Category: News

  • eBay Earnings Up, Stock Down On Forecast

    eBay released its Q1 earnings on Wednesday, with revenue increasing 14% to $3.7 billion year over year. Profit was $677 million.

    What the company considered to be a strong quarter wasn’t enough to please investors, as the forecast wasn’t quite as positive.

    eBay stock is down -2.90‎ (-5.17%‎) in morning trading.

    Here’s the release in its entirety:

    SAN JOSE, Calif.–(BUSINESS WIRE)–Global commerce platform and payments leader eBay Inc. (Nasdaq: EBAY) today reported that revenue for the first quarter ended March 31, 2013, increased 14% to $3.7 billion, compared to the same period of 2012. The company reported first quarter net income on a GAAP basis of $677 million, or $0.51 per diluted share, and non-GAAP net income of $829 million, or $0.63 per diluted share. The year-over-year increase in first quarter GAAP and non-GAAP earnings per diluted share was driven primarily by strong top-line growth.

    “We had a strong first quarter, with accelerating user growth across both Marketplaces and PayPal, and with GSI enabling their retail clients to grow faster than ecommerce”

    Downloads of eBay Inc.’s suite of mobile apps expanded the company’s overall commerce footprint, surpassing 162 million since launch in the third quarter of 2008. eBay Inc. gained approximately 2.8 million new customers in the period through mobile, driving double-digit growth in active users at both PayPal and Marketplaces. Total company “enabled commerce volume” (ECV) grew 19% totaling $49 billion (ECV equals Marketplaces GMV, PayPal Merchant Services TPV, and GSI GeC Merchandise Sales not earned on eBay or paid for via PayPal or Bill Me Later).

    “We had a strong first quarter, with accelerating user growth across both Marketplaces and PayPal, and with GSI enabling their retail clients to grow faster than ecommerce,” said John Donahoe, eBay Inc. President and CEO. “Technology is creating a commerce revolution, and we are in the forefront with strong mobile leadership and a focus on helping retailers and brands engage consumers anytime, anywhere.”

    The company’s PayPal business delivered strong first quarter performance with revenue increasing 18% to $1.5 billion. PayPal gained 5 million active registered accounts in the period and ended the quarter with 128 million, a 16% increase. PayPal’s net total payment volume (TPV) grew 21% to $41 billion, driven by consumer and merchant use of PayPal both on and off eBay. PayPal continues to invest in growing its addressable market, product development, customer engagement and consumer awareness. The company’s mobile payment solution for small business, PayPal Here, became available for sale at more than 2,700 SoftBank locations across Japan and the iPad version of the product was launched in the U.S. PayPal also announced the chip and PIN version of PayPal Here in the U.K. which it plans to roll out this summer. PayPal’s offline initiatives are now live in almost 20,000 major retail locations in the U.S.

    The company’s Marketplaces business also delivered strong first quarter performance with revenue increasing 13% to $2.0 billion. Marketplaces gained 3.9 million active users in the period and ended the quarter with 116 million, a 13% increase. Gross merchandise volume (GMV), excluding vehicles, increased 13% to $18 billion, reflecting the continued improvements to eBay’s core technology designed to make it easier and faster for consumers to shop and buy. Sold items increased 12%. Fixed price GMV grew 17% globally and represented 68% of total GMV. U.S. GMV, excluding vehicles, increased 16% as mobile engagement and momentum in fashion and tickets were key drivers of growth. International GMV, excluding vehicles, increased 11% to $11 billion. Marketplaces continues to invest in innovation and expanding its addressable market both locally and globally.

    The company’s GSI Commerce business contributed $236 million in revenue for the first quarter. Its enterprise commerce platform generated $807 million in global ecommerce (GeC) Merchandise Sales, while its marketing services fee business produced $50 million of revenue. GSI enabled its clients to grow faster than the ecommerce market as measured by the 16% same stores sales growth, but revenue was pressured by a reduction in take rate. The company expects GSI’s integrated omnichannel product portfolio, including complementary eBay Inc. assets, to be increasingly adopted by merchants seeking opportunities to grow their businesses while seamlessly meeting the needs of their consumers.

    First Quarter 2013 Financial Highlights (presented in millions, except per share data and percentages)
    First Quarter
    2013 2012 Change
    eBay Inc.
    Net revenue $3,748 $3,277 $471 14 %
    Enabled commerce volume (ECV) $48,795 $41,152 $7,643 19 %
    GAAP
    Net income $677 $570 $107 19 %
    Earnings per diluted share $0.51 $0.44 $0.07 16 %
    Non-GAAP
    Net income $829 $725 $104 14 %
    Earnings per diluted share $0.63 $0.55 $0.08 14 %
    First Quarter
    2013 2012 Change
    Business Units
    Payments
    Net revenue $1,548 $1,309 $239 18 %
    Net total payment volume $41,040 $33,857 $7,183 21 %
    Merchant Services $28,087 $22,433 $5,654 25 %
    On eBay $12,953 $11,424 $1,529 13 %
    Marketplaces
    Net revenue $1,957 $1,728 $229 13 %
    Gross merchandise volume (GMV), excl. vehicles $18,326 $16,206 $2,120 13 %
    U.S. GMV $7,364 $6,366 $998 16 %
    International GMV $10,962 $9,840 $1,122 11 %
    GSI
    Net revenue $236 $237 $(1 ) %
    GeC Merchandise Sales $807 $715 $92 13 %

    Other Selected Financial Results

    • Operating margin — GAAP operating margin increased to 21.3% for the first quarter of 2013, compared to 19.9% for the same period last year. Non-GAAP operating margin increased to 27.4% in the first quarter, compared to 26.9% for the same period last year.
    • Taxes — The GAAP effective tax rate for the first quarter of 2013 was 16%, compared to 17% for the first quarter of 2012. For the first quarter of 2013 and 2012, the non-GAAP effective tax rate was 20% for both periods.
    • Cash flow — The company generated $937 million of operating cash flow and $638 million of free cash flow during the first quarter of 2013.
    • Stock repurchase program — The company repurchased approximately $476 million of its common stock in the first quarter of 2013.
    • Cash and cash equivalents and non-equity investments — The company’s cash and cash equivalents and non-equity investments portfolio totaled $11.5 billion at both March 31, 2013 and December 31, 2012.

    Business Outlook

    • Second quarter 2013 — eBay expects net revenues in the range of $3,800 – $3,900 million with GAAP earnings per diluted share in the range of $0.46 – $0.48 and non-GAAP earnings per diluted share in the range of $0.61 – $0.63.
    • Full year 2013 — eBay expects net revenues in the range of $16,000- $16,500 million with GAAP earnings per diluted share in the range of $2.23 – $2.29 and non-GAAP earnings per diluted share in the range of $2.70 – $2.75.

    Quarterly Conference Call

    eBay will host a conference call to discuss first quarter 2013 results at 2:00 p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company’s Investor Relations website at http://investor.ebayinc.com. In addition, an archive of the webcast will be accessible for 90 days through the same link.

    About eBay Inc.

    Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) is a global commerce platform and payments leader connecting millions of buyers and sellers. We do so through eBay, the world’s largest online marketplace, which allows users to buy and sell in nearly every country on earth; through PayPal, which enables individuals and businesses to securely, easily and quickly send and receive digital payments; and through GSI, which facilitates ecommerce, multichannel retailing and digital marketing for global enterprises. X.commerce harnesses the developer community of Magento, an ecommerce platform, by providing technology solutions and eBay Inc. capabilities to merchants of all sizes, supporting eBay Inc.’s mission of enabling commerce. We also reach millions through specialized marketplaces such as StubHub, the world’s largest ticket marketplace, and eBay classifieds sites, which together have a presence in more than 1,000 cities around the world. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.

    Presentation

    All growth rates represent year over year comparisons, except as otherwise noted. All amounts in tables are presented in U.S. dollars, rounded to the nearest millions, except as otherwise noted. As a result, certain amounts may not sum or recalculate using the rounded dollar amounts provided.

