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  • Government demands to remove content reaches new highs, Google claims

    For the past three years Google has released transparency reports, which loosely translate to tattling on the government and other entities that attempt to extract information from the search giant. None are likely happy with this reporting, but it is all public record and fair game.

    “Today, for the seventh time, we’re releasing new numbers showing requests from governments to remove content from our services”, states Google’s legal director Susan Infantino.

    In fact, despite the public outing, the onslaught has not abated. Indeed, it gains momentum. The latest report claims “from July to December 2012, we received 2,285 government requests to remove 24,179 pieces of content—an increase from the 1,811 requests to remove 18,070 pieces of content that we received during the first half of 2012”.

    This is not just the United States seeking data on you. Other governments are involved as well. Google says it has seen a sharp increase in requests from Brazil — 697 requests to remove content from its platforms, to be exact. But it was not just the South American nation that ramped up its submissions to the search giant. Another is Russia; “In the first half of 2012, we received six requests, the most we had ever received in any given six-month period from Russia. But in the second half of the year, we received 114 requests to remove content”, Infantino says.

    Google also received inquiries from 20 countries regarding YouTube videos containing clips of the movie “Innocence of Muslims”.  While the videos were considered within the guidelines, Google restricted videos from view in several countries in accordance with local law after receiving formal complaints. It also temporarily restricted videos from view in Egypt and Libya due to what it considered particularly difficult circumstances there.

    The company also made some changes to the way this information is reported. Infantino tells us “we’re now breaking down government requests about YouTube videos to clarify whether we removed videos in response to government requests for violating Community Guidelines, or whether we restricted videos from view due to local laws”.

    It is not that we didn’t already know that Big Brother is watching us. However, the extent of the surveillance has grown since the last time we checked in with him.

    Photo Credit:  AR Images/Shutterstock

  • After a radical transformation, Blip gets ready to take on cable

    Online video is ready for its FX moment, according to Blip Networks CEO Kelly Day. Just like Fox turned FX into a successful network for original programming on cable, Day is planning to turn Blip into a network of topical channels with strong brands that are ready to compete head-to-head with traditional cable channels.

    To prepare for this, she’s been spearheading a radical transformation of the video site ever since she joined a year ago. “I came here because I have high aspirations for this company,” Day told me when I stopped by Blip’s offices in New York last week.

    To understand how much Blip has changed, it’s worth looking back at its origins: Blip launched back in 2005 under the name Blip.tv as a kind of YouTube for video bloggers and podcasters, which early on set the tone for a slightly different set of content. “We’ve never had viral videos, we don’t focus on music videos,” remembered Blip Senior Vice President of Content Steve Woolf when I talked to him about Blip’s transformation in March.

    From 900,000 accounts to 4000 shows

    Still, a lot of people uploaded all kinds of content — and some time last year, Blip made the strategic decision to get rid of most of them. Blip’s staff has been reviewing around 900,000 accounts over the last couple of months with the goal to identify high-quality serialized content. Woolf estimated that in the end, only about 4,000 shows will remain on the site. And Blip is also getting a lot more selective when it comes to new signups: “Blip was an open platform, now there is an application process,” explained Woolf.

    Blip Networks CEO Kelly Day.

    Blip Networks CEO Kelly Day.

    Blip’s new focus on serialized, monetizable content will be on full display at the Newfronts in New York next week, where Day is going to unveil some additional details about her plans to turn the site into a new form of multichannel network. At the core of it is professional, serialized web content that can engage audiences through a variety of channels — be it on Blip or off. The company has taken some first steps in that direction over the last couple of months with the launch of its own studio in Los Angeles, which is headed by Woolf. It also forged a partnership with YouTube, producing some exclusive content for the former rival.

    And now, it is looking to spin out new online channels around some of the topics that have been working well for niche channels on cable. Think cooking, golf, or any other cable properties with a highly specialized audience. “Those are some of the easiest to disrupt,” she said.

    Her plan includes taking that kind of shows off of Blip and building dedicated websites with highly curated content around it, likely with a separate branding. Some of these sites could even have a live component, something that Blip hasn’t done much in the past. Day wants to launch these new sites and brands within the next year, possibly as early as this fall. “I believe in building verticals around interests,” she told me.

    So what about YouTube?

    Of course, Blip isn’t alone in its move towards more professional content. YouTube has famously invested hundreds of millions into advances for content creators, and has been pushing hard to establish channels as destinations on its site. “They’re doing a lot of good for the industry,” acknowledged Day during our interview. At the same time, some creators have found themselves falling short of YouTube’s expectations, with less than 40 percent of the site’s original programming slate getting re-funded.

    Day argued that this is in part because of YouTube’s inability to surface that content to the right audiences. “I don’t think the algorithm works for everything,” she said. Some of these creators could benefit from being on separate, more curated destinations. Or to take the cable analogy: from producing for FX, not Fox.

    That’s why she is considering to partner up with a “select hand full” of these channels, and eventually help them be successful off of YouTube. “It is a good opportunity for us to bring on some new partners,” she said.

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  • Nintendo circles the wagons as smartphone savages attack

    The E3 game expo is just six weeks away and where Nintendo should have big visibility. Instead, today, the company president shares plans about greatly scaled-back presence, less than 24 hours after IDC warned that paying smartphone and tablet gamers will exceed their handheld counterparts this year.

    For Microsoft and Sony, which have new consoles coming this year, E3 2013 will be big happenings. But not Nintendo. “We decided not to host a large-scale presentation targeted at everyone in the international audience where we announce new information as we did in the past”, president Satoru Iwata says. “Instead, at the E3 show this year, we are planning to host a few smaller events that are specifically focused on our software lineup for the U.S. market”.

    The scaleback comes as Nintendo acknowledges weaker than expected sales for Wii U, a hybrid handheld and console gaming system. During first calendar quarter Nintendo sold 3.45 million units, rather than the projected 4 million.

    “The release intervals of first-party key titles have been so much longer than we expected..that we have not successfully maintained the momentum of the platform”, Iwata explains during his earnings presentation. “In addition, we have not been able to solidly communicate the product value of Wii U to our consumers yet, which has been a grand challenge for us”.

    So Nintendo’s problems are two: Consumers don’t understand what Wii U is, and the games aren’t there. Competition may be a big reason for the latter. Android and iOS app stores satisfy consumers and pull away developers, and smartphones, particularly, are more likely carried than gaming handhelds or even tablets.

    “In order for Nintendo’s and Sony’s gaming-optimized handhelds to remain ahead of smartphones and tablets on key metrics…these companies and their game card developer and publisher partners will have to redouble their efforts in a number of respects”, Lewis Ward, IDC research manager, says. “Digital distribution has reached an inflection point in mobile and portable gaming, and future success will largely boil down to finding a unique balance of freemium business model excellence and that ability to deliver compelling social experiences”.

