Archive for July, 2007
Digg.com and Microsoft today announced an agreement in which the two companies will collaborate to bring relevant advertising to the more than 17 million unique monthly visitors to Digg, an innovative Web site that harnesses the collective wisdom of the world’s online audience to prioritize the overwhelming amount of content available on the Web. Microsoft’s advanced advertising technology and sales force combined with Digg’s unique and growing user community make possible the three-year collaboration, grounded in the companies’ commitment to technological innovation and user experience.
As part of the relationship, Microsoft will be the exclusive provider of display and contextual advertising on Digg. The two companies also agreed to work together on future technology and advertising initiatives.Â
“Our collaboration with Digg is about bringing our advertising technology and sales force to one of the fastest-growing sites on the Web and a true innovator in user-generated content,†said Steve Berkowitz, senior vice president of the Online Services Group at Microsoft. “We believe advertisers will welcome Microsoft and Digg’s combined strengths to forge more meaningful connections online.â€
Microsoft and Federated Media Publishing, Digg’s current advertising partner, plan to collaborate to bring integrated programs to Digg’s users and advertisers. “Federated Media has unique advertising sales assets that dovetail with our efforts, and we look forward to working with them,†Berkowitz said.Â
“We’re now positioned to provide a world-class advertising solution that builds upon Digg’s philosophy of providing a great experience for users and advertisers,†said Jay Adelson, CEO of Digg. “As the Digg audience continues to grow and diversify, we believe that this initiative with Microsoft, and the resources that it provides, will enable us to focus less on developing an advertising infrastructure and more on developing new and innovative features for the site.â€
The companies expect to begin execution of the agreement in the coming weeks.
July 25th, 2007
The THESEUS consortium is delighted with the EU Commission’s decision to approve public funding of the THESEUS research programme by the Federal Ministry for Economics and Technology (Bundesministerium für Wirtschaft und Technologie, or BMWi for short). The programme is set to run for 5 years and will receive some € 90 million of public money from the BMWi. The portion set aside for research and development will be divided equally between the fields of science and industry. A further € 90 million will come from participants from the industrial and research sectors, so that a total of around € 180 million will be invested in a considerable number of forward-looking research projects.
In the course of the next few weeks and months, 30 different companies, research establishments and universities will be embarking on a wide variety of exciting research products aimed at developing user-oriented basic technology applications and technical standards for a new internet-based knowledge-sharing infrastructure. Consortium members from the industrial sector will develop prototypes of the new technologies and test them in 7 application scenarios. The purpose of the tests is to find short-term ways of converting the technological advances into innovative tools, commercially-viable services and potentially profitable business models for the World Wide Web.
The THESEUS consortium is coordinated by empolis GmbH, a subsidiary of arvato AG. Siemens, SAP, empolis, Lycos Europe, Deutsche Nationalbibliothek, the Deutsche Thomson oHG, intelligent views, m2any, Moresophy, Ontoprise, Festo, the German Mechanical Engineering Federation VDMA (Verband Deutscher Maschinen und Anlagenbau) and the Institute for Broadcasting Technology IRT are just some of the members of the Consortium, whose work is distinguished by its promotion of close collaboration between industry’s research and development departments and research bodies from the public sector; among these are, for example, internationally recognised experts from the DFKI (German Research Centre for Artificial Intelligence), the FZI (Research Center for Information Technologies), Munich’s LMU (Ludwig-Maximilian-Universität) and TU (Technische Universität), the TU Darmstadt, the Technical University (TH) of Karlsruhe, the TU Dresden and the University of Erlangen. Nine member institutes of the Fraunhofer-Gesellschaft are also involved.
The research programme focuses closely on forms of semantic technology that are capable of recognising and classifying the content and meaning of information (words, pictures or sounds). With the aid of this technology, smart computer programmes are able to understand and replicate the context in which data is used and processed. By applying rules and classification principles, computers can also draw logical conclusions from content, and subsequently recognise and construct links between various items of information from diverse sources. In future, internet users will be able to apply the standards and basic technologies (“semantic toolboxesâ€) developed by THESEUS when they want to create or process content, rules and classification systems themselves, or to process, collect and link content from different media along “smart†lines. In combination with semantic methods of this kind, the Web 2.0 we know today - with its principles of transparent, open, interactive social networking - will become the internet of tomorrow.
