Spence, RIM’s head of global sales and a 14-year company veteran, “will be taking on a leadership position in a different industry,” RIM said in an e-mail to AllThingsD. His last day will be June 15.

“The sales function will report directly into Kristian Tear, our newly appointed COO, when he starts this summer,” RIM said in a statement. “In the interim, the sales function will report to Thorsten Heins.”

Spence is the latest RIM executive to depart the company in recent months, following January’s appointment of Heins as CEO. In March the company announced the departures of software CTO David Yach and Chief Operating Officer Jim Rowan.

The company has also announced two key hires — Tear, and new marketing chief Frank Boulben.

It was, in a word, creepy.

WhosHere, another social discovery application used primarily for dating, is trying its hardest to fight that stereotype.

“We’ve put a tremendous amount of effort into not being creepy,” CEO and co-founder Bryant Harris told me. Users can fill out profiles however they wish, using a pseudonym or an avatar that isn’t a shot of their face. If two people are interested in one another, they can communicate via text or VoIP call within the app itself, without requiring phone numbers.

But there comes a point in e-dating where two people must take things to the next level. And texts and even phone calls can only tell a person so much.

In-app video chat, a feature that WhosHere is launching on Wednesday, is the next natural step for the app. It’s a way of moving forward in connecting with others without the peskiness of having to take the full leap of meeting in person. It’s also a way to verify someone is who they say they are before meeting in the flesh. After all, you never know who’s actually on the other end of a profile.

“Just like in the real world, you go through a progression of how you interact,” says COO Stephen Smith.

I’m not entirely convinced that the world is ready to move to dating via smartphone. But the app has garnered more than five million iOS installations since 2008, so at least some folks are smitten with the premise.

What was your favorite TV show as a kid?
Star Trek: Next Generation.

What qualities do you like in a person?
Conviction, Energy, Inventiveness.

What qualities do you dislike?
Indecisiveness, Dispassionate, Inertia.

Name one thing you will regret never having done (if you never do it).
Go on a sub-orbital space flight.

Do you still buy CDs or rent DVDs?
No, streaming all the way!

What would you be doing if you were not in your current job?
Dancing classical ballet.

What is your greatest achievement to date?
Building a platform that empowers people to do the things they love.

iPhone, Android or BlackBerry?
iPhone.

If you could meet any historical or fictional person, who would it be?
Neil Armstrong, Mikhail Baryshnikov and Amelia Earhart.

What site/app do you check first when you wake up?
Path.

What was the last thing you fixed?
I fixed myself a sandwich today ;)

What was your first computer?
The one my husband, Kevin, built for my family and me in high school.

What was your biggest mistake?
Making mistakes is part of building a company – the important thing is focusing on what you’ve learned from them.

Do you have a dog or cat or other pet?
The inspiration of TaskRabbit, my Yellow Lab, Kobe!

What’s your favorite mode of transportation?
My Honda Metropolitan 49cc Scooter!

What was the last book you read?
The Hunger Games trilogy.

If you could have any superpower, what would you choose?
Super speed!

Name your favorite guilty pleasure.
Tequila.

What do you drive/ride?
A Mini Cooper.

Who was your biggest influence growing up?
Sarah Sabatini, my high school math teacher.

But campaign-finance records suggest the industry no longer views Mr. Obama, who famously employed the Internet to mobilize supporters, with the same excitement — though he still outshines presumptive Republican nominee Mitt Romney.

Read the rest of this post on the original site »

I’m joining HP’s conference call a little late — there was a lot of news to get through in the press releases and regulatory filings. As I’m typing, CFO Cathie Lesjak is running through the financial results. But the all-important Q&A with analysts is still ahead.

1:54 pm: Lesjak is talking about the results in the personal systems group. Consumer revenues declined 4 percent, while commercial sales of PCs increased 3 percent.

Services delivered 11.4 percent of sales, which was down. IT outsourcing revenue was down 3 percent as “we are being more selective in the deals we pursue.”

Technology Services revenue was flat. Imaging and printing revenue was down 10 perecent and supplies revenue was down 12 percent.

Business Critical systems are down 23 percent year over year. Business continues to be impacted by continued revenue decline. That’s the Itanium lawsuit with Oracle hurting HP again.

Software revenue grew 22 percent to $907 million. Still too small to have a significant impact.

2:00 pm: Lead generation we are seeing across HP for Autonomy, but the company seems to be having a harder time closing deals on time.

Now on to the balance sheet: Our focus is to rebuild the balance sheet this year. We returned $350 million to shareholders via share repurchases. We also paid $251 million in dividend. $2.5 billion in operating cash flow and free cash flow of $1.5 billion. Total cash was $8.7 billion.

Lesjak is still speaking. She’s now getting into details on the restructuring. 9,000 employees will exit the company this year.

That amounts to about one third of the cuts to come this year.

We will be investing in technology and business processes. We expect to invest savings from headcount and non-headcount actions in a lot of things like cloud, software and services.

Non-GAAP fiscal EPS to be $4.05 to $4.10.

2:05 pm: Expect cash impact to be about $400 million in fiscal. Hm. This is interesting. HP is writing-down the value of the Compaq trade name it acquired in 2002. Does this mean the end of Compaq as a brand?