    Non-GAAP Financial Measures

    This press release includes the following financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission (SEC): non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP effective tax rate and free cash flow. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles (GAAP). For a reconciliation of these non-GAAP financial measures to the nearest comparable GAAP measures, see “Business Outlook,” “Non-GAAP Measures of Financial Performance,” “Reconciliation of GAAP Operating Margin to Non-GAAP Operating Margin,” “Reconciliation of GAAP Net Income to Non-GAAP Net Income and Reconciliation of GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate” and “Reconciliation of Operating Cash Flow to Free Cash Flow” included in this press release.

    Forward-Looking Statements

    This press release contains forward-looking statements relating to, among other things, the future performance of eBay and its consolidated subsidiaries that are based on the company’s current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding expected financial results for the second quarter and full year 2013, and the future growth in the Payments, Marketplaces and GSI businesses, mobile payments and mobile commerce. The company’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: changes in political, business and economic conditions, including any European or general economic downturn or crisis and any conditions that affect ecommerce growth; fluctuations in foreign currency exchange rates; the company’s ability to profitably integrate, manage and grow businesses that have been acquired recently or may be acquired in the future; the company’s need to successfully react to the increasing importance of mobile payments and mobile commerce and the increasing social aspect of commerce; the company’s ability to deal with the increasingly competitive ecommerce environment, including competition for its sellers from other trading sites and other means of selling, and competition for its buyers from other merchants, online and offline; the company’s need to manage an increasingly large enterprise with a broad range of businesses of varying degrees of maturity and in many different geographies; the effect of management changes and business initiatives; the company’s need and ability to manage other regulatory, tax and litigation risks as its services are offered in more jurisdictions and applicable laws become more restrictive; any changes the company may make to its product offerings; the competitive, regulatory, credit card association-related and other risks specific to PayPal and Bill Me Later, especially as PayPal continues to expand geographically and introduce new products and as new laws and regulations related to financial services companies come into effect; the company’s ability to timely upgrade and develop its systems, infrastructure and customer service capabilities, including GSI’s v.11 initiative, at reasonable cost; and the company’s ability to maintain site stability and performance on all of its sites while adding new products and features in a timely fashion. The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.

    More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting the company’s Investor Relations website at http://investor.ebayinc.com or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to the company on the date hereof. eBay assumes no obligation to update such statements.

