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Monday, May 23, 2011

Sony to report $3.2 billion annual loss (AP) : Technet

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Sony to report $3.2 billion annual loss (AP) : Technet

Sony to report $3.2 billion annual loss (AP)

Posted: 23 May 2011 05:17 AM PDT

By MARI YAMAGUCHI, Associated Press Mari Yamaguchi, Associated Press – Mon May 23, 8:17 am ET

TOKYO – Sony Corp. is expecting an annual loss of $3.2 billion, reversing its earlier projection of a return to profit, as the electronics giant struggles with production disruptions from Japan's tsunami and a hacker attack on its online gaming service.

The Japanese maker of PlayStation 3 video game machines and Bravia flat-panel TVs said Monday that the projection of a 260 billion yen ($3.2 billion) net loss for the fiscal year ended March 2011 was largely due to writing off 360 billion yen ($4.4 billion) related to a tax credit booked in a previous quarter.

Sony announced the loss ahead of its official earnings announcement Thursday under Tokyo Stock Exchange guidelines. The company had earlier projected a 70 billion yen ($860 million) profit.

Like many other Japanese manufacturers, Sony has been hampered by the production disruptions set off by the March 11 earthquake and tsunami that killed more than 25,000 people, destroyed many factories and sent the nation's economic recovery into reverse.

The company kept its operating profit forecast unchanged at 200 billion yen ($2.46 billion). It expects to report sales of 7.18 trillion yen ($88.2 billion), slightly down from an earlier projection of 7.2 trillion yen ($88.5 billion).

Masaru Kato, Sony's chief financial officer, said parts shortages in the aftermath of the disaster have eased but a full recovery hasn't yet been realized.

"In the first quarter, we saw quite a major impact on our manufacturing activities," he said. After the quake, "negative factors have grown bigger" and offset earlier improvement in the previously loss-making games division, dashing hopes for a profit.

Tokyo-based Sony also faced a new challenge to its reputation following a massive security breach affecting more than 100 million online accounts.

After temporarily closing down its online gaming services last month, Sony began restoring its PalyStation Network services in the U.S. and Europe on May 15 mainly for online gaming, chat and music streaming services.

Sony spent 14 billion yen ($170 million) to cover costs that included identity theft insurance for customers, improvements to network security, free access to content, customer support and an investigation into the hacking.

Sony has seen plunging sales of flat-panel TVs and other gadgets, and was likely to remain in the red in its TV business for the seventh year straight.

Sony has also taken a beating in music players and other portable devices to Apple's iPod, iPhone and iPad.

The company booked a 40.8 billion yen ($439 million) loss for the fiscal year ended March 2010 after a 98.9 billion yen loss the year before_ Sony's first annual red ink in 14 years.

___

Associated Press writer Tomoko A. Hosaka contributed to this report.

Payment startup Square rolls out iPad sales app (AP)

Posted: 23 May 2011 01:42 PM PDT

By RACHEL METZ, AP Technology Writer Rachel Metz, Ap Technology Writer – Mon May 23, 4:42 pm ET

SAN FRANCISCO – First, mobile payments service Square made it easier for merchants to accept credit cards anytime, anywhere, with just a smartphone and a tiny, plastic credit-card reader. Now, the startup led by Twitter co-founder Jack Dorsey hopes to show them they can abandon cash registers, too.

Square already has a smartphone app that allows people to pay for items by swiping their credit card through a tiny reader that plugs into the headphone jack of a phone or iPad. Customers can sign their name on the device's touch screen, and then have a digital receipt sent to them via email or text message. About 500,000 merchants have these credit-card readers, which Square has given away for free since 2009. In return, the company takes a 2.75 percent transaction fee on sales.

On Monday, Square announced new software, Square Register, to do more. The new app takes over many of the sales features that most stores use cash registers for. It lets merchants keep tabs on inventory and change prices. A menu option allows restaurants to post food options and special deals that customers can see on their smartphones, using a companion app called Square Card Case.

Card Case is available for download after paying with Square at one of a number of merchants hand-picked by Square to participate. It acts as a digital wallet and directory and stores digital receipts for everything you've purchased over Square. For merchants, it serves as a replacement for physical rewards cards some merchants give customers to thank them for repeat visits. The app also has a directory listing local Square-accepting businesses that let users buy items on their phones when they're close to a participating shop. Card Case users can also pay at stores that are using the Register app by saying their name to the sales clerk.

So far, Card Case only includes 50 hand-picked cafes, salons, flower shops, restaurants and other retailers in New York, St. Louis, Los Angeles, San Francisco and Washington. The company plans to gradually add others.