Here’s the Q&A. First from Katy Huberty of Morgan Stanley: Free cash flow, the second quarter numbers were strong: Where do you expect free cash flow to end this year?

Lesjak: We haven’t been guiding cash flow. The way to think about it long term is that it trends in line with non-GAAP earnings. In Fiscal 2012 we expect $400 million and through 2014 we expect it to be $2.7 billion.

Huberty: Do you have a view yet if share gaines in PCs were “sell out” or “sell in” after hard drive shortages?

Meg Whitman: We saw a good sell out in channel inventory. We feel pretty good in demand. We’ve struck the balance between design and the workhorse design that companies and governments need.

Bill Shope of Goldman Sachs: Can we return to mid-teens margins in IPG?

Whitman: We expect about 2 billion pages that will move from analog to digital. People at home are printing fewer photos, but we feel good about printing in the enterprise. As an industry leader we need to step up and act like one. We need to get pricing correct on ink and printers, and get the right product at the right time. In the enterprise we missed a cycle on multifunciton color printers. And we have to look at business models in emerging markets. If you price the printer a little higher and the ink a little lower, you can sell a lot more printers and print a lot more pages. I think we’ve got the past four years really clear now.

Lesjak: On supplies decline. The vast majority of the decline was due to channel inventories this quarter. We expect that to modulate going into Q3. The caveat is that demand continued to be fairly weak. We’d like to take the inventories down a little in Q3.

Shope: Question on margins?

Lesjak: Go back to what drove the margins. One was supplies mix. This was caused by channel inventory corrections, but also softer demand and lower margins. Finally something we are not calling for a change, its the strength of the yen in our Laserjet business.

Whitman: Joining forces of IPG and PC business is going very well. PSG had a broader footprint in emerging markets. We’re going to leverage that. These were different divisions that didn’t coordinate as well as they could have.

2:13 pm: Toni Sacconaghi from Sanford Bernstein: I know you stated several times that you expect savings to be reinvested. If we take that literally and say 40 percent will drop to the bottom line, is that the right framework we should be thinking about? Is that the envisions balance given that you used the adjective majority?

Whitman: We have a well defined amount we’re going to get from headcount reductions. But there are other things: We are not to the point where we can make a decision about how much of that we can reinvest. We want to take a disciplined approach and evaluate return on invested capital. For example, we may get a lot of these savings. We’re only going to reinvest on those opportunities that make sense for HP long term. We’ll give more guidance on this at the end of quarters three and four.

Toni: Your guidance. Even if you strip out the initial 5-10 cents from the guidance, it still implies a 30 percent Q3 to Q4 EPS growth, which is unprecedented. He’s basically trying to calibrate EPS expectations given the cuts.

Lesjak: The math we’ve done is that Q4 is in line with normal seasonality. We’re feeling like this is consistent with normal seasonality.

Toni: What are the offsetting forces?

Whitman: Overall we feel cautiously optimistic coming out of Q2. But we haven’t turned the corner. We are in the early stages of what we hope to achieve in the next few years.

We are in the early stages of a turnaround. They’re not linear. There may be a setback. And then we’re going through a lot of changes here. IPG and PSG are joined. There’s a lot of moving parts, but I don’t want to get out over my skis in terms of what we can deliver.

Lesjak is now talking about currencies. At the end of the day the currency we’re looking at right now is a headwind.

2:19 pm: Shannon Cross from Cross Research: Provide more color on how you are thinking of restructuring. Cuts across the board? Will there be any divestitures? More investments in back-office systems?

Whitman: Our restructuring is about three things. Align cost structure with the portfolio, (missed one thing), and then streamline operating model. Basically say, what do we want to focus on, how many people do we need to deliver. We came up with a bottoms-up approach to the cost savings we can achieve.

Then we have to make investments in the business. That includes back office tools and processes. We combined sales under John Hinshaw. We’ve put tools in. Once we do that you’ll see this company be a lot easier place to work.

Cross is asking about Autonomy. As we reported earlier: Mike Lynch is out.

Whitman: Autonomy delivered disappointing results. It’s not the product and its not competition. This is classic entrepreneurial company scaling issues. When you see a company scale like that it’s a whole different ball game. We need a new organizational structure to support a $1 billion+ company. This is something I’ve done before, having scaled eBay from $4 million to $8 billion, I’ve seen this movie before. I feel good about the product. I feel good about big data and analytics and it will hit all our business units.

2:23 pm: Brian Marshall of ISI: He’s asking about savings from cuts and how they will be reinvested. His question is breaking up a little in my audio.

Whitman: We’re looking toward organic innovation. We don’t see any major acquisitions on the horizon. There may be some tuck-in deals. The heritage of HP is a fantastic engineering culture.

We are going to increase the Research and Development budget considerably. We’re going to invest in product quality. We have good quality, but I think we can do better. And we’ve got some investment in internal systems.

Lesjak: We expect to save on an annualized run-rate $3 billion. It is from that pool of savings that we’ll be looking for reinvestment. That vast majority will be reinvested back into the business in places where we can grow.

2:27 pm: Question form Keith Bachman of BMO: First on services. You’ve ID’d that you want to take a number of people yet at the same time, there are areas in services especially where you need to nurture. How do you see headcount there?