    Nintendo’s decision to pull back from E3 potentially cedes mindshare and product awareness at a time when Microsoft and Sony step up conole competition and Apple and Google platforms encroach further into handheld gaming. That puts Wii U between the console rock and smartphone hard place.

    However, Iwata is convinced that new software titles will lift sales during second half of the year. For all fiscal 2014, which started April 1, Nintendo forecasts sales of 9 million Wii Us and 18 million DSes. Software for both platforms, respectively: 38 million and 80 million.

  • If Amazon Web Services is a sideline, it sure is a big one

    Some folks still say that Amazon Web Services is a distraction for the Amazon retail juggernaut, but it’s hard to argue that it’s small potatoes given the growing size of that cloud infrastructure business.

    For its first fiscal quarter ending March 31, Amazon netted a healthy $750 million in the “other” category of North America sales, up 64 percent from $458 million for the year-ago period. Amazon always cautions that this category also includes “marketing and promotional activities and co=branded credit card agreements.” But I would wager the bulk of that $750 million comes from the aforementioned AWS.

    awsq1revNo doubt, $750 million is a big number but it’s down from the $769 million compared to Q4; but then again, the category typically sees a dip between Q4 to Q1.

    Given that Amazon never breaks out AWS any more granularly than this, it’s key to follow this stat quarter to quarter.

    awsq4rev

    Here’s how Amazon’s net sales looks from AWS inception in 2006 till now.

    aws net sales to date

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  • Twitter May Help You Surface Tweets in Your Vicinity [REPORT]

    Twitter is reportedly testing a new feature that would make it infinitely more useful for people who use the service to find out about things going on around them.

    I mean right around them. Like, you know, near them. Geographically.

    According to All Things D, who quotes multiple sources, Twitter is currently testing a feature that allows users to discover tweets from other users within a certain radius. For instance, you could see a tweet from someone who’s right down the road, who’s eating a great omelet at a local brunch spot.

    On April 1st, Twitter kicked off its second annual hack week, and apparently that is where this idea was engendered. If so, this is a really great idea that could change the way people use Twitter.

    As of right now, Twitter’s “discovery” tab surfaces tweet about “what’s happening now, tailored to you,” according to Twitter. Although it’s unclear exactly how Twitter’s algorithms decide what to show you, it definitely has to do with who you follow and who those people follow, and so on. It’s kind of a “people in your general network” sort of deal. And to be honest, it’s not really all that helpful. There’s definitely some consideration given to location, but it’s not much.

    And really, Twitter has always felt more global than local. Sure, you can limit which Twitter trends you’re shown by city. But then again, this is only Twitter trends. And it’s only by city.

    I say test away, Twitter. And then unveil this feature. I can already imagine how useful it would be to walk outside my door, and see a bunch of tweets about things happening in my area. Can you?

  • Samsung to delay the launch of its security software for Galaxy smartphones

    Samsung_Knox_Galaxy_S_IV

     

    It appears that Samsung’s well-known entrant into the enterprise world is set to encounter a slight delay with its arrival. Expected to arrive as early as this upcoming Saturday alongside the Galaxy S 4′s official release for AT&T, Samsung decided that its Knox software is not quite ready for primetime and needs to undergo further testing to ensure it will operate smoothly for various Sammy devices— regardless of wireless carriers. As a result, there are sources that are now claiming that Samsung plans on pushing Knox’s launch until sometime July.

    Regardless of the delay, Samsung will continue its push for a full-fledged assault on the enterprise world with its Knox software. Samsung expects to release its security software alongside some variations of its Galaxy devices this year— all in the hopes of taking some of the ever-growing enterprise market share. Let’s just hope that some of the more traditional rivals are ready for Samsung’s imminent arrival.

    source: New York Times

    Come comment on this article: Samsung to delay the launch of its security software for Galaxy smartphones

  • Check Out The First Gameplay From Hearthstone: Heroes Of Warcraft

    At PAX East, Blizzard announced that it’s working on its first new, original Warcraft game in almost a decade. The game – Hearthstone: Heroes of Warcraft – is a collectible trading card game that pits players against each other using creatures and spells from the Warcraft universe.

    Unfortunately, the first trailer didn’t really give us much of a look at the gameplay in Hearthstone. The latest trailer out of Blizzard remedies that by giving players a look at a match between a Paladin and a Warrior.

    Hearthstone: Heroes of Warcraft will soon be available in closed beta. The full game will launch as a free to play title supported by microtransactions later this year.

  • Beyond: Two Sould to be Screened at Tribeca

    The Tribeca Film Festival is wrapping up this week, and Sony has a bit of a surprise for gamers who also love movies.

    The publisher has announced that it will be screening footage from the video game Beyond: Two Souls at Tribeca. The screening will take place on Saturday, April 27 at 6:45 pm EST. Those who aren’t in New York City can catch the screening live on Sony’s PlayStation Blog.

    Though Beyond is a video game, developer Quantic Dream has taken great pains to make it cinematic, something the studio has been striving toward with its previous games, such as Heavy Rain and Indigo Prophecy. The game stars Willem Dafoe and Ellen Page as characters embroiled in a supernatural tale. Dafoe, Page, and other actors went through extensive motion capture processes to place their likenesses into the game.

    Page will be at the screening to answer questions with the game’s director, David Cage. The screening will debut the “official” trailer for Beyond and show off a 35-minute scene from the game.

  • The Hero Eco A2B Metro Electric Bike Is A City Commuter’s Dreamcycle

    metro_white2

    As a man who spends most of his time in his attic, it’s nice to hit the open roads, feel a little wind in your hair, and run over crack vials as you motor through downtown Manhattan. That’s exactly what I did yesterday as when I tried to ride an Hero Eco A2B Metro electric bike from Bay Ridge to our offices on Broadway, thereby cementing my love for electric bikes and this electric bike in particular.

    The Metro, made by German manufacturer Hero Eco (formerly Ultra Motor), is a brutalist electric bike with a built-in battery and maximum speed of 20 MPH. It has pedals and a 7-gear shifter so it is technically considered a moped and does not require a motorcycle license and a built-in limiter ensures you don’t go roaring down the streets on this 80 pound machine.

    The company has had these bikes in the US for a few years now but they are working on a complete rebranding – although the bikes will remain the same. You can see the brand new bikes on this absolutely awful webpage they’ve made. This particular model costs about $3,000 online but the build quality is excellent and the equipment – from the fat Kenda tires to the Shimano shifter – is acceptable enough. I noticed some bad reviews on Amazon complaining of damaged motors or tires and, although I didn’t experience these issues over the past week, I cannot speak for extensive use. In my 15 mile ride I saw solid performance and no skidding or fishtailing while accelerating. I did, however, experience a low battery and riding this thing home, even for a mile, on pedal power wasn’t great.

    The bike is bit big but it’s still thin enough to ensure you don’t get entangled with other riders in tight paths. I found it worked great in tight quarters and, because it is in actuality just a bicycle with a hub motor, the other cyclists didn’t give me that much of a stink eye.

