Sony on Thursday reported a net loss of $3.2 billion in the fourth quarter of 2011 to close its fourth straight year in the red. The electronics and entertainment giant struggled throughout the year, reporting an annual loss of $5.7 billion, the worst in the company’s 66-year history. Sony’s factories and supply chains were plagued by last year’s earthquake and tsunami in Japan as well as massive flooding in Thailand. The company’s annual sales plunged nearly 10% to $81 billion, with shipments of flat-panel TVs, video and digital cameras, game consoles and personal computers falling short of expectations. The Japanese manufacturer’s newly appointed president, Kazuo Hirai, said the company will return to profit in March 2013 thanks to to its growing smartphone and tablet business, as well as a recovery from last year’s natural disasters.

[Via The Associated Press]

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Following a rough holiday quarter for the nation’s No.4 carrier, T-Mobile on Thursday reported results for the first quarter of 2012. Adjusted OIBDA was up 7.2% from the first quarter last year to $1.27 billion and average revenue per user grew to $58 from $56 in the year-ago quarter. The carrier still saw significant contract subscriber losses, however, with 510,000 T-Mobile-brand contract customers having left the carrier last quarter. Net subscriber additions swung from a loss of 526,000 customers in the fourth quarter to a gain of 187,000 subscribers, however, and the carrier was home to 33.4 million subscribers at the end of the first quarter. T-Mobile’s full press release follows below.

T-Mobile USA Reports First Quarter 2012 Operating Results

BELLEVUE, Wash.–(BUSINESS WIRE)–T-Mobile USA, Inc. today reported first quarter 2012 results and provided an update on its 2011 annual assessment of indefinite-lived assets. In the first quarter of 2012, T-Mobile USA reported adjusted OIBDA of $1.27 billion, up 7.2% from $1.19 billion reported in the first quarter of 2011 and branded contract ARPU in the first quarter of 2012 of $58, up from $56 in the first quarter of 2011. Additionally, net customer additions were 187,000 in the first quarter of 2012, compared to 99,000 net customer losses in the first quarter of 2011.

“T-Mobile USA delivered an encouraging adjusted OIBDA year-on-year increase in the first quarter of 2012. Philipp Humm and his team managed the business with improved efficiency in a still difficult environment, laying the foundation for successful implementation of the Challenger Strategy”

“In the first quarter, T-Mobile USA delivered strong performance across several key metrics – adding customers, increasing branded ARPUs year-on-year and effectively managing costs to deliver a solid adjusted OIBDA margin. While branded contract churn remains a focus, in the first quarter of 2012 we achieved our lowest level in seven quarters,” said Philipp Humm, CEO and President of T-Mobile USA. “In just a short time since the December breakup of the AT&T deal, T-Mobile USA has redefined and restarted our Challenger Strategy including phase one of a major brand re-launch to redefine T-Mobile in the marketplace.”

“T-Mobile USA delivered an encouraging adjusted OIBDA year-on-year increase in the first quarter of 2012. Philipp Humm and his team managed the business with improved efficiency in a still difficult environment, laying the foundation for successful implementation of the Challenger Strategy,” said René Obermann, CEO of Deutsche Telekom.

T-Mobile USA Challenger Highlights

T-Mobile USA has made considerable progress in executing against the reinvigorated Challenger Strategy, which was announced in February 2012. Most significant is progress against the newly announced $4 billion network modernization and 4G evolution effort, which will further improve existing voice and data coverage and pave the way for long term evolution (“LTE”) service in 2013. Already this year, T-Mobile USA has entered into a spectrum exchange agreement with Leap Wireless International, Inc. and secured key AWS spectrum licenses from AT&T, which were agreed to as part of the breakup of the proposed merger between the two companies. More recently, T-Mobile USA signed agreements with Ericsson and Nokia Siemens Networks to deploy state-of-the-art LTE-capable equipment at 37,000 cell sites in 2012 and 2013.

Other investment areas core to T-Mobile USA’s Challenger Strategy include continued retail expansion as well as an increased investment in the brand. So far this year, the Company has expanded its branded distribution, adding 115 new branded dealers and earned Wal-Mart’s 2011 “Supplier of the Year” award in both the Wireless category and the overall Entertainment Division.

The company also unveiled phase-one of a brand re-launch program, introducing a new ad campaign that encourages customers to Test Drive T-Mobile USA’s competitive 4G experience.

Additionally, the Company continued to expand its portfolio of compelling 4G smartphones in the first quarter. T-Mobile USA became the first U.S. carrier to offer a Nokia Windows® Phone, the affordable, 4G-capable Nokia Lumia 710, and launched the 42 Mbps-capable Samsung Galaxy S® Blaze™ 4G. In April 2012, T-Mobile USA launched the 42 Mbps-capable HTC One™ S.