Lesjak: What we’re doing is having a transition. It’s going from heavily weighted in slower growth to faster growing higher margin services. Cloud. Security, information management and analytics, and application modernizaiton. As we do that, it has headcount implications. We’ve modeled that out a few years. I think it’s also important that this is a mix. But its not just about mix, including lean methodologies, so we get a better rate basis on contracts.

Bachmann: Net, you need to add people in services. Is the headcount up or down?

Whitman: I believe we will have a smaller more profitable services business.

2:32 pm: Next question from Ben Reitzes of Barclays. Asking Meg about China. You said things are turning around there. Also, a point about demand for PCs.

Whitman: I don’t want to get out over my skis concerning China. But it is doing better. We have a new head of APJ. We feel better about the distribution system there. We are seeing positive signs of a stabilization and turnaround. We announced our new line in China for a reason. I feel good about it, but it’s early days. But as you know, it has been a tough road for HP in China.

Lesjak: In industry standard servers in China, we are doing well. We are doing well there in networking.

Whitman: We have a fledgling but growing services business in China.

Now on to end-user demand for PCs. There is demand and there is a refresh coming from Windows 8. We still worry about Europe. My personal prediction is that Europe will get softer before it gets better.

2:35 pm: Whitman is wrapping up now. We have not turned the corner, but we have made real progress. We are excited about continuing to execute over the next quarter and years.

And that’s the end of the conference call. I’ll be back with some additional comments and color in a few minutes at the top of this post.

Not more than a handful of business days after Facebook’s much ballyhooed IPO, and the noise is only getting worse.

One bright spot is that the downward plunge of the social networking giant’s shares has stopped and stabilized at $32.01. That’s up 3.2 percent today in a down market.

But that bright spot has not stopped the ever-louder Facebook fulminations that have begun to resound somewhat more seriously.

Such as a Reuters’ report yesterday that right in the middle of the social networking giant’s roadshow that Morgan Stanley and other Facebook underwriters reduced revenue forecasts, a last-minute change in outlook which could have contributed to Facebook’s first day stumbles on the Nasdaq. The change came shortly after Facebook amended its S-1 filing for the seventh time, a minor and opaque update further stating that the company was weak on mobile, but with little detail.

And that’s not all.

In an excellent analytical piece published earlier yesterday, Henry Blodget of Business Insider claims that a Facebook executive verbally told Morgan Stanley that the firm should lower its forecasts, a message he alleges was relayed to institutional investors, but not to retail investors. That could have dampened the price at which large and powerful firms were willing to pay for shares, severely limiting any potential opening day gains.

With Morgan Stanley switching down its forecast just days before the IPO, retail investors had no way of knowing that the big institutions weren’t going to be making the large day-one pops that they may have gotten before Facebook allegedly warned of its weakened financial outlook.

A Facebook spokeswoman told AllThingsD the company had no comment on the matter.

Perhaps silence will silence the critics eventually, but whatever the outcome, it’s a noisome mess right now, far from living up to what was the most anticipated tech IPO in recent history.

And it looks like it’s far from over.

As a result of the allegations, the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Massachusetts Secretary of State are all looking into the issues surrounding the IPO.

There’s also chatter that the Senate Banking Committee is looking into the matter. Although it’s in a preliminary stage, I confirmed as much: The SBC is holding staff briefings with Facebook, regulators and other stakeholders, a Democratic Senate Banking Committee aide told AllThingsD.

Morgan Stanley issued a statement on Tuesday in response to the agencies’ inquiries, claiming that it “followed the same procedures for the Facebook offering that it follows for all IPOs.” The procedures, Morgan Stanley claimed, are within the realm of compliance with regulatory rules. And after Facebook revised its S-1 on May 9, Morgan Stanley said, “a significant number of research analysts in the syndicate who were participating in investor education” — including Morgan Stanley — “reduced their earnings views to reflect their estimate of the impact of the new information. These revised views were taken into account in the pricing of the IPO.”

Finally, in the first of what will no doubt be many to come, at least two separate class-action lawsuits have been filed against Facebook on behalf of investors who lost money because of Facebook’s failed IPO. One of the suits, of course, names co-founder and CEO Mark Zuckerberg as a defendant.

Inevitable lawsuits aside, the larger question is who inside Facebook might take the fall. Eyes are beginning to land on David Ebersman, Facebook’s CFO, the former Genentech CFO who came to the company with high praise from those who knew him, both inside and outside of the company.

As Kara Swisher had previously reported in January, Ebersman played a key role in the lead-up to Facebook’s IPO, taking a firm pole position in dealing with underwriters at Morgan Stanley, JPMorgan Chase and Goldman Sachs at every step of the process.

Part of choosing Ebersman, sources told Swisher earlier this year, was to ensure that the IPO would be pulled off in as low-key a way as was possible; it was one of Zuckerberg’s main tenets, especially in light of the disastrous Groupon IPO.

While many are calling him the likely fall guy, sources close to the situation said his job is not now at risk and pushing him out over this would be a highly unlikely move for Facebook.

But now the IPO has come and gone, and he and the company’s IPO remain anything but low key. S&P Capital IQ initiated Facebook coverage with a “sell” opinion on Wednesday morning, setting a 12-month target price at $31. That’s far from the investor fervor leading up to Facebook’s Nasdaq debut.