    I’ve avoided looking at electric bikes of late because most of them look like motors strapped to 10-speeds. This is far different and, if I were to describe it in any way, it is the exact opposite of those foldable city bikes folks are riding. My kids, in fact, have taken to calling it Super Bike.

    Hero Eco is finding its footing right now and also has sub-$2,000 models available, including their own version of the folding electric called the Kuo which retails for $1,599. The company is also now calling itself HeroEco and was formerly called Ultra Motor, so you may see a bit of confusing until their full rebranding.

    What are you paying for? Well, you’re paying for a solid, welded frame, solid components, and excellent acceleration. The range isn’t too shabby and for a bit more you can add on a second battery for 20 miles of range. I could also imagine a user removing the governor – though I’m sure Ultra Motors doesn’t condone this. This isn’t a sport bike. I could really see it more as a bike for folks with a 10-15 mile commute who want to hit the open air a little and don’t want (that much) of a carbon footprint.

  • Nokia executive responsible for Microsoft partnership quits

    Nokia Lumia Executive Steven Overman Resigns
    Steven Overman has resigned from his position as vice president for global branding and marketing strategy at Nokia, BGR sister site BGR India reported. The former executive was responsible for drafting the high-profile partnership with Microsoft, and also for marketing the company’s Lumia and Asha smartphones. Before joining Nokia in 2010, Overman previously worked at Lowe Worldwide where he led the marketing team that handled Nokia’s account. Despite producing a number of appealing products with extensive marketing campaigns, Nokia has continued to struggle. Lumia Windows Phone shipments increased to 5.6 million units in the first quarter of 2013, up from 4.4 million in the previous quarter. In North America, however, the company only shipped 400,000 smartphones, down from 700,000 in December.

  • Anonymous Defaces NAMBLA Web Site As Part Of #OpAlice

    Anonymous has a history with child predators. The hacktivist group frequently targets them during its operations, but it’s now launching a massive attack on numerous Web sites as part of a new operation.

    Anonymous announced today that it has taken down the North American Man/Boy Love Association’s Web site in protest of Alice Day. The unofficial holiday, originally known as Pedophile Pride Day, is celebrated every April 25. To counter the group’s message and in observation of Child Abuse Awareness Month, Anonymous will be taking down numerous child pornography Web sites around the world today.

    For those who can’t watch the video, here’s a transcript:

    April is child abuse awareness month, and coincidentally it is also a month in which child rapists, molesters and abusers celebrate a particular holiday. On April 25th, Abusers worldwide celebrate the holiday Alice Day, named after Alice Liddell and, “Alice In Wonderland”, originally Pedophile Pride Day. On this holiday the pedophiles celebrate, rape and molestation of little girls. Many pedophiles believe it is okay for them to celebrate “loving” a female child that day.

    We call upon all Anonymous Operatives to come forward and march with us as legion. To deface and cause chaos within the pedophile networks.

    To the public; On April 25th we will be conducting various operations involving online methods such as Distributed Denial of Service attacks, doxing, and website defacement. We ask that you please watch your children and be extra vigilant, because April 25th is like Christmas to them.

    The Daily Dot reports that Anonymous will be targeting every pedophile hub on the Net. The goal is to take them down and keep them down for as long as possible. The group obviously hopes it can also out as many pedophiles in the hope that those outed will be arrested.

    [h/t: Gizmodo]

  • Amazon Sales Up 22% To $16.07 Billion For Q1, Profit Down

    Amazon reported its Q1 earnings today with sales up 22% to $16.07 billion.

    Operating cash flow was up 39% year-over-year to $4.25 billion for the trailing twelve months. Free cash flow was down 85% to $177 million for the trailing twelve months. This includes purchases of corporate office space and property in Seattle. Operating income was down 6% to $181 million in the first quarter, compared with $192 million in first quarter of 2012. Net income decreased 37% to $82 million in the quarter.

    Amazon is excited about its original content business moving forward.

    CEO Jeff Bezos said, “Amazon Studios is working on a new way to greenlight TV shows. The pilots are out in the open where everyone can have a say. I have my personal picks and so do members of the Amazon Studios team, but the exciting thing about our approach is that our opinions don’t matter. Our customers will determine what goes into full-season production. We hope Amazon Originals can become yet another way for us to create value for Prime members.”

    There is also talk of a pending Amazon ad network that would take on the likes of Google and Facebook, not to mention set-top boxes.

    Stock is up in after hours trading.

    Here’s the release in its entirety:

    SEATTLE–(BUSINESS WIRE)–Apr. 25, 2013– Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its first quarter ended March 31, 2013.

    Operating cash flow increased 39% to $4.25 billion for the trailing twelve months, compared with $3.05 billion for the trailing twelve months ended March 31, 2012. Free cash flow decreased 85% to $177 million for the trailing twelve months, compared with $1.15 billion for the trailing twelve months ended March 31, 2012. Free cash flow for the trailing twelve months ended March 31, 2013includes fourth quarter 2012 cash outflows for purchases of corporate office space and property in Seattle, Washington, of $1.4 billion.

    Common shares outstanding plus shares underlying stock-based awards totaled 471 million on March 31, 2013, compared with 464 million one year ago.

    Net sales increased 22% to $16.07 billion in the first quarter, compared with $13.18 billion in first quarter 2012. Excluding the $302 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 24% compared with first quarter 2012.

    Operating income decreased 6% to $181 million in the first quarter, compared with $192 million in first quarter 2012. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $12 million.

    Net income decreased 37% to $82 million in the first quarter, or $0.18 per diluted share, compared with $130 million, or $0.28 per diluted share, in first quarter 2012.

    “Amazon Studios is working on a new way to greenlight TV shows. The pilots are out in the open where everyone can have a say,” saidJeff Bezos, founder and CEO of Amazon.com. “I have my personal picks and so do members of the Amazon Studios team, but the exciting thing about our approach is that our opinions don’t matter. Our customers will determine what goes into full-season production. We hope Amazon Originals can become yet another way for us to create value for Prime members.”