Cisco sued for helping China build Golden Shield (AP)

Posted: 23 May 2011 01:33 PM PDT

By JOELLE TESSLER, AP Technology Writer Joelle Tessler, Ap Technology Writer – Mon May 23, 4:33 pm ET

WASHINGTON – Members of the Falun Gong spiritual movement have filed a lawsuit against Cisco Systems Inc. accusing it of supplying the Chinese government with computer-networking equipment used to spy on and persecute dissidents.

In a lawsuit filed last week, a group of Falun Gong practitioners alleges that Cisco provided networking gear and technical assistance to build and operate an elaborate system of Internet controls used by the Chinese government to track the online behavior of its citizens and block content it does not like.

The lawsuit accuses Cisco of aggressively marketing and customizing its products for the system, known as the Golden Shield Project, with the understanding that the technology would be used for spying on dissident groups such as the Falun Gong. By using Cisco equipment, the lawsuit said, government officials were able to monitor dissidents' activities, including online meetings of Falun Gong congregations. The lawsuit said some dissidents were detained, tortured and even killed as a result; others disappeared.

The lawsuit also names Cisco's top executives, including CEO John Chambers.

In a statement, Cisco rejected the allegations.

"Cisco does not operate networks in China or elsewhere, nor does Cisco customize our products in any way that would facilitate censorship or repression," the company said. "Cisco builds equipment to global standards which facilitate free exchange of information, and we sell the same equipment in China that we sell in other nations worldwide in strict compliance with U.S. government regulations."

The lawsuit seeks unspecified monetary damages and an injunction barring Cisco from engaging in "future unlawful activity."

The lawsuit was filed Thursday in U.S. District Court in San Jose, Calif., where Cisco has its headquarters. The law firm of Schwarcz, Rimberg, Boyd & Rader and the Human Rights Law Foundation, a nonprofit group in Washington, brought the case under a U.S. law that allows foreign nationals to sue in federal court over violations of international law.

Sony lost $171 million due to PlayStation Network downtime (Yahoo! News)

Posted: 23 May 2011 05:10 PM PDT

By Mike Wehner mike Wehner – Mon May 23, 8:10 pm ET

Sony's month-long adventure which started with the unexpected shutdown of the company's PlayStation Network and Sony Online Entertainment services — and ended with the rebuilding and relaunch of both — cost the company approximately $171 million. Sony revealed the figure in an updated investor forecast which estimates a $3.2 billion overall loss for the company in the quarter ending March 31 — most of which was due to the massive earthquake and tsunami that decimated the company's Japanese operations.

The $171 million that the company attributes to the network downtime encompasses everything associated with the security breach including lost revenue, customer support, a full network security overhaul, and even legal fees. The figure also covers the projected cost of the company's "Welcome Back" program, a goodwill gesture that will offer free games to affected users.

Along with the financial statistics, Sony noted that there have been no reports of actual identity theft associated with customer information compromised in the attack. However, if you are a PSN subscriber, you should still take every precaution to avoid any unpleasant identity issues down the road.

Via Joystiq

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Digital Photography 101: Don’t cage in your zoo photography! (Yahoo! News)

Posted: 23 May 2011 05:04 PM PDT

By Tecca tecca – Mon May 23, 8:04 pm ET

Most people love taking pictures of animals, but very few have the money to go on an African safari or travel to other far-off reaches of the world. Thankfully, there are hundreds of excellent zoos and wild animal parks around the country that offer at least a glimpse of nature's wonderful fauna.

However, there are certainly challenges to photographing animals at a zoo. You'll need to contend with the distance between your camera and the subject (since you usually can't mingle with the marmots or cavort with the capybaras!), animal subjects that either move very quickly or not at all, and the cage bars or glass that frequently come between you and the critters. But there are plenty of things you can do to overcome these obstacles!

Gear up
The gear you bring with you on your zoo visit depends a lot on the particulars of the zoo itself, as well as your personal style and equipment. At a minimum, you should bring a good zoom lens (at least to 200mm), a tripod or monopod for taking pictures in the dim light of animal houses, and a lens hood to reduce glare if you're shooting outside on a sunny day.

Plan ahead
Find a map of the zoo as soon as you get there (or, better yet, before you go!), and note the locations of any animals that you're particularly interested in photographing. Find out when feeding times are, either so you can be there to watch if they're visible to the public, or so you won't bother going across the park only to see an empty cage, if the animals eat inside. Do some research to find out if there are certain times of day when particular animals are more active.

