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Most Americans know that our public servants are human beings too, and as such are far from perfect, but we also expect them to, at all times, at least make a serious attempt to set the standards of behavior, even if they sometimes fall short of those standards themselves… |
Author: Serkadis
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Cop fired for driving drunk sues city, claiming alcoholism is a ‘disability’
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Flax seed consumption reduces breast cancer risk by 28 percent in new study
In the first-ever study of its type, Canadian researchers have shown that flax seed consumption reduces the risk of breast cancer by 28 percent in postmenopausal women and flax bread consumption reduces risk by 26 percent in both pre- and postmenopausal women. These… -
7 foods to detoxify and rejuvenate the body
Why should we care about detoxification? Because millions of people are needlessly (unconsciously) suffering from fatigue, headaches, insomnia, allergies, depression and a host of degenerative diseases due to excessive exposure to toxic substances. And, I believe, it’s… -
DHA from fish oil improves aggression and impulsivity
A study of the effect of DHA and vitamin supplements on aggressive and impulsive behaviors showed that DHA, but not the vitamins, had a positive effect. The study group included 200 young men, with an average age of 20 years, with no history of antisocial behavior… -
Computers are now better at treating cancer than doctors
Researchers from the Netherlands claim to have found a better way to develop and monitor the effects of treatment protocols for cancer patients, but it involves taking doctors out of the picture. As reported by the U.K.’s Independent, a team of scientists from Maastricht… -
US senators introduce bill to prevent government departments from stockpiling ammo
In the wake of revelations – thanks in every way to the alternative media – that the Department of Homeland Security had planned to purchase and stockpile as much as 1.6 billion rounds of ammunition, a pair of U.S. lawmakers are proposing legislation that would prevent… -
Why didn’t the US just attack Afghanistan with Monsanto GMOs?
It would have been so simple. Flood Afghanistan with Monsanto GMOs. Truckloads of seeds. Tanks full of Roundup herbicide. Result? Nutritionally deficient food crops, chronic disease, poisoning with Roundup. Perfect. And we know how to do it, because we’ve been doing… -
What’s really in your vitamins?
Many people understand the need for a healthier lifestyle. Many of us are trying to eat better, exercise and take vitamins to fill in the nutritional gaps in our diets. Unfortunately, you may not realize what you are really buying, unless you are reading every label… -
Nexus 7 lifts ASUS to third place
So much for Apple’s tablet reign that analysts stoutly stood by even just months ago. Android kicks ass, crushing iOS shipments during first quarter, according to IDC. Among the top four, the fruit-logo company posted the lowest year-over-year growth (65.3 percent), and considerably less than the overall market (142.4 percent). Meanwhile, the company’s market share fell by 18.5 points to 39.6 percent.
Among tablet manufacturers, Apple is market leader, with the question being for how much longer. Samsung share rose 282.6 percent — ASUS even more (350 percent). Strong Nexus 7 shipments pushed ASUS past Amazon to take third place. ASUS’ challenge and opportunity could be Google I/O, where the tablet launched last year and new model is rumored for the event starting May 15. Challenge is maintaining shipments during product transition; opportunity is capitalizing on new sales.
Measured by operating system, Android soared 247.5 percent year over year, with market share rising to 56.5 percent from 39.4 percent. iOS was near mirror opposite, falling from 58.1 percent to 39.6 percent.
Despite share losses and slower growth, “sustained demand for the iPad mini and increasingly strong commercial shipments led to a better-than expected first quarter for Apple”, Tom Mainelli, IDC research director, says. “In addition, by moving the iPad launch to the fourth quarter of 2012, Apple seems to have avoided the typical first-quarter slowdown that traditionally occurred when consumers held off buying in January and February in anticipation of a new product launch in March”.
So there’s the silver lining. For the previous three years, new iPads launched in March or April. Apple launched a second iPad in late 2012 concurrent with the mini’s introduction, changing the release cycle.
Microsoft is the quarter’s biggest surprise, with tablet shipments soaring 700 percent, arguably from smaller base. IDC puts Surface shipments at 900,000 for the quarter, majority the Pro model. A week ago, Strategy Analytics also tallied stronger-than-expected Q1 Surface shipments.