In other words: Fasten your seatbelts, as it could be a bumpy week.

Separately, HP just filed an 8-K with the U.S. Securities and Exchange Commission concerning a restructuring plan. It reads in part:

As part of the restructuring plan, HP expects approximately 27,000 employees, or approximately 8% of the company’s workforce as of October 31, 2011, to exit the company by the end of fiscal 2014, with a portion of those employees exiting the company as part of a voluntary early retirement program for U.S. employees whose combined age and years of service exceed certain levels. The total number of employees ultimately affected will be impacted by the number of employees that opt to participate in the early retirement program. The changes to HP’s workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate.

In connection with the restructuring plan, HP expects to record aggregate pre-tax charges of approximately $3.5 billion through the end of HP’s 2014 fiscal year beginning in the third quarter of HP’s 2012 fiscal year. Of that amount, HP expects approximately $3.0 billion to relate to the workforce reductions and approximately $0.5 billion to relate to other items, including data center and real estate consolidation. HP expects approximately $2.7 billion of those aggregate pre-tax charges to result in cash expenditures during the term of the plan. HP expects to amend its U.S. pension plans to facilitate the funding of a portion of the cash expenditures using available U.S. pension plan assets.

HP has now posted a news release with some details on the restructuring plan:

The idea is apparently to get things under way in the third quarter of this year, which is the current quarter, and to take charges of $3.5 billion by the end of 2014, most of it in workforce reductions. That is in line with CEO Meg Whitman’s claim that the turnaround is going to take a few years. The 27,000 jobs eliminated amount to about 8 percent of the workforce. Of that, HP will take a $1.7 billion pre-tax charge this year.

There’s also going to be some “SKU rationalization,” which is something I’ve written about before. Look for some products to get axed around this.

“While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company. We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders,” Whitman said in a statement.

As AllThingsD also told you last week, the changes will be made in order to reinvest in things like research and development, one area that’s widely thought to have suffered too much in the last decade or so. There will also be investments in services, software and enterprise hardware.

Another surprise: Mike Lynch, the CEO of Autonomy, the British software company that HP paid $12 billion for last year and which was seen as an albatross around the neck of prior CEO Léo Apotheker, is stepping down. He’s not the only one, as other former CEOs of software companies that HP has acquired also have departed about a year later. Bill Veghte, HP’s chief strategy officer and executive vice president of HP Software, will run Autonomy. I had been hearing rumblings that Lynch would be leaving, but was never able to track it down.

Here’s the earnings announcement. I’ll have more as I go through it.

HP Reports Second Quarter 2012 Results
PALO ALTO, CA–(Marketwire -05/23/12)- HP (HPQ)

Second quarter non-GAAP diluted earnings per share of $0.98, above previously provided outlook of $0.88 to $0.91 per share
Second quarter GAAP diluted earnings per share of $0.80, above previously provided outlook of $0.68 to $0.71 per share
Second quarter net revenue of $30.7 billion, down 3% from the prior-year period
Returned $601 million in cash to shareholders in the form of dividends and share repurchases
Company announces multi-year restructuring to fuel innovation and enable investment — see separate press release for details

HP second quarter fiscal 2012 financial performance
Q2 FY12 Q2 FY11 Y/Y
GAAP net revenue ($B) $30.7 $31.6 (3%)
GAAP operating margin 7.2% 9.4% (2.2 pts.)
GAAP net earnings ($B) $1.6 $2.3 (31%)
GAAP diluted EPS $0.80 $1.05 (24%)
Non-GAAP operating margin 8.9% 11.3% (2.4 pts.)
Non-GAAP net earnings ($B) $1.9 $2.7 (28%)
Non-GAAP diluted EPS $0.98 $1.24 (21%)

Information about HP’s use of non-GAAP financial information is provided under “Use of non-GAAP financial information” below.

HP (HPQ) today announced financial results for its second fiscal quarter ended April 30, 2012. For the quarter, net revenue of $30.7 billion was down 3% year over year both as reported and when adjusted for the effects of currency.

GAAP diluted earnings per share (EPS) was $0.80, down 24% from the prior-year period. Non-GAAP diluted EPS was $0.98, down 21% from the prior-year period. Second quarter non-GAAP earnings information excludes after-tax costs of $356 million, or $0.18 per diluted share, related to amortization of purchased intangible assets, restructuring charges and acquisition-related charges.

“We are making progress in our multi-year effort to make HP simpler, more efficient and better for customers, employees, and shareholders,” said Meg Whitman, HP president and chief executive officer. “This quarter we exceeded our previously provided outlook and are executing against our strategy, but we still have a lot of work to do.”

