When new CEO Thorsten Henis took the reins at Research In Motion, he immediately pointed to the smartphone vendor’s marketing strategy as an area the company needed to focus on if it hoped to regain share in key markets like the United States. The wheels on RIM’s recent marketing efforts had already been set in motion, however, and early reports suggest that the increased volume of familiar BlackBerry ads aren’t having the impact RIM was hoping for. Read on for more.

RIM ramped up its marketing efforts in January, but the move does not appear to have paid off. “Our January checks indicated weak sell-through trends for the new BlackBerry 7 smartphones despite increased marketing efforts,” Canaccord Genuity analyst Mike Walkley wrote in a research note to investors late Wednesday night. “With very strong share gains for the iPhone 4S, increasingly price competitive Android smartphones, improving Windows smartphones, and strong sales of the affordable 7 inch Amazon Kindle Fire tablet, we anticipate increasing competition across all tiers of RIM’s products in C2012.”

As a result of weakening device sales and RIM’s poor outlook for the current quarter, the analyst lowered his estimates for RIM’s February quarter as well as the vendor’s full fiscal year. And despite a new round of marketing that kicked off in February with RIM’s “Be Bold” campaign, Walkley doesn’t see much changing for the Waterloo, Ontario-based until late in 2012.

“Given the strong share gains for Apple post the launch of the iPhone 4S and increasing Android and Windows competition in all price tiers, we believe BlackBerry 7 products will continue to struggle until BB10 products launch in late C2012,” the analyst noted. RIM expected to launch its first QNX-powered BlackBerry 10 smartphone — code-named the BlackBerry London — toward the end of the third quarter or early in the fourth quarter.

Walkley reiterated his Hold rating on RIM’s stock and maintained his $15 price target.

Research In Motion released the first set of commercials from its new “Be Bold” advertising campaign on Thursday and while the ads feature new faces, they are nearly identical to the campaign RIM has been running for months. The Waterloo, Ontario-based smartphone vendor was quick to point out that the team of four awkward superheroes that starred in an infographic RIM recently posted were not part of its upcoming advertising blitz, but perhaps they should have been. RIM’s new ads feature BlackBerry devices in real-world situations and they do a good job of showcasing key features like BBM. What the ads are not, however, is different or memorable. RIM’s new CEO Thorsten Heins named the company’s marketing strategy as one of the first orders of business he plans to address in his new role. With an exciting new breed of devices like the BlackBerry London on the horizon, marketing and advertising will be more important than ever for RIM as the company continues struggling to maintain its footing in key markets. A pair of Be Bold ads can be viewed after the break.

Research In Motion’s newly appointed CEO Thorsten Heins said during his first day on the job that hiring a new marketing boss and revamping the company’s marketing strategy was among his first orders of business. If some of us were unsure why finding a new CMO and revamping RIM’s marketing efforts are such a priority, this new campaign should help clear things up. RIM on Monday introduced four new cartoon superheroes who will help the company spread the word about its products. Gogo Girl can save the day with her “brilliant strategy, a smile or a spatula,” Max Stone is “tough, proud and a little wild,” Justin Steele is “always ready to stick up for his friends and Trudy Foreal is “not afraid to call it as she sees it.” We’re not afraid to call it like we see it either, and we sincerely hope this new cartoon superhero campaign dies on the vine. RIM’s super infographic starring The Bold Team follows below.

UPDATE: RIM posted a note to its blog on Tuesday to clarify that The Bold Team is not a part of its new advertising campaign.

[Via Mobilesyrup]

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Samsung’s new run of television commercials is the start of a wider effort to make the company’s products the apple of the U.S. consumer’s eye. The ads, which mock iPhone users for their obsession with Apple products, attempt to present Samsung as the smarter, cooler alternative. On a larger scale however, Samsung is hoping to create a fundamental shift in the way its products are viewed by consumers. ”Especially in U.S., people are obsessed with Apple,” head of Samsung marketing Younghee Lee told AllThingsD in a recent interview. “It’s time to change people’s attention.” Lee is looking to shift consumers’ obsession to the East, and to figure out ”how I can engage with consumers from the bottom of their heart, and not just be a big and functional and rational and reasonable brand.” While mocking consumers’ unhealthy love of one brand in an effort to create an obsession with another is a curious strategy, Samsung’s attempt to reinvent itself as a global smartphone leader is having a clear impact — the company reported a record holiday quarter during which it shipped an estimated 36.5 million smartphones worldwide. Three of Samsung’s recent commercials can be viewed after the break.