NPD DisplaySearch predicts that 7-7.9-inch tablets will account for nearly half of tablet shipments this year, a big shift downward in screen size. Microsoft is headed there, too.
Top Five Tablet Vendors, Shipments, and Market Share, First Quarter 2013 (Shipments in millions)
Vendor 1Q13 Unit Shipments
1Q13 Market Share
1Q12 Unit Shipments
1Q12 Market Share
Year-over-Year Growth
1. Apple 19.5
39.6%
11.8
58.1%
65.3%
2. Samsung 8.8
17.9%
2.3
11.3%
282.6%
3. ASUS 2.7
5.5%
0.6
3.1%
350.0%
4. Amazon.com Inc. 1.8
3.7%
0.7
3.6%
157.1%
5. Microsoft 0.9
1.8%
0.0
N/A
N/A
Others 15.5
31.5%
4.9
24.1%
216.3%
Total 49.2
100.0%
20.3
100.0%
142.4%
Source: IDC Worldwide Tablet Tracker, May 1, 2013
Last month, CFO Peter Klein said that Microsoft is “working closely with OEMs on a new suite of small touch devices powered by Windows. These devices will have competitive price points, partly enabled by our latest OEM offerings designed specifically for these smaller devices, and will be available in the coming months”.
Ryan Reith, IDC program manager, sees little promise in “smaller screen Windows RT and Windows 8 tablets hitting the market. He emphasizes: “The notion that this will be the saving grace is flawed. Clearly the market is moving toward smart 7-8 inch devices, but Microsoft’s larger challenges center around consumer messaging and lower cost competition”.
Top Tablet Operating Systems, Shipments, and Market Share, 2013 Q1 (Shipments in Millions)
Vendor 1Q13 Unit Shipments
1Q13 Market Share
1Q12 Unit Shipments
1Q12 Market Share
Year-over-Year Growth
Android 27.8
56.5%
8.0
39.4%
247.5%
iOS 19.5
39.6%
11.8
58.1%
65.3%
Windows 1.6
3.3%
0.2
1.0%
700.0%
Windows RT 0.2
0.4%
0.0
N/A
N/A
Others 0.1
0.2%
0.2
1.0%
-50.0%
Total 49.2
100.0%
20.3
100.0%
142.4%
Source: IDC Worldwide Tablet Tracker, May 1, 2013
Execution will be everything. “If these challenges are addressed, along with the desired screen size variations, then we could see Microsoft make even further headway in 2013 and beyond”, Reith emphasizes.
Unlike smartphones, where Apple and Samsung, Android and iOS, dominate the market, tablets are increasingly uncertain, particularly in context of iPad’s share losses (even as shipments rise). Where Windows Phone unlikely will gain much share, plenty of opportunity remains for Windows 8/RT. Shipments through fourth quarter will answer how much.
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Google preps ‘packaged apps’ for Chrome stable channel
I/O starts two weeks from today, and Google wastes no time whetting developer interests. Yesterday, the search and information giant revealed new Google+ Sign-In benefits. Today there are changes regarding “packaged apps”. Surely the big stuff will wait for the keynote, which takes place on a single day this year, but expect more like last two days beforehand.“Starting today Chrome packaged apps will be available in the Chrome Web Store for anyone on Chrome’s developer channel on Windows and Chrome OS”, Amanda Bishop, Google product manager, says. “You will notice that the App category now contains only the new Chrome packaged apps. A new category, called Websites, contains all existing hosted apps and legacy packaged apps“. She tempts me to change Chrome channels, but I’ll wait. And you?
Packaged apps are what make Chrome a viable platform alternative, whether usurping operating systems like Windows or running on Google’s browser-based Linux. Unlike other Web apps, packaged ones are capable of running just fine offline. Third-party packaged app 500px, designed with Chromebook Pixel in mind, is good example of what can be accomplished. Weather Bug is another.
In May 2011, I called Google’s browser and operating system the ghost of Netscape that haunts Microsoft: “Enter Chrome or Chrome OS as platform for web apps connected to Google cloud product/services like Apps, Calendar and Gmail”. Like Netscape, Google seeks to make the browser, running on whatever OS, its own development platform. Web apps are start. Packaged apps are better, running in Chrome on or offline.