Some of the basic technologies being developed by the research partners are functions for the automatic creation of metadata for audio, video, 3D and picture files, and mechanisms for the semantic processing of multimedia documents and their associated services. Research is also being carried out on the development of tools for the management of ontologies, and of new machine learning algorithms and dialogue processing systems that can assess an individual situation and then take this assessment into consideration. At the same time, work on innovative user interfaces is in progress, as well as on new DRM procedures intended to provide better protection for the holders of intellectual property and marketing rights to multimedia content.
July 25th, 2007
Expanding on its ongoing work to help protect customer privacy, Microsoft announced an enhanced set of privacy principles for Live Search and online advertising data collection, use and protection. The principles outline new, enhanced steps to help protect the privacy of Microsoft Windows Live users, including making search query data anonymous after 18 months by permanently removing cookie IDs, the entire IP address and other identifiers from search terms.
Microsoft will also work to give customers more control over what information it uses to personalize their online search experience. In connection with its efforts to support a common industry approach to privacy issues, Microsoft also announced that it will join the Network Advertising Initiative (NAI) later this year when it begins to offer third-party ad serving broadly.
“We have been thinking deeply about privacy related to search and online advertising and believe it is critical to evolve our privacy principles,†said Peter Cullen, chief privacy strategist at Microsoft. “We believe our enhanced principles should be part of the industry dialogue on this issue and that keeping these issues as simple as possible for consumers is the best approach. For instance, on search data, anonymous should mean anonymous.â€
July 25th, 2007
Google announced today that should the Federal Communications Commission adopt a framework requiring greater competition and consumer choice, Google intends to participate in the federal government’s upcoming auction of wireless spectrum in the 700 megahertz (MHz) band.In a filing with the FCC on July 9, Google urged the Commission to adopt rules for the auction that ensure that, regardless of who wins the spectrum at auction, consumers’ interests are served. Specifically, Google encouraged the FCC to require the adoption of four types of “open” platforms as part of the license conditions:
- Open applications: Consumers should be able to download and utilize any software applications, content, or services they desire;
- Open devices: Consumers should be able to utilize a handheld communications device with whatever wireless network they prefer;
- Open services: Third parties (resellers) should be able to acquire wireless services from a 700 MHz licensee on a wholesale basis, based on reasonably nondiscriminatory commercial terms; and
- Open networks: Third parties (like internet service providers) should be able to interconnect at any technically feasible point in a 700 MHz licensee’s wireless network.
Today, as a sign of Google’s commitment to promoting greater innovation and choices for consumers, CEO Eric Schmidt sent a letter to FCC Chairman Kevin Martin, stating that should the FCC adopt all four license conditions requested above, Google intends to commit a minimum of $4.6 billion to bidding in the upcoming 700 MHz auction.
July 21st, 2007
The Yahoo! Search Blog today posted, that a Search update is going on:
“We’ve been rolling out some changes to our fresh web data and crawling, indexing and ranking algorithms over the last few days. We expect the update will be completed by the weekend. So, as you know, throughout this process you may see some changes in ranking as well as some shuffling of the pages in the index.”
July 20th, 2007
Google today announced financial results for the quarter ended June 30, 2007.
“Our performance once again demonstrates the strength of our core search and ads business. The growth in our global traffic combined with our ongoing improvements in monetization resulted in solid revenue growth, even in a seasonally slow quarter,” said Eric Schmidt, CEO of Google. “We continue to expand our commitment to deliver compelling hosted applications to businesses of all sizes, most recently agreeing to acquire Postini and its robust set of tools for web communication for the Google Apps suite of products. At the same time, we remain focused on addressing the tremendous opportunities we see worldwide, adding the talent and building the infrastructure that will allow us to continue to provide rich user experiences to Google users around the world.”
Q2 Financial Summary
Google reported revenues of $3.87 billion for the quarter ended June 30, 2007, an increase of 58% compared to the second quarter of 2006 and an increase of 6% compared to the first quarter of 2007. Â Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC. Â In the second quarter of 2007, TAC totaled $1.15 billion, or 30% of advertising revenues.