Total Customers

T-Mobile USA served 33.4 million customers at the end of first quarter 2012, compared to 33.2 million customers at the end of the fourth quarter of 2011 and 33.6 million customers at the end of first quarter 2011.

First quarter 2012 net customer additions of 187,000, compared to net customer losses of 526,000 in the fourth quarter of 2011, and net customer losses of 99,000 in the first quarter of 2011.

The sequential increase in net customer additions was driven primarily by improvements in churn from branded contract and machine-to-machine (“M2M”) customers. Year-on-year, net customer additions also improved related to the growth of T-Mobile USA’s unlimited Monthly 4G prepaid plans.

Branded Customers

Branded contract net customer losses, excluding M2M, were 510,000 in the first quarter of 2012, a 28% improvement from the fourth quarter of 2011 and an 11% improvement from the first quarter of 2011.

Sequentially, the improvement in branded contract customer losses was driven primarily by fewer branded contract deactivations. The fourth quarter of 2011 included significantly higher contract deactivations as a result of the launch of the iPhone 4S by three nationwide competitors in mid-October.

The year-over-year improvement in branded contract customer losses was driven primarily by lower branded contract churn related to the strategic phase-out of discontinued products, such as FlexPay, partially offset by fewer branded contract gross additions.

The Company discontinued its FlexPay and Even More Plus products in 2011 due to low customer satisfaction and profitability. In the first quarter of 2012, remaining core branded contract and prepaid products saw year-on-year growth as customers continue to migrate from discontinued products.

Branded prepaid net customer additions, excluding MVNO customers, were 249,000 in the first quarter of 2012; up from fourth quarter 2011 branded prepaid net customer additions of 220,000 and improved from 82,000 net branded prepaid customer losses in the first quarter of 2011.
The sequential and year-on-year improvement in branded prepaid net customer additions was due to increased branded prepaid gross additions, a result of the continued success of unlimited Monthly 4G prepaid plans introduced in the second quarter of 2011. Additionally, improvements in churn related to the strategic phase-out of discontinued products, such as FlexPay No Contract, also contributed to prepaid net addition growth.

Wholesale

M2M net customer additions were 262,000 in the first quarter of 2012 compared to net customer losses of 95,000 in the fourth quarter of 2011 and net customer additions of 192,000 in the first quarter of 2011.

The sequential change was driven by improved M2M customer churn. In the fourth quarter of 2011, there were significantly higher M2M deactivations including a nearly 265,000 deactivation related to one customer. M2M customers, which have significantly lower ARPUs (averaging less than $2) than other contract customers, totaled 2.7 million at March 31, 2012.

The year-over-year change was driven by higher M2M gross customer additions, partially offset by higher deactivations.

MVNO customers increased in the first quarter of 2012, totaling 3.8 million customers as of March 31, 2012.

Sequentially, MVNO net customer additions increased due primarily to fewer MVNO customer deactivations.

Compared to the first quarter of 2011, MVNO net customer additions decreased due primarily to fewer MVNO gross customer additions.

Churn from branded customers was 3.2% in the first quarter of 2012, down 40 basis points from the fourth quarter of 2011 and 10 basis point from the first quarter of 2011.
Sequentially and year-on-year, branded churn decreased due in part to churn reduction initiatives. Additionally, branded churn in the fourth quarter of 2011 was higher as a result of competitive market conditions and the launch of the iPhone 4S by three competitors.

Branded contract churn, excluding M2M customers, was 2.5% in the first quarter of 2012, down 50 basis points from the fourth quarter of 2011 and 10 basis point from the first quarter of 2011.

The sequential and year-on-year improvement in branded contract churn was the result of T-Mobile USA’s continued churn reduction initiatives. Additionally, the fourth quarter of 2011 was negatively impacted by competitors’ launches of the iPhone 4S, which is not offered by T-Mobile USA.

Branded prepaid churn, excluding MVNO, was 6.4% in the first quarter of 2012, down 30 basis points from the fourth quarter of 2011 and down 60 basis points from the first quarter of 2011.

The sequential and year-on-year decrease in branded prepaid churn was driven primarily by the continued strategic phase-out of discontinued high-churn products, such as FlexPay No Contract.

Branded contract Average Revenue Per User (“ARPU”), excluding M2M customers, was $58 in the first quarter of 2012, consistent with the fourth quarter of 2011 and up $2 from the first quarter of 2011.
Year-on-year, branded contract ARPU increased as data revenue growth more than offset lower voice revenue, which included effects from the shift to unlimited Value plans. Branded contract ARPU also benefited from the introduction of reconnection fees in the third quarter of 2011, which increased branded contract ARPU by approximately $1 year-on-year.

Branded contract data ARPU of $18.80 in the first quarter of 2012, increased 3.9% sequentially and 18.2% year-on-year from the continued adoption of data plans.
3G/4G smartphones used by contract customers now account for 11.6 million or 53% of total branded contract customers, up from 11.0 million or 49% in the fourth quarter of 2011 and 9.1 million or 38% in the first quarter of 2011.

