Showing posts with label Technology. Show all posts
Showing posts with label Technology. Show all posts

Jennifer Sultan Pleads Guilty to Selling Prescription Drugs





At the height of dot-com mania 13 years ago, Jennifer Sultan and a few colleagues sold their small technology company for $70 million in stock and cash. She and her boyfriend rented a large house in the Hamptons for the summer and bought a spacious loft near Union Square.







John Marshall Mantel for The New York Times

Jennifer Sultan faced 15 years to life on the top charge against her, and a potential for more prison time on other counts.







In the years since, that temporary flush of wealth evaporated and Ms. Sultan, 38, developed an addiction to prescription painkillers.


On Friday, she sat handcuffed in a courtroom at State Supreme Court in Manhattan. In exchange for a promise of a four-year prison sentence, she pleaded guilty to selling prescription painkillers and conspiring to sell a firearm.


She was arrested last July and accused of being part of a ring that sold prescription drugs and guns. Four others arrested with Ms. Sultan had already pleaded guilty. One, Nicholas Mina, a former New York City police officer, agreed to serve more than 15 years in prison as part of a plea bargain under which he admitted stealing guns from his colleagues’ precinct house lockers and selling them. Mr. Mina was also addicted to prescription painkillers.


Though Ms. Sultan’s lawyer said she had hoped for less than four years, she faced 15 years to life in prison on the top count against her and the potential for more prison time on other charges. She said little in court but smiled broadly several times as she spoke quietly with her lawyer, Frank Rothman.


“She was happy to be done with it, but she was not happy with the sentence,” Mr. Rothman said afterward.


Ms. Sultan grew up in West Long Branch, N.J., five miles north of Asbury Park, and graduated from New York University in 1996. She and her boyfriend at the time, Adam Cohen, worked at a company, Live Online, that was an early pioneer in live streaming events on the Internet.


After the sale of Live Online, efforts by Ms. Sultan and Mr. Cohen to start other technology companies failed. Ms. Sultan explored other interests, including acupuncture and holistic health.


Early last year, a city narcotics investigator discovered an advertisement Ms. Sultan had placed on Craigslist offering prescription painkillers for sale. She and Mr. Cohen were still living in the penthouse loft near Union Square that they bought after the sale of Live Online.


Five times from February through June, she sold pills to an undercover officer, according to her indictment. One sale took place at the Starbucks on Union Square. In another, she sold 183 oxycodone tablets to the officer for $4,400 at a Starbucks in the Flatiron district near the school where she was studying acupuncture.


A separate investigation into the ring that sold stolen guns and pain medication picked up Ms. Sultan sending a text message to the man accused of being the ringleader, Ivan Chavez, saying she wanted to sell him a .357 Magnum handgun for $850, according to a separate indictment obtained by the Manhattan district attorney.


Mr. Chavez was sentenced to 20 years in prison.


Ms. Sultan and Mr. Cohen, who was not accused of participating in the drug and guns ring, filed for bankruptcy in 2010. Last August, the bankruptcy judge ordered them to vacate the loft to allow a bankruptcy trustee to sell it. The 5,600-square-foot loft is still listed for sale at just under $6 million.


She has been incarcerated since her arrest in July because she was unable to raise $85,000 for bail. With credit for good behavior and time served since her arrest, Ms. Sultan could be released from prison in about two years.


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Gadgetwise Blog: App Smart Extra: Starry Night

Stars, galaxies, meteors and satellites were the subject of App Smart this week as I tested out astronomy apps to help identify objects in the night sky. These apps typically use your phone or tablet’s sensors to display a view of what you’re pointing your device at in the sky in real time, helping you identify planets and constellations. Here are more apps like this to try out:

Star Walk — 5 Stars Astronomy Guide is a popular iOS app, costing $3. It has the same kind of dynamic star display as other apps in its class, and it’s easy to use. It’s also jam-packed with imagery and data on the 200,000 stars and planets in its database, and has a calendar so you can keep track of interesting celestial events. I particularly like the beautiful imagery it uses to show constellations and detail on the planets.

SkySafari 3 may be useful for more experienced star gazers. It has data on 120,000 stars and 220 star clusters, nebulae and galaxies, as well as detailed information pages written by professional astronomers. The basic version costs $3 on iOS, but there’s a Plus edition for $15 that has data on 2.5 million stars and can control some wired and wireless telescopes. The Pro edition is $40 and has many more stars and features but is aimed at the serious amateur astronomer.