Google reports operating income, net income, and earnings per share (EPS) on a GAAP and non-GAAP basis. The non-GAAP measures are described below and are reconciled to the corresponding GAAP measures in the accompanying financial tables.
- GAAP operating income for the second quarter of 2007 was $1.10 billion, or 29% of revenues. This compares to GAAP operating income of $1.22 billion, or 33% of revenues, in the first quarter of 2007. Non-GAAP operating income in the second quarter of 2007 was $1.35 billion, or 35% of revenues. This compares to non-GAAP operating income of $1.41 billion, or 38% of revenues, in the first quarter of 2007.
- GAAP net income for the second quarter of 2007 was $925 million as compared to $1.0 billion in the first quarter of 2007. Non-GAAP net income in the second quarter of 2007 was $1.12 billion, compared to $1.16 billion in the first quarter of 2007.
- GAAP EPS for the second quarter of 2007 was $2.93 on 315 million diluted shares outstanding, compared to $3.18 for the first quarter of 2007 on 315 million diluted shares outstanding. Non-GAAP EPS in the second quarter of 2007 was $3.56, compared to $3.68 in the first quarter of 2007.
- Non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP EPS are computed net of stock-based compensation (SBC). In the second quarter of 2007, the charge related to SBC was $242 million as compared to $184 million in the first quarter of 2007. Tax benefits related to SBC have also been excluded from these non-GAAP measures. The tax benefit related to SBC was $43 million in the second quarter of 2007 and $27 million in the first quarter of 2007. Reconciliations of non-GAAP measures to GAAP operating income, operating margin, net income, and EPS are included at the end of this release.
The complete Second Quarter 2007 Results can be found at http://www.google.com/intl/en/press/pressrel/revenues_q207.html.
July 20th, 2007
Ask.com today announced it will soon be implementing a new product called AskEraser that will offer its searchers unmatched control over their privacy when searching for information on the Web.
With AskEraser, people can ensure that their search history will not be retained by Ask.com. Searchers will have easy access to AskEraser and can change their privacy preference at any time. Once selected, searchers’ privacy settings will be clearly indicated on search results pages so they always know the privacy status of their searches.
“AskEraser is a great solution for those looking for an additional level of privacy when they search online,” said Jim Lanzone, CEO of Ask.com. “Anonymous user data can be very useful to enhance search products for all users, and we’re committed to being open and transparent about how such information is used. But we also understand that there are some who are interested in new tools that will help protect their privacy further, and we will give them that control on Ask.com.”
Ask.com engaged in discussions with privacy advocates at the Washington-based Center for Democracy & Technology (CDT) as part of the process of developing an approach that gives users the ability to better control their search experience.
“We’re extremely pleased to see a new breed of innovative, competitive tools that allow users greater control over their personal information and online experiences,” said CDT Deputy Director Ari Schwartz. “With today’s announcement, Ask.com has taken an important step toward giving Internet users choice in how they control sensitive information about their online activities.”
With the announcement of AskEraser, Ask.com becomes the only major search engine to commit to giving consumers the control to prevent retention of their search history at the time of their search. AskEraser is expected to be deployed on Ask.com in the U.S. and U.K. by the end of the year, and globally early next year.
In conjunction with the release of AskEraser, Ask.com will also globally implement a new data retention standard that will completely disassociate search history from a user’s IP address or cookie information after 18 months.
July 20th, 2007
Yahoo! reported results for the second quarter ended June 30, 2007, earlier this week.
“I am focused on doing everything we need to do to strengthen our business, capture long-term growth opportunities and create increased value for our shareholders,” said Jerry Yang, co-founder and chief executive officer, Yahoo! Inc. “By sharpening our focus, speeding execution, building our technology and talent, and investing in key growth areas, we can put Yahoo! on a clear path to fulfill its potential as an Internet leader.”
Second Quarter 2007 Financial Results
• Revenues were $1,698 million for the second quarter of 2007, an 8 percent increase compared to $1,576 million for the same period of 2006.
• Marketing services revenues were $1,486 million for the second quarter of 2007, a 7 percent increase compared to $1,386 million for the same period of 2006.