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Google on Thursday reported solid growth in the fourth-quarter of 2011, but the company missed earnings estimates and shares of Google stock took a hit as a result. The Mountain View, California-based company pulled in $8.13 billion in revenue during the December quarter, up 25% from the same quarter in 2010, and earnings came in at $9.50 per share. Wall Street was expecting $8.43 billion in revenue a profit of $10.51 per share however, and Google’s stock dipped 9% in after-hours trading. Revenue from Google’s websites was up 29% year-over-year to $7.29 billion and affiliate advertising grew 15% to $2.88 billion over the same period. Google’s full press release follows below.

Google Announces Fourth Quarter and Fiscal Year 2011 Results

MOUNTAIN VIEW, Calif. – January 19, 2012 – Google Inc. (NASDAQ: GOOG) today announced financial results for the quarter and the fiscal year ended December 31, 2011.

“Google had a really strong quarter ending a great year. Full year revenue was up 29%, and our quarterly revenue blew past the $10 billion mark for the first time,” said Larry Page, CEO of Google. “I am super excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally – well over double what I announced just three months ago. By building a meaningful relationship with our users through Google+ we will create amazing experiences across our services. I’m very excited about what we can do in 2012 – there are tremendous opportunities to help users and grow our business.”

Q4 Financial Summary

Google reported revenues of $10.58 billion for the quarter ended December 31, 2011, an increase of 25% compared to the fourth quarter of 2010. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the fourth quarter of 2011, TAC totaled $2.45 billion, or 24% of advertising revenues.

Google reports operating income, operating margin, net income, and earnings per share (EPS) on a GAAP and non-GAAP basis. The non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, are described below and are reconciled to the corresponding GAAP measures at the end of this release.

• GAAP operating income in the fourth quarter of 2011 was $3.51 billion, or 33% of revenues. This compares to GAAP operating income of $2.98 billion, or 35% of revenues, in the fourth quarter of 2010. Non-GAAP operating income in the fourth quarter of 2011 was $4.04 billion, or 38% of revenues. This compares to non-GAAP operating income of $3.38 billion, or 40% of revenues, in the fourth quarter of 2010.
• GAAP net income in the fourth quarter of 2011 was $2.71 billion, compared to $2.54 billion in the fourth quarter of 2010. Non-GAAP net income in the fourth quarter of 2011 was $3.13 billion, compared to $2.85 billion in the fourth quarter of 2010.
• GAAP EPS in the fourth quarter of 2011 was $8.22 on 329 million diluted shares outstanding, compared to $7.81 in the fourth quarter of 2010 on 326 million diluted shares outstanding. Non-GAAP EPS in the fourth quarter of 2011 was $9.50, compared to $8.75 in the fourth quarter of 2010.
• Non-GAAP operating income and non-GAAP operating margin exclude the expenses related to stock-based compensation (SBC). Non-GAAP net income and non-GAAP EPS exclude the expenses related to SBC and the related tax benefits. In the fourth quarter of 2011, the charge related to SBC was $536 million, compared to $396 million in the fourth quarter of 2010. The tax benefit related to SBC was $114 million in the fourth quarter of 2011 and $89 million in the fourth quarter of 2010. Reconciliations of non-GAAP measures to GAAP operating income, operating margin, net income, and EPS are included at the end of this release.

Q4 Financial Highlights

Revenues – Google reported revenues of $10.58 billion in the fourth quarter of 2011, representing a 25% increase over fourth quarter 2010 revenues of $8.44 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.

Google Sites Revenues - Google-owned sites generated revenues of $7.29 billion, or 69% of total revenues, in the fourth quarter of 2011. This represents a 29% increase over fourth quarter 2010 revenues of $5.67 billion.

Google Network Revenues - Google’s partner sites generated revenues of $2.88 billion, or 27% of total revenues, in the fourth quarter of 2011. This represents a 15% increase from fourth quarter 2010 network revenues of $2.50 billion.

International Revenues - Revenues from outside of the United States totaled $5.60 billion, representing 53% of total revenues in the fourth quarter of 2011, compared to 55% in the third quarter of 2011 and 52% in the fourth quarter of 2010. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the third quarter of 2011 through the fourth quarter of 2011, our revenues in the fourth quarter of 2011 would have been $239 million higher. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the fourth quarter of 2010 through the fourth quarter of 2011, our revenues in the fourth quarter of 2011 would have been $39 million lower.

• Revenues from the United Kingdom totaled $1.06 billion, representing 10% of revenues in the fourth quarter of 2011, compared to 10% in the fourth quarter of 2010.
• In the fourth quarter of 2011, we recognized a benefit of $25 million to revenues through our foreign exchange risk management program, compared to $25 million in the fourth quarter of 2010.

A reconciliation of our non-GAAP international revenues excluding the impact of foreign exchange and hedging to GAAP international revenues is included at the end of this release.

Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 34% over the fourth quarter of 2010 and increased approximately 17% over the third quarter of 2011.

Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 8% over the fourth quarter of 2010 and decreased approximately 8% over the third quarter of 2011.

TAC - Traffic acquisition costs, the portion of revenues shared with Google’s partners, increased to $2.45 billion in the fourth quarter of 2011, compared to TAC of $2.07 billion in the fourth quarter of 2010. TAC as a percentage of advertising revenues was 24% in the fourth quarter of 2011, compared to 25% in the fourth quarter of 2010.

The majority of TAC is related to amounts ultimately paid to our Network members, which totaled $2.01 billion in the fourth quarter of 2011. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $442 million in the fourth quarter of 2011.

Other Cost of Revenues - Other cost of revenues, which is comprised primarily of data center operational expenses, amortization of intangible assets, content acquisition costs as well as credit card processing charges, increased to $1.25 billion, or 12% of revenues, in the fourth quarter of 2011, compared to $877 million, or 10% of revenues, in the fourth quarter of 2010.

Operating Expenses - Operating expenses, other than cost of revenues, were $3.38 billion in the fourth quarter of 2011, or 32% of revenues, compared to $2.51 billion in the fourth quarter of 2010, or 30% of revenues.

Stock-Based Compensation (SBC) – In the fourth quarter of 2011, the total charge related to SBC was $536 million, compared to $396 million in the fourth quarter of 2010.

We currently estimate SBC charges for grants to employees prior to January 1, 2012 to be approximately $2.0 billion for 2012. This estimate does not include expenses to be recognized related to employee stock awards that are granted after December 31, 2011 or non-employee stock awards that have been or may be granted.

Operating Income - GAAP operating income in the fourth quarter of 2011 was $3.51 billion, or 33% of revenues. This compares to GAAP operating income of $2.98 billion, or 35% of revenues, in the fourth quarter of 2010. Non-GAAP operating income in the fourth quarter of 2011 was $4.04 billion, or 38% of revenues. This compares to non-GAAP operating income of $3.38 billion, or 40% of revenues, in the fourth quarter of 2010.

Interest and Other Income (Expense), Net – Interest and other income (expense), net was an expense of $18 million in the fourth quarter of 2011, compared to an income of $160 million in the fourth quarter of 2010.

Income Taxes – Our effective tax rate was 22% for the fourth quarter of 2011.

Net Income – GAAP net income in the fourth quarter of 2011 was $2.71 billion, compared to $2.54 billion in the fourth quarter of 2010. Non-GAAP net income was $3.13 billion in the fourth quarter of 2011, compared to $2.85 billion in the fourth quarter of 2010. GAAP EPS in the fourth quarter of 2011 was $8.22 on 329 million diluted shares outstanding, compared to $7.81 in the fourth quarter of 2010 on 326 million diluted shares outstanding. Non-GAAP EPS in the fourth quarter of 2011 was $9.50, compared to $8.75 in the fourth quarter of 2010.

Cash Flow and Capital Expenditures – Net cash provided by operating activities in the fourth quarter of 2011 totaled $3.92 billion, compared to $3.53 billion in the fourth quarter of 2010. In the fourth quarter of 2011, capital expenditures were $951 million, the majority of which was related to IT infrastructure investments, including data centers, servers, and networking equipment. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the fourth quarter of 2011, free cash flow was $2.97 billion.

We expect to continue to make significant capital expenditures.

A reconciliation of free cash flow to net cash provided by operating activities, the GAAP measure of liquidity, is included at the end of this release.

Cash – As of December 31, 2011, cash, cash equivalents, and short-term marketable securities were $44.6 billion.

Headcount – On a worldwide basis, Google employed 32,467 full-time employees as of December 31, 2011, up from 31,353 full-time employees as of September 30, 2011.

Microsoft, Nokia and carrier partners are planning a $100 million marketing push for the Nokia Ace (also known as the Lumia 900) when it launches in the United States. While the Ace isn’t yet official, it has been rumored that AT&T will unveil the device during the Consumer Electronics Show in Las Vegas next week. We exclusively reported in November that the Ace will offer a 1.4GHz processor, a 4.3-inch ClearBlack display and an 8-megapixel camera. Other reports have suggested it will run Windows Phone 7.5 (Mango) and support AT&T’s 4G LTE network. According to BetaNews, the Ace will hit AT&T store shelves in March where it will receive “hero” status. It is unclear how Microsoft, AT&T and Nokia will split the $100 million in marketing, but the hero status suggests it will be the focus of AT&T commercials, print ads, digital ads and in-store marketing.

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AllThingsD is reporting that Apple is planning a media-related event that will take place at the end of January. It’s said that the event won’t be centered around an iPad 3 announcement, nor one around an update on Apple’s TV hobby, but one with Apples Senior VP of Internet Software Eddy Cue. Because Cue is involved, AllThingsD is concluding that this event is most likely around publishing or advertising.