Alternatively, and much more simply, there’s SkEye Astronomy, available as a free Android app. It has a businesslike feel, and is slightly sparing on user interface touches like icons. But it is powerful, and essentially works in much the same way as Star Walk or SkySafari does. There’s a $9 SkEye Pro version that has more stars in its database and can help you spot satellites too. But the free edition is fine for the casual astronomer. The app is not ideal you’re a complete beginner, however, as it lacks the kind of detailed background data on stars and so on that similar apps have.

The benefit to stargazing apps like these is that they also work during the day, or in a city that’s too light-polluted to let you see more than a handful of stars. This means you can turn them on at any time to learn more about astronomy.

Quick call: The Popular instant messaging app WhatsApp has been updated to a new version for Windows Phone 8. It has better support for Windows Live Tile displays and extras like a back-up system.

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Gadgetwise Blog: A New Furby Toy

Furby has a new little sister — or maybe brother.

In stores this week, Furby Party Rockers from Hasbro, costing $23, are smaller and cheaper than the regular Furby, which are priced at $60. But they do less, too. There’s no animatronics and cheaper, backlighted lenticular eyes, designed to look like more expensive color eyes that move. They run on three AAA batteries and come in four varieties, complete with predetermined personalities and names like Loveby and Scoffby.

So what can they do?

Because the base is rounded, you wake up these little Furbys with a rocking motion. These motions are captured and counted, along the sound of our voice. More sound and motion equals more Furbish-talk, and eventually a song. If another Furby is near, large or small, they will sing in harmony.

Kris Paulson, Hasbro’s design manager of integrated play, said Furbys communicate with high-frequency sounds, called audio watermarks. You probably can’t hear them, but a nearby Furby or your dog probably can. So can your phone if it’s running the free Furby App on Android or the iPhone operating systems.

These new Furbys are part of a growing Furby empire that includes dress-up items, furniture (furbiture) and social media hooks.

One feature that Party Rockers share with their larger counterpart is that there is no off switch. Your only option is to remove the batteries, or drop one into solitary confinement for a few minutes. Finding such a place when children are around just might count as a 21st-century parenting skill. There’s a video on how these work.

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Gadgetwise Blog: A Wireless Speaker With a Wi-Fi Connection

When we talk wireless speakers, we still generally mean speakers that connect to players by Bluetooth.

There is nothing wrong with Bluetooth, but Wi-Fi, which can carry a lot more information, can sound a lot better. That is part of the reason we are seeing more Wi-Fi and Apple AirPlay speakers on store shelves.

Among them is the Libratone Zipp, a 10-inch tall canister with a fuzzy cover that makes it look like a small, colorful roll of carpet.

The Zipp’s Wi-Fi connection is supposed to be Apple- and Android-friendly. The connection with the iPhone was easy; in my test I set the iPhone’s Wi-Fi network to Libratone, then went to the music player, hit the AirPlay button, picked Libratone again and was connected through the play direct feature. That feature broadcasts directly from the phone to the speaker without going through your larger Wi-Fi network.

Connecting with a Android phone was did not work so easily, which is to say at all. Even with help from support and a software update, I was unable to get a Motorola RAZR Maxx to connect. Support said the problem seemed to be a faulty speaker.

The Zipp says it also supports DLNA, which should make it work with Windows, but I didn’t test that feature.

The Zipp is portable – it claims four hours of battery life when using Wi-Fi – but it isn’t exactly light weight, tipping the scales at four pounds.

The sound quality is good, thanks partially to a 4-inch woofer and a pair of 1-inch ribbon speakers, although I don’t know if it’s fair to call a monaural speaker “high fidelity,” as Libratone does.

There is one major drawback to using Wi-Fi to connect a player and speaker. Once the Wi-Fi is occupied by the Zipp, you can’t use it to connect to your Pandora, Slacker or other streaming audio account. So no streaming audio. You could get around this by connecting the device using a USB cable, which also doubles the Zipp’s battery life.

The Zipp, which comes in any of eight colors, starts at $400 list price online.

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Gadgetwise Blog: Q&A: Staying Safe From Java Threats

I hear lots of scary stuff about hackers getting into computers thru Java. What do I need to do to make my Mac and PC safe? Any worries about tablets?

Java is a computing platform with its own programming language that is used in many games, business applications and other utilities. It runs on more than 850 million computers worldwide and is used often by Web browsers. Recent attacks on Apple and Facebook used a flaw in the Java Web browser plug-in to infect computers with malicious software when visiting certain sites, and the Department of Homeland Security even issued a warning about Java back in January.

Computers running Windows, Mac OS X and Linux are most at risk. Tablets running systems like Android and iOS are not generally affected; mobile browsers have a setting for the JavaScript programming language, but JavaScript is basically unrelated to Java and its not subject to the current malware issues.