If you can be flexible about your visit, try to arrange it so that you're there on a day when the weather is less than an average tourist's ideal. For one thing, that will probably mean fewer crowds, which will make it easier to get a good view of the animals. It will also eliminate harsh shadows and sun glare. Finally, many animals that would be flopped out napping on a hot, sunny day might be more active if it's drizzling.

Shooting through fences
Since most zoos don't let you get up close and personal with the animals, chances are that you'll have to photograph them through a fence. There are two things you can do to mitigate this obstruction. The first is rather obvious: Try to find a way to shoot around or through it. If you can get close enough to poke your camera lens through the gaps in the fence without breaking any zoo rules or endangering yourself or your gear, try that. You can also look for larger gaps around gates or spots where you can look over or under the fence.

If there's simply no way around the fence between you and the animal, your best bet is to use a long focal length lens and a wide aperture setting. You might have to manually focus, if your camera can't decide whether to focus on the fence or what's behind it, but you'll probably notice that with a selective focus on the animal and a shallow depth of field, the fence will blur out so that you'll hardly notice it. Using a point-and-shoot? Try the portrait mode, which should accomplish the same thing.

Shooting through glass
The glass enclosures common in some animal houses and water-related exhibits sometimes pose an even greater challenge than fences. If the glass is clean enough, you might be able to shoot right through it. But if the light is at the wrong angle or the glass is terribly smudged and dirty, you might find that all you get are reflections of yourself. Carry a cloth to wipe an area of glass clean if you can get up close to it, and put your camera lens right up against the glass itself. If you must shoot from farther back, turn off the flash and use a tripod to eliminate as much glare as possible.

Get a closer look
While of course you can't usually get physically closer to the animals, try to zoom in as much as possible on your subjects. Not only will this help eliminate some of the less attractive areas of the enclosures, it will draw the viewer's focus in on the animals themselves and not the conditions of their captivity. If you can, try focusing on just a part of the animal — the bird's eye, the tiger's whiskers, the hippo's giant snout. Try to create a feeling of intimacy with your subject. For some animals, this might even mean getting low to the ground to put yourself on their level. The top of a prairie dog's head isn't nearly as interesting as its curious, beady eyes!

The most important thing to keep in mind when photographing at the zoo is to be respectful of the animals, the facility, and the other visitors. Don't yell or try to startle the animals into "posing" for you, and don't do anything that would endanger you or them. Above all, enjoy your visit! If you can't get the picture you want, put the camera in its case and bring home lovely memories instead.

Post by Katherine Gray

[Image credits: K. Gray, Rob Bixby]

digital photography 101 guide

PlayStation Network Outage: The Real Costs [INFOGRAPHIC] (Mashable)

Posted: 22 May 2011 10:51 AM PDT

Charlie White Charlie White – Sun May 22, 1:51 pm ET

Now that Sony's PlayStation Network is back online again, analysts are beginning to assess the real-world cost of the network breach and shutdown of the giant gaming establishment. Even as recently as this past week, Sony was still having trouble with the PlayStation Network, taking down its password resetting facility because of another Sony oversight: not realizing that hackers might be able to re-exploit any of the 77 million hacked accounts because of the information they obtained.

[More from Mashable: Third iPad Factory Worker Dies, More Details Emerge]

Here's an infographic retracing the steps of Sony's fiasco, and then assessing the financial damage using independent research data from the Ponemon Institute.

[More from Mashable: HOW TO: Use Social Media During Your Family Vacation]

Infographic courtesy Promotionalcodes.org

This story originally published on Mashable here.

First guilty plea in US online poker case (AFP)

Posted: 23 May 2011 08:22 PM PDT

– 38 mins ago

NEW YORK (AFP) – The American president of a Costa Rica-based company is facing up to 30 years in prison after pleading guilty to illegally processing payments for Internet poker firms.

Bradley Franzen, 41, pleaded guilty in a Manhattan court to bank fraud, money laundering and illegal gambling offenses, Preet Bharara, the US attorney for the Southern District of New York, said in a statement.

Franzen was one of 11 people charged last month in a crackdown on the three largest online poker companies operating in the United States: PokerStars, Full Tilt Poker and Absolute Poker.

Most of the defendants are outside of the United States. Franzen is the first to enter a guilty plea.

US law prohibits US banks and other financial institutions from knowingly accepting payments for online gambling made through credit cards, electronic funds transfers and checks.

Franzen and several other defendants were accused of helping to process billions of dollars for PokerStars, Full Tilt Poker and Absolute Poker by creating phony corporations and websites.

According to US authorities, Franzen arranged for gambling funds to be disguised as payments to a fictitious business called "Green2YourGreen," which claimed to sell environmentally-friendly household products.