    eBay Inc.
    Unaudited Condensed Consolidated Balance Sheet
    March 31,
    2013
    December 31,
    2012
    (In millions)
    ASSETS
    Current assets:
    Cash and cash equivalents $ 6,530 $ 6,817
    Short-term investments 2,872 2,591
    Accounts receivable, net 743 822
    Loans and interest receivable, net 2,150 2,160
    Funds receivable and customer accounts 8,897 8,094
    Other current assets 1,144 914
    Total current assets 22,336 21,398
    Long-term investments 3,172 3,044
    Property and equipment, net 2,575 2,491
    Goodwill 8,455 8,537
    Intangible assets, net 1,023 1,128
    Other assets 439 476
    Total assets $ 38,000 $ 37,074
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    Current liabilities:
    Short-term debt $ 411 $ 413
    Accounts payable 308 301
    Funds payable and amounts due to customers 8,897 8,094
    Accrued expenses and other current liabilities 1,885 1,916
    Deferred revenue 149 137
    Income taxes payable 70 63
    Total current liabilities 11,720 10,924
    Deferred and other tax liabilities, net 832 972
    Long-term debt 4,105 4,106
    Other liabilities 231 207
    Total liabilities 16,888 16,209
    Total stockholders’ equity 21,112 20,865
    Total liabilities and stockholders’ equity $ 38,000 $ 37,074
    eBay Inc.
    Unaudited Condensed Consolidated Statement of Income
    Three Months Ended March 31,
    2013 2012
    (In millions, except per share amounts)
    Net revenues $ 3,748 $ 3,277
    Cost of net revenues (1) 1,152 983
    Gross profit 2,596 2,294
    Operating expenses:
    Sales and marketing (1) 697 677
    Product development (1) 434 374
    General and administrative (1) 408 372
    Provision for transaction and loan losses 175 134
    Amortization of acquired intangible assets 82 84
    Total operating expenses 1,796 1,641
    Income from operations 800 653
    Interest and other, net 9 31
    Income before income taxes 809 684
    Provision for income taxes (132 ) (114 )
    Net income $ 677 $ 570
    Net income per share:
    Basic $ 0.52 $ 0.44
    Diluted $ 0.51 $ 0.44
    Weighted average shares:
    Basic 1,295 1,288
    Diluted 1,319 1,308
    (1) Includes stock-based compensation as follows:
    Cost of net revenues $ 13 $ 14
    Sales and marketing 33 30
    Product development 32 30
    General and administrative 33 37
    $ 111 $ 111
    eBay Inc.
    Unaudited Condensed Consolidated Statement of Cash Flows
    Three Months Ended March 31,
    2013 2012
    (In millions)
    Cash flows from operating activities:
    Net income $ 677 $ 570
    Adjustments:
    Provision for transaction and loan losses 175 134
    Depreciation and amortization 329 281
    Stock-based compensation 111 111
    Changes in assets and liabilities, net of acquisition effects (355 ) (565 )
    Net cash provided by operating activities 937 531
    Cash flows from investing activities:
    Purchases of property and equipment (299 ) (242 )
    Changes in principal loans receivable, net (29 ) (35 )
    Purchases of investments (1,426 ) (1,016 )
    Maturities and sales of investments 1,048 408
    Acquisitions, net of cash acquired (8 ) (3 )
    Other (5 ) (5 )
    Net cash used in investing activities (719 ) (893 )
    Cash flows from financing activities:
    Proceeds from issuance of common stock 102 85
    Repurchases of common stock (476 ) (240 )
    Excess tax benefits from stock-based compensation 116 54
    Tax withholdings related to net share settlements of restricted stock units and awards (153 ) (118 )
    Funds receivable and customer accounts (803 ) (373 )
    Funds payable and amounts due to customers 803 373
    Net cash (used in) provided by financing activities (411 ) (219 )
    Effect of exchange rate changes on cash and cash equivalents (94 ) 54
    Net (decrease) increase in cash and cash equivalents (287 ) (527 )
    Cash and cash equivalents at beginning of period 6,817 4,691
    Cash and cash equivalents at end of period $ 6,530 $ 4,164
    eBay Inc.
    Unaudited Summary of Consolidated Net Revenues
    Net Revenues by Type
    Three Months Ended
    March 31, December 31, September 30, June 30, March 31,
    2013 2012 2012 2012 2012
    Net transaction revenues (In millions, except percentages)
    Marketplaces $ 1,608 $ 1,672 $ 1,490 $ 1,491 $ 1,425
    Current quarter vs prior quarter (4 )% 12 % % 5 % (1 )%
    Current quarter vs prior year quarter 13 % 16 % 10 % 10 % 11 %
    Percent of Marketplaces revenue from international 55 % 56 % 55 % 57 % 55 %
    Payments 1,435 1,432 1,264 1,234 1,216
    Current quarter vs prior quarter % 13 % 2 % 1 % 5 %
    Current quarter vs prior year quarter 18 % 24 % 22 % 25 % 29 %
    Percent of Payments revenue from international 55 % 56 % 55 % 55 % 54 %
    GSI 186 333 170 164 182
    Current quarter vs prior quarter (44 )% 97 % 3 % (10 )% (38 )%
    Current quarter vs prior year quarter 2 % 13 % 14 % N/A N/A
    Percent of GSI revenue from international 5 % 3 % 3 % 4 % 4 %
    Total net transaction revenues 3,229 3,437 2,925 2,889 2,823
    Current quarter vs prior quarter (6 )% 17 % 1 % 2 % (2 )%
    Current quarter vs prior year quarter 14 % 19 % 15 % 23 % 27 %
    Marketing services and other revenues
    Marketplaces 349 378 316 323 303
    Current quarter vs prior quarter (8 )% 20 % (2 )% 7 % (8 )%
    Current quarter vs prior year quarter 15 % 15 % 5 % 3 % 13 %
    Percent of Marketplaces revenue from international 75 % 72 % 75 % 74 % 75 %
    Payments 113 109 102 123 93
    Current quarter vs prior quarter 4 % 7 % (17 )% 32 % 12 %
    Current quarter vs prior year quarter 22 % 32 % 37 % 50 % 87 %
    Percent of Payments revenue from international 4 % 5 % 6 % 4 % 8 %
    GSI 50 65 57 57 55
    Current quarter vs prior quarter (23 )% 14 % % 3 % (19 )%
    Current quarter vs prior year quarter (9 )% (6 )% 4 % N/A N/A
    Percent of GSI revenue from international % % % % %
    Corporate and other 12 12 11 10 6
    Total marketing services and other revenues 524 564 485 513 457
    Current quarter vs prior quarter (7 )% 16 % (5 )% 12 % (6 )%
    Current quarter vs prior year quarter 15 % 16 % 13 % 27 % 43 %
    Elimination of inter-segment net revenue and other (1) (5 ) (9 ) (6 ) $ (4 ) $ (3 )
    Total net revenues $ 3,748 $ 3,992 $ 3,404 $ 3,398 $ 3,277
    Current quarter vs prior quarter (6 )% 17 % % 4 % (3 )%
    Current quarter vs prior year quarter 14 % 18 % 15 % 23 % 29 %
    (1) Represents revenue generated between our reportable segments.
    Net Revenues by Geography (1) Three Months Ended
    March 31, December 31, September 30, June 30, March 31,
    2013 2012 2012 2012 2012
    (In millions, except percentages)
    U.S. net revenues $ 1,789 $ 1,949 $ 1,637 $ 1,611 $ 1,581
    Current quarter vs prior quarter (8 )% 19 % 2 % 2 % (5 )%
    Current quarter vs prior year quarter 13 % 17 % 15 % 29 % 39 %
    Percent of total 48 % 49 % 48 % 47 % 48 %
    International net revenues 1,959 2,043 1,767 1,787 1,696
    Current quarter vs prior quarter (4 )% 16 % (1 )% 5 % (1 )%
    Current quarter vs prior year quarter 16 % 19 % 15 % 18 % 21 %
    Percent of total 52 % 51 % 52 % 53 % 52 %
    Total net revenues $ 3,748 $ 3,992 $ 3,404 $ 3,398 $ 3,277
    Current quarter vs prior quarter (6 )% 17 % % 4 % (3 )%
    Current quarter vs prior year quarter 14 % 18 % 15 % 23 % 29 %
    (1) Revenues are attributed to U.S. and international geographies primarily based upon the country in which the seller, payment recipient, customer, website that displays advertising, or other service provider, as the case may be, is located.
    eBay Inc.
    Unaudited Payments Supplemental Operating Data
    Three Months Ended
    March 31, December 31, September 30, June 30, March 31,
    2013 2012 2012 2012 2012
    (In millions, except percentages)
    Active registered accounts (1) 127.7 122.7 117.4 113.2 109.8
    Current quarter vs prior quarter 4 % 5 % 4 % 3 % 3 %
    Current quarter vs prior year quarter 16 % 15 % 14 % 13 % 12 %
    Net number of payments (2) 681.6 691.7 589.2 564.8 555.7
    Current quarter vs prior quarter (1 )% 17 % 4 % 2 % 1 %
    Current quarter vs prior year quarter 23 % 26 % 28 % 31 % 31 %
    Net total payment volume (3) $41,040 $41,471 $35,159 $34,451 $33,857
    Current quarter vs prior quarter (1 )% 18 % 2 % 2 % 1 %
    Current quarter vs prior year quarter 21 % 24 % 20 % 20 % 24 %
    Merchant Services net total payment volume as % of net total payment volume 68 % 68 % 67 % 67 % 66 %
    Transaction rates
    Take rate 3.77 % 3.72 % 3.89 % 3.94 % 3.87 %
    Transaction expense 1.05 % 1.03 % 1.07 % 1.07 % 1.07 %
    Loss rate 0.29 % 0.28 % 0.30 % 0.26 % 0.26 %
    Transaction margin (4) 64.4 % 64.7 % 64.8 % 66.3 % 65.6 %
    Loan portfolio rates
    Risk adjusted margin (5) 15.8 % 15.6 % 16.5 % 15.5 % 16.8 %
    Net charge-off rate (6) 5.3 % 5.3 % 4.9 % 4.6 % 4.5 %
    90-day delinquency rate (7) 2.7 % 2.7 % 2.9 % 2.5 % 2.4 %
    (1) All registered accounts that successfully sent or received at least one payment or payment reversal through the PayPal system or Bill Me Later accounts that are currently able to transact and that received a statement within the last 12 months.
    (2) Number of payments, net of payment reversals, successfully completed through our Payments networks, Bill Me Later accounts and Zong during the quarter, excluding PayPal’s payments gateway business.
    (3) Total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, Bill Me Later accounts and Zong during the quarter, excluding PayPal’s payment gateway business.
    (4) Transaction margin calculation has been adjusted to include total revenues (including revenue from credit) less transaction expense (including credit cost of funds) less transaction loss (including credit loan losses), divided by global take rate (based on global total revenues divided by total TPV).
    (5) The risk adjusted margin represents the annualized ratio of Bill Me Later revenue, excluding contra-revenue incentives to customers or merchants, less cost of funds, and less net credit and fraud losses relative to average loans receivable for the quarter.
    (6) Net charge-off rate represents the annualized ratio of Bill Me Later net credit losses relative to average loans receivable for the quarter.
    (7) 90-day delinquency rate is the ratio of Bill Me Later end of period account balances that have missed three or more consecutive payments relative to total ending loan receivables.
    eBay Inc.
    Unaudited Marketplaces Supplemental Operating Data
    Three Months Ended
    March 31, December 31, September 30, June 30, March 31,
    2013 2012 2012 2012 2012
    (In millions, except percentages)
    Active Users (1) 116.2 112.3 108.3 104.8 102.4
    Current quarter vs prior quarter 3 % 4 % 3 % 2 % 2 %
    Current quarter vs prior year quarter 13 % 12 % 10 % 8 % 7 %
    Gross Merchandise Volume (excluding vehicles) (2) $18,326 $19,105 $16,281 $16,171 $16,206
    Current quarter vs prior quarter (4 )% 17 % 1 % % (2 )%
    Current quarter vs prior year quarter 13 % 16 % 11 % 10 % 12 %
    Vehicles Gross Merchandise Volume (3) $1,686 $1,727 $1,994 $2,021 $1,871
    Current quarter vs prior quarter (2 )% (13 )% (1 )% 8 % %
    Current quarter vs prior year quarter (10 )% (7 )% (7 )% (10 )% (9 )%
    Fixed Price Trading (4) as % of total gross merchandise volume 68 % 68 % 66 % 65 % 64 %
    eBay’s classifieds websites, brands4friends and Shopping.com are not included in these metrics.
    (1) All users, excluding users of Half.com, StubHub, and our Korean subsidiary, who bid on, bought, listed or sold an item within the previous 12-month period. Users may register more than once, and as a result, may have more than one account.
    (2) Total value of all successfully closed items between users on Marketplaces trading platforms during the quarter, regardless of whether the buyer and seller actually consummated the transaction, excluding vehicles gross merchandise volume.
    (3) Total value of all successfully closed vehicle transactions between users on Marketplaces trading platforms during the quarter, regardless of whether the buyer and seller actually consummated the transaction.
    (4) Primarily, total gross merchandise volume related to eBay’s “Buy It Now” feature on Marketplaces trading platforms relative to total gross merchandise volume during the quarter.
    eBay Inc.
    Unaudited GSI Supplemental Operating Data
    Three Months Ended
    March 31, December 31, September 30, June 30, March 31,
    2013 2012 2012 2012 2012
    (In millions, except percentages)
    GeC Merchandise Sales (1) $807 $1,595 $698 $674 $715
    Current quarter vs prior quarter (49 %) 129 % 4 % (6 %) (48 %)
    Current quarter vs prior year quarter 13 % 17 % 16 % N/A N/A
    (1) Represents the retail value of all sales transactions, inclusive of freight charges and net of allowance for returns and discounts, which flow through the GSI ecommerce services platform, whether we record the full amount of such transaction as a product sale or a percentage of such transaction as a service fee.
    eBay Inc.
    Unaudited eBay Inc. Supplemental Operating Data
    Three Months Ended
    March 31, December 31, September 30, June 30, March 31,
    2013 2012 2012 2012 2012
    (In millions, except percentages)
    ECV $48,795 $50,186 $42,593 $41,906 $41,152
    Current quarter vs prior quarter (3 %) 18 % 2 % 2 % N/A
    Current quarter vs prior year quarter 19 % N/A N/A N/A N/A
    (1) Represents the total commerce and payment volume across all three business units consisting of Marketplaces GMV, PayPal Merchant Services TPV and GSI GeC Merchandise Sales. PayPal Merchant Services TPV is the total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, Bill Me Later accounts and Zong during the period, excluding PayPal’s payment gateway business and payments for transactions on our Marketplaces and GSI platforms.

    eBay Inc.
    Business Outlook
    (In Millions, Except Per Share Amounts)

    The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because eBay’s future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and eBay assumes no obligation to update it.

    eBay’s future performance involves risks and uncertainties, and the company’s actual results could differ materially from the information below and elsewhere in this press release. Some of the factors that could affect the company’s operating results are set forth under the caption “Forward-Looking Statements” above in this press release. More information about factors that could affect eBay’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in its most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting the company’s investor relations website at http://investor.ebayinc.com or the SEC’s website at www.sec.gov.

