Amazon sees quarterly loss narrow

24 October 2013 Last updated at 23:07 ET

Amazon, the world's largest online retailer, saw its losses narrow in the third quarter as its sales grew more than expected.

It reported a net loss of $41m (£25m) for the July-September period. That is down from $274m a year earlier.

The firm said that its sales surged 24% from a year ago to $17.1bn.

The firm forecast its sales would grow further in the current quarter. That saw its shares rise by as much as 9.6% in after-hours trading in New York.

RJ Jottovy, an analyst with Morningstar, said that "it looks like the revenue momentum will continue into the fourth quarter" despite the macro business environment being tough.

Amazon said it expects fourth-quarter sales of $23.5bn to $26.5bn. Analysts had forecast revenue of $25.9bn.

'Busy few months'

Continue reading the main story

It's been a busy few months"

End Quote Jeff Bezo Amazon

This is the third quarter in a row that Amazon has posted a net loss.

However, the firm has been taking steps to try to turn around its fortunes.

This includes expanding its Kindle line of e-readers and tablets and boosting its delivery network and cloud-computing services.

The company has also been building more warehouses to reduce shipping costs and is adding robots to increase its efficiency in delivering orders.

Jeff Bezos, founder and chief executive of Amazon, said in a statement that ''it's been a busy few months" for the company.

At the same time some of the services being offered by the firm have also helped to attract consumers.

Mr Bezos added that one Amazon service called Prime had signed up "millions" of new members.

The service offers free two-day shipping for eligible purchases. Members also get access to Amazon Instant Video and have the ability to borrow books from other Kindle owners.

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3D printer 'gun parts' found in raid

25 October 2013 Last updated at 12:02 ET

A 3D printer and suspected "homemade" gun components seized during police raids in Manchester are being examined.

Officers initially thought they could be a "plastic magazine and trigger" which would make a "viable" gun.

But a man who was arrested in connection with the raid said the parts were sections of the 3D printer.

Greater Manchester Police (GMP) has now said it "cannot categorically say" whether the objects are the component parts for a gun.

The arrested man, who has since been bailed, said: "It's nothing to do with a gun whatsoever.

"I have no idea why they think it is part of a gun. It's designed by the company that makes the printer to go in the printer to make it better."

The component suspected as being a magazine for a gun was in fact a "spool holder" for the 3D printer, he added.

Computers analysed

3D printing technology works by building up layer upon layer of material - typically plastic - to create complex solid objects.

The equipment was seized during a series of raids targeting organised crime.

A force spokesman earlier said if the tests showed the parts could make a functioning weapon it would be the "first ever seizure of this kind in the UK".

But experts have cast doubt on whether the printer was sophisticated enough to print gun components.

Brian Derby, professor of material science at University of Manchester, said the seized printer appeared to be a hobbyist's machine.

He said: "It would make something that would look like a gun but it would not work as a gun."

Asst Ch Con Steve Heywood said: "We need to be absolutely clear that at that this stage, we cannot categorically say we have recovered the component parts for a 3D gun.

"What we have seized are items that need further forensic testing by national ballistics experts to establish whether they can be used in the construction of a genuine, viable firearm."

He added: "Clearly the fact we have seized a 3D printer and have intelligence about the possible production of a weapon using this technology is of concern. It is prudent we establish exactly what these parts can be used for and whether they pose any threat."

The BBC's home affairs correspondent Dominic Casciani said the manufacture of guns through 3D printing was "almost inevitable" because of the relatively few firearms in circulation.

"The worst-case-scenario would be a cheap and 100% reliable device that could be made overnight and then destroyed after just one use, disposing of crucial evidence to pin to a suspect," he added.

'Available guns'

Desktop 3D printers can be bought on the High Street for less than £1,000, but prices more complex models can cost £10,000.

The world's first gun made with 3D printer technology was successfully fired in the US in May.

The group that created the firearm, Defense Distributed, said it planned to make the blueprints available online.

Defense Distributed is headed by Cody Wilson, a 25-year-old law student at the University of Texas, who defended making the design available by saying: "I'm seeing a world where technology says you can pretty much be able to have whatever you want.

"It's not up to the political players anymore."

At the time, Europe's law enforcement agency Europol said it feared criminals would follow suit as the technology became cheaper and more user friendly.

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Ofcom reveals state of UK broadband

24 October 2013 Last updated at 07:42 ET

While superfast broadband is now available to almost three quarters of UK homes, getting a connection on Britain's roads is more tricky, according to a report from Ofcom.