Franzen, who is from Illinois and lives in Costa Rica, faces a maximum sentence of 30 years in prison. His sentencing date has not yet been set.

While Internet gambling has been illegal in the United States since 2006, online poker remains a multi-billion-dollar industry with companies using a variety of ways to flout the law, including locating their operations offshore.

The US ban on Internet gambling has been challenged as an unfair trade restriction at the World Trade Organization and some US lawmakers are seeking to have online gambling legalized.

Yandex IPO raises $1.3 billion, more than expected (Reuters)

Posted: 23 May 2011 05:24 PM PDT

By Alina Selyukh and Olga Popova Alina Selyukh And Olga Popova – Mon May 23, 8:24 pm ET

NEW YORK/MOSCOW (Reuters) – Russian Internet company Yandex NV raised 19 percent more than expected on Monday in the sector's biggest U.S. initial public offering since Google Inc went public in 2004.

Russia's most popular search engine raised $1.3 billion as investors scooped up the shares, lured by prospects for the country's growing Internet market and the euphoria of last week's blowout debut by LinkedIn Corp.

Yandex and its shareholders sold 52.2 million shares for $25 each, a source briefed on the deal told Reuters. They had originally planned to sell the shares at $20 to $22 each, but another source close to the issue told Reuters on Monday that Yandex would likely sell shares at $24 to $25 each.

Internet companies, especially those with reach into emerging markets, have been stealing the hearts of investors. Yandex, to many analysts, has rekindled memories of an explosive offering by its Chinese equivalent Baidu Inc.

"Every Internet company that's come on the market recently wants to be the next Baidu.com .... It really is the 'Google' of China," said Anthony Moro, managing director and head of emerging markets for BNY Mellon's depositary receipt division.

"Everything else tried to be the 'Facebook' of this or the 'Amazon' of that, but Yandex really is the 'Google' of Russia ... They're a huge and growing brand."

Baidu, China's biggest search engine, rocked U.S. markets with a 354 percent jump in its 2005 Nasdaq debut and has grown into one of the world's top brands.

Yandex, valued at $8 billion by its IPO, follows a blockbuster debut by LinkedIn, whose shares more than doubled on the first day of trading and brought back memories of frothy valuations before the dot-com bust a decade ago.

"I don't know if you'd get such a huge pop (with Yandex) as you did with LinkedIn," said Darren Fabric, managing director at IPO investment firm IPOX Schuster LLC. But "it should trade fairly well on its first day even with the market volatility."

U.S. stocks closed at their lowest levels in a month on Monday, in contrast with the resilience in the market at the time of LinkedIn's IPO.

LinkedIn is trading at 34 times 2010 sales, while Google shares are now worth just under six times 2010 sales. Yandex's IPO values the shares at 18 times 2010 sales.

Yandex controls 65 percent of the Russian market for Internet searches, almost three times more than global leader Google. Yandex fans also highlight the company's record of profitable growth, driven by online advertising: In 2010, earnings rose 90 percent to $135 million on sales that grew by 43 percent to $445 million.

Chief Executive Officer Arkady Volozh told Reuters in 2005 that Yandex could go public. The company plans to use the IPO proceeds to provide liquidity for shareholders, enhance its profile and increase its financial flexibility, according to Yandex's filing with U.S. securities regulators.

NO QUICK FLIP

Investors may be reassured by the fact that the duo who founded Yandex in 1997 -- CEO Volozh and Chief Technology Officer Ilya Segalovich -- will retain most of their holdings.

Volozh, who has a degree in applied mathematics, began working on search technology in 1989. A year later, he started his own search software developing firm, where he was joined by Segalovich, a geophysicist. In 1997 they launched the yandex.ru website, which in March was used by 38 million unique users.

Yandex's search algorithm, originally developed to conduct keyword searches of patents, Russian classical literature and the Bible, was a breakthrough as it accounted for the Russian language's complex grammar.

The duo coined the name "Yandex" -- with "Ya" standing for the Russian equivalent to English pronoun "I" -- as Segalovich was experimenting with derivatives of words that described the essence of the technology. The full name originally stood for "Yet Another iNDEX."

Today the word "Yandex" has become synonymous with Internet search in Russian-speaking countries, as people suggest "asking Yandex" for answers to their inquiries.

Private equity investors are also keeping stakes, including Baring Vostok Capital Partners, which bought into Yandex in 2000, when it had revenue of just $72,000 and lost $2 million.

The funds' original investment valued Yandex at $15 million, meaning Baring Vostok and its partners could make up to 93 times their original investment.

Investors buying into Yandex's IPO will receive Class A shares, which only have one-tenth of the voting power of the Class B shares that insiders in the deal will retain.