UPDATE: TechCrunch says iBooks and publishing will be the focus of this small event.

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For all the trouble Apple’s aggressive litigation strategy has caused Samsung, the South Korea-based electronics giant has finally found a way to make the pricey patent war work to its advantage. Samsung’s devices are gaining huge exposure as a result of Apple’s ongoing lawsuits, positioning Samsung’s Galaxy range of Android tablets and smartphones as the underdog alternative to Apple’s iOS lineup.

Samsung launched a new advertising campaign late last month that just started to scratch the surface. The commercials showed Apple fans lining up in droves for a new smartphone that looked exactly like their old smartphone. It also portrayed iPhone users as mindless hipster sheep, while young sophisticated professionals opted for a more capable smartphone with a gorgeous display and 4G speeds: the Samsung Galaxy S II.

Now Samsung is taking its marketing a step further, directly addressing Apple’s aggressive legal strategy in an effort to draw consumers to its side of the fight.

In Sunday’s edition of Australian paper The Sun-Herald, Samsung ran a full-page advertisement headed with “The tablet Apple tried to stop.” The quip refers of course to the company’s ongoing legal battles with Apple over patents and a design identity that Apple feels are being infringed by Samsung’s Galaxy Tab 10.1 tablet. Samsung recently scored a major victory in Australia, however, when a sales ban on the Android tablet was overturned by an Australian High Court.

Samsung’s Galaxy Tab 10.1 features a 10.1-inch display, a dual-core processor and Google’s Android Honeycomb operating system. According to Apple, the slate also features a design that “slavishly” copies its popular iPad tablet and technology that infringes on multiple Apple-owned patents.

Defending its products against Apple’s numerous lawsuits continues to cost Samsung a tremendous amount of money, but it also appears to be opening some doors. ”Samsung has just edged past the iPhone in consumer perception (adults 18+), likely powered by their new set of ads bashing the Apple fanboys who camp out for hours to buy the new iPhone,” market research firm YouGov wrote recently in a report on brand perception.

Samsung appears ready to take Apple on both in the courtroom and in the eyes of consumers, and the company is making progress on both fronts.

Image source (Samsung ad): Martin Aungle

Apple may be implementing a number of changes to its iAd mobile advertising platform in an effort to attract more advertisers and to compete more aggressively against Google’s advertising solutions. The Cupertino-based company originally required that advertisers spend a minimum of $1 million on its iAd platform but then halved that figure to $500,000. Now, The Wall Street Journal said Apple is beginning to woo marketers by allowing them to spend as little as $400,000 on an iAd campaign. Read on for more.

Apple is rethinking how its pricing structure works, too. It will now put a cap on how much it charges advertisers every time a user taps on an advertisement. The Wall Street Journal explained that Apple currently charges $2 each time a user clicks an in-app advertisement and $10 every time the ad is viewed 1,000 times. Google, by contrast, charges between $4 and $12 each time an ad is viewed 1,000 times. Apple also reportedly plans to implement a mobile advertising training program for its employees and clients.

These changes are no doubt an effort to regain lost advertising market share. According to data from research firm IDC, Apple’s mobile-ad market share dropped from 19% last year to 15% this year. The company now has a smaller market share both than Google and Millennial Media. IDC believes Apple will have a hard time competing with Google and Millennial because it only sells ads on Apple products.

“Apple we believe will, over time, fade into the background,” IDC analyst Karsten Weide explained. “[iAd] was attempted to make sure that even consumers advertising experience on Apple devices was perfect, but it hasn’t really worked.”

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It worked. 4G has been marketed so well by wireless carriers and vendors that people want it even if they don’t quite know why. A recent survey conducted by market research and intelligence firm In-Stat found that 75% of respondents listed 4G as one of the features their ideal phone would include. When asked which carrier offered the fastest 4G speeds, most respondents were left stymied. “Although 4G is an important feature for handset buyers, there is a lot of confusion surrounding 4G,” In-Stat analyst Greg Potter said in a statement. Read on for more.

Potter continued, “When survey respondents were asked which carrier offered the fastest 4G speeds, the majority of the respondents either didn’t know or felt they were the same across carriers.” A new bill presented to the U.S. Senate earlier this month suggests that wireless carriers should be forced to clarify what kind of speeds their 4G networks afford in marketing and advertising, but it is not expected to be made law.

The survey of 1,208 consumers was part of the In-Stat’s Next-Generation Phones: Consumer Insights Drive Future Handset Designs report, which also found that 36% of consumers plan to stay loyal to their current smartphone operating system compared to just 23% last year. The firm also found that 20% of T-Mobile subscribers plan to switch carriers in the next 12 months.