Its annual infrastructure report looked at mobile coverage on roads for the first time.

While motorways have good 3G coverage, just 35% of the UK's A and B roads are served by all four mobile networks.

The report found that 9% of roads have no 3G coverage at all.

The latest trends in mobile and broadband outlined by the report are designed to give a snapshot of the UK's communications market.

Despite wide availability of broadband networks in the UK's towns and cities, only 4.8 million customers are taking advantage of superfast speeds, defined by the watchdog as 30Mbps (megabits per second) or above.

That equates to 22% of connections, up from 10% last year.

There are several reasons why consumers may be reluctant to upgrade, thinks Andrew Ferguson from broadband news site ThinkBroadband.

"The usual factors we encounter from consumers are resistance to any increase in price, and the £10 to £20 premium for faster services can deter many, particularly if paying under £10 for their broadband service now," he said.

"There are also a good number who after not getting speeds close to the advertised speeds previously are wary of upgrading for little or no benefit," he added.

The appetite for data is huge though - Britons use 650 million gigabytes in an average month, equivalent to more than one billion copies of the Encyclopaedia Britannica, according to the report.

Ofcom believes that there are two main factors contributing to this deluge of data - the fact that many households have lots of devices wanting to connect to the internet and the need for high-quality on-demand TV services.

Road and rail

Outside the home, people are also demanding more connectivity.

According to the report the number of public wi-fi hotspots in the UK has doubled from 16,000 to 34,000 over the last year. The amount of data being sent or received from these hotspots has almost trebled, to almost 2 million gigabytes a month.

Meanwhile 4G services continue to be rolled out by the UK's mobile operators.

As well as looking at coverage on the UK's roads, Ofcom is also looking at 3G services on railways although the results will not be released until next year.

"We know consumers increasingly expect superfast speeds, but it is also important to make sure people can connect over a very wide area. That is why we are doing everything we can to support moves to improve coverage in difficult areas such as roads and train lines," said Ed Richards, Ofcom's chief executive.

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MEPs vote to suspend US data sharing

24 October 2013 Last updated at 08:52 ET

The European Parliament has voted to suspend the sharing of financial data with the US, following allegations that citizens' data was spied on.

The allegation forms part of leaked documents from whistleblower Edward Snowden.

The vote is non-binding but illustrates MEPs' growing unease over how much data was shared with the US.

It comes a day after it was alleged that German Chancellor Angela Merkel's mobile phone calls were monitored.

The European Parliament voted to suspend its Terrorist Finance Tracking Program (TFTP) agreement with the US, in response to the alleged tapping of EU citizens' bank data held by the Belgian company SWIFT.

The agreement granted the US authorities access to bank data for terror-related investigations but leaked documents made public by whistleblower Edward Snowden allege that the global bank transfer network was the target of wider US surveillance.

MEPs also want to launch a full inquiry into the alleged spying.

Merkel phone

The row over exactly how much snooping was done on European citizens appears to be escalating.

Germany has summoned the US ambassador in Berlin over the claims that the US monitored Mrs Merkel's mobile phone calls.

Other leaders are also likely to want further clarification from Washington over the activities of its National Security Agency (NSA) in Europe.

Meanwhile student group, europe v facebook, is launching a fresh attack on how deeply the social network was involved in the US spying programme.

It has won the right for a review of why the Irish data protection commissioner is not investigating the amount of European data shared with the US.

Commissioner Billy Hawkes has previously claimed that there "is nothing to investigate" over Facebook's role in the PRISM programme.

Max Schrem, who heads the group, remains unconvinced.

"When it comes to the fundamental rights of millions of users and the biggest surveillance scandal in years, he will have to take responsibility and do something about it," he said.

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Microsoft profits surge 17%

24 October 2013 Last updated at 17:24 ET

Microsoft reported better than expected earnings of $5.2bn (£3.2bn).

Profits at the technology giant were up 17% from the same period last year.

"Our devices and services transformation is progressing," said boss Steve Ballmer in a statement. He added that Microsoft is launching a "wide range" of new products in the coming quarter.

The report shed no light on who is to replace Mr Ballmer, who announced plans to retire within the next year.

The company has released several new products this quarter, including an update to Windows 8, and recently bought the mobile phone unit of struggling Finnish giant Nokia.

Shares rose 6% in after hours trading on the strong results.

Surface sales

For the first time, Microsoft also announced sales of its tablet computer, Surface.

It said revenues from Surface "grew to $400 million with sequential growth in revenue and units sold over the prior quarter".

Last quarter, the company was forced to take an embarrassing write down of $900m after sluggish sales.