Google still has a long way to go. For April, Net Applications puts Chrome global browser usage share at 16.35 percent — that’s four months of consecutive declines and down from 19.58 percent in May 2012. Internet Explorer: 55.81 percent. To clarify, contrary to NetApps statements, its numbers measure usage share, not market share. The difference is significant because people may use multiple browsers.
“If you’ve written a packaged app, or are working on one, now is a great time to get some early feedback and polish your app before Chrome packaged apps become more broadly available”, Bishop says.
They won’t stay in the developer channel forever. Chrome 26 is stable, 27 beta and 28 developer. Someone correct me if I’m mistaken, but if you move up channel you can’t easily go back until the next stable release. Conceptually then, packaged apps are just two versions from public release. Chrome 27 could drop any day, based on recent releases, unless Google holds back for its developer conference.
There are currently three packaged app sessions planned for Google I/O 2013, one the first day and two on the third.
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MapR releases M7, its commercial HBase distro
MapR didn’t miss the memo about the key to success in the Hadoop space being the creation of a data platform that can do many things. And on Wednesday, the company released its take on HBase, called M7.
Last week, I explained how HBase is fast becoming the star of the Hadoop ecosystem because it allows users to build more real-time, almost transactional applications on top of Hadoop. True to its form with its other products, MapR has taken HBase even further with M7 by promising greater availability (99.999 percent), instant recovery, faster operations and the ability to handle 1 trillion tables in a single cluster. In open source versions of HBase, MapR VP of Marketing Jack Norris told me, the accepted table limit per cluster is several hundred.
Additionally, M7 shares a single data layer with the Hadoop file system, meaning less performance overhead and, presumably, easier management.As we’re seeing with other Hadoop vendors, including Cloudera (which released its Impala SQL query engine on Tuesday), the Hadoop market is fast becoming one where each vendor is trying to set itself apart from the rest by building the best platform with the broadest set of capabilities. In furtherance of that mission, MapR also announced on Wednesday full-text search on its Hadoop distribution thanks to a partnership with Lucene specialist LucidWorks. It already has its own Hadoop distribution complete with proprietary code to bolster the file system and speed up MapReduce, as well as an open source SQL-on-Hadoop project called Drill in the works.
MapR employees are probably sleeping a lot easier these days as a result of this platform push. Others in the Hadoop market used to talk about the fear of fragmentation and then point at MapR as the example of a company helping foment that outcome with its proprietary software. Now, however, even if everyone else is building open source products, they’re all still backing their own and largely dismissing the others.
I suspect the result is feature lock-in even there’s no technological lock-in, kind of like using Amazon Web Services for cloud computing and then hoping to replicate its various servies elsewhere. It might be easy enough to move your data, but impossible or very difficult to replicate those additional capabilities elsewhere. If MapR can build a better version of HBase and companies are willing to pay for it, then so be it.
Related research and analysis from GigaOM Pro:
Subscriber content. Sign up for a free trial.- Infrastructure Q1: Cloud and big data woo enterprises
- Defining Hadoop: the Players, Technologies and Challenges of 2011
- Big data 2013: key trends and companies to watch
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Another WARN class action suit for cleantech, this time for Coda Automotive
A former employee of electric car company Coda Automotive has filed a class action lawsuit alleging that the automaker conducted mass layoffs in December 2012 without giving workers 60 days notice. The lawsuit is the second alleged WARN Act violation filed against an electric car startup this year, following a lawsuit against Fisker Automotive last month, and is the third high profile alleged violation against a cleantech company, following Solyndra’s lawsuit in late 2011.
In the suit against Coda Automotive, former employee Tony Bulchack says that Coda laid off 125 employees around December 14, 2012. The complaint says that these workers weren’t given 60 days notice of the planned layoffs in writing. Now that Coda has filed for bankruptcy, the suit was filed in the bankruptcy court.