Disabling Java in your Web browser should protect your computer from the recent types of security threats, although you may not be able to play certain games or use Java-dependent applications. Oracle, which develops Java, has instructions for disabling Java in several browsers on Windows, Mac and Linux systems. Independent security sites, like Krebs on Security and Sophos, have additional information.

Apple released its own Mac OS X update to deal with the Java problem on Feb. 19, and the Macworld site has an article on going beyond the browser plug-in and removing Java altogether. Oracle has instructions for uninstalling Java completely on a Windows system, as well as on a Mac.

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Disruptions: Disruptions: Google Flu Trends Shows Problems of Big Data Without Context

Several years ago, Google, aware of how many of us were sneezing and coughing, created a fancy equation on its Web site to figure out just how many people had influenza. The math works like this: people’s location + flu-related search queries on Google + some really smart algorithms = the number of people with the flu in the United States.

So how did the algorithms fare this wretched winter? According to Google Flu Trends, at the flu season’s peak in mid-January, nearly 11 percent of the United States population had influenza.

Yikes! Take vitamins. Don’t leave the house. Wash your hands. Wash them again!

But wait. According to an article in the science journal Nature, Google’s disease-hunting algorithms were wrong: their results were double the actual estimates by the Centers for Disease Control and Prevention, which put the coughing and sniffling peak at 6 percent of the population.

Kelly Mason, a public affairs spokeswoman for Google, said the company’s Flu Trends site was meant to be only one source in addition to the C.D.C. and other flu surveillance methods. “We review and potentially update our model each season,” she said.

Scientists have a theory about what went wrong, as well.

“Several researchers suggest that the problems may be due to widespread media coverage of this year’s severe U.S. flu season,” Declan Butler wrote in Nature. Then add social media, which helped news of the flu spread quicker than the virus itself.

In other words, Google’s algorithm was looking only at the numbers, not at the context of the search results.

In today’s digitally connected world, data is everywhere: in our phones, search queries, friendships, dating profiles, cars, food, reading habits. Almost everything we touch is part of a larger data set. But the people and companies that interpret the data may fail to apply background and outside conditions to the numbers they capture.

“Data inherently has all of the foibles of being human,” said Mark Hansen, director of the David and Helen Gurley Brown Institute for Media Innovation at Columbia University. “Data is not a magic force in society; it’s an extension of us.”

Society has encountered similar situations for centuries. In the 1600s, Dr. Hansen said, an early census was recorded in England as the Great Plague of London killed tens of thousands of Britons. To calculate the spread of the disease, officials started recording every christening and death in the city. And although this helped quantify the mortality rate, it also created other problems. There was now an astounding collection of statistical information for scientists to review and understand, but it took time to develop systems that could accurately assess the information.

Now, as we enter a world of big data, we have to learn how to apply context to these numbers.

Dr. Hansen said the problem of data without context could be summed up in a quote from the playwright Eugène Ionesco: “Of course, not everything is unsayable in words, only the living truth.”

I experienced this firsthand in the spring of 2010, when I was an adjunct professor at New York University teaching graduate students in the Interactive Telecommunications Program.

I created a class called “Telling Stories With Data, Sensors and Humans,” with the goal of determining whether sensors and data could become reporters and collect information. Students built little electronic contraptions with $30 computers called Arduinos, and attached several sensors, including ones that could detect light, noise and movement.

We wondered if we could use these sensors to determine whether students used the elevators more than the stairs, and whether that changed throughout the day. (Esoteric, sure, but a perfect example of a computer sitting there taking notes, rather than a human.)

We set up the sensors in some elevators and stairwells at N.Y.U. and waited. To our delighted surprise, the data we collected told a story, and it seemed that our experiment had worked.

As I left campus that evening, one of the N.Y.U. security guards who had seen students setting up the computers in the elevators asked how our experiment had gone. I explained that we had found that students seemed to use the elevators in the morning, perhaps because they were tired from staying up late, and switch to the stairs at night, when they became energized.

“Oh, no, they don’t,” the security guard told me, laughing as he assured me that lazy college students used the elevators whenever possible. “One of the elevators broke down a few evenings last week, so they had no choice but to use the stairs.”

E-mail: bilton@nytimes.com

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Mobile Revolution Buffets Taiwan PC Rivals


TAIPEI — Two computer-making neighbors in the technologically inclined economy of Taiwan seem headed in opposite directions.


Personal computer sales have slumped worldwide as smartphones and tablets have proliferated and gained in popularity. One Taiwan heavyweight, Acer, has shared in the suffering: It is expected to report a second straight annual loss in 2012 after losing 6.6 billion Taiwan dollars, or $223 million at the current exchange rate, in 2011.


