets 92 percent fewer critical bulletins and requires 80 percent fewer reboots than a typical Windows Server. It is also a bit quicker to setup: from bare metal to running Nano Server takes 3 minutes.
Hyper-V containers also will offer the system a fair bit of isolation that was only available to “dedicated physical or virtual machines”.
The move comes after Samsung opted to use its own Exynos processors for the recently launched flagship Galaxy S6 devices instead of the Qualcomm Snapdragon 810, prompting the U.S. firm to cut is financial outlook for the year.
Samsung and Qualcomm declined to comment on Re/code’s report. The report, dated April 20, did not say whether Qualcomm was looking at other manufacturers for the 820 processor besides Samsung.
The report suggests gathering momentum for Samsung’s system chips business, which investors and analysts expect will swing to profit this year. That could be negative for Taiwan Semiconductor Manufacturing Co (TSMC), which analysts say has gotten the bulk of Qualcomm’s orders for high-end chips.
Samsung’s 14-nanometer manufacturing technology gives the firm an edge over rivals such as TSMC, as smaller chips are more energy-efficient and deliver better performance. Investors and analysts say the superior technology will lead to more outside orders for Samsung’s contract manufacturing business and further boost earnings.
Media reports say Samsung will make processors for Apple Inc’s new iPhones expected to launch later this year, and the firm also recently added Nvidia Corp as a contract manufacturing client.
Such a number would be required to provide reliable Internet access to users in remote areas that are currently unserved by terrestrial networks, said Mike Cassidy, the Google engineer in charge of the project, in a video post.
The ambitious project has been under way for a couple of years and involves beaming down LTE cellular signals to handsets on the ground from balloons thousands of feet in the air, well above the altitude that passenger jets fly.
“At first it would take us 3 or 4 days to tape together a balloon,” Cassidy says in the video. “Today, through our own manufacturing facility, the automated systems can get a balloon produced in just a few hours. We’re getting close to the point where we can roll out thousands of balloons.”
Trials are currently underway with Telstra in Australia, Telefonica in Latin America and with Vodafone in New Zealand, where the video appears to have been largely shot. Maps tracking the path of balloons over the country are seen at several points in the video.
At a European conference in March, a Google executive said the balloons were staying aloft for up to 6 months at a time.
At some point they do come down, and Cassidy says the company has developed a system to predict where they will land and to retrieve them.
It has also worked on a reliable launching system.
Google hasn’t provided any details about what a commercial roll-out of the technology might look like.
As the senior mobile marketing manager, the candidate will “lead marketing for Firefox on both Android and iOS,” the listing stated, adding that “a new Firefox for iOS application [will be] arriving soon.”
Mozilla, which had previously staunchly declined to create a version of its iconic browser for iOS, changed its tune last December, when a company manager said that the open-source developer would “get Firefox on iOS.”
Although Mozilla confirmed that it was working on Firefox for iOS, at the time it gave no hint of a timeline. “We are in the early stages of experimenting with something that allows iOS users to be able to choose a Firefox-like experience,” Mozilla said in a Dec. 2 blog.
Mozilla’s Github repository for iOS Firefox confirmed that.
The reasons for Mozilla’s renewed interest in iOS likely stemmed from Firefox’s decline in browser user share. Over the last 12 months, Firefox has shed 31% of its desktop user share by metrics vendors’ Net Applications count, and now has less than half the share of Google’s Chrome.
Mozilla has put its shoulder behind other mobile initiatives. But Firefox OS, an open-source mobile operating system based on the browser, has not yet gained significant traction and its Firefox browser for Android hasn’t moved the needle. According to Net Applications, Firefox’s usage share on mobile was just 0.7% last month, or about one sixty-sixth that of Safari.
ARM has announced the acquisition of two Bluetooth companies in a bid to expand its presence in the Internet of Things (IoT) arena, and has created a new portfolio dubbed ARM Cordio in the process.
The UK semiconductor designer has picked up Wicentric, a Bluetooth smart stack and profile provider, and Sunrise Micro Devices (SMD), a provider of sub-one volt Bluetooth radio intellectual property (IP).
Wicentric is a privately held company that focuses on the development of low-power wireless products. These include Bluetooth protocol stack and profiles for creating interoperable smart products, and the link layer for silicon integration.
SMD is also privately held and provides radio IP solutions including a pre-qualified, self-contained radio block and related firmware to simplify radio deployment.
“Central to all SMD radios is native sub-one volt operation,” explained ARM in justifying its acquirement. “Operating below one volt enables the radio to run much longer on batteries or harvested energy.”
Terms of the agreements have not been disclosed, but ARM said that both companies’ IP will be combined to form the ARM Cordio portfolio.
This will integrate with the firm’s existing processor and physical IP targeting markets that require low-power wireless communications in the IoT space. The portfolio is available now for immediate licensing.
ARM is pushing its stance in the IoT market in a bid to monopolise on what is essentially the next big thing in tech before it becomes ubiquitous.
For instance, ARM joined forces with IBM in February to launch its mbed Device Platform as a starter kit with cloud support, offering developer tools with cloud-based analytics.
The mbed tool was announced last year and is primarily an operating system built around open standards to “bring internet protocols, security and standards-based manageability into one integrated tool” and make IoT deployment faster and easier and thus speed up the creation of IoT-powered devices.
Launching the mbed IoT Starter Kit Ethernet Edition with IBM means that the company can channel data from internet-connected devices directly into IBM’s Bluemix cloud platform.
The IoT Starter Kit consists of an ARM mbed-enabled development board from Freescale, powered by an ARM Cortex-M4-based processor, together with a sensor IO application shield.
Sony Corp on Monday announced a new high-end Xperia smartphone featuring an aluminium frame and a 5.2-inch screen, showing it is still in the phone race even as it scales down its struggling mobile operations.
The launch of the new flagship model comes amid a painful restructuring at the Japanese consumer electronics giant which has thrown the future of its smartphone division into doubt, with top executives saying an exit cannot be ruled out.
But as the company focuses on cutting costs rather than growing its mobile market, the division still needs investment in new products and marketing to maintain Sony’s brand and hold off a more rapid deterioration.
Sony said the Xperia Z4 would be available in Japan around the middle of the year, though it did not provide a launch date, details on carrier partners or price. The handset would be available in four colours and was slightly thinner than the previous Z3.
Hiroki Totoki, who was appointed last year to turn around the mobile unit, said Sony was targeting the upper end of the market where rivals such as Samsung Electronics Co Ltd and Apple Inc dominate.
“There’s a broad variety in the prices of smartphones, from around $100 to $1,400 at the upper end,” he told a news conference. “We want to focus in the upper half of that.”
Sony’s mobile division has fallen far behind high-end rivals such as Samsung and Apple, while at the low end it is battling pricing pressure from Asian manufacturers such as China’s Xiaomi Inc.
The company whose Walkman and Trinitron TV once played a critical role in the global entertainment industry has struggled in recent years to come up with trend-setting gadgets.
Sony announced in February that it would scale down its weaker operations such as TVs and mobile phones to focus instead on more successful products such as video games and camera sensors.