I’ve embedded the complain below:
Related research and analysis from GigaOM Pro:
Subscriber content. Sign up for a free trial.- Green IT Q1: Cleantech Breaking Out — and Bracing for Hard Times
- Green IT Overview, Q2 2010
- After Solyndra: analyzing the solar industry
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Google has quite a show in store for us at this year’s Google I/O
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Silver Spring Networks closes its first quarter as a public company
Smart grid company Silver Spring Networks just finished its first quarter as a public company after it held an IPO on the New York Stock Exchange in March. The company’s earnings was basically flat for the quarter, reflecting the inherent slow pace of rolling out smart grid networks for utilities, and signing up new cautious, risk-averse utilities.
Silver Spring has decided to focus on its non-GAAP (general accepted accounting principles) numbers, because it says non-GAAP numbers more closely reflect its cash flow. The company takes many months to do pilot projects with utilities and then many more months, if not years, to deliver a broader commercial rollout of its network. It recognizes GAAP revenue for those customers significantly after the deal is closed and the tech is deployed.
For the first quarter of 2013, Silver Spring said its non-GAAP revenue was $73.78 million, which was up from its non-GAAP revenue of the first quarter of 2012 of $59.50 million. On a GAAP basis, revenue for the first quarter was $53.70 million, which was flat from the same quarter a year earlier of $55.45 million.
When it comes to the quarter’s net loss, the GAAP vs non-GAAP actually made a much larger difference. The company’s GAAP net loss for the first quarter of 2013 was $64.37 million, which was a far greater loss than its GAAP loss of the first quarter of 2012 of $18.43 million. Silver Spring Networks execs said that the greater GAAP net loss was due to one time charges related to its IPO. However, its non-GAAP net loss was more reasonable for the first quarter of 2013 at $8.39 million, a slightly larger loss from its $5.27 million net loss from the first quarter of 2012.
In the earnings call, Silver Spring Network execs touted new customer wins including CPS Energy, the largest municipal utility in San Antonio, with 700,000 homes and businesses, and Singapower Power, which was its first utility deal in Asia. In addition, Silver Spring also said that it has been working with Masers Energy in Malaysia and moved its partnership with Dominion Virginia Power from a pilot project to a deployment for 195,000 homes and businesses.
Silver Spring Networks sees growth in beefing up its services, beyond its networking hardware, and also in international markets. The company has already contracted with many of the early adopter U.S. utilities, and is looking to gain marketshare in Asia, and South America.
Related research and analysis from GigaOM Pro:
Subscriber content. Sign up for a free trial.- Ups and downs for cleantech in Q1
- Green IT Q4: solar, subsidies and the outlook for EVs
- Cleantech, meet connectivity: a new era of energy efficiency
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HTC M4 pictured: A smaller version of the world’s sleekest smartphone
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Facebook Revenue Up 38%, Ad Revenue Up 43%
Facebook released its Q1 earnings report on Wednesday, including revenue of $1.46 billion, an increase of 38% year-over-year. Revenue from advertising was $1.25 billion (85% of total revenue), up 43% year-over-year. Mobile advertising accounted for 30% of advertising revenue for the quarter. Revenue from Payments and other fees was $213 million.
The obligatory Mark Zuckerberg quote is: “We’ve made a lot of progress in the first few months of the year. We have seen strong growth and engagement across our community and launched several exciting products.”
Facebook also dropped some new user numbers. Daily active users were 665 million on average for March, up 26% year-over-year. Monthly active users were 1.11 billion as of March 31, up 23% year-over-year. Finally, Mobile monthly active users were 751 million as of March 31, up 54% year-over-year.
Here’s the release in its entirety:
MENLO PARK, Calif., May 1, 2013 /PRNewswire/ – Facebook, Inc. (NASDAQ: FB) today reported financial results for the first quarter, which ended March 31, 2013.
“We’ve made a lot of progress in the first few months of the year,” said Mark Zuckerberg, Facebook founder and CEO. “We have seen strong growth and engagement across our community and launched several exciting products.”
First Quarter 2013 Financial Summary
In millions, except percentages and per share amounts Q1’12 Q1’13 Revenue $ 1,058 $ 1,458 Income from Operations GAAP $ 381 $ 373 Non-GAAP $ 485 $ 563 Operating Margin GAAP 36% 26% Non-GAAP 46% 39% Net Income GAAP $ 205 $ 219 Non-GAAP $ 287 $ 312 Diluted Earnings per Share (EPS) GAAP $ 0.09 $ 0.09 Non-GAAP $ 0.12 $ 0.12 First Quarter 2013 Operational Highlights
- Daily active users (DAUs) were 665 million on average for March 2013, an increase of 26% year-over-year.