    Highlights

    • Amazon.com expanded selection for Prime Instant Video, announcing new licensing agreements with A+E Networks, CBS Corporation, FX, PBS Distribution and Scripps Networks Interactive, bringing exclusive access to popular television series such as Downton Abbey, Justified and Under the Dome as well as shows from HGTV, DIY Network, Food Network, Cooking Channel and Travel Channel. Prime Instant Video now includes more than 38,000 movies and TV episodes that are available for Prime members to watch at no additional charge.
    • Amazon Studios, the original film and series production arm of Amazon.com, debuted 14 original comedy and kids pilots. The pilots, which feature stars such as John Goodman, Jeffrey Tambor and Bebe Neuwirth, are available exclusively atwww.amazonoriginals.com and on the Amazon Instant Video app for Kindle Fire HD, Kindle Fire, iPad, iPhone, iPod touch, Roku, Xbox 360, PlayStation 3, Wii and Wii U, as well as hundreds of other connected devices. Viewer feedback will help determine which pilots Amazon Studios will produce into full series.
    • Amazon expanded the popular Kindle Fire feature “X-Ray for Movies” to TV shows, bringing the power of IMDb directly to the most popular TV shows on Kindle Fire. With a single tap viewers can discover the names of actors and what they’ve been in, without even leaving the TV show.
    • Kindle Owners’ Lending Library has grown to over 300,000 books available to borrow for free as frequently as a book a month, including many titles exclusive to Amazon.
    • Amazon announced the launch of the Amazon MP3 store optimized specifically for Safari browser. For the first time ever, iPhone and iPod touch users can discover and buy digital music from Amazon’s 22 million song catalog. Amazon also announced its Cloud Player app for iPad and iPad mini, enabling customers to play or download music stored in Cloud Player to their device, play music that is already stored on their device, and manage or create playlists.
    • Amazon announced it has extended its popular AutoRip services to vinyl records. AutoRip provides customers with free MP3 versions of CDs and vinyl records they purchase from Amazon. Additionally, customers who have purchased AutoRip CDs or vinyl records at any time since Amazon first opened its Music Store in 1998 will find MP3 versions of those albums in their Cloud Player libraries – also automatically for free.
    • Amazon announced the launch of Kindle Fire HD 8.9” — the large-screen version of its best-selling tablet —for the U.K.,Germany, France, Italy, Spain and Japan. With the expansion of Kindle Fire HD 8.9” to Europe and Japan, Amazon also announced a lower price on Kindle Fire HD 8.9” in the U.S., with the Wi-Fi version starting at $269 and the 4G version starting at$399.
    • Amazon Publishing, the publishing arm of Amazon.com, announced that it will start paying authors their royalties monthly, 60 days in arrears — allowing authors to receive payment more frequently than the twice-a-year industry standard.
    • Amazon acquired Goodreads, a leading site for readers and book recommendations that helps people find and share books they love. Goodreads members can discover new books by seeing what their friends are reading or by using the Goodreads Book Recommendation Engine; share ratings and recommendations; track what they have read, and list what they want to read.
    • Amazon Web Services (AWS) announced the launch of Amazon Redshift, a fast and powerful, fully managed, petabyte-scale data warehouse service in the cloud for a fraction of the cost of a traditional data warehouse.
    • AWS launched AWS OpsWorks, an application management solution for the complete lifecycle of complex applications, including resource provisioning, configuration management, deployment, monitoring, and access control.
    • AWS announced Amazon Elastic Transcoder, a highly scalable service for transcoding video files between different digital media formats. Amazon Elastic Transcoder manages all aspects of the transcoding process transparently and automatically, providing scalability and performance by leveraging AWS services.
    • AWS announced AWS CloudHSM, a new service enabling customers to increase data security and meet compliance requirements by using dedicated Hardware Security Module (HSM) appliances within the AWS Cloud. The CloudHSM service allows customers to securely generate, store and manage cryptographic keys used for data encryption in a way that keys are accessible only by the customer.
    • AWS has lowered prices 31 times since it launched in 2006, including 7 price reductions so far in 2013.

    Financial Guidance

    The following forward-looking statements reflect Amazon.com’s expectations as of April 25, 2013. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.

    Second Quarter 2013 Guidance

    • Net sales are expected to be between $14.5 billion and $16.2 billion, or to grow between 13% and 26% compared with second quarter 2012.
    • Operating income (loss) is expected to be between $(340) million and $10 million, compared to $107 million in the comparable prior year period.
    • This guidance includes approximately $340 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.

    A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months atwww.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

    These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment and data center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains, and develops commercial agreements, acquisitions, and strategic transactions, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, system interruptions, government regulation and taxation, payments, and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

    Our investor relations website is www.amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases and social media postings.

    About Amazon.com

    Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. Kindle Paperwhite is the most-advanced e-reader ever constructed with 62% more pixels and 25% increased contrast, a patented built-in front light for reading in all lighting conditions, extra-long battery life, and a thin and light design. The new latest generation Kindle, the lightest and smallest Kindle, now features new, improved fonts and faster page turns. Kindle Fire HD features a stunning custom high-definition display, exclusive Dolby audio with dual stereo speakers, high-end, laptop-grade Wi-Fi with dual-band support, dual-antennas and MIMO for faster streaming and downloads, enough storage for HD content, and the latest generation processor and graphics engine—and it is available in two display sizes—7” and 8.9”. The large-screen Kindle Fire HD is also available with 4G wireless, and comes with a groundbreaking $49.99 introductory 4G LTE data package. The all-new Kindle Fire features a 20% faster processor, 40% faster performance, twice the memory, and longer battery life.

    Amazon and its affiliates operate websites…. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

