Google Glass Is Only The First Step – Next Step Six Million Dollar Man

Google Glass may only be the first step as Google smart contact lenses could turn average human beings into the Six Million Dollar Man.

 Adriana Lee on ReadWrite.com just published a story on some patents that Google filed with regard to their smart contact lense technology.

From the article:

Imagine the Google Glass headgear, which currently makes some camera-shy onlookers nervous, shrinking down to near-invisibility—say, into a super-thin transparent layer that sits on the cornea. Google certainly has, as we now know from a recently published patent filing from October 2012.

The notion of smart contact lenses itself isn’t particularly new. Earlier this year, in fact, Google introduced the “moonshot” idea of an eye-worn lens embedded with a wireless chip for health monitoring.

But this latest concept could be way smarter than that, as it would—in theory—allow wearers to snap photos with just the blink of an eye.

The first adopters would probably be tech enthusiasts pining for cutting-edge human-to-computer gesture control—or harboring deep-seated Six Million Dollar Man bionic-eye fantasies. But think of what it could do for people suffering with limited mobility or sight impairments.

A primary issue with this appliance, however, could have to do with those miniature camera components. This is, after all, a world in which Google Glass wearers get targeted for attacks. And the system, as proposed, would be capable of facial recognition. If people are uncomfortable with face-worn cameras pointing at them, how will they feel if teensy, undetectable cameras show up in contact lenses?

Read the full story here

Google Reports: Paid Clicks Up 26%, Cost-Per-Click Drops 9%, Stock Down After Hours

google

Google reported it earnings after the market closed today for the quarter ending ending March 31

Google had $15.4 billion in revenue.

Net income was $3.45 billion, which amounted to earnings of $5.04 a share, or $6.27 a share excluding one-time charges.

While revenue rose 19% and profit was up 3%, that fell short of Wall Street’s projections. Analysts surveyed by Thomson Reuters were expecting, on average, earnings of $5.28 a share or $6.40 a share after excluding one-time charges, on revenue of $15.5 billion.

The stock was up $20.10 or 3.75 % during the trading day but has given most of it up after hours, down $17.

Although paid clicks were up 26% the Cost per Click was down again

You can check out this chart from Businessintelligence.com to see how Google cost per click has looked over the years:

googlecpc-5

Here are the Financial Highlights from the official press release:

Revenues and other information – Google Inc. revenues for the quarter ended March 31, 2014 were $15.42 billion, representing a 19% increase over first quarter of 2013 revenues of $12.95 billion.

  • Sites Revenues – Our sites generated revenues of $10.47 billion, or 68% of total revenues, in the first quarter of 2014. This represents a 21% increase over first quarter of 2013 sites revenues of $8.64 billion.
  • Network Revenues – Our partner sites generated revenues of $3.40 billion, or 22% of total revenues, in the first quarter of 2014.  This represents a 4% increase over first quarter of 2013 network revenues of $3.26 billion.
  • Other Revenues – Other revenues were $1.55 billion, or 10% of total revenues, in the first quarter of 2014.  This represents a 48% increase over first quarter of 2013 other revenues of $1.05 billion.
  • International Revenues – Our revenues from outside of the United States totaled $8.76 billion, representing 57% of total revenues in the first quarter of 2014, compared to 56% in the fourth quarter of 2013 and 55% in the first quarter of 2013.
    • Our revenues from the United Kingdom totaled $1.58 billion, representing 10% of total revenues in the first quarter of 2014, compared to 11% in the first quarter of 2013.
  • Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 26% over the first quarter of 2013 and decreased approximately 1% over the fourth quarter of 2013.
  • 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 9% over the first quarter of 2013 and remained constant from the fourth quarter of 2013.
  • TAC – Traffic acquisition costs, the portion of revenues shared with Google’s partners, increased to $3.23 billion in the first quarter of 2014, compared to $2.96 billion in the first quarter of 2013. TAC as a percentage of advertising revenues was 23% in the first quarter of 2014, compared to 25% in the first quarter of 2013.The majority of TAC is related to amounts ultimately paid to our Network members, which totaled $2.39 billion in the first quarter of 2014. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $845 million in the first quarter of 2014.

Other Cost of Revenues – Other cost of revenues, which is comprised primarily of data centers operational expenses, hardware inventory costs, amortization of acquisition-related intangible assets, and content acquisition costs, increased to $2.73 billion, or 18% of revenues, in the first quarter of 2014, compared to $2.17 billion, or 17% of revenues, in the first quarter of 2013.

Operating Expenses – Operating expenses, other than cost of revenues, were $5.34 billion in the first quarter of 2014, or 35% of revenues, compared to $4.07 billion in the first quarter of 2013, or 31% of revenues.