    Three Months Ending
    June 30, 2013
    (In millions, except per share amounts) GAAP Non-GAAP (a)
    Net Revenue $3,800 – $3,900 $3,800 – $3,900
    Diluted EPS $0.46 – $0.48 $0.61 – $0.63
    Twelve Months Ending
    December 31, 2013
    (In millions, except per share amounts) GAAP Non-GAAP (b)
    Net Revenue $16,000- $16,500 $16,000- $16,500
    Diluted EPS $2.23 – $2.29 $2.70 – $2.75
    (a) Estimated non-GAAP amounts above for the three months ending June 30, 2013, reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $95-$105 million, estimated stock-based compensation expense and employer payroll taxes on stock-based compensation expense of approximately $145-$155 million, and the accretion of a note receivable of approximately $5 million as well as the related tax impact.
    (b) Estimated non-GAAP amounts above for the 12 months ending December 31, 2013, reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $380-$400 million, estimated stock-based compensation expense and employer payroll taxes on stock-based compensation expense of approximately $560-$600 million, and the accretion of a note receivable of approximately $20 million as well as the related tax impact.

    eBay Inc.
    Non-GAAP Measures of Financial Performance

    To supplement the company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, eBay uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP effective tax rate, and free cash flow.

    These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with eBay’s results of operations as determined in accordance with GAAP. These measures should only be used to evaluate eBay’s results of operations in conjunction with the corresponding GAAP measures.

    Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release can be found in the tables included in this press release.

    These non-GAAP measures are provided to enhance investors’ overall understanding of the company’s current financial performance and the company’s prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses or net purchases of property and equipment, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because eBay has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company’s financial reporting.

    For its internal budgeting process, and as discussed further below, eBay’s management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, significant gains or losses from the disposal/acquisition of a business, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, eBay’s management also uses the foregoing non-GAAP measures in reviewing the financial results of eBay.

    eBay excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin and non-GAAP effective tax rate:

    Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. eBay excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. eBay also previously excluded its proportionate share of Skype’s stock-based compensation expense. The related employer payroll taxes is dependent on eBay’s stock price and the timing and size of exercises by employees of their stock options and the vesting of their restricted stock, over which management has limited to no control, and as such management does not believe it correlates to eBay’s operation of the business.

    Amortization or impairment of acquired intangible assets, impairment of goodwill and significant gains or losses and transaction expenses from the acquisition or disposal of a business. eBay incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses from the acquisition or disposal of a business and therefore excludes these amounts from its non-GAAP measures. eBay also previously excluded its proportionate share of Skype’s amortization of acquired intangibles expense. eBay also settled a legal exposure in conjunction with the acquisition of a business and excludes this settlement payment. In addition, eBay’s results are also impacted by hedge transactions related to unique movements of cash from significant business acquisitions or dispositions. eBay excludes the impact of the accretion of a note receivable associated with the disposal of certain businesses. eBay excludes these items because management does not believe they correlate to the ongoing operating results of eBay’s business.

    Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. eBay excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.

    Tax effect of non-GAAP adjustments. This amount is used to present stock-based compensation and the other amounts described above on an after-tax basis consistent with the presentation of non-GAAP net income.

    In addition to the non-GAAP measures discussed above, eBay also uses free cash flow. Free cash flow represents operating cash flows less purchases of property and equipment. eBay considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in eBay’s business, make strategic acquisitions, and repurchase stock. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period.

    eBay Inc.
    Reconciliation of GAAP Operating Margin to Non-GAAP Operating Margin
    Three Months Ended
    March 31, March 31,
    2013 2012
    (In millions, except percentages)
    GAAP operating income $ 800 $ 653
    Stock-based compensation expense and related employer payroll taxes 129 125
    Amortization of acquired intangible assets within cost of net revenues 18 21
    Amortization of acquired intangible assets within operating expenses 82 84
    Restructuring (4 )
    Total non-GAAP operating income adjustments 225 230
    Non-GAAP operating income $ 1,025 $ 883
    Non-GAAP operating margin 27.4 % 26.9 %
    Reconciliation of GAAP Net Income to Non-GAAP Net Income and
    GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate
    Three Months Ended
    March 31, March 31,
    2013 2012
    (In millions, except per share amounts)
    GAAP income before income taxes $ 809 $ 684
    GAAP provision for income taxes (132 ) (114 )
    GAAP net income $ 677 $ 570
    Non-GAAP adjustments to net income:
    Non-GAAP operating income adjustments (see table above) 225 230
    Accretion of note receivable (5 ) (9 )
    Amortization of intangibles of investments 2
    (Gain) Loss on divested business 3
    Tax effect of non-GAAP adjustments (70 ) (69 )
    Non-GAAP net income $ 829 $ 725
    Diluted net income per share:
    GAAP $ 0.51 $ 0.44
    Non-GAAP $ 0.63 $ 0.55
    Shares used in GAAP and non-GAAP diluted net income per-share calculation 1,319 1,308
    GAAP effective tax rate 16 % 17 %
    Tax effect of non-GAAP adjustments to net income 4 % 3 %
    Non-GAAP effective tax rate 20 % 20 %
    Reconciliation of Operating Cash Flow to Free Cash Flow
    Three Months Ended
    March 31, March 31,
    2013 2012
    (In millions)
    Net cash provided by operating activities $ 937 $ 531
    Less: Purchases of property and equipment (299 ) (242 )
    Free cash flow $ 638 $ 289

  • Lords of Football Review (PC)

    I don’t know how long I will be playing Lords of Football for, but the title from developer Geniaware Srl and publisher Fish Eagle is certainly an interesting entry in the football simulation genre, which also includes the likes of Football Manager and FIFA.

    Lords of Football is similar to neither of them and can be quickly… (read more)

  • Mayer, Sandberg, Slaughter: Driving Change, at a Cost

    Working women have been calling for more seats in the boardroom, more days of paid maternity leave, more corner offices, more money, and more — well, more! for a long time. So why does it seem like we’ve only now reached a dull roar on these issues — maybe even what some are calling the rise of “executive feminism”? And can we see signals in the noise?

    To explain the sudden surge of discussion on this topic, look to the magic of three: Marissa Mayer, Sheryl Sandberg, and Anne-Marie Slaughter. Would any one of these women been sufficient to jump-start the conversation on their own? No. Slaughter, Sandberg and Mayer are at different stages of their careers and lives, and have very different ideas around a woman’s relationship to work and home. It’s not despite, but because of, these different stances that they are moving the conversation forward. And so often when someone is talking about one of the three on social media, at least one or both of the other are mentioned. This is one of the reasons research has found that in order to experience the benefits of diversity (better risk management, higher creativity, etc) on a board you need three women; one or even two aren’t enough to create real change. You need critical mass, but you also need each woman to feel like she’s advocating her point of view — not “Woman’s Point of View.”