Business Group Results

Personal Systems Group (PSG) revenue was flat year over year with a 5.5% operating margin. Commercial revenue increased 3%, and Consumer revenue declined 4% while Workstations revenue was down 1% year over year. Desktop units were up 5%, notebook units were down 6% and total units were down 1%.
Services revenue declined 1% year over year with an 11.3% operating margin. Technology Services revenue was flat year over year, Application and Business Services revenue grew 1% and IT Outsourcing revenue declined 3% year over year.
Imaging and Printing Group (IPG) revenue declined 10% year over year with a 13.2% operating margin. Commercial hardware revenue was down 4% year over year with commercial printer units down 7%. Consumer hardware revenue was down 15% year over year with a 13% decline in printer units.
Enterprise Servers, Storage and Networking (ESSN) revenue declined 6% year over year with an 11.2% operating margin. Networking revenue was up 2%, Industry Standard Servers revenue was down 6%, Business Critical Systems revenue was down 23%, and Storage revenue was up 1% year over year.
HP Financial Services revenue grew 9% year over year driven by a 4% increase in net portfolio assets and a 5% increase in financing volume. The business delivered a 9.9% operating margin.
Software revenue grew 22% year over year with a 17.7% operating margin, including the results of Autonomy. Software revenue was driven by 7% license growth, 17% support growth, and 72% growth in services. Autonomy saw a significant decline in license revenue.

To help improve Autonomy’s performance, Bill Veghte, HP’s chief strategy officer and executive vice president of HP Software, will step in to lead Autonomy. Veghte is an experienced software leader who will help develop the right processes and discipline to scale Autonomy and fulfill its promise. Mike Lynch, Autonomy’s founder and executive vice president for Information Management, will leave HP after a transition period. The market and competitive positioning for Autonomy remain strong, particularly in cloud offerings.

Asset Management
HP generated $2.5 billion in cash flow from operations in the second quarter. Inventory ended the quarter at $7.3 billion, with days of inventory up 2 days year over year to 28 days. Accounts receivable of $16.6 billion was down 4 days year over year to 49 days. Accounts payable ended the quarter at $12.9 billion, down 5 days from the prior-year period to 49 days. HP’s dividend payment of $0.12 per share in the second quarter resulted in cash usage of $251 million. HP also utilized $350 million of cash during the quarter to repurchase approximately 13 million shares of common stock in the open market. HP exited the quarter with $8.7 billion in gross cash.

Outlook
In connection with the restructuring efforts discussed in a separate press release issued today (http://www8.hp.com/us/en/hp-news/press-release.html?id=1247078), HP expects to record a pre-tax charge of approximately $1.7 billion in fiscal 2012 that will be included in its GAAP financial results for that period. Of that amount, HP expects to record a pre-tax charge of approximately $1.0 billion in its third fiscal quarter. The cash impact associated with the restructuring efforts is expected to be approximately $400 million in fiscal year 2012. Through fiscal 2014, HP expects to record additional pre-tax charges approximating $1.8 billion that will be included in its GAAP financial results for the applicable periods.

In May 2012, HP committed to a change in its PC branding strategy. As a result, HP has commenced an asset impairment analysis to determine the current value of the Compaq trade name acquired in 2002. Based on the preliminary results of that analysis, HP expects to record an impairment charge of up to approximately $1.2 billion that will be included in its GAAP financial results for its third fiscal quarter. There will be no cash impact associated with the impairment charge.

For the third quarter of fiscal 2012, HP estimates non-GAAP diluted EPS to be in the range of $0.94 to $0.97 and GAAP diluted EPS to be in the range of $0.00 to $0.03.

Third quarter fiscal 2012 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.94 per share, related primarily to the amortization and impairment of purchased intangible assets, restructuring charges, and acquisition-related charges.

For the full year fiscal 2012, HP now estimates non-GAAP diluted EPS to be in the range of $4.05 to $4.10 and GAAP diluted EPS to be in the range of $2.25 to $2.30.

Full year fiscal 2012 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $1.80 per share, related primarily to the amortization and impairment of purchased intangible assets, restructuring charges and acquisition-related charges.

More information on HP’s quarterly earnings, including additional financial analysis and an earnings overview presentation, is available on HP’s Investor Relations website at www.hp.com/investor/home.

HP’s Q2 FY12 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2012q2webcast.

Talking to Google partners at the Zeitgeist event in London yesterday, Page’s big message was that he is focusing Google while also making big bets. The day before, Page announced Google would donate New York office space to the CornellNYC Tech university project and appeared on the Charlie Rose Show.

“I’m trying to give you a very positive world view,” he said at the Zeitgeist event. “Anything you can imagine is probably doable; you just have to imagine it and work on it.”

If the world could get a little better organized and more productive — something Google is actively working on — “I think we could easily double human progress and the rate at which we’re developing,” Page said.

Google’s current big bets are autonomous cars and augmented reality glasses, which Page was wearing on stage at Zeitgeist. (Page goofily warned the audience to call them Google Glass — singular — because the device sits in front of one eye, not both.)

Those projects might seem ridiculously far-reaching, but Page said Google’s previous big bets that are now reality include Android, Chrome, YouTube and language translations.

For instance, YouTube might have seemed like a crazy big acquisition back in 2006, but it has now doubled revenue every year for four years. (That’s a new stat, confirms our resident media hack extraordinaire Peter Kafka.)

Page didn’t specify what YouTube’s actual revenue is, but he noted that doubling anything “starts to add up pretty quickly, no matter where you start from.”

Meanwhile, Google Translate now translates between each of 64 languages instantly and for free. Last week, the Chrome browser had more usage than Microsoft’s Internet Explorer for the first time ever, according to one measure.