Branded prepaid ARPU, excluding MVNO customers, was $25 in the first quarter of 2012, consistent with the fourth quarter of 2011 and up $1 from the first quarter of 2011.
Year-on-year, branded prepaid ARPU increased primarily due to continued growth in unlimited Monthly 4G prepaid products. The discontinuation of certain products, such as FlexPay No Contract, also impacted the year-on-year development in branded prepaid ARPU. Branded prepaid ARPU, excluding FlexPay No Contract, increased $8 year-on-year to $25 in the first quarter of 2012.

Branded data ARPU in the first quarter of 2012 amounted to $16.90 per branded customer, an increase of 2.4% from the fourth quarter of 2011 and 15.8% from the first quarter of 2011.

3G/4G smartphone sales were 2.5 million units in the first quarter of 2012, slightly lower than 2.6 million units in the fourth quarter of 2011, but a 25% increase from 2.0 million units sold in the first quarter of 2011. Smartphone sales accounted for 80% of units, or 94% of handset sales revenues, in the first quarter of 2012.
Blended ARPU was $45 in the first quarter of 2012, down $1 from both the fourth quarter of 2011 and the first quarter of 2011 primarily due to dilution from wholesale customers and a change in portfolio mix towards branded prepaid customers.

Revenue

Service revenues were $4.4 billion in the first quarter of 2012, down 2.7% from the fourth quarter of 2011 and down 4.0% from the first quarter of 2011.
Sequentially and year-on-year, quarterly service revenues decreased primarily due to branded contract customer losses, which were partially offset by the increased adoption of data plans in the contract and prepaid customer base. Additionally, branded prepaid revenues increased compared to the fourth quarter of 2011 and first quarter of 2011, a result of the continued success of unlimited Monthly 4G prepaid plans. Service revenues were also negatively impacted by the growth in unlimited Value plans, which do not include subsidized handset equipment. However, handset equipment sales sold in connection with Value plans resulted in higher equipment sales, as described below.
Data service revenues were $1.4 billion in the first quarter of 2012, up 1.0% from the fourth quarter of 2011 and 8.2% from the first quarter of 2011.
Total revenues, including service, equipment sales, and other revenues were $5.0 billion in the first quarter of 2012, down 2.8% from the fourth quarter of 2011 and 2.5% from the first quarter of 2011.

Compared to the fourth and first quarters of 2011, total revenues changed due primarily to branded contract customer losses as described above. Additionally, equipment revenues increased year-on-year, despite lower overall sales volumes, due to handset program changes in connection with T-Mobile USA’s Value plans and due to stronger smartphone sales. As a result, total revenues declined less than service revenues.

Adjusted OIBDA

T-Mobile USA reported Adjusted OIBDA of $1.27 billion in the first quarter of 2012, down 9.0% from the fourth quarter of 2011, but up 7.2% from the first quarter of 2011.
Adjusted OIBDA in the first quarter of 2012 and the fourth quarter of 2011 excludes special charges of $30 million and $123 million, respectively, primarily consisting of employee retention benefit expenses related to the terminated AT&T transaction. Additionally, T-Mobile USA announced in March that it will consolidate its call center operations from 24 to 17 facilities by the end of the second quarter of 2012, which resulted in organizational restructuring expenses in the first quarter of 2012.
Sequentially, adjusted OIBDA decreased as a result of lower service revenues driven by branded customer losses and higher general and administrative expenses, as described below.

Year-on-year, adjusted OIBDA increased as a result of reduced losses from equipment subsidies due to handset program changes from the unlimited Value plans, lower network expenses and continued cost management programs. This decrease was partially offset by higher general and administrative expenses, as described below.
Adjusted OIBDA margin was 29% in the first quarter of 2012, down from 31% in fourth quarter of 2011, but up from 26% in the first quarter of 2011.
Sequentially, OIBDA margin decreased slightly as a result of lower service revenues driven by branded customer losses.

Year-on-year OIBDA margin improved significantly due to the reductions in equipment subsidies in connection with unlimited Value plans.
During the first quarter of 2012, T-Mobile USA completed the 2011 annual impairment assessment of its indefinite-lived assets. As a result of the impairment assessment, T-Mobile USA recorded a non-cash impairment charge of $3.9 billion related to goodwill and $2.5 billion related to spectrum licenses, with an associated $1.0 billion tax benefit for the quarter ended December 31, 2011. These charges had no effect on either the Company’s current cash balance or future cash flows.