    To get a sense of the scale of the conversation that these women have launched, we monitored the billions of conversations that occur in real-time on social media through the NetBase platform. First, we found that the number of mentions of these three individuals across the social web has increased eight-fold in the past year. Further, when we looked at where the conversation is happening, we discovered the chatter is primarily taking place on Twitter, accounting for 84% of the mentions of Marissa Mayer and Sheryl Sandberg, and 61% of the mentions for Anne-Marie Slaughter. Because Twitter is a platform for viral communication, where people express their opinions in the heat of the moment, if this were a brand or a country, it would suggest a major change was coming.

    mentions.gifTo our surprise, Sheryl Sandberg has generated ten times the chatter of Anne-Marie Slaughter over the last twelve months, as measured by online mentions, while Mayer has more than double that of Sandberg. Both Slaughter and Sandberg have issued “statements” in articles, books and working the media circuit; Mayer simply does — she acts. In doing so, she appears to stimulate even more conversation. This may also explain why Mayer seems to have gone more mainstream, with 64% of her mentioners being male.

    But how are the rest of us receiving this conversation? We also looked at the “Brand Passion Index” (BPI), an index that comparatively measures buzz (or number of mentions), sentiment (whether the conversation is positive or negative), and passion intensity (the use of passionate language, for example, love, adore, huge fan, hate, despise, detest etc). Combining these three metrics and comparing them over a twelve-month period of time can give us an overarching snapshot of consumer opinion on people topics or brands.

    Here’s what we found when comparing the 3 women:

    opinion.gif

    Brand Passion Index for April 2012- April 2013. The size of the bubble indicates the amount of chatter on the web; the placement of the bubble within the grid top to bottom indicates sentiment and within the grid left to right shows the intensity of that sentiment.

    Taking a stand on work and life stimulated an ebb and flow in conversation over the year with sentiment rising and falling, but it netted out to the most unpopular location of the BPI — the dislike zone. As a brand, this is no-woman’s-land. People don’t like you, but they don’t even feel passionately enough about you to hate you.

    In social media conversations, Marissa Mayer, the new CEO of Yahoo, has been described as impressive and super-smart, but also as an annoying, terrible bully. She nets the most buzz, but her choice to ban telecommuting led to many people talking about how much they simply do not like her and her choices. The question is, do you need to be popular to be effective? While her location on the BPI is not coveted, the earnings-per-share results she delivered are.

    COO of Facebook Sheryl Sandberg’s descriptors have included truly excellent, successful working mom and at the same time crazy bizarre. Interestingly, the overarching theme when people use the term “dislike” are rooted in jealousy — for instance, consider this sample tweet: “I dislike Sheryl Sandberg because she’s my age and a reminder of just how much of a complete failure I am. Don’t get me started on Mayer.” Meanwhile, Anne-Marie Slaughter, former director of Policy Planning at the U.S. State Department, has been depicted as an amazing, successful mother along with destructive and not a good wife. People comment that they don’t like that she stirred up controversy.

    All three women have been criticized as being privileged and out-of-touch. Let’s parry here and say that whether they are or not, we see from the data that taking a stand has come at a social cost. This suggests that, when Sandberg penned the words in Lean In, “Writing this book is what I would do if I weren’t afraid,” she had reason to demur. But she spoke up anyway. As did Slaughter, and Mayer, notwithstanding the uproar that the latter must have anticipated when she made the decision to ban telecommuting at Yahoo.

    Despite the costs to their own reputations, we’re glad they took the risk.

    When highly visible leaders stick their necks out, it makes it easier for the rest of us. Recently, one of us (Whitney) was sitting in a classroom where the teacher had declared the class over and indicated he wouldn’t take any further comments. One of the students, a woman, had sat there with her hand politely raised for several minutes, being ignored, while two different men called out their opinions and were acknowledged. After class, I mentioned this discrepancy to the professor and mentioned Sandberg’s book. He has since self-corrected. In another instance, I was leading a corporate panel and noticed that 80% of the speakers were men, despite the majority of the people in the room being women. Again, Sandberg’s book made me feel empowered to speak up about this inequality in a way I wouldn’t have before. And when a board chairman spoke to me about wanting to fill a board seat with a qualified woman, I wondered whether such total transparency would have happened a year ago.

    While these real-life anecdotes are tougher to quantify than social media mentions, we hope that they reflect a similar surge in conversations offline that demonstrate and embody the intricacies of a woman’s relationship to work and home. Because there’s a lot to talk about. And no one person has the answer.

    But when you put three women on a board, or in this case, in a movement, they can become agents of change. It’s too early to know the full impact Mayer, Sandberg and Slaughter will have, but early reports suggest that in their impressive, truly excellent, amazing advocacy for their own opinions, this trio is ultimately advocating for every woman.

  • Plastic shell from Apple’s upcoming entry-level iPhone possibly pictured for first time

    Plastic shell from Apple's upcoming entry-level iPhone possibly pictured for first time
    Half a dozen mainstream news organizations have reported that Apple plans to launch a new entry-level iPhone to compete at the low end, and now the plastic outer shell of the handset may have been pictured for the first time. Case maker Tactus has published a photo of what it claims to be the polycarbonate shell from Apple’s upcoming budget smartphone. It also claims to have some details about the device, which will supposedly feature a smaller 3.5-inch display, an Apple A5 processor and the same 5-megapixel camera as the iPhone 4. Tactus also claims the phone will be available in black, white, blue, red and yellow. Apple’s low-end iPhone is expected to launch around the same time as the iPhone 5S in the late summer or early fall.

  • MOGA Pro controller now available online, retail availability coming in May

    MOGA_PRO_Controller_398

    Back at CES, we had a chance to get our hands on the MOGA Pro Controller, which is the follow up to the original MOGA controller. This one isn’t as compact, but it’s based on PowerA’s top of the line Fusion controller, so it’s for the serious gamer. You get higher quality sticks as well as a second pair of triggers. I will also run on a rechargeable battery as opposed to the original MOGA, which runs on 2 AA batteries. The MOGA Pro will fit larger devices such as the Galaxy Note II, but for gamers that want to use a tablet, they include a really nice tablet stand.

    It’s priced at $49.99 and is available online at Amazon, Walmart and MOGAanywhere. Next month you will find it online at Target and in stores such as Walmart, Best Buy, GameStop, and Fred Meyer. For a limited time you will be able to download Gameloft’s N.O.V.A. 3 – Near Orbit Vanguard Alliance for Free with your MOGA Pro purchase.

    You can check out our hands on from CES and look for our review soon. Hit the break for the full press release.

    MOGA™ Pro Controller Now Available In Stores And Online

    Play Immersive Mobile Games The Way They Are Meant To Be Played With The Full-Featured Android Gaming Controller

    Woodinville, WA. – April 18, 2013 – Gamers wanting a full-size precision controller for their Android devices will not have to wait any longer as today MOGA announced that the console-style MOGA Pro Controller is now available in the U.S. The full-size MOGA Pro Controller is available for $49.99 online at Amazon.com, Walmart.com and MOGAanywhere.com. In May, the MOGA Pro Controller will be available at Target.com and at Best Buy, Fred Meyer, GameStop and Walmart stores. For a limited time, MOGA Pro comes with a free download of Gameloft’sN.O.V.A. 3 – Near Orbit Vanguard Alliance game.

    “The full-size MOGA Pro builds on the tremendous success since the launch of MOGA Pocket Controller last October,” said Eric Bensussen, President of PowerA. “When gamers put the MOGA Pro Controller in their hands, there’s an instant familiarity. As the recognized leader with impressive developer support and a growing list of top games including MADFINGER’s Dead Trigger and Gameloft’s Modern Combat 4, we’re giving mobile gamers a console-style experience, with an Android device that they already own.”

    Features of the MOGA Pro include full-sized console-style grips, clickable dual analog sticks, four action buttons, a classic directional pad, two shoulder buttons, two shoulder triggers, rechargeable batteries, USB charging cord and a tablet stand. MOGA Pro is also compatible with the emerging HID standard. Additionally, MOGA Pro comes with the full support of the MOGA Mobile Gaming System, including wireless Bluetooth® syncing with Android phones and tablets, the MOGA Arm that secures many of the largest phones on the market and the MOGA Pivot App.