As for Android, “I think it’s pretty clear that everyone in the world is going to have a mobile device that’s connected to the Internet,” Page said.

In a rare moment of personal relatability, Page explained part of his rationale for developing self-driving cars. “I have young children — I’m sure many of you do as well. Think about your children — by the time they’re old enough to drive, there’s no reason we can’t have technology that helps teach them.”

As an aside: Though Page might not get out much, he can be trusted to go on anecdote autopilot. Have you heard the one about how Search Plus Your World helps him disambiguate various people named Ben Smith? Page used it yet again, in both the Charlie Rose interview and at Zeitgeist.

Here’s the Zeitgeist talk, which was titled “Beyond Today”:

And here’s The Charlie Rose Show:

The world’s No. 2 PC maker by shipments after Hewlett-Packard Co. said its world-wide PC shipments rose 44 percent in the quarter ended March 31, compared with a 5 percent industrywide increase. Its profitability has outpaced that of rivals Dell Inc. and HP as the Chinese company has targeted fast-growing emerging markets while its two rivals have revamped their businesses to move away from low-margin PC production. The global PC industry has taken a hit in recent years as users have increasingly traded their computers for smartphones and tablet computers.

Read the rest of this post on the original site »

That’s why Sonar, one of the few apps in the category that has been around for a few years, is trying something new. Up until now, Sonar has acted much like its name would suggest: Walk into a room, and using publicly available data pulled in from Facebook, Twitter and LinkedIn, the app tells you who’s nearby, and what you may have in common with one another.

Sonar’s new tack, then, is honing in on relevance. The company launched an update to its app on Wednesday, focused on putting users in touch with others nearby that they want to see. Setting the new Sonar Status feature, for instance, is like sending a tweet out to your nearby connections, but no further. So if you’re, say, sending status updates about how awful the beer lines are at a music festival, that status will actually show up for others in your proximity — you know, the people who would actually care about that status update — but no further.

To boot, the company is also flipping on the ambient location switch, adding features that aren’t terribly different from recent competitors like Highlight, Banjo and Glancee. Essentially, the app will run in the background, sharing your location and status with those nearby without having to open the application.

Sonar insists, however, that its app will only send you push notifications if you’re near someone you actually know — in other words, a Facebook friend, or someone you follow on Twitter — instead of people you should know, a la Highlight or Banjo. And if you want to chat with someone nearby without broadcasting it to the world via Twitter, Sonar now lets users send private messages.

It’s an attempt to tackle a glaring issue in the social discovery space: How do we connect with relevant people, especially when relevance changes on a contextual basis? While I may not want to talk with someone I don’t know at a coffee shop, it may prove helpful to connect with other, less familiar people in your extended network when you’re both at a tech conference.

The great unknown at this point is Facebook, the behemoth that has its sights set on improving its mobile experience. Facebook just recently acquired Glancee, one of the competing apps in the social discovery space. It’s anyone’s guess as to how — or when — Facebook will use the technology.

Bloomberg News is reporting that the jury has been dimissed, and that there will be no third phase of the trial, which was to have focused on damages in the event that Oracle prevailed.

The win for Google in the patent phase comes on top of a narrow but hollow victory for Oracle, in which the enterprise software giant won a part of its argument, but failed to make it stick in a way that would make any difference to either company.

Asked to decide whether Google had infringed upon Oracle’s copyrights to certain parts of the Java programming language, the jury — the same jury that came out in Google’s favor today — agreed that it had. Then asked to decide on four specific examples of that infringement, jurors could agree on only one that cracked the threshold of being sufficiently egregious to warrant any damages. And in that case, the damages amount to no more than $200,000, probably less than it cost to litigate in the first place.

Google shares rose slightly by $2.09 to $602.89 or less than 1 percent. Oracle shares fell slightly by 6 cents to $26.30.

Oracle put out this statement:

Oracle presented overwhelming evidence at trial that Google knew it would fragment and damage Java. We plan to continue to defend and uphold Java’s core write once run anywhere principle and ensure it is protected for the nine million Java developers and the community that depend on Java compatibility.

Meanwhile, here’s Google’s statement, which reads like a victory lap:

Today’s jury verdict that Android does not infringe Oracle’s patents was a victory not just for Google but the entire Android ecosystem.

Seagate has offered $186 million, or about 4.05 euros per share, for 64.5 percent of the shares of LaCie controlled by Philippe Spruch, the company’s chief executive. The offer amounts to a premium of almost 30 percent.

Anecdotally, I can also say that LaCie’s drives are probably the most popular among people who own Apple Macs. I see its orange-encased ruggedized external drives everywhere Macs are used, and I own about a half-dozen of them myself. From a consumer retail perspective, Seagate has generally struggled to penetrate the Mac-owning market. And as we all know, the size of the Mac market is growing faster than the rest of the PC-owning world.

There’s also LaCie’s considerable retail and distribution footprint to consider. Under terms of the deal, Spruch would join Seagate.

Seagate is approaching the deal from a position of renewed strength. It weathered the flooding in Thailand, which hammered the hard drive industry’s supply chain and caused a shortage last year, better than rival Western Digital.

After Activision’s Blizzard studios launched the highly anticipated PC game on May 15, players had problems logging on and said their accounts were being hacked.