The computer, well-liked by reviewers, marked Microsoft's first foray into hardware manufacturing.

However consumers, many of whom expressed displeasure at Microsoft's update to its popular operating system Windows, did not bite.

The company still did not provide sales figures of the device.

Succession plans

Investors hoping for any information about who will replace Mr Ballmer in the new year were disappointed.

Earlier today, on a conference call to discuss earnings, Ford boss Alan Mullaly declined to comment on rumours that he was being considered for the top job.

Other contenders include Stephen Elop, the former head of Nokia, who resigned as boss after Microsoft announced it would purchase the Nokia's mobile phone unit for 5.4bn euros ($7.2bn; £4.6bn) in September.

Mr Elop is now head of Devices and Services at Nokia, although he is expected to transfer to Microsoft - where he was once a top manager - once the deal is completed.

Mr Ballmer has been at the helm of Microsoft since 2000, and has been at the company since 1980.

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Samsung Electronics profit jumps 26%

24 October 2013 Last updated at 22:50 ET

Samsung Electronics has reported a 26% jump in profit in the third quarter driven by strong smartphone sales and a recovery in its memory chip business.

It made a net profit of 8.24 trillion won ($7.6bn; £4.7bn) in the July-to-September quarter, up from 6.56tn won during the same period a year earlier.

Operating profit rose to a record 10.2 trillion won during the quarter.

The firm said sales of smartphones, a key driver of its growth, are expected to rise further in coming months.

It said that sales "will gain momentum due to year-end promotions over the holiday season and an improved line-up of mass-market smartphones".

Increased competition

Samsung has posted record operating profit in six of the past seven quarters, mostly due to the growth of its smartphone division.

Continue reading the main story

Like Nokia, Samsung may hit a limit in increasing market share"

End Quote Kim Sung-soo LS Asset Management

The firm has enjoyed success in both the top-end as well as lower end of the smartphone market, giving it an edge over rivals such as Apple which makes only top-end phones.

Its growth in the sector has seen it become the world's biggest smartphone maker.

However, there have been concerns over whether Samsung can continue to grow at such a strong pace, not least because of increased competition and saturation of some key markets.

"Samsung has done well, having rapidly caught up with Apple in the smartphone market. But I'm concerned whether Samsung would be able to do better," said Kim Sung-soo, a fund manager at LS Asset Management.

"Like Nokia, Samsung may hit a limit in increasing market share. Apple is also fighting back, signalling an uphill battle for Samsung."

Analysts said that the company needed to come up with more innovative products to help sustain its growth rate.

For its part, Samsung has been taking steps in that direction.

Earlier this month, it launched a smartphone with a curved display screen, beating its rival LG by at least a few months to offer a handset featuring flexible-screen tech.

In September, it unveiled a smartwatch with a colour screen that can show alerts, be used for voice calls and run apps. Again, it edged firms such as Microsoft, Apple and Google to unveil such a device.

Chip demand

Samsung's latest earnings were also boosted by its semiconductor business, which saw profit more than double to 2.1tn won, the highest in three years.

Revenues in the division rose 12% over the previous quarter to 9.74tn won.

The firm saw its bottom line buoyed by stronger chip prices after a fire at a plant owned by rival SK Hynix caused tightened supply in the market.

Samsung supplies chips to other smartphone-makers, including its biggest competitor Apple, and expects demand to pick up as the year draws to a close.

However, its consumer electronics division, which includes TV manufacturing, saw a decline in profit due to a drop in demand in China and Europe.

But Samsung said that it expects the unit to bounce back in the current quarter, not least due to holiday season shopping during the end of the year.

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Wikipedia pilots articles via SMS

25 October 2013 Last updated at 10:51 ET By Dave Lee Technology reporter, BBC News

Wikipedia has begun piloting a service that sends articles via text message, primarily aimed at users in Africa.

The online encyclopaedia has partnered with mobile operator Airtel to offer the free initiative which is being tested out in Kenya.

It is hoped the service will be used to reach people who do not have internet access.

The trial will be active for three months, said Dan Foy, technical partner manager for the Wikimedia Foundation.

"Throughout most of the developing world, data-enabled smartphones are the exception, not the rule," he wrote.

"That means billions of people currently cannot see Wikipedia on their phones."

To activate the service - called Wikipedia Zero - users need to dial *515#, after which they will receive a text message prompting them to search for articles.

Next five billion

Adoption of cheap mobiles in Africa is widespread, and in many regards the mobile industry across the continent is more advanced than in more developed parts of the world.