Operating Expenses

Total operating expenses (excluding impairment, restructuring and AT&T transaction-related costs) were $4.5 billion in the first quarter of 2012, down 0.7% from the fourth quarter of 2011 and 4.3% from the first quarter of 2011.
Losses from equipment subsidies in the first quarter of 2012 were $310 million (equipment revenues of $535 million, less cost of equipment sales of $845 million), decreased 4.6% from fourth quarter 2011 and 41.6% from first quarter 2011. The year-on-year decrease in net subsidy was due primarily to handset program changes from the unlimited Value plans.

Network expenses of $1.2 billion in the first quarter of 2012, were consistent with the fourth quarter of 2011, but decreased 4.5% from the first quarter of 2011. This year-on-year decrease was due primarily to reduced rates of providing long distance service. Additionally, due to the transition to enhanced backhaul (e.g. fiber), T-Mobile USA was able to accommodate higher data volumes year-on-year without significant increases in network costs.

Customer acquisition expenses in the first quarter of 2012 of $749 million decreased 8.8% from the fourth quarter of 2011 and 4.2% from the first quarter of 2011. This sequential decrease was due primarily to reductions in advertising which are typical for the first quarter following the fourth quarter holiday sales activity. Year-on-year, this decrease was due primarily to the shift in mix towards prepaid customers, resulting in reduced commission expenses.

General and administrative expenses in the first quarter of 2012 of $970 million increased 10.0% from the fourth quarter of 2011 and 5.4% from the first quarter of 2011. This sequential increase was due primarily to higher personnel incentive expenses and contract renewal upgrade commissions. The year-on-year increase was due primarily to higher bad debt expense associated with new products (e.g. deposit products) and changes in customer mix toward subprime customers.
Depreciation and amortization expenses of $747 million in the first quarter of 2012 were fairly consistent with both the fourth quarter of 2011 and first quarter of 2011.

Capital Expenditures

Cash capital expenditures were $747 million in the first quarter of 2012, an increase of 35.6% from the fourth quarter of 2011 and consistent with the first quarter of 2011.
In the first quarter of 2012, T-Mobile USA announced that it will invest $4 billion in total to strengthen its 4G network, including the planned launch of LTE technology in 2013. Expenditures in the first quarter of 2012 were due in part to these network modernization efforts. Sequentially, there were also increased payments related to seasonal payment timing differences. T-Mobile USA has continued to invest in its 4G network, which now reaches over 220 million people.

 

Commitments and contingencies

Stockholder’s equity:
Common stock and additional paid-in capital 31,600 31,600
Accumulated other comprehensive loss (1 ) (28 )
Accumulated deficit (15,587 ) (15,787 )
Total stockholder’s equity 16,012 15,785
Total liabilities and stockholder’s equity $ 40,074 $ 40,609

T-MOBILE USA
Condensed Consolidated Statements of Operations

(dollars in millions)

(unaudited)

Quarter Ended Quarter Ended Quarter Ended
March 31, December 31, March 31,

2012
2011 2011

Revenues:
Branded Contract $ 3,821 $ 3,966 $ 4,108
Branded Prepaid 377 350 323
Total Branded Revenues 4,198 4,316 4,431
Wholesale 130 128 86
Roaming and other services 116 121 113
Total Service Revenues 4,444 4,565 4,630
Equipment sales 535 549 487
Total Service and Sales Revenues 4,979 5,114 5,117
Other 55 65 44
Total revenues 5,034 5,179 5,161
Operating expenses:
Network 1,196 1,202 1,253
Cost of equipment sales 845 874 1,018
Customer acquisition 749 821 782
General and administrative 970 882 920
Depreciation and amortization 747 761 735

Total operating expenses (excluding impairment, restructuring and AT&T transaction-related costs)
4,507 4,540 4,708
Impairment charges – 6,420 -
AT&T transaction-related costs 24 123 -
Restructuring costs 6 – -

Total operating expenses (including impairment, restructuring and AT&T transaction-related costs)
4,537 11,083 4,708
Operating income/(loss) 497 (5,904 ) 453

Other expense, net (172 ) (178 ) (184 )
Income/(loss) before income taxes 325 (6,082 ) 269

Income tax (expense)/benefit (125 ) 685 (134 )
Net income/(loss) 200 (5,397 ) 135

Other comprehensive income/(loss), net of tax:

Unrealized gain/(loss) on cash flow hedges and foreign currency translation
26 94 (25 )

Unrealized gain on available-for-sale securities
1 – 4
Total comprehensive income/(loss) $ 227 $ (5,303 ) $ 114

T-MOBILE USA
Condensed Consolidated Statements of Cash Flows

(dollars in millions)

(unaudited)

Quarter Ended Quarter Ended Quarter Ended
March 31, December 31, March 31,
2012 2011 2011
Operating activities:
Net income/(loss) $ 200 $ (5,397 ) $ 135

Adjustments to reconcile net income to net cash provided by operating activities:

Impairment charges – 6,420 -
Depreciation and amortization 747 761 735
Income tax expense/(benefit) 125 (685 ) 134
Bad debt expense 256 230 165
Other, net 22 27 53
Changes in operating assets and liabilities:
Accounts receivable (90 ) (136 ) 20
Inventory 31 65 (27 )
Other current and non-current assets (89 ) (71 ) (66 )
Accounts payable and accrued liabilities (63 ) 76 7
Accrued liabilities related to restructuring and AT&T transaction-related costs (109 ) 120 -
Net cash provided by operating activities 1,030 1,410 1,156
Investing activities:
Purchases of property and equipment (747 ) (551 ) (749 )
Expenditures related to spectrum licenses (4 ) (8 ) (4 )
Short-term affiliate loan receivable, net (279 ) (905 ) (450 )
Other, net (11 ) 23 2
Net cash used in investing activities (1,041 ) (1,441 ) (1,201 )
Financing activities:
Short-term borrowings, net – - 33
Net cash provided by financing activities – - 33

Change in cash and cash equivalents (11 ) (31 ) (12 )
Cash and cash equivalents, beginning of period 390 421 109
Cash and cash equivalents, end of period $ 379 $ 390 $ 97

T-MOBILE USA
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

(dollars in millions)

(unaudited)

This press release includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations from the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below following Selected Data and the financial statements.

Adjusted OIBDA is reconciled to operating income as follows:

Q1 Full Year Q4 Q3 Q2 Q1
2012 2011 2011 2011 2011 2011
Adjusted OIBDA $ 1,274 $ 5,310 $ 1,400 $ 1,445 $ 1,277 $ 1,188
Depreciation and amortization (747 ) (2,982 ) (761 ) (731 ) (755 ) (735 )
Adjusted operating income (excl. impairment, restructuring and AT&T transaction-related costs) 527 2,328 639 714 522 453
Impairment charges – (6,420 ) (6,420 ) – - -
Restructuring charges (6 ) – - – - -
AT&T transaction-related costs (24 ) (187 ) (123 ) (51 ) (13 ) -
Operating income/(loss) $ 497 $ (4,279 ) $ (5,904 ) $ 663 $ 509 $ 453

More than 100 international technology companies have interest in becoming residents of a floating city located in international waters outside of Silicon Valley. The project, called Blueseed, was co-founded by Max Marty and Dario Mutabdzija and lead by venture capitalist and PayPal co-founder Peter Thiel. The company is looking to either convert a cruise ship or remodel a barge in into a pirate island that would provide living accommodations, working space and entertainment facilities for approximately 1,000 customers paying between $1,200 and $3,000 each per month. Read on for more.

The vessel will be stationed 12 nautical miles from the coast of California, in international waters, and it will have a crew of 200 to 300 people. The location would enable non-U.S. startup entrepreneurs to work close to Silicon Valley without the need for a U.S. work visa.

Research released by Blueseed revealed demand from interested U.S.-based companies sat at 20.3%, while Indian and Australian companies made up 10.5% and 6% respectively. The company also found that across the U.S., nearly 7,000 computer science Master’s and PhD graduates each year are foreign nationals, and many encounter difficulties finding jobs before being forced to go home. Blueseed is looking to change that when it launches in the third quarter of 2013.

[Via The Register]

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Microsoft has hired 14 Yahoo researchers for its brand new New York research lab, AllThingsD reported. The hires come after Yahoo made significant layoffs last month to its research and development unit. According to Jennifer Chayes, who manages Microsoft Research in New England and New York, the researchers were’t hired as a package deal. “I don’t feel like we hired a group; I feel like we hired 15 amazing individuals, some of which became available because there were some problems at Yahoo,” she said. The software giant has an extensive research division that includes some 850 Ph.Ds, and the New York City lab will be the company’s 13th global office.

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Facebook on Monday filed an updated version of its S-1 that included the company’s first-quarter results. The social networking giant saw $1.06 billion in revenue, up from $731 million in the same quarter last year but down from $1.131 billion in the fourth quarter of 2011. Facebook saw net income of $205 million, down from $233 million in the same quarter last year and down $302 million sequentially. The website now has 532 million daily active users, up from 372 million last year and 483 million in December. Facebook’s monthly active user count rose from 680 million last year to 901 million, and users uploaded 300 million photos per day on average while generating 3.2 billion combined likes and comments. The updated filing also reveals that Facebook acquired Instagram for $300 million in cash and 23 million shares of stock.

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As previously reported, Nokia on Monday held a groundbreaking ceremony that kicked-off development of the company’s first manufacturing facility in Vietnam. The new plant is located in Vietnam-Singapore Industrial Park in Bac Ninh province and is beng developed on 42 acres of land. Nokia plans to open the factory in early 2013 and create as many as 10,000 new jobs while producing 45 million handsets by the end of 2014. “Thanks to the valued support from the Vietnamese government, our manufacturing program in Vietnam has been progressing well,” said Mary McDowell, Nokia’s Executive Vice President of Mobile Phones. “The new Nokia manufacturing plant will produce and provide new devices for compelling and affordable, localized mobile experiences, particularly in the growth markets.” Nokia’s press release follows below.