• Marketing services revenues from Owned and Operated sites were $887 million for the second quarter of 2007, an 18 percent increase compared to $752 million for the same period of 2006.
• Marketing services revenues from Affiliate sites were $599 million for the second quarter of 2007, a 5 percent decrease compared to $634 million for the same period of 2006.
• Fees revenues were $212 million for the second quarter of 2007, a 12 percent increase compared to $190 million for the same period of 2006.
• Revenues excluding traffic acquisition costs (”TAC”) were $1,244 million for the second quarter of 2007, an 11 percent increase compared to $1,123 million for the same period of 2006.
• Gross profit for the second quarter of 2007 was $1,015 million, a 9 percent increase compared to $930 million for the same period of 2006.
• Operating income for the second quarter of 2007 was $185 million, a 19 percent decrease compared to $230 million for the same period of 2006.
• Operating income before depreciation, amortization and stock-based compensation expense for the second quarter of 2007 was $474 million, a 4 percent increase compared to $457 million for the same period of 2006.
• Cash flow from operating activities for the second quarter of 2007 was $406 million, a 6 percent decrease compared to $430 million for the same period of 2006.
• Free cash flow for the second quarter of 2007 was $328 million, an 8 percent decrease compared to $358 million for the same period of 2006.
• Net income for the second quarter of 2007 was $161 million or $0.11 per diluted share compared to $164 million or $0.11 per diluted share for the same period of 2006.
• Non-GAAP net income for the second quarter of 2007 was $238 million or $0.17 per diluted share compared to non-GAAP net income of $241 million or $0.16 per diluted share for the same period of 2006.
• The provision for income taxes for the second quarter of 2007 was $88 million and yielded an effective tax rate of 41 percent. The provision for income taxes for the second quarter of 2006 was $123 million and yielded an effective tax rate of 46 percent.
• Explanations of the Company’s non-GAAP financial measures and the related reconciliations to the GAAP financial measures the Company considers most comparable are included in the accompanying “Note to Unaudited Condensed Consolidated Statements of Income,” “Reconciliations to Unaudited Condensed Consolidated Statements of Income,” and “Reconciliation of GAAP Net Income and GAAP Net Income Per Share to Non-GAAP Net Income and Non-GAAP Net Income Per Share.”
“Over the last several months, we have made considerable progress driving much tighter focus within our core operations to drive growth. This will take time and continued investment, but we are operating with a great sense of urgency,” said Susan Decker, president, Yahoo! Inc. “In order to create meaningful value for shareholders and to drive growth in the future, we will aggressively look at all opportunities to allocate our capital and talent in the most effective ways.”
Segment Financial Results
• United States segment revenues for the second quarter of 2007 were $1,119 million, a 5 percent increase compared to $1,070 million for the same period of 2006.
• International segment revenues for the second quarter of 2007 were $579 million, a 15 percent increase compared to $506 million for the same period of 2006.
• United States segment operating income before depreciation, amortization and stock-based compensation expense for the second quarter of 2007 was $362 million, a 6 percent increase compared to $341 million for the same period of 2006.
• International segment operating income before depreciation, amortization and stock-based compensation expense for the second quarter of 2007 was $111 million, a 4 percent decrease compared to $116 million for the same period of 2006.
Cash Flow Information
Free cash flow was $328 million for the second quarter of 2007 compared to $358 million for the same period of 2006. In addition to free cash flow, Yahoo! generated $132 million from the issuance of common stock as a result of the exercise of employee stock options. This was offset by $418 million used for direct stock repurchases and $24 million used for acquisitions. Cash, cash equivalents and investments in marketable debt securities were $3,152 million at June 30, 2007 as compared to $3,128 million at March 31, 2007, an increase of $24 million.
“While Yahoo! delivered another quarter of revenue growth, profitability and most importantly, strong free cash flow, we are committed to making continued improvements across all of our financial metrics,” said Blake Jorgensen, chief financial officer, Yahoo! Inc. “Though there is hard work ahead, I believe the potential for this great company is enormous, and I look forward to partnering with Jerry and Sue to help take Yahoo! into its next phase of growth.”
July 19th, 2007
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