Weekly Tech Business Recap: Eastman Kodak Flops, Google Earnings
Western Digital (NYSE:WD) was hit hard by the Thai floods, but output levels for the two factories in the country are expected to return to pre-flood output levels by September. One plant restarted production in November and the other is due to resume operations in March.
Amazon (NASDAQ:AMZN) company Zappos (an online shoe store) was the target of hackers. The names, addresses, phone numbers and the last four digits of credit cards from around 24 million customer accounts were hacked. Electronic commerce sites need to maintain transparency and user trust, even as they are targeted by hackers, as this incident shows.
Investing Insights: Apple Analyst Conservative, Google Shares Positive, eBay Estimates Strong.
Advanced Micro Devices, Inc. (NYSE:AMD) appears to be following Intel Corporation’s (NASDAQ:INTC) lead once again: the chipmaker will reportedly respond to Intel’s much-hyped ultra book initiative by rolling out its own ultrabook-type platform, called Ultrathin. The new platform will be rolled out in May. AMD claims Ultrathin systems, which will be based on its upcoming Trinity processors will cost $100-$200 less than those currently available.
MEMC Electronic (NYSE:WFR) issued downward guidance for fourth quarter earnings per share and revenues. CEO Ahmad Chatila said, “We responded to the continuing cyclical downturn in the semiconductor industry and the severe market disruption in the solar market by taking decisive action through a significant restructuring.”
Google (NASDAQ:GOOG) is being investigated for misuse of its market position. The European Union Competition Commissioner Joaquin Almunia will decide at the end of March whether to file a formal complaint against GOOG, which would be earlier than expected. It faces a fine of up to 10% of its annual turnover if found guilty.
Broadcom (NASDAQ:BRCM), a leader in both Wi-Fi and video processing chip markets, is hoping its products are found in many “smart-TV’s” and other web-enabled home entertainment devices. So is Qualcomm (NASDAQ:QCOM), which acquired Wi-Fi chip specialist Atheros last year. In-Stat expects the number of in-home devices with built-in Wi-Fi to approach 600 million in 2012.
Nokia (NYSE:NOK) faces pressure to lower the cost of its next smartphone in the United Kingdom in order to help boost sales. The Lumia is seen as needing a push to gain consumer interest after sales of the first Windows offering from the fell flat in Europe.
Adtran (NASDAQ:ADTN) a Telecom equipment maker jumps up after reporting fourth quarter revenue of $175.3 million (up 6% year-over-year) and earnings per share of $0.48. It beat consensus by $0.6 million and $0.01. Strong growth in Broadband Access and Internetworking revenue offset declining legacy product sales. Adtran guided for flat quarter-over-quarter revenue growth, during its earnings call this morning.
Sprint (NYSE:S) tells MSNBC that the firm is removing controversial Carrier IQ software from all of its phones through over-the-air updates. The move follows an acknowledgement and fall-out from the unveiling a tech researcher gave that Carrier’s software can track user activity.
Eastman Kodak (NYSE:EK) fell a whopping 29.7% to trade at $0.39 per share. The word got out the firm is bankrupt. EK was the 10th largest company in the United States by market cap in 1984.
Cypress Semiconductor (NASDAQ:CY) expands its patent infringement complaint against GSI Technology (NASDAQ:GSIT) to include more products. A settlement has been reached in the same case with Alcatel-Lucent.
China’s ZTE became the world’s number four phone manufacturer in the third quarter. It says that it pays a license fee of 15-20 pounds ($23-$31) to Microsoft (NASDAQ:MSFT) for each Windows Phone device it ships. Google (NASDAQ:GOOG) provides Android shipments for free.
F5 Networks (NASDAQ:FFIV) experienced strong sales of its Viprion 2400 mid-range switch. It helped it beat first quarter estimates and deliver a solid fiscal second quarter guidance. Bank of America was so impressed with the performance that in the face of macro and seasonal weakness, it upgraded FFIV to Buy.
Zillow (NASDAQ:Z) announces Neighborhood Advice. It is a service to allow users to tap into the knowledge from Facebook friends who have familiarity with neighborhoods in which they are looking at homes. Zillow attempted this once before, but without the power of Facebook. Now the feature may be more visible.
eBay (NASDAQ:EBAY) CEO John Donahoe gives information at an earnings Conference Call on some of the firm’s online metrics for the holiday season. It recorded up to 10,000 transactions per minute on Cyber Monday. It was its biggest mobile payday ever with consumers spending $180 per second through eBay apps over the holiday season.
Don’t Miss: eBay CEO Reports Record Holiday Numbers.
WebMD (NASDAQ:WBMD) filed a Securities Exchange Commission 8-K which sheds some light on the firm’s involvement with selling itself. The filing highlights that the firm regaled various offers in 2011 from private-equity firms but never received an official offer. The company also denied rumors that Softbank was knocking at its door.
Investing Insights: Google Inc. Earnings: Revenue Grows By Double-Digits For Fifth Straight Quarter.
Zynga (NASDAQ:ZNGA) jumped after confirming to All Things Digital that it’s in “active conversations” with possible partners as it contemplates diving into the online gambling market. As the future looks brighter for legalizing online poker, rumor has it that Zynga is in a prime position to capitalize since it already has 30 million monthly users playing its poker game for fun rather than money.
AsiaInfo-Linkage (NASDAQ:ASIA) shares skyrocket with a leap of 19.4 percent after the company announces it has received a going-private proposal from a subsidiary of CITIC Capital China Partners to purchase all ASIA outstanding common shares “at a price which represents a premium over the current stock price.”
New Yahoo (NASDAQ:YHOO) CEO Scott Thompson is getting ready to implement “across the board” layoffs, according to a source familiar with his plans. The source also says Thompson would rather increase margins than revenue. Based on 2011 estimates, Yahoo is generating an annual revenue of about $323,000 per employee, considerably less than the approximately $1.17 million per employee generated by Google (NASDAQ:GOOG).