Operating Income – GAAP operating income in the first quarter of 2014 was $4.12 billion, or 27% of revenues. This compares to GAAP operating income of $3.75 billion, or 29% of revenues, in the first quarter of 2013. Non-GAAP operating income in the first quarter of 2014 was $4.95 billion, or 32% of revenues. This compares to non-GAAP operating income of $4.40 billion, or 34% of revenues, in the first quarter of 2013.

Interest and Other Income, Net – Interest and other income, net, was $357 million in the first quarter of 2014, compared to $134 million in the first quarter of 2013.

Income Taxes – Our effective tax rate was 18% for the first quarter of 2014.

Net Income – GAAP consolidated net income in the first quarter of 2014 was $3.45 billion, compared to $3.35 billion in the first quarter of 2013. Non-GAAP consolidated net income was $4.30 billion in the first quarter of 2014, compared to $4.04 billion in the first quarter of 2013. GAAP EPS in the first quarter of 2014 was $5.04 on 685 million diluted shares outstanding, compared to $4.97 in the first quarter of 2013 on 673 million diluted shares outstanding. Non-GAAP EPS in the first quarter of 2014 was $6.27, compared to $6.00 in the first quarter of 2013.

Cash Flow and Capital Expenditures – Net cash provided by operating activities in the first quarter of 2014 totaled $4.39 billion, compared to $3.63 billion in the first quarter of 2013. In the first quarter of 2014, capital expenditures were $2.35 billion, the majority of which was for production equipment, data-center construction, and real estate purchases. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the first quarter of 2014, free cash flow was $2.05 billion.

Cash – As of March 31, 2014, cash, cash equivalents, and marketable securities were $59.38 billion, which excludes cash classified as held for sale, compared to $58.72 billion as of December 31, 2013.

Headcount – On a worldwide basis, we employed 49,829 full-time employees (46,170 in Google and 3,659 in Motorola Mobile) as of March 31, 2014, compared to 47,756 full-time employees (43,862 in Google and 3,894 in Motorola Mobile) as of December 31, 2013.

 

Neustar Reports Lower than expected earnings – Stock off 4% in After Hours Trading

Neustar is down in after hours trading as the company reported lower than expected earnings.

The stock is off close to 4 % in after hours trading at $27.15.

Neustar, Inc. (NYSE: NSR), a trusted, neutral provider of real-time information services and analytics, today announced results for the quarter ended March 31, 2014, and affirmed its revenue and adjusted net income guidance for 2014.

Results for First Quarter 2014 Compared to First Quarter 2013

  • Revenue increased 6% to $229.9 million
  • Revenue from Marketing Services increased 21% to $32.9 million
  • Revenue from Security Services increased 11% to $30.1 million
  • Net income decreased 6% to $31.7 million
  • Net income per share was flat at $0.50

Non-GAAP Results for First Quarter 2014 Compared to First Quarter 2013

  • Adjusted net income decreased 3% to $52.4 million
  • Adjusted net income per share increased 5% to $0.84

“Our first quarter results demonstrate that we are delivering on our strategic initiative to become a leader in information services and analytics,” said Lisa Hook, Neustar’s President and Chief Executive Officer. “Our targeted investments are paying off and we are seeing strong and growing market demand for our IS&A offerings. We are competing vigorously in the LNPA vendor selection process, and will continue to advocate strongly that we are the logical choice to remain as administrator, which we believe is beneficial to the industry and consumers alike.”

Paul Lalljie, Neustar’s Chief Financial Officer, added, “During the first quarter, we delivered 16% revenue growth in our Marketing and Security Services. We closed on the acquisition of .CO earlier this week, bolstering our position as a key player in the expanding gTLD market. We remain confident in our full-year forecast driven by our first quarter results and leading indicators, and as a result we are affirming our guidance for the year.”

Discussion of First Quarter Results

Revenue totaled $229.9 million, a 6% increase from $216.4 million in 2013. Marketing Services revenue of $32.9 million grew 21% driven by higher demand for our workflow solutions. Security Services revenue of $30.1 million grew 11% driven by increased demand for our DDoS protection services. NPAC Services revenue of $118.8 million grew 6% driven by an increase in the fixed fee established under our contracts to provide local number portability services. Data Services revenue of $48.1 million declined 5% due to lower revenue in caller identification services.

Operating expense totaled $174.6 million, a 20% increase from $145.6 million in the first quarter of 2013. This $29.0 million increase was primarily driven by $6.2 million in advertising and professional fees associated with the NPAC vendor selection process and $5.0 million in costs for restructuring initiatives designed to improve efficiencies. In addition, personnel and personnel-related costs increased $6.8 million and depreciation and amortization expense increased $3.0 million.