    About MOGA

    MOGA mobile game controllers offer precision controls, portability and great games. All MOGA controllers feature dual analog sticks, shoulder buttons and action buttons, and connect wirelessly via Bluetooth to transform Android phones and tablets into precise mobile gaming systems. The original MOGA Pocket features a slim and sleek set of controls making it the most portable and economical MOGA available. The MOGA Pro features rechargeable batteries and console-style design that is based on the award-winning FUS1ON Tournament Controller by PowerA. The MOGA system includes Pivot, a free-to-download app that helps users discover the huge library of MOGA Enhanced games that are available. Pivot also syncs MOGA controllers to mobile devices and helps organize the MOGA Enhanced games already installed on a user’s phone. MOGA’s vast and growing game library is made possible by the free MOGA Software Developers Kit (SDK) available at MOGAanywhere.com/developers.

    The original pocket-sized MOGA Controller was released on October 22, 2012 to critical acclaim, and has attracted support from top mobile developers and publishers who want to bring console-like precision and control to their Android phone and tablet-based games. Gameloft, Rockstar, SkyVu Entertainment, MADFINGER Games, Namco Bandai, SEGA, Arb Studios, Vector Unit and other acclaimed publishers have developed MOGA Enhanced blockbuster titles such as Modern Combat 4: Zero Hour, Grand Theft Auto: Vice City, Tiki Kart 3D, NFL Pro 2013, The Dark Knight Rises HD, N.O.V.A. 3, Sonic CD, and Jet Set Radio. New game titles, developers and publishers are coming on board each month. For a complete list of games that support MOGA, visitwww.MOGAanywhere.com.

    The MOGA controllers support Android 2.3 (Gingerbread) and higher mobile devices. The pocket-sized MOGA is now available for $39.99 at Best Buy, Walmart, Toys”R”Us, Fred Meyer, Gamestop, Target, T-Mobile, AT&T, Verizon and a nationwide network of additional retailers and carrier stores. It is also available through Amazon and www.MOGAanywhere.com.

    Come comment on this article: MOGA Pro controller now available online, retail availability coming in May

  • Courage, Strength, Resilience: Women Fight AIDS

    On Monday, I attended the launch of EMPOWERED, Alicia Keys’ new campaign with Greater than AIDS to reach and inform women about HIV/AIDS, at an event hosted by the Kaiser Family Foundation. This is the second event that Alicia Keys and I have attended at Kaiser within the last year, both focused on ending AIDS.

    The women were thrilled to meet Alicia Keys, and Alicia, who was deeply moved by their stories, committed to add her powerful international voice to helping to end the epidemic here in the U.S. Alicia and I intended to lift up the women. But really, it was their strength, courage, resilience, good spirit, and humor that lifted us up.

    The HIV crisis touches every corner of the globe. And it’s personally touched so many of us, including here at home. We all have tragic stories about how HIV/AIDS has affected our family and friends, and these stories propel us all to continue to fight to end this disease.

    Monday's event addressed one of the tragic realities of HIV in our country. The HIV epidemic continues in the United States, with about 50,000 new HIV infections each year. And while about one-quarter of new HIV infections are among women, three-quarters of new infections among women occur among black and Latina women.

    read more

  • Twitter #music arrives first on iOS, then the web

    There’s been a lot of talk and rumors flying about Twitter’s new music discovery service, but today the social network revealed the details and launched the first app for it.

    Based partly on the social site’s recent acquisition of the music startup We Are Hunted, Twitter #music is described as a “new service that will change the way people find music”.

    It uses activity on Twitter (such as tweets and general engagement) to identify the most popular tracks and emerging artists and lets you listen to previews from iTunes. If you have a Rdio or Spotify account, you can log in to those and enjoy the full tracks.

    Twitter says it plans to add additional music sources in due course.

    The Twitter #music app, which is available for iOS now, offers four main tabs — Popular (new music trending on Twitter), Emerging (hidden talent found in tweets), Suggested (artists you might like), and #NowPlaying (music that’s been tweeted by artists and people you follow). You can join in on the recommendations by using the #nowplaying” hashtag to tell people what you’re listening to.

    When you discover new music you want to share with others, you just tap the spinning disc in the lower left corner to open the player and access the Compose button.

    The service is initially available in the US, UK and Ireland, Canada, Australia, and New Zealand, with more countries being added over time. Although the app is only for iOS right now, Twitter says it will be bringing its service to Android. No word on any plans to introduce it to Windows Phone or BlackBerry, however.

    The web application will be open for everyone later today and can be accessed at music.twitter.com.

    According to Twitter’s official announcement, “Twitter and music go great together. People share and discover new songs and albums every day. Many of the most-followed accounts on Twitter are musicians, and half of all users follow at least one musician. This is why artists turn to Twitter first to connect with their fans — and why we wanted to find a way to surface songs people are tweeting about. We offered music artists an early look at the service. You can see some of their reactions below. We hope you like it, too”.

  • Verizon grows by another 720,000 subscribers, continues shift toward LTE

    Verizon Wireless kicked off the U.S. carriers’ earnings season on Wednesday, reporting 720,000 net new subscribers in the normally tepid first quarter. As in recent  quarters, much of its growth was driven by contract smartphones – it activated 7.2 million of the devices, including 4 million iPhones – and it continued the gradual migration of its customer base and traffic to its now not-so-new 4G LTE network.

    Overall, Verizon brought in $29.4 million in revenues for the quarter, and posted a 15 percent year-over-year increase in profits.

    Verizon’s LTE network now covers 491 markets and 287 million people, which is roughly 95 percent of its current 3G footprint. CFO Fran Shammo said it plans to match 4G coverage to its 3G coverage by the end of this quarter, and he reiterated Verizon’s plans to start building its second 4G network this year over recently acquired Advanced Wireless Services (AWS) airwaves. Shammo said Verizon would start offering its first LTE-only devices – with no CDMA fallback – next year, which should coincide with the launch of its voice-over-LTE service.

    Verizon saw 5.9 million LTE device activations in the first quarter, bringing its total 4G retail connections to 26.3 million, about 28 percent of its total contract subscribers. Shammo said roughly half of Verizon’s 4 million iPhone activations were for the LTE-capable iPhone 5.

    As more customers upgrade to LTE devices, more of Verizon’s data load moves over to its high-capacity networks: 54 percent of its data traffic is now on LTE, compared to 50 percent in the fourth quarter.

    The mix of Verizon’s mobile subscribers is also getting interesting. It’s been moving a big chunk of its customer base over to its new shared data plans since it implemented the tiers last year. About 30 percent of Verizon’s accounts are on a Share Everything plan, and the carrier is averaging 2.67 devices per account. But Verizon also acquired 43,000 net new prepaid subscribers. That’s not a huge number in the world of prepaid, but Verizon has been focusing a lot more attention on the budget segment lately, particularly as its 3G network starts to empty.

    Shammo said that while Verizon isn’t getting overly aggressive in prepaid, it’s by no means ignoring it. “We will look for niches in which we can make an impact,” he said.

    On the wireline side, Verizon continued to recalibrate its business toward FiOS. Its fiber service now accounts for 69 percent of all consumer revenue. Verizon added 188,000 FiOS internet subscribers and 169,000 TV subscribers. Meanwhile, Verizon shed another 89,000 DSL subscribers.

    Related research and analysis from GigaOM Pro:
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  • Hawking: Big Bang Didn’t Need God’s Help

    Stephen Hawking knows a thing or two about the Big Bang. He spent his life researching it and other mysteries of the cosmos. After all this time, he’s more convinced than ever that a divine being had no part in it.

    Space reports that Hawking was giving a free lecture titled, “The Origin of the Universe” at the California Institute of Technology. The lecture was mostly about prevailing theories on how the universe was formed, but he first examined how religion frames the creation of the universe. At one point, he even questioned what a divine being would be doing before the creation of the universe:

    What was God doing before the divine creation? Was he preparing hell for people who asked such questions?”

    Hawking avoided a debate on religion versus science for most of the night, but he did recall a moment earlier in his life when Pope John Paul II called him out in the 80s for trying to explain the origins of the universe. The Pope said that science shouldn’t study the moment of creation. Hawking said that he was just glad that he wasn’t “thrown into an inquisition.”

    At the end of the lecture, Hawking reiterated a previous point he made in saying that humanity needs to leave earth sooner rather than later. He predicts that the human race won’t be able to survie another 1,000 years on “our fragile planet.”

  • Katherine Webb Quits Reality TV Show ‘Splash’

    Reality TV shows have been putting celebrities through their paces for years now, but perhaps no series has asked more of competitors than Splash. The new network show tasks celebrities (not all of whom are fit) with mastering the Olympic sport of high diving.