But another Taiwan-based PC company, Asustek, which sells computers under the Asus name, grew 43 percent in the quarter that ended in September, to 6.7 billion dollars in net income. The company’s PC sales rose 6.4 percent even as industrywide PC shipments declined 4.9 percent in the last three months of 2012, according to the research firm Gartner.


The companies’ divergent fortunes expose both the mistakes and the opportunities for PC makers in an epic shift in the way consumers use technology.


For more than a decade, with no serious alternatives for consumers, Acer, Dell and Hewlett-Packard treated the PC as a commodity: All of their machines used the same Intel chips and Microsoft software and even looked similar, analysts said. In that environment, PC makers made money by focusing on marketing and by cutting costs.


For Acer, much of that strategy was driven by the former chief executive, Gianfranco Lanci, who led the company from 2004 to 2011. During his tenure, the company focused only on marketing and distribution, while gutting research and development and outsourcing design and production, analysts said.


The spread of smartphones and tablets has challenged that business model. Consumers have more choices and increasingly focus on how their devices look and feel, how mobile they are and what content they can provide access to.


“At the moment, the PC market is saturated,” said Tracy Tsai, an analyst at Gartner. “When most users have a PC already, they are not looking for just a cheaper notebook. They want something better.”


That has meant meager profits or none for global PC brands. H.P. reported a $12.7 billion loss in the business year that ended in September 2012, while Dell’s poor performance has resulted in an effort to take the company private.


It is a problem that has manifested itself on the street as well. Stam Chuang, a manager at a retail shop in the Guanghua Digital Plaza in Taipei, said notebook sales at his store had dropped 10 percent during the past year.


“There’s only a set amount of demand for computing out there,” Mr. Chuang said. “So if consumers decide they want a tablet or smartphone, that share will get taken out of PCs.”


Because of its research and development cuts, Acer has struggled to produce smartphones and tablets that can compete with the sleek products from mobile powerhouses like Amazon.com, Apple and Samsung, analysts said.


Asustek, however, followed a strategy that emphasized design and innovation. Its personal computer growth in 2012 was driven by the Zenbook, an ultrathin laptop with a metallic finish, stereo speakers and backlit keys.


Jonney Shih, the chairman of Asustek, said he had foreseen the mobile revolution and wanted his company to differentiate itself from the competition.


“Even 10 years ago, I knew I had to be prepared,” Mr. Shih said.


He added that with computer architecture and chips shrinking, he had recognized that “the ‘phone computer’ was going to happen.”


Mr. Shih has become a cheerleader for what he calls “design thinking,” pushing his employees to be creative about building products that enrich the experience for consumers. Asustek incorporated a design and artistry category into its employee evaluation system.


The two companies’ revenue numbers are similar: In the third quarter of 2012, Acer brought in 87.4 billion dollars in revenue, compared with 96 billion dollars for Asustek, according to Bloomberg data.


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In a Slight Shift, North Korea Widens Internet Access, but Just for Visitors





HONG KONG — North Korea will finally allow Internet searches on mobile devices. But if you’re a North Korean, you’re out of luck — only foreigners will get this privilege.




Cracking the door open slightly to wider Internet use, the government will allow a company called Koryolink to give foreigners access to 3G mobile Internet service by next Friday, according to The Associated Press, which has a bureau in the North.


The North Korean police state is famously cloistered, a means for the government to keep news of the world from its impoverished people. Only the most elite North Koreans have been allowed access to the Internet, and even they are watched. And although many North Koreans are allowed to have cellphones, sanctioned phones cannot call outside the country.


Foreigners were only recently allowed to use cellphones in the country. Previously, most had to surrender their phones with customs agents.


But it is unlikely that the small opening will compromise the North’s tight control of its people; the relatively few foreigners who travel to North Korea — a group that includes tourists and occasional journalists — are assigned government minders.


The decision, announced Friday, to allow foreigners Internet access comes a month after Google’s chairman, Eric E. Schmidt, visited Pyongyang, the North’s capital. While there he prodded officials on allowing Internet access, noting how easy it would be to set up through the expanding 3G network of Koryolink, a joint venture of North Korean and Egyptian telecommunications corporations. Presumably, Mr. Schmidt’s appeal was directed at giving North Koreans such capability.


“As the world becomes increasingly connected, their decision to be virtually isolated is very much going to affect their physical world, their economic growth and so forth,” Mr. Schmidt told reporters following his visit. “We made that alternative very, very clear.”