Verizon Wireless began alerting its customers of changes to its official privacy policy on Friday. The carrier confirmed it will now use information for “private business and marketing reports” and “making mobile ads more relevant.” Verizon Wireless will share the URL of websites you visit, the location of your device, as well as app and device feature usage. It will also share information on data and calling features and your demographic so that it, and outside firms, can create reports and target ads more efficiently. Read on.

Verizon did say, however, that it will not share any information that will identify its customers personally. “Protecting data and safeguarding privacy are high priorities at Verizon,” the company said in a statement to BGR. Instead, the information will be used to generate reports that may, for example, state that 5,000 of its customers visited ESPN during any given month and 89% were men.

“A local restaurant may want to advertise only to people who live within 10 miles, and we might help deliver that ad on a website without sharing information that identifies you personally,” Verizon Wireless explained in the notice.

If you are worried by the changes, you can stop Verizon Wireless from collecting your personal information by visiting http://www.vzw.com/myprivacy. Read on for a full statement on the changes, provided to BGR by Verizon Wireless.

Protecting data and safeguarding privacy are high priorities at Verizon. Verizon Wireless recently introduced a new program that involves the creation of new types of aggregate business and marketing reports.  For the business and marketing reports offered by Verizon Wireless, records about websites visited, cell phone locations and other consumer data will be combined (or aggregated) to compile reports that provide businesses with insights about their customers.   In addition, Verizon Wireless and Verizon Telecom also introduced new ways to advertise to mobile users and wireline broadband customers.

For example, these insights may include the demographics (age ranges, gender, etc.) and interests (such as “pet lovers” or “tennis enthusiasts”) of visitors to a Web site, or commuters who might pass an outdoor billboard.  These aggregate reports could be used by web publishers to help provide content that is more appealing to users, or to help advertisers better select the ads they will display on outdoor billboards or at other venues.

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China’s No. 3 wireless carrier is readying a massive marketing and advertising blitz as it prepares to begin taking iPhone 5 pre-orders at the end of this month, a report claims. Chinese-language daily newspaper Southern Metropolis Daily on Wednesday reported that China Telecom has already begun training staff in preparation for the launch of Apple’s fifth-generation iPhone handset. Sales of the device will begin in October, however the carrier will reportedly be opening pre-order sales toward the end of September. Southern Metropolis Daily also notes that China Telecom may increase the subsidy it offers on the new Apple smartphone in an effort to bump sales, and the carrier is also rumored to be prepping a 1.5 billion yuan ($235 million) marketing and advertising campaign surrounding the iPhone 5. With the country’s top carrier, China Mobile, expected to offer the iPhone 5 as well this fall, China Telecom’s aggressive strategy should do well to help bolster sales.

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Microsoft’s General Manager of the Windows Phone Developer Experience on Monday announced that he is leaving Microsoft to launch a start up. Kindel did not share the details of his new endeavor, and his public profile on networking site LinkedIn lists him as Founder and CTO of <redacted> at A super secret stealth startup. “[The start up] has to do with sports, advertising, mobile, social-networking, and, of course, the cloud,” Kindel wrote in a post on his personal blog. “I’m insanely excited to get started.” The soon-to-be former executive was with Microsoft for 21 years, having joined the Redmond-based company’s developer support group in 1990. Kindel’s full email to his team regarding the decision follows below.

From: Charlie Kindel
Sent: Monday, August 08, 2011 9:00 AM
To: A gazillion old friends and colleagues
Subject: Goodbye Microsoft – After 21 Years It’s Time To Move On

July 2, 1990 was my first day at Microsoft and September 2, 2011 will be my last.

In the time honored tradition of “good-bye mails” this is mine.

My first Microsoft product was a Z-80 Softcard for my Apple ][+ in 1984. That amazing product enabled me to become a UCSD P-System, CP/M, and Turbo Pascal geek. I still remember opening the big clear plastic box for the first time.

In 1988 (my junior year at the University of Arizona) I decided I wanted to work for Microsoft when I discovered Windows programming (I conned my dad into buying me a copy of the Windows 2 SDK). Charles Petzold was my hero.

I got no-hired after my first interviews (a dev role in Languages; shouldn’t really surprise anyone).

I bribed my recruiter into getting me another set of interviews by sending her a Christmas card (clearly I was meant to be a PM).

The brightest memory I have of my first day at work was a Seattle Times sports page pinned to my manager’s (Ridge Ostling) cube: “Husky Women Beat Beavers”.

A few months later we threatened to quit because management kept turning the lights ON in Lincoln Plaza.