Also, a golden share held by Sberbank, the state-controlled Russian bank, represents a poison pill that could be used to prevent any single investor from acquiring a voting stake in Yandex of more than 25 percent.

Morgan Stanley, Deutsche Bank and Goldman Sachs led underwriters on the offering.

Yandex shares are expected to begin trading on the Nasdaq on Tuesday under the symbol "YNDX."

(Additional reporting by Clare Baldwin and Megan Davies in New York; Maria Kiselyova, Melissa Akin and John Bowker in Moscow; Editing by Alexander Smith, Steve Orlofsky and Bernard Orr)

eBay may use Skype money for acquisitions: CEO (AFP)

Posted: 23 May 2011 08:02 PM PDT

– 58 mins ago

NEW YORK (AFP) – EBay may use some of the $2.4 billion it will receive from the sale of its stake in Skype to make acquisitions, the chief executive of the online auction giant said in an interview.

EBay CEO Jack Donahoe told The Wall Street Journal that the company may also use some of the proceeds from its sale of the 30 percent stake it owns in Skype to return money to investors through share buybacks.

"We will continue to use that balance sheet to invest in organic growth, make acquisitions selectively and provide return to our shareholders with stock buybacks," Donahoe told the newspaper.

He said the San Jose, California-based company has over $8 billion in cash and was on the lookout for takeover targets.

"There is nothing imminent but when we see something that will help our mission to connect buyers and sellers (we will do it)," added Donahoe.

US software titan Microsoft announced this month that it was buying Internet voice and video leader Skype for $8.5 billion.

Donahoe also told the Journal that eBay would increase its focus on mobile products that allow people to shop, locate goods and compare prices with their phones.

"Our purpose is to bring consumers the best experience to find what they want, how they want and when they want it, whether it's on eBay or otherwise," Donahoe said. "A lot of eBay innovation will be around mobile.

"Soon I will be able to take a photo of your shoes and find out where I can buy them and how much they cost," he said.

Citing Eastern Europe and Russia as examples, the eBay CEO said he does not expect eBay to be present in every market.

"Many of those markets are not large enough for eBay to have a standalone presence," he said, and growth would come through cross-border sales.

Donahoe predicted Europe and Asia would represent a large share of eBay revenue over time. The United States currently accounts for around 40 percent of eBay revenue, followed by 40 percent in Europe and 20 percent in Asia.

Android tablets won’t take off without any killer apps (Appolicious)

Posted: 23 May 2011 03:15 PM PDT

Study: College Men Who Post About Alcohol Have More Facebook Friends (Time.com)

Posted: 23 May 2011 06:15 PM PDT

Hulu lands on TiVo Premiere, 6 month free trial for new TiVo owners (Yahoo! News)

Posted: 23 May 2011 04:56 PM PDT

By Mike Wehner mike Wehner – Mon May 23, 7:56 pm ET

Premium streaming service Hulu Plus touches down on TiVo Premiere DVRs today, and subscribers can begin enjoying the hundreds of episodes it has to offer. The Hulu service allows users to watch just-aired episodes of many network series and cable programs on their computers for free. Hulu Plus carries an $8 monthly fee, provides a greater wealth of content, and can be access using several devices including iPad, Xbox 360, and now TiVo Premiere.

In a blog post, Hulu also revealed that anyone who purchases a TiVo Premiere DVR from now through August 30, 2011 will receive a full 6-month trial of Hulu Plus for free. The TiVo Premiere comes in two flavors: the standard model, which holds 45 hours of recorded programming and costs $99, and the Premiere XL, which boasts a spacious 150 hours worth of storage, but runs a pricier $299.

The TiVo hardware, in addition to the upfront cost, also carries a monthly fee of $20 with a 1 year contract. If you're in a more committing mood you can drop a cool $500 for a lifetime of service. If you already own a TiVo Premiere, Hulu Plus is a great addition and is easily worth an extra $8 a month for most TV lovers, but we're not sold on picking up the pricey DVR just for Hulu access, as there are plenty of other hardware options out there.

(Source)

More from Tecca:

Square processing $3 million in mobile payments every day (Appolicious)

Posted: 23 May 2011 12:17 PM PDT

Apple Stores Use Its Mobile Devices To Help Customers (NewsFactor)

Posted: 23 May 2011 01:56 PM PDT

Barry Levine, newsfactor.com Barry Levine, newsfactor.com – Mon May 23, 4:56 pm ET

Apple is putting its iPads, iPhones and iPod touches to work in its stores. The company, which is in the process of retuning its stores, has confirmed reports that it's using the popular tablets and smartphones as part of its unique retail experience.