- Monthly active users (MAUs) were 1.11 billion as of March 31, 2013, an increase of 23% year-over-year.
- Mobile MAUs were 751 million as of March 31, 2013, an increase of 54% year-over-year.
Recent Business Highlights
- Launched Facebook Home, a mobile experience for Android that puts people before apps and makes the phone a more social experience.
- Instagram reached 100 million monthly active users in the first quarter of 2013.
- Launched new advertising products such as Lookalike Audiences, Managed Custom Audiences, and Partner Categories, which help marketers improve their targeting capabilities on Facebook.
- Continue to invest in our ad serving and measurement platforms:
- Partnered with Datalogix, Epsilon, Acxiom, and BlueKai to enable marketers to incorporate off-Facebook purchasing data in order to deliver more relevant ads to users.
- Enhanced ability to measure advertiser ROI on digital media across the internet through our acquisition of the Atlas Advertising Suite.
- Appointed Susan D. Desmond-Hellmann, M.D., M.P.H., chancellor of the University of California, San Francisco (UCSF), to the company’s board of directors.
First Quarter 2013 Financial Highlights
Revenue — Revenue for the first quarter totaled $1.46 billion, an increase of 38%, compared with $1.06 billion in the first quarter of 2012.
- Revenue from advertising was $1.25 billion, representing 85% of total revenue and a 43% increase from the same quarter last year.
- Mobile advertising revenue represented approximately 30% of advertising revenue for the first quarter of 2013.
- Payments and other fees revenue was $213 million for the first quarter of 2013.
Costs and expenses — First quarter GAAP costs and expenses were $1.08 billion, an increase of 60% from the first quarter of 2012, driven primarily by infrastructure expense and increased headcount. Non-GAAP costs and expenses were $895 million in the first quarter, up 56% compared to $573 million for the first quarter of 2012.
Income from operations — For the first quarter, GAAP income from operations was $373 million, down 2% from $381 million in the first quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the first quarter was $563 million, up 16% compared to $485 million for the first quarter of 2012.
Operating margin — GAAP operating margin was 26% for the first quarter of 2013, compared to 36% in the first quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 39% for the first quarter of 2013, compared to 46% for the first quarter of 2012.
Provision for income taxes — GAAP income tax expense for the first quarter of 2013 was $134 million, representing a 38% effective tax rate. Excluding share-based compensation expense and related payroll tax expenses, the non-GAAP effective tax rate would have been approximately 43%.
Net income and EPS — For the first quarter, GAAP net income was $219 million, up 7% compared to net income of $205 million for the first quarter of 2012. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP net income for the first quarter of 2013 was $312 million, up 9% compared to $287 million for the first quarter of 2012. GAAP diluted EPS was $0.09 in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP diluted EPS for the first quarter of 2013 was $0.12, essentially flat compared to the first quarter of 2012.
Capital expenditures — Capital expenditures for the quarter were $327 million, a 28% decrease from the first quarter of 2012. Additionally, $11 million of equipment was procured or financed through capital leases during the first quarter of 2013.
Cash and marketable securities — Cash and marketable securities were $9.5 billion at the end of the first quarter of 2013.
Webcast and Conference Call Information
Facebook will host a conference call to discuss the results at 2 p.m. PT / 5 p.m. ET today. The live webcast can be accessed at the Facebook Investor Relations website at investor.fb.com, along with the company’s earnings press release, financial tables and slide presentation.
Following the call, a replay will be available at the same website. A telephonic replay will be available for one week following the conference call at + 1 (404) 537-3406 or + 1 (855) 859-2056, conference ID 29615930.
About Facebook
Founded in 2004, Facebook’s mission is to give people the power to share and make the world more open and connected. People useFacebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them.