Arne Josefsberg: I feel bad about writing that tool that generated fake time tracking reports. But what did you expect? We were providing the best damn developer support possible and the number of minutes we spent doing it was totally irrelevant.

Curtis Palmer: I miss you. Our Bogus Software was the best. RIP.

Tunneling Todd Laney, one day I got so pissed that the Windows 8514a driver didn’t support “smallfonts” that I just fixed it and checked it in. I was still in PSS. My first “production code” at Microsoft and if you don’t count OLEView which was just a tool, my last.

I decided I wanted to be Chris Guzak. So I got out of PSS and into Developer Relations. I know, it doesn’t make sense to me either.

Vertical Developer Relations was an amazing group. Out of that group came: Jeff Teper, Satya Nadella, Joe Long, John Wilcox, Bret O’Rourke, and others.

After writing OLEView I woke up and I was no longer an evangelist but a PM on the OLE team. Initially I was given all the glamorous stuff like Mac OLE. Mario Goertzel scared the crap out of me. It was 3 months before he and the other devs would invite me to lunch.

I got to work with Bob Atkinson. He taught me the trick of taking people on walks during 1:1s. He also taught me everything I know.

We gave all PDC ’93 attendees a CD with the first DCOM bits. ole.h was missing. One (one!) customer noticed. We thought DCOM was hot-sh**. It wasn’t.

The first name for COM+ was COM3. Windows used to let you create directories named COM3. But you couldn’t delete them. The real reason I’m leaving Microsoft? COM is making a comeback.

Sweeper and December 7, 1995 were epic. How the name “ActiveX” was chosen was not. Designing the <OBJECT> tag with Tim Berners-Lee was mind blowing for me. Ben Slivka still owes my sister an airplane ticket.

Shipping IE 3.0 was my first taste of what it really meant to build a product that changed the world. I would have never joined the Windows Phone team if I had not had that prior experience of an impossible, come-from-behind, project.

Somewhere along the line I learned the word “mentor”. Bob Muglia and Chris Jones: Thank you. I learned everything I know from you.

In 1998 a bunch of us from the IIS team were in Paris for some conference. We went out to dinner and when we came out of the restaurant there was a literal riot going on around the Arc de Triomphe. France had won the world cup. We joined in. I rode around the Arc de Triomphe on the roof of a city bus chanting Viva-La-France! Microsoft enabled me to see the world and I’m grateful for that.

Someday we’re going to have a Project42 reunion party. Or not.

Tracy Sharpe once worked for me. One day his office was cleared out. I asked HR “Where’s Tracy?” “Oh, he moved to the Xbox team weeks ago.” Oh, that’s how that works.

Charlie: “Hey Chris (Jones) & David (Cole), we should build a Neptune Home Server! We’ll call it Ybox!”

Chris & David: “Charlie, shut the eff up and get back to work.”

Working on Windows Millennium is where I met Dave Alles.

The Connected Home Business Unit had this guy who drove a black Hummer. One day we put a “Yes, my penis is small” bumper sticker on it. Sorry about that Kevin Eagan.

Bedrock and the bBox demonstrated that a group could have all the technology and a great user experience and still not know how to spell “business”. BXT folks. BXT!

CHBU begat eHome. The first version of Windows Media Center was to be called “Windows Remote View”. Really.

When I think about my time as BobMu’s TA I’m reminded of the scene in Blade Runner, where Roy says “I’ve seen things you people could only imagine.” Did I mention that I learned everything I know from Bob Muglia?

You know why Quattro was named Quattro? My fourth attempt at building a home server product at Microsoft. Best. Team. Ever.

I’ve had some great managers (and some not so great ones). Chris Phillips the best manager I ever had. I learned everything I know from Chris.

To the people that helped build Windows Home Server: Chuck Norris doesn’t leave Microsoft. Microsoft leaves with Chuck.

Yamanote! Istvan, Friedbert, Bob, Drew, Tudor, Kevin, Akhil, Ron, Scott, and a slew of others: They doubted, but we fraking did it. Together. 27,000 apps and counting. Someone once gave me the advice “The first rule of dependency management is to not have any dependencies.” I call BS on this and we proved that cross-group collaboration CAN work at Microsoft.

The real reason I’m leaving Microsoft: At the last partner meeting Dave Alles didn’t ask SteveB a question.

To the Windows Phone team: I may stop using some Microsoft products now that I’m out of here. But not Windows Phone. The BEST product Microsoft has ever built. Do not let up!

To my wife: Thank you for putting up with “Microsoft Time” (“Honey, I’ll be home in an hour.” Four hours later…). I’ve learned everything I know from Julie Kindel.

To my kids: No, just because I don’t work at Microsoft anymore you many not use Google. Remember, every time you use Google, a puppy dies.