For instance, the sending of money via text message is extremely popular - one service, M-Pesa, boasts 17 million users in Kenya alone.

Western technology companies see the region as a major source of future growth. Facebook, for example, is approaching saturation point in its current markets, and so it is looking at methods to adapt its services to suit those with more basic technology.

The social network also launched a drive to get other technology companies looking at ways to make access easier - starting with bringing down costs of accessing mobile data.

Tom Jackson, who edits African technology news website HumanIPO, said Wikipedia's initiative would be warmly welcomed.

"There has been a steady move towards putting educational material online in many African countries, led mainly by the private sector rather than governments, but access to the internet remains a problem given that most Africans surf on their phones rather than browsers.

"This step increases the chances of access, especially as there is functionality to provide Wikipedia via SMS. Feature phones are still dominant in Africa, so this is a helpful addition."

He added: "I just hope it comes with the same warnings that European and American kids are given about taking Wikipedia at face value!"

Follow Dave Lee on Twitter @DaveLeeBBC

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Twitter float could raise $1.4bn

25 October 2013 Last updated at 11:54 ET

Twitter has unveiled the price range for its shares when the company lists on the stock exchange.

In a filing on Thursday, Twitter said it planned to sell 70 million shares priced between $17 and $20 (£10 - £12) to raise up to $1.4bn (£865m).

The offering represents 13% of Twitter and values it at as much as $11bn.

Analysts said the valuation, which was less than forecast, indicated the firm wanted to avoid the dip in prices that followed Facebook's listing.

"They're trying to price this for a very strong IPO, ideally creating the conditions for a solid after-market," said Brian Wieser of the Pivotal Research Group.

Facebook's shares were priced initially at $38 per share. The stock soared within hours of its debut to a high of $45 but later slumped.

Some analysts had blamed over pricing of the shares as a reason behind the fall. However, Facebook shares have since recouped most of their losses and are now trading above the listing price.

Continue reading the main story

A price tag of $11 billion might look a bit steep for a company that is still not profitable - but Twitter's valuation looks conservative compared to some of those it is following onto the market.

There had been reports that the company would be seeking a valuation of as much as $16 billion, but at $11 billion that's a multiple of roughly ten times its projected 2014 revenues.

Facebook went public at a value of $100 billion - twenty times its 2012 revenue - while LinkedIn launched at an even higher multiple.

Perhaps Twitter is right to be cautious - after all, its business model is still fairly opaque, even though there are promising signs that it is working out clever ways of serving advertisers.

In any case the founder Ev Williams, who will now be a billionaire, can be pretty satisfied. A new book, Hatching Twitter, reveals that he turned down an offer from Yahoo to buy the company when it was still a fledgling. The price tag back in 2007? Just $12 million.

Earnings worries

Twitter's share sale on the New York Stock Exchange will make it the biggest internet company to go public after Facebook.

The microblogging site has seen steady growth since its launch seven years ago.

According to its IPO documents, it now has 218 million monthly users and 500 million tweets are sent a day.

However, all those users and tweets have not yet resulted in a profit. Twitter made a loss of $69m in the first six months of 2013, on revenues of $254m.

Some analysts said that while the lower-than-expected pricing may help its share prices in the days after the listing, in the long run investors would still need to see the firm make profits.

"The fact that the valuation is lower than expectations, I think was smart by the underwriters. I think it will help the pop," said Michael Yoshikami of Destinational Wealth Management.

"But in the end, even for $11bn, the question is can they come up with earnings to substantiate that number? And it's unclear that they're going to be able to do that."

Continue reading the main story

Twitter happens in real time, 24 hours a day. Expect to miss stuff if it's not sent direct to you"

End Quote

Advertising

Almost 85% of Twitter's revenue currently comes from advertising on its site.

There are three main ways for a company or an individual to advertise on Twitter: by promoting a tweet that will appear in people's timelines, promoting a whole account, or promoting a trend.

Twitter tends to charge its advertisers according to the amount of interaction their content generates.

Some analysts say the company has showing strong signs of growth, with revenue rising from just $28m in 2010 to $317m by the end of 2012.

One research firm, eMarketer, has even estimated that Twitter's revenues from advertising sales will increase by more than 100% by the end of this year.

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FBI on the hunt for eBay 'fraudster'

25 October 2013 Last updated at 11:58 ET

The FBI has issued wanted posters for a man they say is behind an eBay car scam that has netted $3m (£1.8m).

Authorities in the US also want to track down six other fugitives in relation to the charges.