Contacts
Investors:
Deborah Crawford
[email protected] / investor.fb.comPress:
Ashley Zandy
[email protected] / newsroom.fb.comForward Looking Statements
This press release contains forward-looking statements regarding our business strategy and plans, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: our ability to retain or increase users and engagement levels, particularly mobile engagement; our ability to monetize our mobile products; risks associated with new product development and introduction; our ability to expand the Facebook Platform; competition; privacy concerns; security breaches; and our ability to manage growth and geographically-dispersed operations. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on February 1, 2013, which is available on our Investor Relations website at investor.fb.com and on the SEC website atwww.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. In addition, please note that the date of this press release is May 1, 2013, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: total revenue and advertising revenue excluding foreign exchange effect, non-GAAP costs and expenses, non-GAAP income from operations; non-GAAP net income; non-GAAP diluted shares; non-GAAP diluted earnings per share; non-GAAP operating margin; and non-GAAP effective tax rate. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items, specifically share-based compensation expense and payroll tax related to share-based compensation expense and the related income tax effects, that are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.
We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.
We exclude the following items from one or more of our non-GAAP financial measures:
Share-based compensation expense. We exclude share-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, we believe that providing non-GAAP financial measures that exclude this expense allow investors the ability to make more meaningful comparisons between our operating results and those of other companies. Accordingly, we believe that excluding this expense provides investors and management with greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry.
Payroll tax expense related to share-based compensation. We exclude payroll tax expense related to share-based compensation expense because, without excluding these tax expenses, investors would not see the full effect that excluding share-based compensation expense had on our operating results. These expenses are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, which factors may vary from period to period independent of the operating performance of our business. Similar to share-based compensation expense, we believe that excluding this payroll tax expense provides investors and management with greater visibility to the underlying performance of our business operations and facilitates comparison with other periods as well as the results of other companies.
Income tax effect of share-based compensation and related payroll tax expenses. We believe excluding the income tax effect of non-GAAP adjustments assists investors and management in understanding the tax provision related to those adjustments and provides useful supplemental information regarding the underlying performance of our business operations.
Assumed preferred stock conversion. As a result of our initial public offering in May 2012, all outstanding shares of preferred stock were automatically converted into shares of Class B common stock. Consequently, non-GAAP diluted shares and earnings per share for the three months ended March 31, 2012 have been calculated assuming this conversion, which we believe facilitates comparison with prior periods.
Dilutive equity awards excluded from GAAP. In our calculation of non-GAAP weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders, we include unvested RSUs for the three months ended March 31, 2012, the number of which is substantial due to the terms of RSUs granted prior to 2011. We believe including these awards facilitates comparison between periods.
Foreign exchange effect on revenue. We translate current quarter revenue using prior year exchange rates, which we believe is a useful metric that facilitates comparison to our historical performance.
For more information on our non-GAAP financial measures and a reconciliation of such measures to the nearest GAAP measure, please see the “Reconciliation of Non-GAAP Results to Nearest GAAP Measures” table in this press release.