Nokia officially starts the development of its manufacturing facility in Vietnam

Reaffirming long-term commitment to the country and the company’s strategy to connect the next billion to information and the Internet

Bac Ninh, Vietnam – In an official ceremony today, Nokia kicked-off the development of its manufacturing facility in Vietnam, to serve the growing demand for mobile phones all over the world. The event featured Secretary of the Central Party Committee, Vice President of the National Assembly of Vietnam, Madam Nguyen Thi Kim Ngan; Minister of the Ministry of Science and Technology Vietnam, Mr. Nguyen Quan; Ambassador of Finland to Vietnam, Kimmo Lähdevirta; and high ranking officials from Central authorities and Bac Ninh province amongst more than 200 others.

Located in Vietnam-Singapore Industrial Park (VSIP) in Bac Ninh province, the Nokia Vietnam manufacturing facility is being developed on an area of 17 hectares. Nokia expects to start the operations of this factory in early 2013.

Today’s event is one step further in reaffirming Nokia’s long term commitment to the Vietnam market, under Nokia’s strategy to connect the next billion people to information and the Internet.

Nokia’s position in high growth economies is strong, and mobile phones play a strategic role. The new manufacturing site is being established to meet the growth in demand for these phones, as well as to help Nokia to deliver a contemporary mobile experience to the next billion consumers all over the world.

“We highly appreciate Nokia’s efforts in making this commitment a reality, which contributes to the growth of foreign investment in Vietnam in general and in Bac Ninh in particular. We also hope this will bring up not only economic value, but also other social benefits for the country like job creation and community knowledge enhancement on information technology alike,” said Mr. Nguyen Nhân Chien, President of People’s Committee of Bac Ninh province.

Mary McDowell, Executive Vice President, Mobile Phones, Nokia, said: “Thanks to the valued support from the Vietnamese government, our manufacturing program in Vietnam has been progressing well. The new Nokia manufacturing plant will produce and provide new devices for compelling and affordable, localized mobile experiences, particularly in the growth markets.

“Nokia is also committed to extending our positive reputation as an employer and as a corporate citizen. We expect to attract competent and energetic employees from the local skilled labor force. And in turn, employees at our new factory can expect a state-of-the-art facility and a positive, modern working environment with high professional and ethical standards,” continued McDowell.

Nokia is making progress in its strategy to connect the next billion. The company has launched an aspirational portfolio of devices that include fresh, contemporary design and form factors that are optimized for great experiences, such as social, entertainment, and messaging, and services that extend the value proposition to consumers.

Nokia first opened its doors in Vietnam in 1996 and, like many successful multinationals, saw Vietnam as a growing market with opportunity and potential. In light of the respect Nokia has wherever it operates, the company has worked hard to quickly become part of the Vietnamese community.

Nokia currently operates two representative offices in Vietnam: one in Ho Chi Minh City and the other in Hanoi. These offices carry out marketing and promotion activities for Nokia’s handset business. In 2011, Nokia established a branch office in Phnom Penh, Cambodia, increasing its footprint within the IndoChina region.

In November, 2011, Nokia established a new company, Nokia (Vietnam) LLC, to build and operate the new Vietnam manufacturing facility.

Before Megaupload was shut down by the United States government, the company was preparing to go public and enter the U.S. stock market with a multi-billion dollar initial public offering, TorrentFreak reported on Tuesday. Megaupload was reportedly having discussions with top auditors and several of the world’s largest investments banks, however these plans ended abruptly in January. The company’s founder Kim Dotcom, along with six others, were arrested and charged with racketeering, copyright infringement and money laundering. Read on for more.

According to Dotcom, Megaupload was negotiating with the world’s top accounting firms and many large international banks were interested in underwriting the IPO. The company was also considering the option of becoming publicly listed through a reverse merger, or by buying a company that is already listed.

“I started providing advice to Megaupload management on exploring and researching options on becoming publicly listed by IPO or back door listing and other fund-raising options in early 2011,” Hong Kong-based corporate advisor Robert Lim said. “I understand the management and some of the shareholders had been discussing and exploring these options even prior to this time.”

Lim continued by saying that “Megaupload management had discussion with a number of the ‘Big Four’ largest international professional accountancy firms , which handle the vast majority of audits for publicly traded companies. These Big Four firms were invited to be the auditor and to work together with management to build out a road map to prepare Megaupload for an IPO.”

Several Megaupload executives are currently awaiting trail and possible extradition to the U.S. The company’s legal team will most likely reference its extensive plans to enter the stock market during its defense and argue that it was running a legitimate and profitable business.