As of March 31, 2014, cash and cash equivalents totaled $386.5 million, compared to $223.3 million as of December 31, 2013. During the quarter, the company borrowed $175 million under its revolving credit facility. At the end of the quarter, the company’s outstanding debt under its term facilities and 4.5% senior notes was $789.3 million. During the first quarter, the company purchased approximately 1.2 million shares at an average price of $34.85 per share, for approximately $41.9 million.

Business Outlook for 2014

The company affirmed its guidance for revenue and adjusted net income provided on January 29, 2014:

  • Revenue to range from $945 million to $970 million, or growth of 5% to 8%
  • Adjusted net income to range from $233 million to $243 million, or flat to growth of 4%
  • Adjusted earnings per share to range from $3.64 to $3.80, or growth of 3% to 8%

 

NEUSTAR, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

Three Months Ended
March 31,
2013 2014
(unaudited)
Revenue $ 216,416 $ 229,897
Operating expense:
Cost of revenue (excluding depreciation and amortization shown separately below) 49,297 58,611
Sales and marketing 42,260 49,991
Research and development 7,484 7,059
General and administrative 21,882 26,291
Depreciation and amortization 24,665 27,640
Restructuring charges 2 4,966
145,590 174,558
Income from operations 70,826 55,339
Other (expense) income:
Interest and other expense (17,562 ) (5,997 )
Interest and other income 141 95
Income before income taxes 53,405 49,437
Provision for income taxes 19,641 17,754
Net income $ 33,764 $ 31,683
Net income per share:
Basic $ 0.51 $ 0.52
Diluted $ 0.50 $ 0.50
Weighted average common shares outstanding:
Basic 66,184 61,240
Diluted 67,614 62,753

NEUSTAR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

December 31, March 31,
2013 2014
(audited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 223,309 $ 386,453
Restricted cash 1,858 1,785
Accounts receivable, net 152,821 156,660
Unbilled receivables 10,790 9,306
Notes receivable 1,008 406
Prepaid expenses and other current assets 23,914 22,297
Deferred costs 6,324 5,884
Income taxes receivable 7,341
Deferred tax assets 8,774 12,640
Total current assets 436,139 595,431
Property and equipment, net 124,285 124,345
Goodwill 643,038 650,765
Intangible assets, net 275,141 266,975
Other assets, long-term 28,704 27,974
Total assets $ 1,507,307 $ 1,665,490
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 9,620 $ 10,266
Accrued expenses 94,457 63,375
Income taxes payable 10,517
Deferred revenue 54,004 56,508
Notes payable 7,972 7,972
Capital lease obligations 1,894 1,442
Other liabilities 3,580 3,815
Total current liabilities 171,527 153,895
Deferred revenue, long-term 12,061 12,273
Notes payable, long-term 608,292 781,299
Capital lease obligations, long-term 2,419 2,131
Deferred tax liabilities, long-term 82,164 83,605
Other liabilities, long-term 41,270 44,349
Total liabilities 917,733 1,077,552
Stockholders’ equity:
Common stock 87 86
Additional paid-in capital 602,796 619,997
Treasury stock (893,852 ) (902,403 )
Accumulated other comprehensive loss (797 ) (817 )
Retained earnings 881,340 871,075
Total stockholders’ equity 589,574 587,938
Total liabilities and stockholders’ equity $ 1,507,307 $ 1,665,490

Reconciliation of Non-GAAP Financial Measures

In this press release and in other public statements, Neustar presents certain non-GAAP financial measures. These non-GAAP financial measures have limitations and may not be comparable with similar non-GAAP financial measures used by other companies and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Set forth below is the reconciliation of the non-GAAP financial measure to its most directly comparable GAAP financial measure. This reconciliation should be carefully evaluated. Prior disclosures of non-GAAP figures may not exclude the same items and as such should not be used for comparison purposes.

Reconciliation of Net Income to Adjusted Net Income

The following is a reconciliation of net income to adjusted net income for the three months ended March 31, 2014 and the year ending December 31, 2014. Management believes that this measure enhances investors’ understanding of the company’s financial performance and the comparability of the company’s operating results to prior periods, as well as against the performance of other companies.