    AMAZON.COM, INC.
    Consolidated Statements of Cash Flows
    (in millions)
    (unaudited)
    Three Months Ended Twelve Months Ended
    March 31, March 31,
    2013 2012 2013 2012
    CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 8,084 $ 5,269 $ 2,288 $ 2,641
    OPERATING ACTIVITIES:
    Net income (loss) 82 130 (87 ) 561
    Adjustments to reconcile net income (loss) to net cash from operating activities:
    Depreciation of property and equipment, including internal-use software and website development, and other amortization 700 457 2,402 1,338
    Stock-based compensation 229 160 901 605
    Other operating expense (income), net 31 46 139 168
    Losses (gains) on sales of marketable securities, net – (2 ) (7 ) (8 )
    Other expense (income), net 68 15 306 (78 )
    Deferred income taxes (80 ) (38 ) (307 ) 83
    Excess tax benefits from stock-based compensation – (40 ) (390 ) (56 )
    Changes in operating assets and liabilities:
    Inventories 535 747 (1,211 ) (1,374 )
    Accounts receivable, net and other 729 746 (877 ) (479 )
    Accounts payable (4,187 ) (4,258 ) 2,141 1,388
    Accrued expenses and other (703 ) (529 ) 864 721
    Additions to unearned revenue 684 397 2,083 1,252
    Amortization of previously unearned revenue (460 ) (269 ) (1,712 ) (1,070 )
    Net cash provided by (used in) operating activities (2,372 ) (2,438 ) 4,245 3,051
    INVESTING ACTIVITIES:
    Purchases of property and equipment, including internal-use software and website development (670 ) (386 ) (4,068 ) (1,899 )
    Acquisitions, net of cash acquired, and other (103 ) (50 ) (798 ) (615 )
    Sales and maturities of marketable securities and other investments 599 1,738 3,098 6,641
    Purchases of marketable securities and other investments (776 ) (852 ) (3,227 ) (5,997 )
    Net cash provided by (used in) investing activities (950 ) 450 (4,995 ) (1,870 )
    FINANCING ACTIVITIES:
    Excess tax benefits from stock-based compensation – 40 390 56
    Common stock repurchased – (960 ) – (1,237 )
    Proceeds from long-term debt and other 25 68 3,319 154
    Repayments of long-term debt, capital lease, and finance lease obligations (182 ) (153 ) (603 ) (483 )
    Net cash provided by (used in) financing activities (157 ) (1,005 ) 3,106 (1,510 )
    Foreign-currency effect on cash and cash equivalents (124 ) 12 (163 ) (24 )
    Net increase (decrease) in cash and cash equivalents (3,603 ) (2,981 ) 2,193 (353 )
    CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,481 $ 2,288 $ 4,481 $ 2,288
    SUPPLEMENTAL CASH FLOW INFORMATION:
    Cash paid for interest on long-term debt $ 13 $ 6 $ 37 $ 17
    Cash paid for income taxes (net of refunds) 86 19 179 45
    Property and equipment acquired under capital leases 340 149 993 721
    Property and equipment acquired under build-to-suit leases 150 17 163 207
    AMAZON.COM, INC.
    Consolidated Statements of Operations
    (in millions, except per share data)
    (unaudited)
    Three Months Ended
    March 31,
    2013 2012
    Net product sales $ 13,271 $ 11,249
    Net services sales 2,799 1,936
    Total net sales 16,070 13,185
    Operating expenses (1):
    Cost of sales 11,801 10,027
    Fulfillment 1,796 1,295
    Marketing 632 480
    Technology and content 1,383 945
    General and administrative 246 200
    Other operating expense (income), net 31 46
    Total operating expenses 15,889 12,993
    Income from operations 181 192
    Interest income 10 12
    Interest expense (33 ) (21 )
    Other income (expense), net (77 ) (99 )
    Total non-operating income (expense) (100 ) (108 )
    Income before income taxes 81 84
    Benefit (provision) for income taxes 18 (43 )
    Equity-method investment activity, net of tax (17 ) 89
    Net income $ 82 $ 130
    Basic earnings per share $ 0.18 $ 0.29
    Diluted earnings per share $ 0.18 $ 0.28
    Weighted average shares used in computation of earnings per share:
    Basic 455 453
    Diluted 463 460
    (1) Includes stock-based compensation as follows:
    Fulfillment $ 61 $ 37
    Marketing 16 12
    Technology and content 120 85
    General and administrative 32 26
    AMAZON.COM, INC.
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
    (in millions)
    (unaudited)
    Three Months Ended
    March 31,
    2013 2012
    Net income $ 82 $ 130
    Other comprehensive income (loss):
    Foreign currency translation adjustments, net of tax of $(9) and $(38) (78 ) 137
    Net change in unrealized gains on available-for-sale securities:
    Unrealized gains (losses), net of tax of $1 and $(3) (2 ) 7
    Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax effect of $0 and $1 – (2 )
    Net unrealized gains (losses) on available-for-sale securities (2 ) 5
    Total other comprehensive income (loss) (80 ) 142
    Comprehensive income $ 2 $ 272
    AMAZON.COM, INC.
    Segment Information
    (in millions)
    (unaudited)
    Three Months Ended
    March 31,
    2013 2012
    North America
    Net sales $ 9,391 $ 7,427
    Segment operating expenses (1) 8,934 7,078
    Segment operating income $ 457 $ 349
    International
    Net sales $ 6,679 $ 5,758
    Segment operating expenses (1) 6,695 5,709
    Segment operating income (loss) $ (16 ) $ 49
    Consolidated
    Net sales $ 16,070 $ 13,185
    Segment operating expenses (1) 15,629 12,787
    Segment operating income 441 398
    Stock-based compensation (229 ) (160 )
    Other operating income (expense), net (31 ) (46 )
    Income from operations 181 192
    Total non-operating income (expense) (100 ) (108 )
    Benefit (provision) for income taxes 18 (43 )
    Equity-method investment activity, net of tax (17 ) 89
    Net income $ 82 $ 130
    Segment Highlights:
    Y/Y net sales growth:
    North America 26 % 36 %
    International 16 31
    Consolidated 22 34
    Y/Y segment operating income growth (decline):
    North America 31 % 20 %
    International (133 ) (72 )
    Consolidated 11 (15 )
    Net sales mix:
    North America 58 % 56 %
    International 42 44
    100 % 100 %
    (1) Represents operating expenses, excluding stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments.
    AMAZON.COM, INC.
    Supplemental Net Sales Information
    (in millions)
    (unaudited)
    Three Months Ended
    March 31,
    2013 2012
    North America
    Media $ 2,513 $ 2,197
    Electronics and other general merchandise 6,128 4,772
    Other (1) 750 458
    Total North America $ 9,391 $ 7,427
    International
    Media $ 2,545 $ 2,513
    Electronics and other general merchandise 4,086 3,203
    Other (1) 48 42
    Total International $ 6,679 $ 5,758
    Consolidated
    Media $ 5,058 $ 4,710
    Electronics and other general merchandise 10,214 7,975
    Other (1) 798 500
    Total consolidated $ 16,070 $ 13,185
    Y/Y Net Sales Growth:
    North America:
    Media 14 % 17 %
    Electronics and other general merchandise 28 44
    Other 64 66
    Total North America 26 36
    International:
    Media 1 % 21 %
    Electronics and other general merchandise 28 40
    Other 14 24
    Total International 16 31
    Consolidated:
    Media 7 % 19 %
    Electronics and other general merchandise 28 43
    Other 59 61
    Total consolidated 22 34
    Y/Y Net Sales Growth Excluding Effect of Exchange Rates:
    International:
    Media 7 % 22 %
    Electronics and other general merchandise 32 42
    Other 18 26
    Total International 21 32
    Consolidated:
    Media 10 % 19 %
    Electronics and other general merchandise 30 43
    Other 60 61
    Total consolidated 24 34
    Consolidated Net Sales Mix:
    Media 31 % 36 %
    Electronics and other general merchandise 64 60
    Other 5 4
    100 % 100 %
    (1) Includes sales from non-retail activities, such as AWS in the North America segment, advertising services, and our co-branded credit card agreements in both segments.
    AMAZON.COM, INC.
    Consolidated Balance Sheets
    (in millions, except per share data)
    March 31, December 31,
    2013 2012
    ASSETS (unaudited)
    Current assets:
    Cash and cash equivalents $ 4,481 $ 8,084
    Marketable securities 3,414 3,364
    Inventories 5,395 6,031
    Accounts receivable, net and other 2,516 3,364
    Deferred tax assets 507 453
    Total current assets 16,313 21,296
    Property and equipment, net 7,674 7,060
    Deferred tax assets 123 123
    Goodwill 2,535 2,552
    Other assets 1,732 1,524
    Total assets $ 28,377 $ 32,555
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    Current liabilities:
    Accounts payable $ 8,916 $ 13,318
    Accrued expenses and other 5,416 5,684
    Total current liabilities 14,332 19,002
    Long-term debt 3,040 3,084
    Other long-term liabilities 2,573 2,277
    Commitments and contingencies
    Stockholders’ equity:
    Preferred stock, $0.01 par value:
    Authorized shares — 500
    Issued and outstanding shares — none – –
    Common stock, $0.01 par value:
    Authorized shares — 5,000
    Issued shares — 479 and 478
    Outstanding shares — 455 and 454 5 5
    Treasury stock, at cost (1,837 ) (1,837 )
    Additional paid-in capital 8,585 8,347
    Accumulated other comprehensive loss (319 ) (239 )
    Retained earnings 1,998 1,916
    Total stockholders’ equity 8,432 8,192
    Total liabilities and stockholders’ equity $ 28,377 $ 32,555
    AMAZON.COM, INC.
    Supplemental Financial Information and Business Metrics
    (in millions, except per share data)
    (unaudited)
    Y/Y %
    Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Change
    Cash Flows and Shares
    Operating cash flow — trailing twelve months (TTM) $ 3,051 $ 3,222 $ 3,368 $ 4,180 $ 4,245 39 %
    Purchases of property and equipment (incl. internal-use software & website development) — TTM $ 1,899 $ 2,123 $ 2,310 $ 3,785 $ 4,068 114 %
    Free cash flow (operating cash flow less purchases of property and equipment) — TTM $ 1,152 $ 1,099 $ 1,058 $ 395 $ 177 (85 %)
    Free cash flow — TTM Y/Y growth (decline) (39 %) (40 %) (31 %) (81 %) (85 %) N/A
    Invested capital (1) $ 10,006 $ 10,250 $ 10,392 $ 11,181 $ 12,019 20 %
    Return on invested capital (2) 12 % 11 % 10 % 4 % 1 % N/A
    Common shares and stock-based awards outstanding 464 468 469 470 471 2 %
    Common shares outstanding 450 452 453 454 455 1 %
    Stock-based awards outstanding 13 16 16 16 16 17 %
    Stock-based awards outstanding — % of common shares outstanding 2.9 % 3.6 % 3.6 % 3.5 % 3.4 % N/A
    Results of Operations
    Worldwide (WW) net sales $ 13,185 $ 12,834 $ 13,806 $ 21,268 $ 16,070 22 %
    WW net sales — Y/Y growth, excluding F/X 34 % 32 % 30 % 23 % 24 % N/A
    WW net sales — TTM $ 51,404 $ 54,325 $ 57,256 $ 61,093 $ 63,978 24 %
    WW net sales — TTM Y/Y growth, excluding F/X 37 % 35 % 33 % 29 % 27 % N/A
    Operating income (loss) $ 192 $ 107 $ (28 ) $ 405 $ 181 (6 %)
    Operating income — Y/Y growth (decline), excluding F/X (38 %) (34 %) (137 %) 59 % 1 % N/A
    Operating margin — % of WW net sales 1.5 % 0.8 % (0.2 %) 1.9 % 1.1 % N/A
    Operating income — TTM $ 732 $ 637 $ 531 $ 676 $ 665 (9 %)
    Operating income — TTM Y/Y growth (decline), excluding F/X (50 %) (50 %) (48 %) (15 %) (6 %) N/A
    Operating margin — TTM % of WW net sales 1.4 % 1.2 % 0.9 % 1.1 % 1.0 % N/A
    Net income (loss) $ 130 $ 7 $ (274 ) $ 97 $ 82 (37 %)
    Net income (loss) per diluted share $ 0.28 $ 0.01 $ (0.60 ) $ 0.21 $ 0.18 (37 %)
    Net income (loss) — TTM $ 561 $ 377 $ 40 $ (39 ) $ (87 ) (116 %)
    Net income (loss) per diluted share — TTM $ 1.22 $ 0.82 $ 0.09 $ (0.09 ) $ (0.19 ) (116 %)
    Segments
    North America Segment:
    Net sales $ 7,427 $ 7,326 $ 7,884 $ 12,175 $ 9,391 26 %
    Net sales — Y/Y growth, excluding F/X 36 % 36 % 33 % 23 % 26 % N/A
    Net sales — TTM $ 28,667 $ 30,587 $ 32,540 $ 34,813 $ 36,777 28 %
    Operating income $ 349 $ 344 $ 291 $ 608 $ 457 31 %
    Operating margin — % of North America net sales 4.7 % 4.7 % 3.7 % 5.0 % 4.9 % N/A
    Operating income — TTM $ 991 $ 1,120 $ 1,268 $ 1,592 $ 1,700 72 %
    Operating income — TTM Y/Y growth, excluding F/X 2 % 14 % 34 % 71 % 72 % N/A
    Operating margin — TTM % of North America net sales 3.5 % 3.7 % 3.9 % 4.6 % 4.6 % N/A
    International Segment:
    Net sales $ 5,758 $ 5,508 $ 5,922 $ 9,093 $ 6,679 16 %
    Net sales — Y/Y growth, excluding F/X 32 % 28 % 27 % 23 % 21 % N/A
    Net sales — TTM $ 22,737 $ 23,738 $ 24,716 $ 26,280 $ 27,201 20 %
    Net sales — TTM % of WW net sales 44 % 44 % 43 % 43 % 43 % N/A
    Operating income (loss) $ 49 $ 16 $ (59 ) $ 70 $ (16 ) (133 %)
    Operating margin — % of International net sales 0.9 % 0.3 % (1.0 %) 0.8 % (0.2 %) N/A
    Operating income — TTM $ 515 $ 359 $ 183 $ 76 $ 11 (98 %)
    Operating income — TTM Y/Y growth (decline), excluding F/X (49 %) (57 %) (68 %) (77 %) (83 %) N/A
    Operating margin — TTM % of International net sales 2.3 % 1.5 % 0.7 % 0.3 % 0.0 % N/A
    Consolidated Segments:
    Operating expenses (3) $ 12,787 $ 12,474 $ 13,574 $ 20,590 $ 15,629 22 %
    Operating expenses — TTM (3) $ 49,899 $ 52,846 $ 55,805 $ 59,425 $ 62,267 25 %
    Operating income $ 398 $ 360 $ 232 $ 678 $ 441 11 %
    Operating margin — % of Consolidated sales 3.0 % 2.8 % 1.7 % 3.2 % 2.7 % N/A
    Operating income — TTM $ 1,505 $ 1,480 $ 1,451 $ 1,668 $ 1,711 14 %
    Operating income — TTM Y/Y growth (decline), excluding F/X (22 %) (21 %) (15 %) 7 % 15 % N/A
    Operating margin — TTM % of Consolidated net sales 2.9 % 2.7 % 2.5 % 2.7 % 2.7 % N/A
    AMAZON.COM, INC.
    Supplemental Financial Information and Business Metrics
    (in millions, except inventory turnover, accounts payable days and employee data)
    (unaudited)
    Y/Y %
    Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Change
    Supplemental
    Supplemental North America Segment Net Sales:
    Media $ 2,197 $ 1,874 $ 2,215 $ 2,903 $ 2,513 14 %
    Media — Y/Y growth, excluding F/X 17 % 18 % 15 % 13 % 14 % N/A
    Media — TTM $ 8,270 $ 8,559 $ 8,847 $ 9,189 $ 9,506 15 %
    Electronics and other general merchandise $ 4,772 $ 4,937 $ 5,061 $ 8,503 $ 6,128 28 %
    Electronics and other general merchandise — Y/Y growth, excluding F/X 44 % 41 % 39 % 24 % 28 % N/A
    Electronics and other general merchandise — TTM $ 18,784 $ 20,226 $ 21,652 $ 23,273 $ 24,629 31 %
    Electronics and other general merchandise — TTM % of North America net sales 66 % 66 % 67 % 67 % 67 % N/A
    Other $ 458 $ 515 $ 608 $ 769 $ 750 64 %
    Other — TTM $ 1,613 $ 1,802 $ 2,041 $ 2,351 $ 2,642 64 %
    Supplemental International Segment Net Sales:
    Media $ 2,513 $ 2,245 $ 2,385 $ 3,611 $ 2,545 1 %
    Media — Y/Y growth, excluding F/X 22 % 12 % 12 % 7 % 7 % N/A
    Media — TTM $ 10,261 $ 10,431 $ 10,590 $ 10,753 $ 10,785 5 %
    Electronics and other general merchandise $ 3,203 $ 3,224 $ 3,497 $ 5,431 $ 4,086 28 %
    Electronics and other general merchandise — Y/Y growth, excluding F/X 42 % 42 % 39 % 37 % 32 % N/A
    Electronics and other general merchandise — TTM $ 12,314 $ 13,139 $ 13,956 $ 15,355 $ 16,238 32 %
    Electronics and other general merchandise — TTM % of International net sales 54 % 55 % 56 % 58 % 60 % N/A
    Other $ 42 $ 39 $ 40 $ 51 $ 48 14 %
    Other — TTM $ 162 $ 168 $ 170 $ 172 $ 178 9 %
    Supplemental Worldwide Net Sales:
    Media $ 4,710 $ 4,119 $ 4,600 $ 6,514 $ 5,058 7 %
    Media — Y/Y growth, excluding F/X 19 % 15 % 14 % 10 % 10 % N/A
    Media — TTM $ 18,531 $ 18,990 $ 19,437 $ 19,942 $ 20,291 9 %
    Electronics and other general merchandise $ 7,975 $ 8,161 $ 8,558 $ 13,934 $ 10,214 28 %
    Electronics and other general merchandise — Y/Y growth, excluding F/X 43 % 42 % 39 % 29 % 30 % N/A
    Electronics and other general merchandise — TTM $ 31,098 $ 33,365 $ 35,608 $ 38,628 $ 40,867 31 %
    Electronics and other general merchandise — TTM % of WW net sales 60 % 61 % 62 % 63 % 64 % N/A
    Other $ 500 $ 554 $ 648 $ 820 $ 798 59 %
    Other — TTM $ 1,775 $ 1,970 $ 2,211 $ 2,523 $ 2,820 59 %
    Balance Sheet
    Cash and marketable securities $ 5,715 $ 4,970 $ 5,248 $ 11,448 $ 7,895 38 %
    Inventory, net — ending $ 4,255 $ 4,380 $ 5,065 $ 6,031 $ 5,395 27 %
    Inventory turnover, average — TTM 10.4 10.1 9.7 9.3 9.5 (8 %)
    Property and equipment, net $ 4,653 $ 5,097 $ 5,662 $ 7,060 $ 7,674 65 %
    Accounts payable — ending $ 6,886 $ 7,072 $ 8,369 $ 13,318 $ 8,916 29 %
    Accounts payable days — ending 62 68 75 76 68 9 %
    Other
    WW shipping revenue $ 461 $ 469 $ 517 $ 832 $ 633 37 %
    WW shipping costs $ 1,129 $ 1,054 $ 1,153 $ 1,798 $ 1,396 24 %
    WW net shipping costs $ 668 $ 585 $ 636 $ 966 $ 763 14 %
    WW net shipping costs — % of WW net sales 5.1 % 4.6 % 4.6 % 4.5 % 4.7 % N/A
    Employees (full-time and part-time; excludes contractors & temporary personnel) 65,600 69,100 81,400 88,400 91,300 39 %
    (1) Average Total Assets minus Current Liabilities (excluding current portion of Long-Term Debt) over five quarter ends.
    (2) TTM Free Cash Flow divided by Invested Capital.
    (3) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.