Back in 1990 I assumed I’d work here for 3 or so years. I’m an entrepreneur at heart and every few years I’d lift up my head and look around. I never had the need to look outside Microsoft because I kept finding one challenging opportunity after another.

21 years later I have finally decided I need to do something different: I’m leaving to start a new company here in the Seattle area. I’m sure you’ll hear about it.

There has been one constant in every job I’ve had at Microsoft: People way smarter than me. Microsoft has always enabled me to “play up”. It has truly been an honor working with all of you. Thank you for helping me grow as an engineer, a manager, a businessman, and as a person.

Stay in touch and keep changing the world!

-cek

charlie (at) kindel (dot) com

http://ceklog.kindel.com

@ckindel on Twitter

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Hulu has confirmed that it is considering a third subscription option that would allow users to stream ad-free TV shows and movies for a higher monthly fee. “We’re currently an ad supported service but are looking into the option of a higher priced ad-free option,” a Hulu representative stated from an official Twitter account. Hulu made several additional comments to the same effect on Friday from its customer support Twitter account. The move would be an interesting one; Hulu dropped the price of its Hulu Plus premium subscription service to $7.99 last November, presumably due at least in part to slower than expected consumer adoption. A new pricier plan in spite of the recent price drop, that could also potentially anger network partners, is a tough pill to swallow —especially as the company looks for a buyer.

[Via GigaOm]

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Shares of Google stock jumped more than 10% in after-hours trading following the Internet giant’s second-quarter earnings report. “We had a great quarter, with revenue up 32% year on year for a record breaking over $9 billion of revenue,” said Google CEO Larry Page in a statement. “I’m super excited about the amazing response to Google+ which lets you share just like in real life.” Google reported revenue of $9.03 billion in its June quarter, up 32% over the same quarter last year and well above the Street’s $6.5 billion consensus. EPS came in at $8.76, also well above Wall Street’s consensus of $7.86, and Google’s net income for the quarter totalled#2.85 billion, up from $2.08 billion in the second quarter last hear. Google also noted that Android activations are currently up to 550,000 devices per day, and its invite-only Google+ social network now has more than 10 million members. Google’s full press release follows below.

Google Announces Second Quarter 2011 Financial Results

MOUNTAIN VIEW, Calif. – July 14, 2011 – Google Inc. (NASDAQ: GOOG) today announced financial results for the quarter ended June 30, 2011.

“We had a great quarter, with revenue up 32% year on year for a record breaking over $9 billion of revenue,” said Larry Page, CEO of Google. “I’m super excited about the amazing response to Google+ which lets you share just like in real life.”

Q2 Financial Summary

Google reported revenues of $9.03 billion for the quarter ended June 30, 2011, an increase of 32% compared to the second quarter of 2010. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the second quarter of 2011, TAC totaled $2.11 billion, or 24% of advertising revenues.

Google reports operating income, operating margin, net income, and earnings per share (EPS) on a GAAP and non-GAAP basis. The non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, are described below and are reconciled to the corresponding GAAP measures in the accompanying financial tables.

• GAAP operating income in the second quarter of 2011 was $2.88 billion, or 32% of revenues. This compares to GAAP operating income of $2.37 billion, or 35% of revenues, in the second quarter of 2010. Non-GAAP operating income in the second quarter of 2011 was $3.32 billion, or 37% of revenues. This compares to non-GAAP operating income of $2.67 billion, or 39% of revenues, in the second quarter of 2010.
• GAAP net income in the second quarter of 2011 was $2.51 billion, compared to $1.84 billion in the second quarter of 2010. Non-GAAP net income in the second quarter of 2011 was $2.85 billion, compared to $2.08 billion in the second quarter of 2010.
• GAAP EPS in the second quarter of 2011 was $7.68 on 326 million diluted shares outstanding, compared to $5.71 in the second quarter of 2010 on 322 million diluted shares outstanding. Non-GAAP EPS in the second quarter of 2011 was $8.74, compared to $6.45 in the second quarter of 2010.
• Non-GAAP operating income and non-GAAP operating margin exclude the expenses related to stock-based compensation (SBC). Non-GAAP net income and non-GAAP EPS exclude the expenses related to SBC and the related tax benefits. In the second quarter of 2011, the charge related to SBC was $435 million, compared to $309 million in the second quarter of 2010. The tax benefit related to SBC was $91 million in the second quarter of 2011 and $70 million in the second quarter of 2010.

Q2 Financial Highlights

Revenues – Google reported revenues of $9.03 billion in the second quarter of 2011, representing a 32% increase over second quarter 2010 revenues of $6.82 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.

Google Sites Revenues – Google-owned sites generated revenues of $6.23 billion, or 69% of total revenues, in the second quarter of 2011. This represents a 39% increase over second quarter 2010 revenues of $4.50 billion.

Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $2.48 billion, or 28% of total revenues, in the second quarter of 2011. This represents a 20% increase from second quarter 2010 network revenues of $2.06 billion.

International Revenues – Revenues from outside of the United States totaled $4.87 billion, representing 54% of total revenues in the second quarter of 2011, compared to 53% in the first quarter of 2011 and 52% in the second quarter of 2010. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the first quarter of 2011 through the second quarter of 2011, our revenues in the second quarter of 2011 would have been $167 million lower. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the second quarter of 2010 through the second quarter of 2011, our revenues in the second quarter of 2011 would have been $417 million lower.

• Revenues from the United Kingdom totaled $976 million, representing 11% of revenues in the second quarter of 2011, compared to 11% in the second quarter of 2010.
• In the second quarter of 2011, we recognized a benefit of $4 million to revenues through our foreign exchange risk management program, compared to $79 million in the second quarter of 2010.

A reconciliation of our non-GAAP international revenues excluding the impact of foreign exchange and hedging to GAAP international revenues is included in the accompanying financial tables.

Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 18% over the second quarter of 2010 and decreased approximately 2% over the first quarter of 2011.

Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 12% over the second quarter of 2010 and increased approximately 6% over the first quarter of 2011.

TAC – Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $2.11 billion in the second quarter of 2011, compared to TAC of $1.73 billion in the second quarter of 2010. TAC as a percentage of advertising revenues was 24% in the second quarter of 2011, compared to 26% in the second quarter of 2010.

The majority of TAC is related to amounts ultimately paid to our AdSense partners, which totaled $1.75 billion in the second quarter of 2011. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $355 million in the second quarter of 2011.

Other Cost of Revenues – Other cost of revenues, which is comprised primarily of data center operational expenses, amortization of intangible assets, content acquisition costs as well as credit card processing charges, increased to $1.06 billion, or 12% of revenues, in the second quarter of 2011, compared to $735 million, or 11% of revenues, in the second quarter of 2010.

Operating Expenses – Operating expenses, other than cost of revenues, were $2.97 billion in the second quarter of 2011, or 33% of revenues, compared to $1.99 billion in the second quarter of 2010, or 29% of revenues.

SBC – In the second quarter of 2011, the total charge related to SBC was $435 million, compared to $309 million in the second quarter of 2010.

We currently estimate SBC charges for grants to employees prior to July 1, 2011 to be approximately $1.9 billion for 2011. This estimate does not include expenses to be recognized related to employee stock awards that are granted after June 30, 2011 or non-employee stock awards that have been or may be granted.

Operating Income – GAAP operating income in the second quarter of 2011 was $2.88 billion, or 32% of revenues. This compares to GAAP operating income of $2.37 billion, or 35% of revenues, in the second quarter of 2010. Non-GAAP operating income in the second quarter of 2011 was $3.32 billion, or 37% of revenues. This compares to non-GAAP operating income of $2.67 billion, or 39% of revenues, in the second quarter of 2010.

Interest and Other Income, Net – Interest and other income, net increased to $204 million in the second quarter of 2011, compared to $69 million in the second quarter of 2010.

Income Taxes – Our effective tax rate was 19% for the second quarter of 2011.

Net Income – GAAP net income in the second quarter of 2011 was $2.51 billion, compared to $1.84 billion in the second quarter of 2010. Non-GAAP net income was $2.85 billion in the second quarter of 2011, compared to $2.08 billion in the second quarter of 2010. GAAP EPS in the second quarter of 2011 was $7.68 on 326 million diluted shares outstanding, compared to $5.71 in the second quarter of 2010 on 322 million diluted shares outstanding. Non-GAAP EPS in the second quarter of 2011 was $8.74, compared to $6.45 in the second quarter of 2010.

Cash Flow and Capital Expenditures – Net cash provided by operating activities in the second quarter of 2011 totaled $3.52 billion, compared to $2.09 billion in the second quarter of 2010. In the second quarter of 2011, capital expenditures were $917 million, the majority of which was related to land and building purchases, and IT infrastructure investments, including data centers, servers, and networking equipment. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the second quarter of 2011, free cash flow was $2.60 billion.

We expect to continue to make significant capital expenditures.

A reconciliation of free cash flow to net cash provided by operating activities, the GAAP measure of liquidity, is included in the accompanying financial tables.

Cash – As of June 30, 2011, cash, cash equivalents, and marketable securities were $39.1 billion.

Headcount – On a worldwide basis, Google employed 28,768 full-time employees as of June 30, 2011, up from 26,316 full-time employees as of March 31, 2011. Net headcount growth (excluding approximately 450 employees hired as part of the acquisition of ITA Software) was similar to the first quarter of 2011.