Some Apple watchers are describing the move as part of Apple Store 2.0, in which the vaunted personality of the company's pioneering stores gets an upgrade. One of the biggest upgrades is iPads instead of physical signs.

New Apple Store App

Instead of paper and other signs on product tables, the iPads are set in clear plastic casings with the home button turned off. The result is a multi-touch, flat kiosk-like display that presents the latest product information.

The iPad shows the company's products, each organized with more information. Categories under each product type offer details about features, comparison to other products, support and other areas.

Features indicates key selling points, such as a FaceTime camera. The compare function offers a side-by-side list of all models of that product. The New to Mac category provides information useful to customers who haven't purchased an Apple computer, and Support explains about the store's unique services, such as the Genius Bar. A Specialist button allows a user to call for help from store staff through a waiting-list queue similar to how customers line up to for Genius Bar help.

Wish you could use your iPhone or iPod touch instead of the iPad to get help and info in an Apple Store?

An updated version 1.3 of the Apple Store app now lets you sign up for the next appointment at the Genius Bar, see when the next in-store workshop is happening, or tap a button to request help from a live staff person in the store.

An Indispensable Aid

When you're not physically in the store but have a craving to get a new Mac, the updated app can also build your own customized Mac, which you previously could also do through a web browser.

As a key driver in the world of mobile devices and their uses, Apple is undoubtedly aware of the growing role that mobile devices, especially smartphones, are playing for retail sales.

A recent survey by independent marketing firm Ipsos OTX for Google released in April asked 5,013 U.S. adult smartphone users through the end of last year about their mobile habits in relation to ads, shopping and searching.

The survey found that smartphones have quickly become an indispensable aid to actually making a purchase. Seventy-nine percent of smartphone consumers use their devices while in a store -- to compare prices, find more product info, or locate another store. Nearly as many, 74 percent, use it to make a purchase online or in the store.

Lady Gaga album demand overwhelms Amazon servers (AP)

Posted: 23 May 2011 08:20 PM PDT

– 39 mins ago

SAN FRANCISCO – Much like the caller in the Lady Gaga hit song "Telephone," some visitors to Amazon's site received a busy signal Monday when they tried to download the digital version of the artist's latest album, "Born This Way," which the online retailer was selling for 99 cents on its release date.

Spokeswoman Sally Fouts said Amazon experienced a high volume of traffic that caused delays for those downloading the album — echoing a posting on the album's product page on Amazon.com. Customers who ordered the MP3 version of "Born This Way" on Monday will get it for 99 cents, she said.

An early evening attempt to buy the album on Amazon and use its new server-based storage system went seamlessly. The album appeared instantly on Amazon Cloud Drive and could be streamed online right away. The album downloaded in a few minutes to a computer. The user's storage space also registered the promotional 20 gigabytes of cloud storage that came with the album.

Lady Gaga, whose real name is Stefani Germanotta, is known for her pop music and outre fashion sense.

Customer reviews gave the album an average three out of five stars.

Apple investors brush off China blast impact (Reuters)

Posted: 23 May 2011 04:33 PM PDT

By Poornima Gupta and Clare Jim Poornima Gupta And Clare Jim – Mon May 23, 7:33 pm ET

SAN FRANCISCO/TAIPEI (Reuters) – Shares of Apple Inc regrouped on Monday after Wall Street brushed off the impact of an explosion last week that shut a Foxconn factory in China producing its popular iPad.

Production at the plant in the southwestern city of Chengdu was suspended by Foxconn Technology Group, Apple's biggest manufacturing partner, after three workers died in a Friday blast blamed on combustible dust in a duct.

The incident stoked fears that production of the seminal tablet -- already constrained by shortages of components and rabid demand -- would again be disrupted.

But the impact should be minimal because of Foxconn's ability to rapidly shift output elsewhere in its sprawling network, coupled with Apple's relying mainly on other locations, investors and analysts said.

Shares in the world's largest technology company by market value closed down 0.24 percent at $334.40, after slipping as much as 1.7 percent in morning trading.

"This seems to be a manageable situation," said Channing Smith, Managing Director at Capital Advisors Growth Fund, which owns Apple shares.

"The evidence of that is in the share price today."

Foxconn -- whose main listed flagship is Hon Hai Precision Industry -- plans to resume operation at the plant after it completes an investigation. No timeframe was given.

Market research firm IHS iSuppli forecast that production of half a million iPads could be at risk if the shutdown continues until the end of June.

Foxconn's plant in Shenzhen, which is seen as the main assembly plant for the iPad 2, may not be able to make up for the production loss at Chengdu, iSuppli said, which expects 7.4 million iPad 2s to be shipped in the second quarter.

