Thursday 16 October 2014

eBay trims 2014 revenue outlook amid economic fears

eBay trims 2014 revenue outlook amid economic fears




EBay trimmed its full-year revenue forecast on Wednesday, signaling a weaker-than-expected holiday shopping season for the e-commerce company as it prepares to split from its fast-growing payments arm, PayPal. 

EBay's report comes as weak economic data from the United States and China fan fears of a global slowdown, forcing investors to re-examine the world economy only just emerging from one of the worst recessions in history. 

"We've gotten indications from some luxury retailers over the last couple of days that times have been more challenging," said Scott Kessler, equity analyst at S&P Capital IQ. 

"There are a lot of question marks when it comes to the sentiment on spending of consumers as we approach the holiday shopping season." 

EBay shares fell more than 3% in after-hours trading. 

US retail sales, which account for about one-third of consumer spending, recorded their first decline since January last month. 

Some analysts expressed concern over eBay's marketplaces division, which grew less than some forecast. 

Kessler added that eBay's notable exposure to Europe might have also played a role in depressing its outlook. 

EBay earned 68 cents per share in the third quarter, in line with the average analyst estimate of 67 cents per share, according to Thomson Reuters. 

The results comes weeks after eBay announced it was spinning off its PayPal payments unit in 2015. 

EBay cut its full-year revenue outlook to between $17.85 billion and $17.95 billion from its previous range of $18 billion to $18.3 billion. 

The company also forecast fourth-quarter revenue of less than $5 billion, falling short of the $5.2 billion expected by Wall Street. EBay expects fourth-quarter earnings per share between 88 cents and 91 cents, while Wall Street expected 91 cents.

Apple 'powers' TSMC's record quarter

Apple 'powers' TSMC's record quarter





Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chip manufacturer, rode heavy demand from smartphone clients to a record net profit in the third quarter, handily beating market expectations. 

The company nabbed orders for the chips in the latest smartphones from Apple, according to industry watchers, which went on sale in September and are expected to be major contributors to TSMC's bottom line ahead of the year-end shopping season. 

This helped the semiconductor firm earn net profit of T$76.3 billion ($2.51 billion) in the July-September period, versus expectations of T$72.9 billion from 21 analysts polled by Thomson Reuters. 

It also helped the company notch a 26% on-quarter rise in revenue from communication devices, even as computer-related revenue fell 6%.

TSMC had reported net profit of T$59.7 billion in the second quarter and T$52 billion in the same three months of 2013. 

Overall revenue of T$209 billion in the third quarter also hit a record, eclipsing the T$183 billion from the previous three months. 

Analysts estimate that direct Apple orders contribute about 6% of revenue for TSMC, which boasts more than twice the production capacity of chief adversary Samsung Electronics. This makes it an attractive choice for the Silicon Valley powerhouse, which also competes against Samsung in smartphones. 

Other TSMC clients such as Qualcomm and Broadcom supply Apple as well, and Yuanta Securities analyst George Chang estimates that such second-hand orders contribute as much as another 15% to TSMC sales. 

Qualcomm rival MediaTek, whose chipsets are popular among low-cost smartphone vendors in emerging markets such as China, also counts TSMC as its main foundry partner, according to MediaTek CFO David Ku. 

TSMC shares closed flat ahead of the earnings release, versus a 0.25% fall in the broader TAIEX index.

Telecom subscriber base crosses 95 crore mark

Telecom subscriber base crosses 95 crore mark



Telecom subscriber base crossed the 95-crore mark in August, after a gap of more than two years, on the back of higher mobile users whose number touched 92.43 crore. 

"The number of telephone subscribers in India increased from 946.4 million at the end of July, 2014 to 951.84 million at the end of August, 2014," Telecom Regulatory Authority of India said in a statement. 

It was in March 2012 when Indian telecom subscriber base breached 95-crore mark. 

Total wireless subscriber base, which includes both mobile and internet dongle connections, increased to 924.32 million in August from 91.87 crore at the end of July. 

Out of 92.43 crore mobile subscribers, 80.72 crore customers were found active in the reported month. 

Share of private telecom operators has reached over 90% while state-run companies BSNL and MTNL jointly accounted for 9.84% market. 

The landline services where telecom public sector unit dominate with 76.41% market share, declined to 2.75 crore at the end of August from 2.76 crore connections in July with BSNL being biggest loser. 

BSNL lost over 1.66 lakh landline customers during the reported month while MTNL gained most by adding over 9,000 landline customers. 

In mobile phone service segment, Idea Cellular led the market in terms net addition of new subscriber. The company's net subscriber addition was over 17 lakh in the reported month, taking its total subscriber base to 14.18 crore from 14.01 crore in previous month. 

Vodafone and Aircel followed Idea by with net additions of over 12 lakh and 9 lakh new customers. Telecom major Airtel's net addition stood at 7.69 lakh in August. 

New telecom operator Uninor, which has operation in six circles out of 22 service areas, closely followed Airtel with a net addition of 7.06 lakh subscribers. 

Tata Teleservices, Reliance Communications and Videocon's net subscriber additions were 4.61 lakh, 2.94 lakh and 2.22 lakh new subscribers during the reported month. CDMA operator MTS and state-run MTNL added 16,740 and 9,962 customers in August. 

BSNL lost some mobile subscribers as well. The PSU's net subscriber loss during the month was over 50,000. 

Loop Mobile, whose licences are going to expire in November, lost over 2.35 lakh customers. The company was left with 17.26 lakh customers in August. 

The number of number of broadband subscribers increased to 7.43 crore at the end of August from 7 crore at the end of July 2014.