    As with any Olympic sport, the risk of injury is ever-present, and now one competitor has withdrawn due to doctor’s orders.

    Model and beauty queen Katherine Webb has now withdrawn from Splash. On this week’s show, Webb described her poor landing on last week’s show, and how it caused her pain. She is also shown becaming frustrated during her training. Webb took the stage to say,” I went to the doctor and, unfortunately, he told me that I’m out for the competition.”

    Webb’s withdrawal is not the first of the series. In the show’s third episode, former Playboy model Kendra Wilkinson quit the show over her fear of heights.

    Splash producers used Webb’s departure to introduce some drama, bringing back comedian Louie Anderson, who had been booted from the competition last week.

  • New Intel Architectures Equip Networks for SDN

    intel-networking-Apr2013

    Intel wants to help equip service providers and telcos for the new world of software defined networking (SDN). Intel this week rolled out reference architectures to accelerate hardware and software development for SDN and network function virtualization (NFV).

    Targeted at telecommunication providers, cloud data center and enterprise data center infrastructure market segments, the Intel reference architectures combine SDN and NFV with Intel hardware and software to improve the flexibility and economics of networks.

    “SDN and NFV are critical elements of Intel’s vision to transform the expensive, complex networks of today to a virtualized, programmable, standards-based architecture running commercial off-the-shelf hardware,” said Rose Schooler, vice president of Intel Architecture Group and general manager of Intel’s Communications and Storage Infrastructure Group. “The reference designs announced today enable a new phase in the evolution of the network and represent Intel’s commitment to driving an open environment that fosters business agility and smart economics.”

    Designing Programmable, Externally-Managed Networks

    Addressing what Intel sees as two market trends that have significant movement, SDN and NFV are complementary networking technologies that are poised to transform how networks are designed and managed across data center and telecom infrastructure environments. By separating the control and data planes, SDN allows the network to be programmed and managed externally at much larger and more dynamic scale for better traffic control across the entire data center.

    NFV allows service providers to virtualize and manage networking functions such as firewalls, VPN or intrusion detection service as virtual applications running on a high-volume x86-based server. Intel said it has no intention of making network hardware itself, but has many ISVs, OEMs and service providers lined up to develop solutions, including Big Switch Networks, Chunghwa Telecom, HP, NEC, NTT Data, Quanta, Super Micro and VMware.

    “We share Intel’s vision of enabling the network transformation with SDN and NFV across the telecom industry,” said Atsuo Kawamura, General Manager Telecom Carrier Business Unit, 1st Carrier Services Division, NEC Corporation. “We are excited to work with Intel to design with the Intel DPDK Accelerated Open vSwitch into our virtual Evolved Packet Core to deliver industry leading packet throughput and performance on Intel architecture.”

    Intel Technology Meets Software Stack

    The Intel Open Network Platform (ONP) switch reference design builds on the codenamed Seacliff Trail project, and combines Intel processors, Intel Ethernet Switch 6700 series and Intel Communications chipset 89xx series. The ONP Switch Reference Design will include Wind River Open Network Software (ONS), an open and fully customizable network switching software stack using Wind River Linux. Common, open programming interfaces allow for automated network management, and coordination between the server switching elements and network switches enable more cost-effective and extensible services, Intel said.

    The Open Network Platform Server reference design is based on the codenamed Sunrise Trail project, and includes Xeon processors, Intel 82599 Ethernet Controller, and Intel Communications chipset 89xx series. The ONP Server Reference Design enables virtual appliance workloads on standard Intel architecture servers using SDN and NFV open standards for datacenter and telecom. Wind River Open Network Software includes an Intel DPDK Accelerated Open vSwitch, fast packet acceleration and deep packet inspection capabilities, as well as support for open SDN standards such as OpenFlow, Open vSwitch and OpenStack.

    “By decoupling the network from underlying hardware and enabling a new network architecture based on industry-standard x86 technology, network virtualization can transform the operational model of networking to help customers dramatically lower operational and capital expenses,” said Allwyn Sequeira, vice president, Networking and Security for VMware. “VMware and Intel have built a strong relationship driving server virtualization on x86 platforms, and we are pleased to be working together to continue this transformation through network virtualization to enable the software-defined data center.”

    Intel is executing a project aimed at improving small packet throughput and workload performance that can be achieved on the Open vSwitch using the Intel DPDK.  Intel is specifically re-creating the kernel forwarding module (data plane) to take advantage of the Intel® DPDK library. The Intel® DPDK Accelerated Open vSwitch is planned to initially be released with the Intel® ONP Server Reference Design in the third quarter of this year.

  • LinkedIn Updates Mobile Experience, Its Fastest Growing Area

    LinkedIn says that their mobile platform is the “fastest growing” aspect of their service. On average, 27% of their unique visitors comes through their mobile apps – up from 15% a year ago. In a year, their mobile pageviews have increased 250%.

    And with the added focus on mobile comes the need to improve upon its mobile apps. Today, LinkedIn has launched significant redesigns of both their iOS and Android apps.

    “We want to make it easier for our members to quickly discover and engage with the rich professional insights being shared across LinkedIn to help them make smarter decisions from wherever they may be working. We’ve designed the new LinkedIn mobile phone app for every professional, with a richer and more engaging stream and more personalization features,” says LinkedIn’s Tomer Cohen.

    Probably the biggest part of the redesign is the new activity stream. Not only is it more media-rich, with bigger photos and links to outside content, but it’s generally better looking. It’s also better at bringing in all types of content, including updates from connections, news, and posts from LinkedIn’s top influencers. In most every way, the new mobile apps mirror what LinkedIn has done to improve the desktop feed over the past few months.

    It’s also easier to get around the app with a brand new navigation page. All you have to do is swipe right to reveal a customizable menu complete with you messages, invitations, calendars, and more.

    LinkedIn says that 64% of their members are located outside the U.S. To that end, they’ve also expanded the language offerings of the apps – Dutch and Norwegian for iOS, and Turkish, Dutch and Norwegian for Android. As of now, 15 languages are supported across both apps.

    Finally, ads. Lead Mobile guy for LinkedIn Joff Redfern confrimed to TechCrunch that LinkedIn will be bringing more sponsored content to mobile. They’ve been doing the same on the desktop and iPad version of the app.

    “We’re now expanding this test into the mobile phone experience,” he says.

    You can grab the update on both iOS and Android today.

  • GoPro: Ken Block in Russia

    Ken Block GoPro Hero 3

    Wouldn’t it be great if everyone had access to 130 GoPro cameras. Ever wonder what kind of videos you could create? Ken Block, the marketing master, shows us just how far you can take your imagination with the right tools (and sponsorship) behind it. Check it out after the jump.

    Source: Youtube.com

  • Disqus is down

    If you are unable to comment on BetaNews stories, our apologies, comment service Disqus suffers service problems this morning. A reader alerted me about 30 minutes ago. When I couldn’t comment on any story, I had headed over to Disqus only to get an “unavailable” message.

    “Disqus has been intermittently unavailable for the past few minutes, and we are working on a solution. We apologize for the disruption and appreciate your patience”, according to the Status site, which I got to from a Tweet. BetaNews is one of many sites that relies on the service for comments.

    Coming sideways to the main site, I see this message:

    Hello! Disqus is currently in maintenance mode. You can still navigate the website and access your content, however many actions such as moderation and settings are temporarily disabled. This shouldn’t take too long, and we’re sorry for the inconvenience. In the meantime, there will be some quirkiness as we make some improvements.

    We’ll keep you updated.

    Disqus back after 29-minute outage: “Disqus is now running normally again. We again apologize for the hassle and are monitoring the situation closely to ensure there are no further issues”.

    No reason is given for the outage.

    Photo Credit: Ollyy/Shutterstock

  • A documentary about JR, and his participatory art project INSIDE OUT, to premiere at the Tribeca Film Festival

    The documentary INSIDE OUT: The People’s Art Project will premiere at the 2013 Tribeca Film Festival in New York this Saturday, April 20, giving an intimate look into the courageous victories and heartrending challenges involved in creating the world’s largest participatory art project.