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Over the last few months, Nokia has closed scaled back several of its Western factories and shed over 3,000 employees in a recent effort to cut costs. The Finnish handset maker will shift its manufacturing business to Asia and is planning to build a plant in Vietnam, a move that is expected to cost some $300 million according to Vietnamese news organization BaoMoi. “Shifting device assembly to Asia is targeted at improving our time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive,” Nokia EVP of Markets Niklas Savander previously said. The company will reportedly hold a press conference to officially announce the project on April 23rd. The plant could create as many as 10,000 new jobs and is expected to produce 45 million handsets by the end of 2014.

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Netflix in 2006 held an open competition to find the collaborative filtering algorithm that would best predict whether or not a user would like a particular film or TV show based on previous ratings. The grand prize of $1 million was awarded to a team called “BellKor’s Pragmatic Chaos” in 2009. The team’s algorithm was found to be 10% more effect than Netflix’s own recommendation service, however the company never implemented the team’s solution into its own service. “We evaluated some of the new methods offline but the additional accuracy gains that we measured did not seem to justify the engineering effort needed to bring them into a production environment,” Netflix finally explained in a recent blog post. “Also, our focus on improving Netflix personalization had shifted to the next level by then.” The company said because the majority its users were streaming videos rather than renting DVDs, it wasn’t logical to integrate the algorithm into its recommendation service, which is different for its streaming service and DVD rental program.

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A number of Google shareholders are asking for the Internet giant to follow in Apple’s footsteps and return part of its $44.6 billion in cash to investors, Bloomberg reported on Thursday. Google has more cash as a percentage of market value than five of its largest competitors, including Apple. The iPhone maker recently reinstated a dividend and unveiled plans for a $10 billion stock buyout last month. Google is currently the only U.S. technology company with a market value of more than $125 billion that doesn’t offer a regular shareholder payout. The Mountain View-based company’s cash has almost doubled since 2009, and it has increased by between $2 billion and $3 billion each quarter. A dividend would ease the tensions between the company and its investors, who have endured a 1.5% decline this year. “There’s a pattern here that makes sense, and I’m sure Google will figure out the right thing to do,” said Michael Holland, chairman of Holland & Co., a New York investment firm that oversees more than $4 billion in assets. “It’s a little bit of a victory dance, if you will, to be able to have the sort of cash surplus that a company like Apple does and Google does. To share some of it is sharing the victory dance.”

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AT&T was unable to reach a settlement with the Communications Workers of America by the April 7th deadline to extend Four Core Wireline contracts. More than 40,000 employees will continue to work under the terms of the expired contract, however, as negotiations between the two parties continue. “The ongoing negotiation reflects the spirit of the longstanding relationship between the company and the union,” AT&T said. The carrier is looking to reduce worker benefits to cut costs in its wireline business, which has declined rapidly in recent years. The workers union has said that AT&T is seeking too many concessions, however, and instead wants the company to make adjustments to workers’ healthcare plans. The Communications Worker of America represents nearly 16% of AT&T’s 256,000 workers and it does possess the ability to call a strike if agreements on new contracts are not reached. AT&T’s press release follows below.

AT&T, Communications Workers of America Agree to Continue Negotiations as Four Core Wireline Contracts Expire

DALLAS, April 8, 2012 /PRNewswire/ — AT&T* today announced that while a settlement was not reached with the Communications Workers of America by the April 7 expiration of four Core Wireline contracts covering nearly 40,000 employees, the parties have agreed to continue to negotiate.

The ongoing negotiation reflects the spirit of the longstanding relationship between the company and the union. Employees will work under the terms of the expired contract while negotiations continue.

The contracts are East, Legacy T, Midwest and West. The East contract covers more than 3,000 employees in Connecticut. The Legacy T contract covers nearly 6,000 employees spread across the country. The Midwest contract covers nearly 13,000 employees in Illinois, Indiana, Michigan, Ohio and Wisconsin. The West contract covers more than 17,000 employees in California and Nevada.

More information will be posted on www.att.com/corewirelinebargaining as it is available.

Sony will reportedly cut 10,000 jobs, or roughly 6% of its global workforce, in an effort to bring the electronics giant back to profit, Nikkei reported on Monday. The majority of the layoffs will apparently come from consolidating the company’s chemicals and small and mid-size LCD operations, and are expected to be made over the next two years.  The report claims Sony’s new CEO Kazuo Hirai will announce his restructuring plan on April 12th, and the company may also ask seven executive directors, including Hirai and former CEO Howard Stringer, to give up their bonuses for the fiscal year that ended in March. Sony has denied the report.