Three Months Ended Year Ending
March 31, 2014 December 31,
2013 2014

2014 (1)

(in thousands, except per share data)
(unaudited)
Revenue $ 216,416 $ 229,897 $ 957,500
Net income $ 33,764 $ 31,683 $ 150,000
Add: Stock-based compensation 8,957 11,726 63,000
Add: Amortization of acquired intangible assets 12,372 14,066 61,000
Add: Loss on debt modification and extinguishment (2) 10,886
Add: Restructuring charges (3) 2 4,966 12,000
Add: Acquisition-related costs (4) 1,580 2,000
Less: Adjustment for provision for income taxes (5) (11,849 ) (11,613 ) (50,000 )
Adjusted net income $ 54,132 $ 52,408 $ 238,000
Adjusted net income margin (6) 25 % 23 % 25 %
Adjusted net income per diluted share $ 0.80 $ 0.84 $ 3.75
Weighted average shares outstanding – diluted 67,614 62,753 63,500
(1) The amounts expressed in this column are current estimates of the results for the full year as of the date of this press release. This reconciliation is based on the midpoint of the revenue guidance.
(2) Amount represents loss on debt modification and extinguishment related to the refinancing of the company’s 2011 credit facility in the first quarter of 2013.
(3) Amount represents restructuring charges related to the termination or relocation of certain employees and the reduction in or closure of leased facilities.
(4) Amounts represent costs incurred by the company in connection with completed acquisitions.
(5) Adjustment reflects the estimated tax effect of tax-deductible adjustments for stock-based compensation expense, amortization of acquired intangible assets, loss on debt modification and extinguishment and acquisition-related costs, based on the effective tax rate for the applicable period.
(6) Adjusted net income margin is a measure of adjusted net income as a percentage of revenue.

 

 

Facebook Getting into the e-Money Business in Europe

facebook-logo

Victoria Wagner Ross wrote a piece on  Examiner.com about Facebook getting into the money transfer business. One analyst stated that they see this as a potential boost to Bitcoin and crpyto currency in general down the line.

Facebook is advancing its reach to provide a money transfer service in Europe from a base in Ireland. The Guardian announced on Monday that Facebook was seeking the e-money commerce status to issue digital credits for conversion into cash for its customers.

Storing the money within the social network would allow Facebook opportunities to compete with Western Union and give storing of money within the social network options to buy online. It currently allows within apps forms of money transfer in the US through payments within the King games of Candy Crush Saga and Farmville games. Facebook gets a 30% cut from that action the same as Apple takes 30% from its game and apps in its Apple stores when an app is purchased.

What does this type of e-commerce system do for cryptocurrency Bitcoin in global money transfers and payments? Thomas Alvarez, Coincove’s bitcoin-based remittance specialist, sees Facebook’s market entry could remove the stigma from monetary services attached to social networks. That attitude of global transfers and payments is a plus for the bitcoin industry.

Boost VC founder and CEO, Adam Draper, finds the bitcoin lining in this as the big ‘Net’ companies tackle the issue of transfers and payments, and states, ‘this is exciting, it means that the big companies are playing in the same space.’

Read the full story here

Calvin Klein Loses UDRP To a Take F*ckCalvinKlein.com Away From “Fat, bald” Domain Owner

Calvin Klein just lost a UDRP In Attempt To a gain control of the domain name FuckCalvinKlein.com with the domain owner using a pretty unique argument to keep control of the domain name that was parked.

The Domain holder responded to the UDRP arguing that he” does not believe any consumer could reasonably believe that the best route to finding Complainant’s goods on the Internet is by entering fuckcalvinklein.com into a web browser”.

“Respondent registered the domain name to be used in the future as a protest site within a larger scheme of registering other domain names that include famous trademarks preceded by the word “fuck” so as to create a network of easily identifiable protest sites”.

However, Respondent admits that he is not yet using the fuckcalvinklein.com domain name.

He is only “preserving its potential as a site for the consumer’s voice, while a much better alternative is found.”

The domain holder went on to argue,

“it is ludicrous to imagine that I am going to triumph in any legal tussle with someone of David’s [counsel for Calvin Klein] caliber. ”

“Asked to wager between a highly trained and skilled IP lawyer such as David, and a fat, bald, 58-year-old, semi-retired Parish Councillor who has three unruly children, a Retriever who refuses to retrieve and a permanently aloof cat who has treated us all like servants for the past 16 years, I know precisely where I would place my money. And it wouldn’t be on me. …”

R. Glen Ayers, Panelist agreed that the domain name is not confusingly similar to Complainant’s CALVIN KLEIN mark under Policy ¶ 4(a)(i), because the term “fuck” provides an indication that Respondent is not affiliated with Complainant and the Internet user entering the domain name could not possibly expect Complainant to be, or desire to be, affiliated with such a domain name.

Because the Panel concludes that Complainant has not satisfied Policy ¶ 4(a)(i),the Panel declines to analyze the other two elements of the Policy.”

According to UDRPSearch.com this is the first time out of 12 UDRP where the domain owner of a trademark starting with the word “fuck” won the case.

In all 11 other cases the domain was either ordered transferred or the domain holder transferred the domain with the trademark holder withdrawing their complaint.