Intel fails to meet targets

Intel, the world's largest chip maker, said slower sales of desktop computers and weaker prices led it to miss its revenue target for the fourth quarter, causing the stock to decline more than 9 percent.

The New York Times reports (18 January) that the disappointing earnings report made for a rocky start to the year, coming as Yahoo also missed targets on Tuesday, causing technology stocks to decline across the board. IBM's shares, however, managed to hold steady in after-hours trading, as that company reported solid profit growth for the quarter.

According to the newspaper, Intel, a bellwether for the technology industries, reported revenue of US$10.2 billion for the fourth quarter, up from US$9.6 billion in the quarter in 2004, a 6 percent increase.

Revenue fell US$200 million short of the low end of the company's own forecast, issued less than a month ago. Company executives insisted that December, which is traditionally strong for chip sales, was a weak end to an otherwise strong year for Intel.

Intel said the sluggish sales in the quarter were the result of a shortage of chipsets, components that work with microprocessors. Some of the chipsets come from outside suppliers. He said "2005 was a great year punctuated by a difficult December."

The NYT says that Intel has been facing intense competition from Advanced Micro Devices, which reports its fourth-quarter results this week. Mr. Bryant said Intel had probably lost about a percentage point of market share in the fourth quarter.

But Paul S. Otellini, Intel's chief executive, told analysts that he felt Intel would regain market share as the company ramped up its dual-core processor line this year.

"We will be able to retake share in 2006," Mr. Otellini said. "We're starting out in more of a hole than we had thought."

The NYT reported that Intel's net profit was US$2.45 billion, or 40 cents a share, for the quarter, up 16 percent, compared with a profit of US$2.12 billion, or 33 cents a share, in the period in 2004.

{mospagebreaktitle=Corel debuts revamped WordPerfect office software}Corel debuts revamped WordPerfect office software

Corel launched a new version of its budget WordPerfect Office software package this week, with the Canadian software maker saying it is a cheaper alternative to Microsoft's Office software.

Reuters reports in The New York Times that Ottawa-based Corel said its new WordPerfect Office X3 includes the ability to import and export documents, spreadsheets and presentations to the Portable Document Files (PDF) format, as well as revamped e-mail features.

According to Reuters, privately held Corel's WordPerfect is one of a few programs that compete against Microsoft in the Office application-suite market for PCs running the software giant's Windows operating system. Sun Microsystems offers a product called StarOffice.

Corel said its WordPerfect Office X3 costs between US$79 and US$399. Microsoft, the world's largest software maker, offers its Office programs from around US$150 to more than US$500.

Reuters says that Microsoft held a US$135 million investment in Corel, which it sold in 2003 at a deep loss, before the Canadian company was bought by venture capital firm Vector Capital.

{mospagebreaktitle=Yahoo's profit surges, but stock falls}Yahoo's profit surges, but stock falls

Yahoo has just announced that its profit rose 80 percent in the fourth quarter, but after deducting several special items, it fell short of Wall Street's expectations. Moreover, Yahoo, which runs the world's largest internet portal, predicted slower revenue growth in the year ahead, with reduced profit margins.

The New York Times reports (18 January) that as a result, Yahoo's shares fell nearly 13 percent, to US$34.96, as traders digested the results, announced after the regular market session. (Shares of its main rival, Google, fell as well, dropping to US$449.20, down almost 4 percent, in after-hours trading.)

The newspaper reports that in forecasting a slowdown in growth, the company said it would have to give other web sites a greater share of the money it took in from selling ads on their sites.

The NYT says that Yahoo faces vigorous competition in this area from Google, the leader in internet advertising sales, and Microsoft, which is entering the area. Microsoft, in fact, had used Yahoo to sell search-related advertising on its MSN service, but is shifting to its own system. As a result, Yahoo, which earned US$75 million selling ads on MSN last year, expects only US$25 million from Microsoft this year as the deal runs out.

Moreover, comments the newspaper,Yahoo has been forced to compete with Google, which it admits has better technology for selecting ads to place on a given web page that will lure users to click on them. Since search advertisers pay only for an ad that gets a click, Google can earn significantly more money for each page than Yahoo does. So Yahoo has to make up the difference with web site owners to win their business.

Yahoo said that it had developed new technology to increase its search revenue, but that it would introduce it slowly over the coming year.

The newspaper reports that Terry S. Semel, chief executive of Yahoo, said profit was depressed in the fourth quarter by several small factors, including a few acquisitions and the sale of its Chinese operation to Alibaba, a company in which it has a partial stake.

For the fourth quarter, Yahoo reported profit of US$683 million, or 46 cents a share. Those results were increased by us$436.6 million in unusual items, mainly related to a gain on its investment in its Chinese operation and a tax benefit.

The NYT reported that the company's revenue was US$1.5 billion in the quarter, up 39 percent.