The gang were described as "masters of illusion" who convinced people to pay for cars that did not exist.

"They thought their distance would insulate them from law enforcement scrutiny. They were wrong," said US attorney Loretta Lynch.

Convincing scheme

The FBI put out a wanted poster for 33-year-old Romanian Nicolae Popescu, charging him with conspiracy to commit wire fraud and money laundering.

"They siphoned funds from victims to fuel their greedy desires and created false identities, fake websites and counterfeit certificates of title in order to make the scheme more convincing," said FBI Assistant Director, George Venizelos.

"Popescu and his co-conspirators were masters of illusion, but they can't escape their ultimate reality.

"With the help of our law enforcement partners at home and abroad, we will bring them to justice."

In a statement, eBay said: "We have partnered with law enforcement to alert consumers about the type of scams described in the indictment - which involve exploiting well-known, trusted brand names like eBay to attract consumers and then lure them onto fake websites and into fraudulent transactions.

"Auto shoppers can be confident in their purchase by ensuring they start and complete their transactions on eBay Motors and never use money wire services to send payments."

Romanian notoriety

In a recorded conversation, the FBI said Mr Popescu boasted that he was "beyond the reach" of US authorities.

As well as eBay, the gang is said to have used Cars.com, AutoTrader.com, and CycleTrader.com to sell the non-existent cars, usually priced between $10,000 (£6,150) and $40,000 (£24,700).

"After the 'sellers' reached an agreement with the victim buyers, they would often email them invoices purporting to be from Amazon Payments, PayPal, or other online payment services, with instructions to transfer the money to the US bank accounts used by the defendants," an FBI statement explained.

Romania has gained increasing notoriety as a hub for cybercrime.

A report from technology magazine Wired detailed a town dubbed "Hackerville" by locals - where cybercriminals are said to learn their craft at an early age.

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Grand Theft Auto bags gaming gong

25 October 2013 Last updated at 12:08 ET By Daniel Emery Technology reporter, BBC News

The adult-themed crime game, Grand Theft Auto 5, has won the top prize at the Golden Joystick awards.

Rockstar's controversial game - where players commit crime in the fictional city of Los Santos - was presented with the Game of the Year gong at a ceremony in central London.

Sony's The Last of Us also scooped two awards.

Ken Levine - the man behind Bioshock and System Shock 2 - was honoured with a lifetime achievement award.

The Golden Joysticks are the largest publicly-voted video game awards in the world, with this year more than 10 million people casting a vote.

The Lifetime Achievement is a new addition to the ceremony.

Mr Levine has been a high profile figure in the industry ever since he worked with designer Doug Church, on the first-person shooter, Thief: The Dark Project, credited with being one of the first titles to introduce the concept of stealth into video games.

"The great thing about the still-maturing nature of video games is you get to be inspired by the work of novices and veterans alike," he said.

Continue reading the main story

• Game of the Year: Grand Theft Auto V
• Hall of Fame: Activision: Call of Duty
• Lifetime Achievement: Ken Levine
• Best Newcomer: The Last of Us
• Most Wanted: Witcher 3: Wild Hunt
• Best Indie Game: Mark of the Ninja
• Best Visual Design: BioShock Infinite
• Best Multiplayer: Payday 2
• Best Gaming Moment: Far Cry 3 - The Definition of Insanity
• Studio of the Year: Naughty Dog
• Innovation of the Year: Oculus Rift
• Best Storytelling: The Last of Us
• Best Online Game: World of Tanks
• Best Handheld Game: Assassin's Creed III: Liberation
• YouTube Gamer Award: Yogscast
• Best Gaming Platform: Steam
• Best Mobile/Tablet Game of the Year: XCOM: Enemy Unknown

"We're all figuring out day by day exactly what the medium is capable of."

Gaming diversity

Now in its 31st year, the awards were first given out back in 1983, with the first Game of the Year award going to Jet Pac on the ZX Spectrum.

Andy Robinson, editor of Computer and Videogames, said that three decades on, the awards still "represent the voice of gamers worldwide".

"We've revamped the categories to reflect the diversity of modern gaming and also added the inaugural Lifetime Achievement award, which has made this year's ceremony the most thrilling for us yet," he said.

The Golden Joysticks are not the only big awards for the video games industry.

The British Academy of Film and Television Arts hands out its Video Game Baftas in the spring each year, although the majority of their awards are selected by a panel of experts, rather than a public vote.

Grand Theft Auto 5, released last month, quickly became the fastest selling entertainment product ever, taking just three days to generate $1bn (£620m) in revenue.

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