    JR's TED Prize wish: Use art to turn the world inside outJR's TED Prize wish: Use art to turn the world inside outIn 2011, French street artist JR announced his TED Prize winning wish to connect people worldwide through a collaborative artistic action. He launched INSIDE OUT, inspiring thousands of people — from South Dakota to Iran — to collectively transform their personal identities into public artwork. From Moscow to Tunisia, citizens have turned more than 120,000 digital portraits into bold posters covering everything from city walls to trains.

    Besides shifting the way INSIDE OUT’s participants and onlookers contemplate storytelling and public space, JR’s big dream has inspired diverse individuals to define the soul, values and vision of their communities with a few simple tools — a camera, paper and paste.

    Inside Out: The People’s Art Project debuts on HBO on May 20th at 9PM ET. For a sneak peek, watch the trailer above.

    Inspired?

    Participate in an action in your community »

    Check out just a few of the amazing — and stunning –images pasted in cities across the world »

  • DataBank Grows Beyond its Dallas Digital Fortress

    DataBank-Richardson-exterio

    The exterior of the new DataBank North Dallas data center in Richardson, Texas, part of the company’s plan to expand beyond its original site in the former Federal Reserve building in downtown Dallas. (Photo: DataBank)

    With Backing From Avista, Expands in Richardson, Minneapolis

    databank-vault-smallDALLAS – Housed deep below six floors of humming servers, the two-foot thick vault doors speak to an earlier era for the DataBank building, when it served as the main Federal Reserve Bank office in Dallas. The huge vault doors secured the entrance to the counting room – the place where enormous volumes of cash and coins were catalogued en route to storage in lower basements. Legend has it that the vault was used briefly as a holding area for Lee Harvey Oswald following the assassination of Pres. John F. Kennedy, which occurred several blocks from the building.

    The Federal Reserve moved out in the 1990s, but the counting room lives on as a symbol of the building’s new mission – serving as a digital fortress for high-value assets, but now housing data centers filled with servers and storage gear.

    For the DataBank team, the building at 400 South Akard supports a business narrative for the 21st century, with a reputation for security and reliability built atop rock-solid infrastructure.

    After eight years in which it has nearly filled 130,000 square feet of data center space in the original DataBank building, the company is extending its model – first in the Dallas metroplex, and then in other cities around the US.

    Investment by Avista, Sale to Digital Realty

    This year the DataBank team has taken two steps to realize that vision, opening a new data center in Richardson, Texas and acquiring VeriSpace, a data center provider in St. Paul, Minnesota.

    The expansion has been supported by a transaction last year in which private equity firm  Avista Capital acquired a majority interest in DataBank, which also sold the 400 South Akard Street property to Digital Realty Trust in a sale-leaseback transaction. Databank also leased a powered shell building from Digital Realty at its Digital Dallas campus in Richardson.

    While Databank is looking to its future, the company’s outlook is defined by the South Akard building and its characteristics. The structure was built between 1915 and 1920, and the Federal Reserve Bank opened its doors in 1921, operating at 400 South Akard for more than 70 years before the moving into a new home in the 1990s. The building was acquired by an investment group, and then sold to telco 360networks, which converted an entire floor to data center use before filing for bankruptcy.

    In 2005, the new DataBank team acquired the building, having sold their previous company, LayerOne, to Switch and Data. The building’s sturdy infrastructure, including generous floor loads and ceiling heights, provided an unusual opportunity to build the new economy in the footprint of the old.

    “This building has the bones of a data center,” said Tim Moore, the CEO of DataBank.

  • Nokia faces the feature phone collapse it dodged in 2012

    Nokia faces the feature phone collapse it dodged in 2012
    In the spring of 2012, Nokia started rolling out a broad new range of Asha feature phones and managed to astonish Wall Street for a couple of quarters. The phones actually sold. Priced at 60-90 euros, they were cheaper than even cheapest Android smartphones and had a sleek, glossy new look. They offered many advanced features like downloadable games and great email support. For a while, Nokia enjoyed an Indian summer — feature phone ASP only declined by -3% during the third quarter in 2012.

    Continue reading…

  • Nintendo’s $20 Circle Pad Pro Is Coming to The 3DS XL In The U.S. This Friday

    3ds-xl-circle-pad-pro

    Nintendo is gearing up to bring an extra nub to your 3DS XL, if that’s what you’re into. The company listed the previously Japan-only accessory on its website in the U.S. today, with an anticipated ship date of this Friday. The Circle Pad Pro for 3DS XL is like the original version for 3DS, but beefier, and perhaps even more unsightly when glommed on to your portable console.

    Less than stellar looks are a trade-off for a much more ergonomic and comfortable design, however, according to most who have used the accessory. Nintendo got a lot of flack back when it first revealed the 3DS for not just including a second analog control pad to begin with in the device itself, and clearly the Circle Pad Pro was a concession designed to calm those whiners.

    Nintendo’s got a lot riding on the 3DS, especially since it looks like the Wii U isn’t doing too well in the initial offing. The mobile console faces an even greater threat from multipurpose devices like iPads and tablets that are also getting plenty of software to add to their gaming libraries, and which follow a hardware upgrade cycle that sees them get more powerful on at least a yearly basis, but often even more frequently.

    The OUYA Android-based gaming console so far mostly challenges the home console market, and then even not very well, according to early reviews. But Sony at least seems to be investing more time and effort into PlayStation Mobile, its attempt at crossing the divide between dedicated gaming devices and the smartphone market, and third-party devices with more of a gaming focus, possibly from startup sources, likely aren’t that far behind. The Circle Pad Pro for 3DS XL isn’t revolutionary, but it is a cheap way to offer something smartphones generally don’t, so it could help convince fence-sitters unsure about a purchase, at the very least.

  • CISPA Amendment Stripped Of Its Pro-Privacy Provision

    We reported yesterday that CISPA was finally shaping up. Rep. Mike McCaul introduced an amendment late into the game that would have forced companies to share customers’ private information only with the Department of Homeland Security. It sounded too good to be true. Unfortunately, it was.ci

    The Hill reports that the amendment we saw yesterday is entirely different from the amendment that actually wound up in the bill. The amendment has been stripped of its requirement that companies only share information with the DHS. With that requirement gone, the amendment is worthless. It’s only purpose now is to make it seem like CISPA actually respects your privacy.

    Needless to say, pro-privacy groups are not happy. The EFF wrote a scathing review of the amendment last night:

    The amendment in question does not strike or amend the part of CISPA that actually deals with data flowing from companies to other entities, including the federal government. The bill still says that: “Notwithstanding any other provision of law, a self-protected entity may, for cybersecurity purposes…share such cyber threat information with any other entity, including the Federal Government.” The liability immunity provisions also remain.

    While this amendment does change a few things about how that information is treated within the government, it does not amend the primary sharing section of the bill and thus would not prevent companies from sharing data directly with military intelligence agencies like the National Security Agency if they so choose.

    The amendment looks bad, and it will probably remain that way. That being said, there might be some changes made to it and the overall bill today before it heads to the floor for final vote. A House aide reportedly said that the sponsors of this latest amendment are in discussions to fix the language in it. If that was the case, why did they change the original text of the amendment that actually did some good? Are they just going to change the amendment back to what it was?

    At this point, it’s hard to believe that we’ll actually see any positive changes in CISPA. After all, the bill’s sponsors believe that only 14-year-olds hate CISPA.

  • Beaver Actor Dies; Frank Bank Was 71

    Actor Frank Bank, who played Clarence “Lumpy” Rutherford on the TV show Leave it to Beaver, has died. He was 71.

    Though the cause of his death has not been reported, Bank died in Los Angeles on Saturday, April 13.

    Bank began his acting career in the 50s, with small roles on TV and a role as the young Will Rogers in The Story of Will Rogers. In 1958 he was cast in the role of Clarence “Lumpy” Rutherford in the classic sitcom Leave it to Beaver. Lumpy is portrayed as a bully with an overbearing father who eventually befriends Wally Cleaver, Beaver’s older brother.

    In the 70s, Bank left acting and began a career as a bond broker in Los Angeles. However, Bank returned to the role of Lumpy in the 80s in The New Leave it to Beaver, a sequel to the original series. In 2007 Bank published an autobiography titled Call Me Lumpy: My Leave it to Beaver Days and Other Wild Hollywood Life.