[Via The Wall Street Journal]

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AOL and Microsoft on Monday announced an agreement in which the software giant will purchase 800 patents from AOL in a $1.056 billion cash deal. Microsoft will also license more than 300 additional patents from AOL as part of the agreement. “The agreement with Microsoft represents the culmination of a robust auction process for our patent portfolio,” said Tim Armstrong, AOL’s chairman and CEO. “We continue to hold a valuable patent portfolio as highlighted by the license we entered into with Microsoft. The combined sale and licensing arrangement unlocks current dollar value for our shareholders and enables AOL to continue to aggressively execute on our strategy to create long-term shareholder value.” The portfolio sold relates to advertising, search, content generation and management, social networking, mapping, multimedia/streaming and security. The sale is expected to be completed by the end of 2012, pending regulatory approval. Read on for AOL’s press release.

AOL and Microsoft Announce $1.056 Billion Patent Deal

AOL to sell more than 800 patents to Microsoft; Microsoft to license more than 300 additional patents and patent applications from AOL

Transaction is tax-efficient for AOL

Upon closing, AOL expects to return a significant portion of the proceeds to shareholders

NEW YORK–(BUSINESS WIRE)–AOL Inc. (NYSE: AOL) (the “Company”) today announced that the Company has entered into a definitive agreement to sell over 800 of its patents and their related patent applications to Microsoft Corporation (NASDAQ: MSFT) (“Microsoft”) and to grant Microsoft a non-exclusive license to its retained patent portfolio for aggregate proceeds of $1.056 billion in cash.

“The agreement with Microsoft represents the culmination of a robust auction process for our patent portfolio”

Following the sale, AOL will continue to hold a significant patent portfolio of over 300 patents and patent applications spanning core and strategic technologies, including advertising, search, content generation/management, social networking, mapping, multimedia/streaming, and security among others. AOL also received a license to the patents being sold to Microsoft.

The patent sale includes the sale of the stock of an AOL subsidiary upon which AOL expects to record a capital loss for tax purposes and as a result, cash taxes in connection with the sale should be immaterial. Additionally, AOL expects to utilize approximately $40 million of its existing deferred tax assets, representing approximately 20 percent of its total deferred tax assets, to offset any ordinary income taxes resulting from the license of its remaining patent portfolio.

AOL management and its Board of Directors intend to return a significant portion of the sale proceeds to shareholders and will determine the most efficient and effective method to do so prior to the closing of the transaction. Pro forma for the sale and license, as of December 31, 2011, AOL would have had approximately $15 per share of cash on hand.

“The agreement with Microsoft represents the culmination of a robust auction process for our patent portfolio,” said Tim Armstrong, AOL’s Chairman and CEO. “We continue to hold a valuable patent portfolio as highlighted by the license we entered into with Microsoft. The combined sale and licensing arrangement unlocks current dollar value for our shareholders and enables AOL to continue to aggressively execute on our strategy to create long-term shareholder value.”

“This is a valuable portfolio that we have been following for years and analyzing in detail for several months,” said Brad Smith, General Counsel and Executive Vice President, Legal and Corporate Affairs, Microsoft. “AOL ran a competitive auction and by participating, Microsoft was able to achieve our two primary goals: obtaining a durable license to the full AOL portfolio and ownership of certain patents that complement our existing portfolio.”

The transaction is expected to be completed by the end of 2012, upon the satisfaction of customary conditions and regulatory approvals, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

Evercore Partners and Goldman Sachs acted as financial advisors and Wachtell, Lipton, Rosen & Katz and Finnegan, Henderson, Farabow, Garrett & Dunner acted as legal counsel to AOL in connection with the transaction.

Research in Motion has lost a number of senior-level executives in recent days amid a broad review of the company’s strategic options, The Wall Street Journal reported on Thursday. Alistair Mitchell, RIM’s vice president of the BlackBerry Messenger instant-messaging platform, is among several executives who have left the company according to the report. A company spokeswoman confirmed to the Journal that Mitchell is “no longer with RIM.” The spokeswoman also confirmed that Alan Brenner, a senior vice president of the BlackBerry platform, would be “leaving the company after a transition period.” RIM posted disappointing fourth quarter sales last week, leading to the departure of company co-founder Jim Balsillie, chief technology officer David Yach and chief operating officer Jim Rowan. The struggling company said it is facing significant challenges, and it is currently reviewing strategic opportunities and potential partnerships.

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LightSquared founder Phillip Falcone said he may consider voluntary bankruptcy for his troubled wireless broadband venture, Bloomberg reported on Wednesday. “There are arguments that we would be better off in bankruptcy than not,” Falcone said. “LightSquared, if I have to, I’ll put it into bankruptcy. I don’t care,” adding that he would maintain control of the company if it were to file. LightSquared planned to build a high-speed data network that would cover as many as 260 million users, however it failed to gain approval from federal regulators. The FCC blocked LightSquared’s LTE network in February due to concerns surrounding interference with GPS systems. Through his hedge fund Harbinger Capital Partners, Falcone has invested roughly $3 billion in the failed venture. Bankruptcy is “not what I want, not what I desire, I’d rather find a different way out,” he said.

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