    Amazon.com, Inc.

    Certain Definitions

    Customer Accounts

    • References to customers mean customer accounts, which are unique e-mail addresses, established either when a customer places an order or when a customer orders from other sellers on our websites. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Payments customers, Amazon Web Services customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.

    Seller Accounts

    • References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.

    Registered Developers

    • References to registered developers mean cumulative registered developer accounts, which are established when potential developers enroll with Amazon Web Services and receive a developer access key.

    Units

    • References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers at Amazon domains worldwide – for example www.amazon.com, www.amazon.co.uk… – as well as Amazon-owned items sold through non-Amazon domains. Units sold are paid units and do not include units associated with certain acquisitions, rental businesses, web services or advertising businesses, or Amazon gift certificates.

     

    Source: Amazon.com, Inc.

  • Leap Motion delays shipments of gesture-based controller

    Those of you counting on receiving Leap Motion’s hot new minute-motion sensor in May will have to wait a few more months. Leap CEO Michael Buckwald said the startup is delaying shipments of the controller — which promises to give any PC a gesture-based interface – until July 22 in order to allow more time for testing.

    Buckwald said it became clear to the company it needed to expand its beta trials beyond developers to ensure that the device is ready for commercial release. “There is nothing catastrophically wrong,” Buckwald said. “We are proud of the product.”

    The original ship date was set for May 13 for customers who pre-ordered the device for $80. It was also set to appear on Best Buy shelves on May 19. Buckwald said that if Leap Motion’s engineers had pushed they might have made those dates, but they felt that the delay would allow them to improve the product.

    Related research and analysis from GigaOM Pro:
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  • iPhone 5S will reportedly launch in early September

    iPhone 5S release date
    A new report from Citigroup Global Securities confirms that Apple is planning to release both its next-generation iPhone and its long rumored low-cost iPhone in early September, China Times reported. The firm also claims that Apple is planning to launch a TD-SCDMA version of both devices for China Mobile in late September or early October. As for a new full-sized iPad and iPad mini, Citigroup expects both slates to also debut in September or October. The latest rumors suggest that the iPhone 5S will be equipped with a faster A7 processor, a 12-megapixel camera and a revamped version of iOS.