{mospagebreaktitle=IBM results win approval from investors}IBM results win approval from investors

IBM has reported that it had solid profit growth in the fourth quarter, as the company's aggressive cost-cutting continued to bear fruit. Profit grew 13 percent for the quarter, despite fairly tepid sales growth, easily surpassing Wall Street estimates.

The New York Times reports (18 January) that because IBM is the largest information technology company in the world, its earnings are closely monitored by investors, especially now, when many market analysts have been counting on strong results from large corporations to propel the stock market upward this year.

According to the newspaper, the respectable results cap an eventful year for IBM. In the last year, the company exited its personal computer business, laid off 14,500 employees and made a substantial break with its paternalistic past by announcing that it would freeze pension benefits beginning in 2008 and offer only a 401(k) retirement plan in the future.

The NYT reports that the company's revenue growth continued to hinge on its large servicing business, which accounts for one-half of its total sales. While margins improved, sales remained sluggish, down 4.9 percent for the quarter, though they were up 2 percent for the year. IBM faces competition from domestic services providers like Hewlett-Packard and Accenture, as well as companies based in India like Wipro and Infosys, reports the newspaper.

{mospagebreaktitle=Google buying radio advertising company}Google buying radio advertising company

Web search company Google has announced that it has agreed to pay US$102 million for radio advertising firm dMarc Broadcasting, in a deal that could eventually be worth up to US$1.24 billion.

Reuters reports in The New York Times (18 January) that privately held dMarc of California connects advertisers to radio stations through an automated advertising system, simplifying the process of selling, scheduling and delivering ads, said Google.

``This is the first major 'public' statement that Google intends to be a kind of one-stop shop for its advertisers,'' analyst Greg Sterling of Kelsey Group wrote on his Web log.

Reuters quotes the analysts as saying that the move into radio ad-buying could be followed by expansion into the television ad-buying market by the world's leading provider of web search-based online advertising.

Google said it agreed to an up-front cash payment of US$102 million and additional payments totaling up to US$1.14 billion over the next three years. The additional payments would depend on revenue and ad inventory goals being met.

Reuters reports that Google said dMarc technology would be integrated into the Google AdWords business to create a new radio ad distribution channel for Google advertisers.

{mospagebreaktitle=Cingular to sell phone with Microsoft software}Cingular to sell phone with Microsoft software

In the US., Cingular Wireless, the No. 1 US cellphone service provider, has this week said it would begin selling a mobile phone running the latest Microsoft software for mobile phones.

Reuters reports in The New York Times (18 January) that the Cingular-branded 2125 Smartphone, made by High Tech Computer, will go on sale for US$199. Cingular, a venture of AT&T and BellSouth, is aiming the phone at both business and consumer customers, a spokesman said.

According to Reuters, it will be the US first phone based on Microsoft Windows Mobile 5.0 software that has a typical cellphone dial pad instead of a tiny computer-style keyboard.

Palm and UTStarcom already sell phones in the United States using Windows Mobile 5.0 but these are aimed mostly at business customers and have small computer-like keyboards.

The Reuters report says that in the first half of the year Microsoft plans to provide a software upgrade that will let the phone automatically deliver e-mails from Microsoft's office e-mail system, potentially helping it compete better with Research In Motion.

{mospagebreaktitle=Suspect in US spam case pleads guilty}Suspect in US spam case pleads guilty

The main defendant in the first US prosecution under a 2004 federal anti-spam law pleaded guilty on Tuesday to three felony charges, federal prosecutors said.

The Associated Press reports in the New York Times (18 January) that Daniel J. Lin, 30, of West Bloomfield Township faces nearly five years in prison and a fine of up to US$250,000, the US Attorney's Office in Detroit said.

The AP report says that two of the counts are fraud charges involving millions of unsolicited spam e-mails sent to computer users. The other is possession of a firearm by a felon, for guns discovered when authorities raided Lin's suburban Detroit home.

He is scheduled to be sentenced 16 May in US. District Court.

{mospagebreaktitle=Third XP Service Pack slips}Third XP Service Pack slips

Microsoft is planning its third Windows XP Service Pack (SP) for release in 2007, three years after the last SP, in order to concentrate engineering resources on Windows Vista.

The Register reports (18 January) that the company has set a preliminary release date of the second-half of 2007 for SP 3, for use with Windows XP Home and Professional editions, meaning that the pack will ship after the release of Windows Vista, which is due in the second-half of 2006.

According to the publication, previously, Microsoft chief executive Steve Ballmer, speaking at last year's National Security Day Sweden event, reportedly said Microsoft might ship SP 3 before Longhorn - the well-worn codename given to Windows Vista until last year.

Microsoft reportedly said Tuesday it was making the change to prioritise Windows Vista.

The Register says that the company last released an SP for Windows XP in 2004. SP 2 was an all-encompassing response to surging spam, phising and worms that saw Microsoft introduce a so-called security center to improve the firewall and ensure a PC's virus protection is up-to-date and a pop-up blocker for Internet Explorer, reports the publication.