FBI warns businesses of China-backed cyberattacks

FBI warns businesses of China-backed cyberattacks
The US Federal Bureau of Investigation has said that hackers it believes to be backed by the Chinese government have recently launched attacks on US companies.

The US Federal Bureau of Investigation said on Wednesday that hackers it believes to be backed by the Chinese government have recently launched attacks on US companies. 

The 'flash' warning to businesses described tools and techniques used by the hackers and asked companies to contact federal authorities if they believe they are the victims of such attacks. 

The document said the agency recently obtained information regarding "a group of Chinese government affiliated cyber actors who routinely steal high-value information from US commercial and government networks through cyber espionage." 

FBI spokesman Josh Campbell confirmed via email that the FBI had released the document, which was obtained by Reuters and described specific mitigation steps that companies should take following attacks. 

"The FBI has recently observed online intrusions that we attribute to Chinese government affiliated actors," he said. "Private sector security firms have also identified similar intrusions and have released defensive information related to those intrusions." 

The Chinese embassy in Washington fired back by asking "the US side to stop this kind of unfounded accusation," echoing past responses to US allegations of government-backed cyber security breaches. 

"I'm not aware of the investigation by the US FBI," Chinese embassy spokesman Geng Shuang said. "Judging from past experience, conclusions of this kind of investigations are usually lacking in provable facts and hard evidence.
"

Google tests waters for ultra-fast wireless service


Google tests waters for ultra-fast wireless service

Google is preparing to test new technology that may provide the foundation for a wireless version of its high-speed 'Fiber' internet service.
Google is preparing to test new technology that may provide the foundation for a wireless version of its high-speed 'Fiber' internet service, according to telecommunication experts who scrutinized the company's regulatory filings. 

In a public but little-noticed application with the US Federal Communications Commission on Monday, Google asked the agency for permission to conduct tests in California across different wireless spectrums, including a rarely-used millimeter-wave frequency capable of transmitting large amounts of data. 

It is unclear from the heavily redacted filing what exactly Google intends to do, but it does signal the internet giant's broader ambition of controlling internet connectivity. The technology it seeks to test could form the basis of a wireless connection that can be broadcast to homes, obviating the need for an actual ground cable or fiber connection, experts say. 

By beaming internet services directly into homes, Google would open a new path now thoroughly dominated by Verizon, AT&T, Comcast and other entrenched cable and broadband providers. It could potentially offer a quicker and cheaper way to deliver high-speed internet service, a potential threat to the cable-telecoms oligopoly, experts said. "From a radio standpoint it's the closest thing to fiber there is," said Stephen Crowley, a wireless engineer and consultant who monitors FCC filings, noting that millimeter frequencies can transmit data over short distances at speeds of several gigabits per second. 

"You could look at it as a possible wireless extension of their Google Fiber wireless network, as a way to more economically serve homes. Put up a pole in a neighborhood, instead of having to run fiber to each home," said Crowley. 

Craig Barratt, the head of the Google Access and Energy division leading the effort to offer high-speed fiber networks in Kansas City and other locations, signed off as the authorized person submitting Google's FCC application. 

The world's No.1 internet search engine has expanded into providing consumers with services such as internet access. The company said it wants to roll out its high-speed internet service to more than 30 US cities, and in 2013 it struck a deal to provide free wireless internet access to 7,000 Starbucks cafes across America. 

Earlier this year, technology news website The Information reported that Google was exploring ways to offer a full-fledged wireless service, with voice and internet access, in markets where the company already offers its Fiber service. 

Google's application to conduct the 180-day test is heavily redacted to protect confidential information that Google said would provide "valuable insight into Google's technology innovations and potential business plans and strategy." 

The purpose of the test is so that Google can "expeditiously test radios in a way that is likely to contribute to the development, extension, expansion or utilization of the radio art," Google stated cryptically in one of the filings. 

Google declined to comment on the FCC filing. 

Could be just basic research 

Wireless experts noted that the tests could simply be basic research that does not ultimately lead to new products or services. In the past, Google has submitted applications with the FCC to test wireless communications. 

The latest test, which Google hopes to begin on November 13, will include three sites in the San Francisco Bay Area, including one in San Mateo county and two locations a half-mile apart which appear to be on Google's Mountain View, California campus. Google said the effort will use radio transmitters operating in the 5.8GHz frequency, the 24.2GHz frequency and in the millimeter wave bands of 71-76GHz and 81-86GHz, according to the application. 

Millimeter wave frequencies work best over short distances, such as a few city blocks, and require a direct line-of-sight connection to a receiver. But multiple such devices placed next to each other, atop buildings could provide an alternative to in-the-ground fiber cables used for shuttling data throughout a city as well as for delivering internet access directly to residences, theorized several wireless experts. 

"This could be anything from something relatively small scale, like a way to supplement their existing fiber system to something like how to put a wireless cloud around your city that leverages your fiber backbone," said Harold Feld, a senior vice president at Public Knowledge, a non-profit that focuses on broadband access and competition issues and which receives funding from tech companies including Google. 

The FCC is scheduled to hold a meeting on Friday about the use of wireless spectrum above 24GHz for mobile services, including ways the agency can facilitate the development and deployment of technology using such frequencies. 

Google noted that the tests are for narrow-bandwidth transmissions. According to Crowley, the application suggests that Google will not be transmitting data over the networks, but sending simple pings between locations to gauge how the signals travel over distances and in different terrains. 

Google appears to be trying to get ahead of the competition in understanding the potential to use the millimeter frequencies now being discussed by the FCC, said Public Knowledge's Feld. 

"If they can pull it off, they will have a potentially very innovative next-generation delivery system," he said
.

Disqus Shortname

Comments system