FACEBOOK, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except for per share amounts) (Unaudited) Three Months Ended March 31, 2012 2013 Revenue $ 1,058 $ 1,458 Costs and expenses: Cost of revenue 277 413 Research and development 153 293 Marketing and sales 143 203 General and administrative 104 176 Total costs and expenses 677 1,085 Income from operations 381 373 Interest and other income (expense), net: Interest expense (13) (15) Other income (expense), net 14 (5) Income before provision for income taxes 382 353 Provision for income taxes 177 134 Net income $ 205 $ 219 Less: Net income attributable to participating securities 68 2 Net income attributable to Class A and Class B common stockholders $ 137 $ 217 Earnings per share attributable to Class A and Class B common stockholders: Basic $ 0.10 $ 0.09 Diluted $ 0.09 $ 0.09 Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders: Basic 1,347 2,386 Diluted 1,527 2,499 Share-based compensation expense included in costs & expenses: Cost of revenue $ 5 $ 8 Research and development 60 117 Marketing and sales 19 24 General and administrative 19 21 Total share-based compensation expense $ 103 $ 170 Payroll tax expenses related to share-based compensation included in costs & expenses: Cost of revenue $ – $ 1 Research and development 1 11 Marketing and sales – 4 General and administrative – 4 Total payroll tax expenses related to share-based compensation $ 1 $ 20 FACEBOOK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) December 31, March 31, 2012 2013 Assets Current assets: Cash and cash equivalents $ 2,384 $ 2,325 Marketable securities 7,242 7,147 Accounts receivable 719 659 Income tax refundable 451 426
Prepaid expenses and other current assets 471 485 Total current assets 11,267 11,042 Property and equipment, net 2,391 2,533 Goodwill and intangible assets, net 1,388 1,501 Other assets 57 87 Total assets $ 15,103 $ 15,163 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 65 $ 75 Platform partners payable 169 190 Accrued expenses and other current liabilities 423 430 Deferred revenue and deposits 30 30 Current portion of capital lease obligations 365 338 Total current liabilities 1,052 1,063 Capital lease obligations, less current portion 491 420 Long-term debt 1,500 1,500 Other liabilities 305 356 Total liabilities 3,348 3,339 Stockholders’ equity Common stock and additional paid-in capital 10,094 9,961 Accumulated other comprehensive income (loss) 2 (15) Retained earnings 1,659 1,878 Total stockholders’ equity 11,755 11,824 Total liabilities and stockholders’ equity $ 15,103 $ 15,163 FACEBOOK, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Three Months Ended March 31, 2012 2013 Cash flows from operating activities Net income $ 205 $ 219 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 110 241 Loss on write-off of equipment 1 9 Share-based compensation 103 170 Deferred income taxes (24) (7) Tax benefit from share-based award activity 54 59 Excess tax benefit from share-based award activity (54) (62) Changes in assets and liabilities: Accounts receivable 65 54 Prepaid expenses and other current assets (33) (1) Other assets (6) (36) Accounts payable (3) 1 Platform partners payable 7 21 Accrued expenses and other current liabilities 2 (33) Deferred revenue and deposits 3 – Other liabilities 11 84 Net cash provided by operating activities 441 719 Cash flows from investing activities Purchases of property and equipment (453) (327) Purchases of marketable securities (876) (1,508) Sales of marketable securities 69 699 Maturities of marketable securities 567 903 Investments in non-marketable equity securities (1) – Acquisitions of businesses, net of cash acquired, and purchases of intangible assets (25) (99) Changes in restricted cash and deposits (1) 6 Net cash used in investing activities (720) (326) Cash flows from financing activities Taxes paid related to net share settlement of equity awards – (405) Proceeds from exercise of stock options 5 8 Proceeds from sale and lease-back transactions 62 – Principal payments on capital lease obligations (71) (109) Excess tax benefit from share-based award activity 54 62 Net cash provided by (used in) financing activities 50 (444) Effect of exchange rate changes on cash and cash equivalents (1) (8) Net decrease in cash and cash equivalents (230) (59) Cash and cash equivalents at beginning of period 1,512 2,384 Cash and cash equivalents at end of period $ 1,282 $ 2,325 Supplemental cash flow data Cash paid during the period for: Interest $ 9 $ 12 Income taxes $ 174 $ 9 Non-cash investing and financing activities: Net change in accounts payable and accrued expenses and other current liabilities related to property and equipment additions $ 110 $ 47 Property and equipment acquired under capital leases $ 38 $ 11 Fair value of shares issued related to acquisitions of businesses and other assets $ 6 $ 33 Reconciliation of Non-GAAP Results to Nearest GAAP Measures (In millions, except for number of shares) (Unaudited) Three Months Ended March 31, 2012 2013 GAAP revenue $ 1,058 $ 1,458 Foreign exchange effect on 2013 revenue using 2012 rates 4 Revenue excluding foreign exchange effect $ 1,462 GAAP revenue year-over-year change % 38% Revenue excluding foreign exchange effect year-over-year change % 38% GAAP advertising revenue $ 872 $ 1,245 Foreign exchange effect on 2013 advertising revenue