The Shenzhen plant has the capacity to produce 7.5 million units during the quarter and so tablet shipments could fall short of expected levels -- which are slightly higher than forecast to account for damages and higher demand -- by between 300,000 and 600,000 units, the research firm said.

Apple sold 4.69 million iPads last quarter and is scrambling to meet staggering demand, coping with what company executives have called "the mother of all backlogs." Some analysts predict more than 6 million could ship this quarter.

There remains a 1- to 2-week waiting period for iPads in most major regions. Production had been expected to ramp up during the present quarter to meet demand with the Chengdu plant seen as a newer base for the assembly.

Stern Agee analyst Shaw Wu played down the impact on Apple. saying even at the Chengdu location itself, production was spread out among assembly lines in several unaffected buildings.

"This is definitely a setback," Wu said. "At the same time, it's not that big a deal."

HON HAI SHARES FALL

While the impact on Apple is deemed minimal, investors in Hon Hai were worried about the fallout of the blast on the electronics supplier.

The incident marked the latest worker deaths at Foxconn, which last year grappled with a barrage of criticism after a spate of suicides tore the lid off what some called dismal conditions for its mostly migrant labor population.

A potential loss of orders from Apple could amp up the pressure on Hon Hai, which is already facing rising costs.

Shares of Hon Hai in Taipei closed nearly 3 percent lower on fears Apple may shift orders to its rivals. They had dived as much as 5.2 percent following the news of the blast, to their lowest since late August.

"Foxconn Group makes 70-80 percent of Apple's parts, and Apple may reconsider concentrating production with one contract maker," said Hua Nan Securities Chairman David Chu. "This could hurt Hon Hai in the long run."

But the brokerage said the explosion happened in a machinery room for cutting metal and, given that no assembly line or inventory was involved, the blast was unlikely to cause any meaningful production disruption.

Hon Hai said Monday the company was assessing the damage and local authorities were investigating the explosion. The plant would resume operation once the investigation finished, it added in a stock exchange filing.

"A majority of iPad2 production is still done in Shenzhen, and that even if the whole Chengdu iPad2 production line is damaged, the impact should be less than 20 percent of iPad total production," UBS said in a research report.

The Chengdu facility was set up late last year in an effort to lower labor costs which are cheaper in the inland areas.

Chengdu city government has said last October that Foxconn Technology Group would invest $2 billion on a new plant in Chengdu.

Many manufacturers, including PC contract maker Quanta Computer Inc and Compal Electronics Inc, have also been moving operations in China away from coastal regions such as Guangdong and Fujian to inland areas.

(Additional reporting by Faith Hung and Argin Chang; Editing by Edwin Chan, Lincoln Feast, Bernard Orr and Sofina Mirza-Reid)

Feds seek to derail H&R Block's deal for TaxACT (AP)

Posted: 23 May 2011 03:17 PM PDT

By MARK JEWELL, AP Personal Finance Writer Mark Jewell, Ap Personal Finance Writer – Mon May 23, 6:17 pm ET

BOSTON – The Department of Justice is trying to halt H&R Block's plans to acquire the creator of TaxACT software, saying the deal would leave just two major competitors in the do-it-yourself tax preparation market.

The agency on Monday filed an antitrust lawsuit arguing that the transaction would eliminate a strong rival of H&R Block Inc. and Intuit Inc., maker of such programs as Quicken and TurboTax.

Regulators say those two companies and TaxACT account for 90 percent of tax preparation software sales, with H&R Block and TaxACT second and third behind Intuit.

"TaxACT is an aggressive competitor in the market, and is feared" by the other two companies, Christine Varney, an assistant attorney general, told reporters on a conference call.

H&R Block Inc. announced plans in October to pay $287.5 million in cash to acquire 2SS Holdings Inc., the parent of 2nd Story Software, the privately held company that created TaxACT. H&R Block said it would combine its H&R Block At Home digital business and the TaxACT business into a single unit led by TaxACT management, but will continue to sell both brands.

The Justice Department says the deal would create an opportunity for H&R Block to coordinate with Intuit, based in Mountain View, Calif., on prices, quality and other business decisions.

William Cobb, president and CEO of H&R Block, said in a statement that the Justice Department "made a determination to stifle smart business growth" and rejected guarantees that H&R Block would not raise TaxACT's prices.

He said the proposed acquisition "makes sense, is pro-competitive and will greatly benefit consumers."

A spokeswoman for 2nd Story Software, based in Cedar Rapids, Iowa, declined to comment.