  • Punky Brewster Backed By Google, Advised By Randi Zuckerberg

    Soleil Moon Frye, commonly known as the girl who played Punky Brewster, has a startup called Moonfrye, and it has attracted $2.5 million in funding from GRP Partners, Greycroft, Daher Capital, and Google’s investment arm, Google Ventures.

    The company is readying a mobile product aimed at inspiring “digital creativity in parents and children with physical products that surprise.” Basically, it will focus on family-oriented crafts and DIY. Frye is serving as Chief Creative Officer. Former IAC exec Kara Nortman is CE.

    Facebook CEO Mark Zuckerberg’s sister Randi Zuckerberg is serving as an advisor, along with Dan Rosensweig, Tim Ferriss, Gina Bianchini, Erik Lammerding and Rick Marini.

    The startup builds on the Moonfrye.com online community launched a few years ago. It already has 1.5 million Twitter followers and 500,000 Facebook likes.

    “As my most important role in life is being a mom, it was clear to me that parents around the world were looking for cost effective activities where their families could come together and create meaningful experiences both online and off,” said Soleil Moon Frye.

    “Our product has a unique, innovative design that is going to be a game-changer for providing parents and children with a shared creative outlet,” said Nortman. “If moms are shutting off passive entertainment in favor of engaging their kids actively on mobile devices then we have made our small dent on society.”

    “There’s a restored interest in craftsmanship and DIY. It’s a refreshing change from the reliance on ready-made goods,” said Kevin Rose, General Partner at Google Ventures. “Combining real world experiences with digital tools creates a lot of interesting possibilities when put in the hands of moms and families, and Soleil and Kara have an inspiring vision to bring that to life.”

    Those interested can sign up for early access to the app.

  • LG Optimus G Pro for AT&T render surfaces on Twitter

    lg_optimus_g_pro_render_leak

    LG is poised to announce next week the availability of the LG Optimus G Pro as part of the AT&T product portfolio, so it is no surprise that an image has shown up purporting to be a render of the device. @evleaks, the frequent tipster of Android device images, posted a pic today showing the device with a small AT&T logo on the back of the device. On the front of the device, the home button appears to have an AT&T blue highlight surrounding the button. In just a few more days we should be able to verify how accurate the rendered image is.

    source: @evleaks

    Come comment on this article: LG Optimus G Pro for AT&T render surfaces on Twitter

  • Amazon earnings beat the Street, turns focus on original TV programming

    Amazon beat analysts’ forecasts Thursday afternoon with its Q1 earnings report. Earnings were $0.18 per share, or $82 million, on revenue of $16.07 billion, compared to earnings of $0.28 per share, or $130 million, on revenue of $13.18 billion this time last year.

    Analysts had expected earnings of $0.07 per share on revenue of $16.1 billion.

    Operating income, considered by investors to be a key measure of the company’s financial health, was $181 million, down 6 percent from the previous year. Still, that figure beat the range of -$285 million to $65 million that the company had provided in the previous quarter.

    Amazon is reportedly working on a set-top box, and in the release, CEO Jeff Bezos highlighted Amazon’s expansion into original television, focusing on the company’s recent release of 14 original pilots. “Our customers will determine what goes into full-season production,” he said. “We hope Amazon Originals can become yet another way for us to create value for Prime members.”

    North American media revenues totaled $2.51 billion for the quarter, up 14.4 percent over last year. International media revenues were $2.54 billion, up just 1.27 percent.

    For the second quarter of 2013, Amazon advises investors to inspect revenues between $14.5 billion and $16.2 billion, with broad guidance on operating income ranging from -$340 million to $10 million.

    Amazon is holding an investor call at 2:00 PM PT, and we will be on the call.

    This post was updated several times on Thursday afternoon.

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  • Twitter for Mac finally updated, but fails to excite

    Twitter surprised OS X users Thursday by pushing out a small update for their long-neglected official Mac (AAPL) app. But new features found in version 2.2 are few and far between: they include support for Retina displays, 14 new language options — including French, German, Italian, Japanese and Spanish (to name but a few), and slight updates to various icons along with other minor interface tweaks.

    Before Thursday’s upgrade the desktop app — which started life as Tweetie – hadn’t seen an update since back in June 2011. In that time many users, myself included, came to accept that perhaps the standalone app was never to see any future improvements. This concern was further solidified when in September 2012 reports surfaced suggesting that the client had been killed off for good with no further development planned. But this latest small-scale update clarifies Twitter’s current position: that it intends to continue to update the popular app.

    Twitter for Mac (Version 2.2)

    If a recent tweet by Twitter’s own Ben Sandofsky (as spotted by TechCrunch’s Darrell Etherington) is anything to go by, we may be seeing improvements for Twitter for Mac more frequently. Sandofsky tweeted that he is taking a break from working on iOS apps to move over to the Mac client full time.

    Whereas it’s good to finally see Twitter put more resources back in to their much overlooked Mac app, this latest update won’t blow you away by any means. Version 2.2 is but a minor improvement on what came before.

    One curiosity is the lack of support for Mountain Lion’s Notification Center — the app’s preference pane still touts Growl as your de facto notification choice.

    Here’s hoping that future updates come thick and fast, bearing more substance and native support for things such as Twitter’s own Vine, and Apple’s Notification Center, for example.

    Oh, and Twitter, your old logo is still showing on the app’s Mac App Store listing.

    Twitter for Mac

    New logo, meet old logo.

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  • Yes, Business Relies on Nature

    An interview with Mark Tercek, CEO of The Nature Conservancy and author of Nature’s Fortune: How Business and Society Thrive by Investing in Nature.


    Download this podcast

    A written transcript will be available by May 3.

  • HIV Vaccine Fails Clinical Trial, Vaccinations Stopped

    The U.S. National Institutes of Health (NIH) has announced that a clinical trial of an experimental HIV vaccine has been halted, following a report from a safety monitoring board. The independent data and safety monitoring board found during an interim review that the vaccine does not prevent HIV and does not reduce viral loads in people who have HIV.

    According to the NIH the study, called HVTN 505, has been running since 2009. 2,504 volunteers in 19 U.S. cities were chosen to undergo a series of immunizations that researchers hoped would prevent HIV infection and reduce viral loads in those infected (or receive a placebo). The volunteers were all either men who have sex with men or transgender people who have sex with men.

    After reviewing data from the study this week, the monitoring board found that study participants who received the vaccine were just as likely to contract HIV as those who had not. In fact, more study participants who received the vaccine became infected with HIV than those who received a placebo, though the difference was not statistically significant. The vaccine also failed to reduce viral load among study participants who contracted HIV.

    Due to the findings, the National Institute of Allergy and Infectious Diseases (NIAID) has stopped administering the vaccinations. Researchers will continue to follow current study participants, who will be contacted and informed of whether they received the vaccine or the placebo.