“Despite very aggressive projections, our preparations for the launch of the game did not go far enough,” the company said in an apology issued last week. Yesterday, the company issued another statement, confirming that some accounts “may have been compromised.”

In addition to selling 3.5 million copies on day one, Activision said more than 1.2 million players received Diablo III as part of signing up for the World of Warcraft Annual Pass promotion. Based on that total, internal calculations and reports from distribution partners, Activision believes this makes Diablo III the biggest PC game launch in history.

By the end of the first week, Diablo sales reached 6.3 million. The game costs $60 for either the physical copy or the digital version.

“We’re definitely thrilled that so many people around the world were excited to pick up their copy of Diablo III and jump in the moment it went live,” said Blizzard’s CEO and co-founder Mike Morhaime. “We also regret that our preparations were not enough to ensure everyone had a seamless experience when they did so. I want to reaffirm our commitment to make sure the millions of Diablo III players out there have a great experience with the game moving forward, and I also want to thank them for their ongoing support.”

In the game, players take on one of five heroic characters — barbarian, witch doctor, wizard, monk or demon hunter. As that character, they must save the world of Sanctuary from the forces of the Burning Hells. As they engage in the virtual world, players gain new abilities and acquire artifacts.

For the first time ever, those artifacts can be traded for real-world currency through an auction house.

During the company’s first-quarter conference call two weeks ago, it confirmed that consumer feedback from the beta test had gone well, especially when it came to the new trading method.

Blizzard does not intend to sell any items in the auction house, in contrast to other game models where companies profit from selling in-game virtual goods. But interestingly, Blizzard will charge players a transaction fee on sales, or roughly 15 percent on most items.

The suit follows reports that analysts at Morgan Stanley and Goldman Sachs Group Inc. cut their revenue forecasts on Facebook amid the investor roadshow, a change that wasn’t widely disseminated.

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The company said it is contacting customers on its older 2G network and providing upgrade offers in an effort to get them onto one of the newer networks.

“Dedicating more capacity to our advanced wireless networks will help more of our customers in New York City have a better experience overall,” AT&T regional general manager Tom DeVito said in a statement. “By re-allocating network resources from our 2G network to support our newer, advanced networks, we’re moving capacity to support the voice and mobile internet services our customers want.”

New York and San Francisco, in particular, have long been trouble spots for AT&T customers.

AT&T has been doing a number of things to improve service in those cities and in other areas. Adding cell towers is one option, but doing so typically requires approval at the local level for each new tower. Carriers are also pursuing other new tricks, including the use of smaller cells as well as building up Wi-Fi “hot zones” to help off-load traffic.

You’re welcome, says Netflix content boss Ted Sarandos.

Sarandos, speaking at a panel at the cable industry’s annual convention in Boston, took credit for the bump, citing Netflix viewership for the show’s repeats.

“These are people who had four years to watch the show, and didn’t,” he said. But after catching up on the earlier seasons, they tuned in for the fifth.

Netflix wants to boast about stories like this, because it highlights the fact that it still has in-demand content, and because it bolsters its argument that it can help TV networks, not hurt them. And there may well be evidence to support that.

But it’s important to note that Sarandos’ comments came when he was defending Netflix from the flip side of that argument — that some networks, like Viacom’s Nickelodeon, may be hurt by Netflix. Both Viacom and Netflix say that’s not the case, but the critique has traction with various Netflix skeptics.

Meanwhile, here’s another data point from the panel that indicates that Netflix customers are watching something on the service: Cox Communications President Pat Esser said 40 percent of his four million broadband customers generated a Netflix  stream in March.

Image by Joy of Tech

Samsung officials tell the Korea Times that the two companies were unable to come to a clear agreement resolving their differences. Sources close to Samsung confirmed to AllThingsD that this was indeed the case.

Evidently the talks — which ran for about 16 hours over Monday and Tuesday — began and ended at an impasse, with Apple continuing to insist that Samsung “slavishly” copied the design of its iPhone and iPad, and Samsung demanding that Apple pay royalties on the wireless patents it believes the company infringed.

Given the level of animosity between the two companies at this point, it was really hard to imagine any other outcome. Locking Apple CEO Tim Cook and Samsung CEO Choi Gee-sung into a room for two days and hoping they’d emerge bosom buddies brandishing a settlement was always a bit of a pipe dream. Note that Apple last Friday filed a motion for injunction against Samsung’s Galaxy Tab 10.1, angling to have the device yanked from U.S. shelves as soon as early June. And the week before that, it accused Samsung of destroying email evidence.

Not really the behavior of a company that’s looking for two days of easygoing mediation talks and an amicable resolution to the legal issues at hand.

As FOSS Patents’ Florian Mueller recently told Reuters, “This dispute isn’t ripe for settlement. Under the present circumstances, the two companies’ delegations should spend a couple of fun days in Yosemite Park or Napa Valley, rather than meet in court only to pretend they’re being constructive.”

Apple declined comment on the outcome of the talks.

The case heads to trial on July 30.

(Image courtesy of Joy of Tech)

The high cost of running the local-news sites has fueled a campaign by dissident investor Starboard Value LP against AOL Chief Executive Tim Armstrong’s strategy of investing heavily in online content.