{mospagebreaktitle=Consumer group calls for anti-DRM laws}Consumer group calls for anti-DRM laws

A UK-based consumer rights group has called for MPs to introduce new laws to ensure consumers' rights to use digital content are protected.
The Register reports (18 January) that the use of digital rights management technology on CDs, DVDs and music downloads to control or restrict the use of copyrighted digital works shows that the current regime of self-regulation is failing to protect consumers' rights, according to the National Consumer Council (NCC).

The report says that in a submission to an All Party Internet Group (APIG) inquiry into the subject, the NCC highlights the controversial use of rootkit-style DRM technology by Sony/BMG in arguing that industry can't be trusted to act alone.

{mospagebreaktitle=Developers asked to register interest in Windows IM beta test}Developers asked to register interest in Windows IM beta test

Developers eager to join Microsoft Windows Messenger beta program can now register their interest online.

The Register reports (18 January) that Microsoft is asking punters to submit their email address to receive an invitation to participate in tests for the so-called Windows Live Messenger, when space becomes available in the beta program.

{mospagebreaktitle=Fox tv takes time on new distribution outlets}Fox tv takes time on new distribution outlets

The News Corporation owned Fox television is taking a more cautious approach than rival networks in making its most popular TV shows available for new distribution outlets like video-on-demand and digital downloads, a top executive has said.

Reuters reports in The New York Times (18 January) that Fox Entertainment President Peter Liguori said during a presentation to TV critics the company was taking a more measured approach to what works and would not work.

Liguori said the network, home to hits like talent contest ``American Idol'' and espionage thriller ``24,'' gets approached all the time by various companies regarding new distribution options.

Reuters says that on-demand viewing -- enabling audiences to order up shows when they feel like watching instead of according to a preset program schedule -- has been commonplace on pay-cable networks for some time.

Walt Disney's ABC made a splash late last year when it began offering commercial-free internet downloads of its biggest hits, ``Lost'' and ``Desperate Housewives,'' for US$1.99 apiece from Apple Computer's iTunes music store.

According to Reuters, rivals CBS and NBC followed weeks later by making some of their hottest prime-time shows available for 99 cents an episode through ``on-demand'' services offered by cable giant Comcast and satellite broadcaster DirecTV Group. NBC has since added some of its shows to iTunes' television inventory.

The report adds that Fox already is experimenting with new distribution platforms under the aegis of its own corporate parent, such as Myspace.com, a social networking web site that is popular with young people and has proven helpful in promoting shows.

{mospagebreaktitle=PC game sales slide in 2005: group}PC game sales slide in 2005: group

Nearly 1 million copies of the top-seller ''World of Warcraft'' PC game in 2005 still wasn't enough to swing domestic retail sales of computer games from its slide to below US$1 billion, a research firm said Tuesday, reports The Associated Press in The New York Times.

The AP report says that as online gaming picked up in popularity, annual US retail sales of PC game software sank 14 percent to US$953 million last year, down from US$1.1 billion in 2004, according to data by the NPD Group.

Overall volume totaled 38 million units, a 19 percent decline from 47 million units the year before, NPD said.

AP says that the research group attributed the dwindling volume -- which reflects only games sold on CD-ROMs -- to increased game play through Web sites and subscriptions to massively multiplayer online, or MMO, games.

Following Vivendi Universal's top-selling ''World of Warcraft'' title, with more than 957,000 units sold last year, were Electronic Arts's ''The Sims 2: University Expansion Pack,'' with 574,000 units, and ''The Sims 2,'' with 559,000 units.

{mospagebreaktitle=E*Trade offers to reimburse victims of online fraud}E*Trade offers to reimburse victims of online fraud

In the US., E*Trade Financial has said that it would fully reimburse any customer who is the victim of fraudulent activity - the first online brokerage company to offer the kind of protection that users of credit and debit cards receive.

The New York Times reports (18 January) that while the announcement may be more of a sales pitch than a security protection given the token amounts of money lost to fraud, it may encourage E*Trade's competitors like Ameritrade and Charles Schwab to follow suit. The new policy is a major shift for the online brokerage industry, which typically puts the onus of security on the investor.

According to the newspaper, banks that issue credit cards have been required to bear the brunt of fraud losses since the US Congress passed a law limiting consumer liability to US$50 in the 1970's. Debit cards face somewhat more relaxed requirements; the consumer can be responsible for US$50 to as much as the entire amount stolen as well as any funds in linked accounts, depending on when the incident is reported. Today, however, most credit and debit cards come with "zero-liability protection," with the banks agreeing to cover the cost of fraud.

The Securities and Exchange Commission has warned against the threat of data theft and encourages investors to bolster the security of their financial accounts. It suggests using firewalls or installing anti-spyware, anti-virus, and anti-spam features. The SEC also encourages additional layers of protection, like hardware security tokens with encrypted personal information, reports the NYT.