As many as 40 million taxpayers use digital software products to file taxes, either through the provider's website, or loaded onto a taxpayer's computer.

The Justice Department's complaint includes statements from H&R Block presentations and emails that the agency says show that the company believed the elimination of a competitor would be a primary benefit of the deal.

Varney called TaxACT an industry "maverick" that has disrupted the market. For example, TaxACT was the first company to offer all taxpayers the ability to prepare and electronically file their federal individual tax returns for free directly from its website.

"Due to that competition, H&R Block felt significant pressure to offer a free product to consumers," Varney said.

TaxACT was launched in 1998. The company says its online business has assisted with more than 19 million electronically filed federal returns since 2000, including more than 5 million filers in the 2010 filing season.

H&R Block, based in Kansas City, Mo., is the nation's largest tax preparer, but has faced growing competition in digital tax preparation. For example, in 2010, its customers filed about 5.9 million digital returns, including about 2.2 million using its off-the-shelf software and about 2.9 million online. That was up a marginal 0.4 percent from 2009, while Intuit reported 10 percent growth for TurboTax.

H&R Block has reported stronger growth this year. Filings using its software and completed online were up nearly 15 percent through April 18, compared with the total at that date in 2010. H&R Block also said on April 26 that it was gaining market share in its retail and digital businesses.

The company also announced that day that Cobb, a board member and former eBay executive, would become its new president and CEO, replacing Alan Bennett.

When H&R Block announced the acquisition, it said it expected the TaxACT business would add 5 cents to its earnings per share in the fiscal year ended April 30, 2011. The projection was based on the deal receiving required regulatory approval and closing at the end of last year.

When the deal was announced, Bennett said the transaction would provide H&R Block "with innovative growth-oriented leadership to accelerate our digital tax offerings and results."

Shares of H&R Block fell 7 cents to close at $16.26.

Shares of Intuit fell more sharply, losing $2.05, or 3.7 percent, to $52.93.

IBM passes Microsoft's market cap after 15 years (Reuters)

Posted: 23 May 2011 04:00 PM PDT

By Bill Rigby Bill Rigby – Mon May 23, 7:00 pm ET

SEATTLE (Reuters) – International Business Machines edged past old rival Microsoft Corp in market value for the first time since April 1996, marking the latest twist in the fluctuating fortunes of two of the world's most storied technology companies.

The move marks another unhappy milestone for Microsoft, which has failed to persuade investors that it can dominate the future of technology as it did in the past, and has seen its share price stagnate over the past decade.

An investor putting $100,000 into both stocks 10 years ago would now have about $143,000 in IBM stock and about $69,000 in Microsoft stock.

Microsoft is now the third-largest U.S. tech company by market value, after a resurgent Apple Inc roared past a year ago to take first place.

IBM ruled the computer industry for decades until it hired the tiny, unknown Microsoft to provide an operating system for its new range of personal computers in the early 1980s.

Bill Gates parlayed that breakthrough into industry dominance -- proving his theory that software would be more valuable than hardware -- so that by the end of 1999, Microsoft's market value was three times that of IBM's, and bigger than any other U.S. company.

Throughout Seattle-based Microsoft's rise, IBM was pilloried as an old-fashioned, immobile Goliath that could not keep up with the computing revolution. The Armonk, New York-based company known as "Big Blue" was losing billions of dollars a year in the early 1990s and was close to a break-up before a turnaround engineered by CEO Louis Gerstner.

Since the Internet technology bubble burst in 2000, the tables have been reversed. Despite more than doubling sales and profit in the last 10 years, Microsoft's stock has stalled, leading to criticism of CEO Steve Ballmer's 11 years at the helm.

Although it still dominates the operating system market, Microsoft lost out to Google Inc in the new market for Internet advertising, let Apple lead the way in smartphones and tablet computing, and is struggling to make an imprint on the popular web in the way of Facebook or Twitter.

In the meantime, IBM has refashioned itself as a specialist in business software, servers and consulting, jettisoning its PC business along the way, under the leadership of Sam Palmisano since 2002.

According to Reuters data, Apple's market value stood at $309.2 billion on Monday, IBM at $203.8 billion and Microsoft at $203.7 billion.

IBM is now ranked fourth in terms of market value in the United States, behind oil giant Exxon Mobil Corp at $397.4 billion, Apple, and industrial and finance conglomerate General Electric Co at $205.6 billion.

IBM shares ended down 1.1 percent at $168.26 while Microsoft fell 1.3 percent to $24.17.

(Additional reporting by David Gaffen and Rodrigo Campos in New York; Editing by Phil Berlowitz and Tim Dobbyn)
at 9:29 PM

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