using 2012 rates 3 Advertising revenue excluding foreign exchange effect $ 1,248 GAAP advertising revenue year-over-year change % 43% Advertising revenue excluding foreign exchange effect year-over-year change % 43% GAAP costs and expenses $ 677 $ 1,085 Share-based compensation expense (103) (170) Payroll tax expenses related to share-based compensation (1) (20) Non-GAAP costs and expenses $ 573 $ 895 GAAP income from operations $ 381 $ 373 Share-based compensation expense 103 170 Payroll tax expenses related to share-based compensation 1 20 Non-GAAP income from operations $ 485 $ 563 GAAP net income $ 205 $ 219 Share-based compensation expense 103 170 Payroll tax expenses related to share-based compensation 1 20 Income tax adjustments (22) (97) Non-GAAP net income $ 287 $ 312 GAAP diluted shares 1,527 2,499 Assumed preferred stock conversion 546 – Dilutive equity awards excluded from GAAP1 233 – Non-GAAP diluted shares 2,306 2,499 GAAP diluted earnings per share $ 0.09 $ 0.09 Net income attributable to participating securities 0.04 – Non-GAAP adjustments to net income 0.05 0.03 Non-GAAP adjustments to diluted shares (0.06) – Non-GAAP diluted earnings per share $ 0.12 $ 0.12 GAAP operating margin 36% 26% Share-based compensation expense 10% 12% Payroll tax expenses related to share-based compensation 0% 1% Non-GAAP operating margin 46% 39% GAAP profit before tax $ 382 $ 353 GAAP provision for income taxes 177 134 GAAP effective tax rate 46% 38% GAAP profit before tax $ 382 $ 353 Share-based compensation and related payroll tax expenses 104 190 Non-GAAP profit before tax $ 486 $ 543 Non-GAAP provision for income taxes 199 231 Non-GAAP effective tax rate 41% 43% 1Gives effect to unvested RSUs in periods prior to our IPO for comparability SOURCE Facebook
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A Walk Through Hardware Alley At TC Disrupt
Dogs, drones, and digital controllers, oh my! This year’s Disrupt conference in New York was full of amazing webs services and software, but Hardware Alley brought out the best in hardware startups and showed the world that hardware is finally serious business.
Darrell Etherington and I wandered the halls of Hardware Alley today to meet some amazing companies. We met with Fitbark, a way to see how happy your dog is and Thermovape, a way to smoke without taking in harmful carcinogens. We saw Extreme Flyers zip and zoom around the room with their brand new mini drone and Social Bicycles with their new system for bike sharing.
We’ll call out individual hardware alley companies over the next few days but until then enjoy this quick look at the coolness that is Disrupt.
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Seamless Integration of Modern Apps with the Classic Desktop
For many Windows 8 users one of the problems with the modern apps is that they function in the modern screen and cannot transgress to the classic desktop. Stardock fixed this by releasing ModernMix, a nifty solution that allows you to treat Windows 8 apps as if they were regular applications.Although it is not as popular as Start8 (reviewed here), which brings a S… (read more)
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Here’s JC Penney’s Apology Video Asking Customers To ‘Come Back’
JC Penney has put out a video apologizing for alienating loyal customers, and essentially begging them to come back.
The basic gist goes like this: We did some stuff that upset you, and we’re acknowledging that we screwed up (without saying specifically what we screwed up exactly). But you have to admit, you liked some of the stuff we did. Right? Anyway, please, please, please come back and shop with us again.
The actual wording goes: “It’s no secret, recently JCPenney changed. Some changes you liked and some you didn’t, but what matters with mistakes is what we learn. We learned a very simple thing, to listen to you. To hear what you need, to make your life more beautiful. Come back to JCPenney, we heard you. Now, we’d love to see you.”
As you’re probably aware, JC Penney brought in CEO Ron Johnson a couple years ago, who decided to push for a wealthier customer base, and got rid of the store’s sales (which obviously didn’t sit well with the regulars). Recently, the company fired Johnson, and brought back the guy they had before him (Mike Ullman).
So, they’re sorry.
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Tulsa’s Football Field Turf Cool Play Installation In Timelapse
There are two college football stadiums so far taking advantage of FieldTurf Cool Play, “the world’s first high performance field cooling solution”. Tulsa is one of them (the other one is Maryland).
Check out this timelapse video of the installation:
Cool Play is supposed to be 35 degrees cooler than most turf. The technology behind Cool Play explained:
According to the Tulsa Hurricane, Tulsa is also getting an 80-foot LED electronic sign on the south end zone field level wall.