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Sources say Rubicon paid around $10 million for the two-year-old company.

Rubicon helps publishers manage and optimize their display ads via “real time” buying, and the pitch is that they’ll now be able to do that with mobile ads, too — though the still-nascent mobile ad business has yet to fully embrace that kind of technology.

Rubicon’s rivals include Pubmatic and Google’s AdMeld. In September 2010, it picked up ad tech assets from News Corp., which also owns this site. Mobsmith raised a reported $575,000 in July 2010.

While it might seem as though Web content queen Arianna Huffington could soon launch a moon edition of her eponymous Huffington Post — perhaps HuffPo Lunar — the AOL-owned unit’s next effort will be an Oprah Winfrey section on the huge online publishing platform.

The Oprah Winfrey Network and Huffington Post Media Group said today that they will officially debut the jointly run site in August, part of a just-struck partnership between the brands.

Under terms of the deal, there will be a dedicated version of the Oprah.com site on the Huffington Post platform, with more robust interactive offerings and also with tightly integrated access to the much larger HuffPo audience.

In the year to date, Oprah.com has been averaging just five million monthly unique visitors, while the Huffington Post has close to 37 million.

It also now has 66 vertical sites — with the next to launch in early June in Madrid, called El Huffington Post.

So far, the new Oprah site will not be called HuffPOprah; its content will be supplied by writers and producers of Oprah.com, which will continue to operate independently.

And, topically speaking, it will be vintage Oprah, covering personal growth, spirituality and aspects of physical and mental health.

“The Huffington Post Oprah section will contain a mix of articles, blogs and interactive content that will connect with the audience on an emotional and spiritual level,” said the pair in a press release. “The site will provide practical advice and resources encouraging people to discover their best selves and to lead happier, more fulfilling lives by taking steps to attain their goals.”

“This is about having even more engagement with the audience for all the content that Oprah produces with our network of bloggers and communities,” said Huffington in an interview. “Engagement is the key.”

Added OWN President Erik Logan: “We have done a lot of syndication deals with other partners, but we recognized for some time that we need to intersect with content wherever and however it may be. So, we wanted to try something big and different.”

Oprah has actually already tried “different” in a hookup with the Flipboard reader app last year.

Logan said that while Oprah.com will continue to sell its own advertising, it will rely on AOL to hawk ads for the new site.

“We trust the Huffington Post with our brand,” said Logan. “There is no doubt from our point of view that we will be reaching a highly engaged customer.”

The news was reported by CNET earlier this month, with additional details, including the cost, trickling out in recent days. Our sources confirm that Microsoft will offer $15 Windows Pro 8 upgrades to those buying a new PC with Windows 7 Home Basic or higher.

Redmond has offered these kinds of coupons with the past several releases, so it is not a shocker.

But with Windows 8 coming this fall — possibly as late as November — and with current license sales slowing, and Microsoft losing share to both Macs and iPads, the upgrade program could be even more important this time around.

Redmond and the PC makers are hoping that the promise of a guaranteed and easy upgrade will convince back-to-school shoppers to stick with Windows, rather than head to the competition.

The upgrade program is important for another reason: Microsoft needs Windows 8 to get off to a fast start in order to convince developers to write new Metro-style apps that only run on Windows 8. Getting more Windows 7 users on the new operating system would help that cause.

A big change this time around is how the program will operate. In the past, Microsoft has been the driving force behind the cheap upgrades, but the company left it up to computer makers to handle the specific pricing, timing and fulfillment. With Windows 8, Microsoft will handle all of those items, sources say.

Microsoft declined to comment on its upgrade program plans.

The other piece of preparing for Windows 8 is what is taking place on the hardware side. Windows 8, with its Metro user interface, is tailor-made for touch devices, though it will also work with a keyboard and mouse.

So far, this summer’s laptop offerings are punched-up versions of the same PCs that have been on the market for months, with upgrades to Intel’s Ivy Bridge chip line, and PC makers all trying to put their stamp on the trend toward thinner, lighter laptops.

Lenovo has announced more consumer-friendly versions of its business-minded ThinkPad laptop. Hewlett-Packard, meanwhile, has expanded its Ultrabook line and has slapped the term “Sleekbooks” on another set of new laptops that fall into the ultra-thin-and-lightweight category but have innards that don’t meet Intel’s specifications for Ultrabooks. Sony’s new Ivy Bridge-equipped Vaio laptops will be made with lightweight materials, include larger displays, and offer optional accessories such as an extended battery.

But PC makers will clearly be gearing up for Windows 8 so that they can start pitching the new operating system as soon as it is ready.

This fall, some hardware makers will introduce convertible PCs that function as both tablets and laptops, as noted here, or will add things like touch sensors to existing displays, in order to bridge the two operating systems.

One company that has already announced a Windows 8 laptop is Lenovo. At the Consumer Electronics Show in January of this year, the China-based PC maker showed off the IdeaPad Yoga, a laptop with a 10-finger touchscreen and a full range of motion at the hinge so when fully folded it turns into a 13.3.-inch tablet.

Overall, one can expect a lot of Windows 8-ready machines to be part of the back-to-school lineups. But expect most PC makers to hold off on design overhauls for the Windows 8 launch.