North Koreans will get some benefit from the 3G service, as they will be allowed to text and make video calls, The Associated Press said. They can also view newspaper reports — but the news service mentioned only one source: Rodong Sinmun, the North’s main Communist Party newspaper.


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Room for Debate: Should Companies Tell Us When They Get Hacked?












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Gadgetwise Blog: Tip of the Week: Search the Text on a Web Page

Search engines help find the Web pages you are looking for, but when it comes down to locating your keywords on the actual page, your browser can help. Most browser programs use the Control-F (Command-F on the Mac) to open a search box for finding certain words within the page itself, and most highlight the instances of the word (and number of time it appears). Google Chrome also displays yellow markers vertically along the scroll bar on the right side of the page so you can quickly see all the places the word or phrase appears.

Back and forward buttons in the search box let you click through the page for each occurrence of the word. Depending on the browser, you may be able to fine-tune your search results within the page. Internet Explorer includes an Options button that can match the whole word only or just the typographical case; Firefox can also match the word’s case, making it easier to locate proper nouns and names within a page.

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DealBook: Court Gives Investor an Edge in a Lawsuit Against Apple

7:47 p.m. | Updated

In the battle between Apple and the hedge fund manager David Einhorn, score a point for the billionaire who is taking up the mantle of shareholder advocate.

A federal judge said on Tuesday that he was leaning toward Mr. Einhorn’s contention that Apple had violated securities regulations by bundling several shareholder proposals into one matter.

A lawsuit by Mr. Einhorn’s Greenlight Capital, filed this month in Federal District Court in Manhattan, argues that Apple improperly grouped a vote to eliminate the company’s ability to issue preferred stock at will with other initiatives that Mr. Einhorn supports.

While the judge overseeing the case, Richard J. Sullivan, did not immediately grant Mr. Einhorn’s request for a halt to the vote, he said that the facts of the case favored the investor’s interpretation.

“I think success on the merits lies with Greenlight,” Judge Sullivan said at the end of a nearly two-hour hearing. Earlier in the hearing, he implied that he believed Securities and Exchange Commission rules prohibited the bundling of disparate shareholder initiatives.

Spokesmen for Greenlight and Apple declined to comment after the hearing.

Though a small point in the skirmish between Apple and Mr. Einhorn, the judge’s comments may provide some ballast to the hedge fund manager’s call to other investors. Mr. Einhorn’s bigger goal is to persuade Apple to return some of its $137 billion cash trove to shareholders.

He has asked Apple to issue preferred shares, which would pay out billions of dollars in dividends over time. His lawsuit revolves around the technology giant’s proposal to eliminate “blank check” preferred shares that the company can issue without a shareholder vote. He argues that the company improperly bundled the plan with two other corporate governance changes that he supports.

Apple has said that it will consider Mr. Einhorn’s request, but that it has no plans to amend the shareholder proposal.

Judge Sullivan is expected to decide within days whether to grant a preliminary injunction, given the Feb. 27 cutoff for voting on Apple’s shareholder proposals.

A lawyer for Mr. Einhorn, Mitchell P. Hurley of the firm Akin Gump, argued during Tuesday’s hearing that his client would suffer “irreparable harm” if the vote were allowed to proceed, because he would be forced to vote against two matters he would ordinarily support.

During questioning, however, Judge Sullivan expressed skepticism about the need to take immediate action.

A lawyer for Apple, George Riley of O’Melveny & Myers, said in court that if shareholders approved the disputed initiative, the company would wait for the judge to rule before adopting the new measures in its corporate charter.

Judge Sullivan also questioned why Mr. Einhorn had waited so long to act. He filed suit on Feb. 6, over a month after Apple first disclosed its shareholder proxy.

A version of this article appeared in print on 02/20/2013, on page B2 of the NewYork edition with the headline: Court Gives Investor an Edge In a Lawsuit Against Apple.
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Bits Blog: Tech Predictions for 2013: It's All About Mobile

If there is one theme that will be the topic of digital business this year, it is mobile.

ComScore, which tracks Web and mobile usage, published a report about what happened in 2012, and what to expect in 2013.

It shows that the effects of a movement toward mobile are everywhere, from shopping to media to search. According to the report, “2013 could spell a very rocky economic transition,” and businesses will have to scramble to stay ahead of consumers’ changing behavior.

Here are a few interesting tidbits from the 48-page report.

The mobile transition is happening astonishingly quickly. Last year, smartphone penetration crossed 50 percent for the first time, led by Android phones. People spend 63 percent of their time online on desktop computers and 37 percent on mobile devices, including smartphones and tablets, according to comScore.

Just as they compete on computers, Facebook and Google are dominant and at each other’s throats on phones.

Google’s map app for the iPhone, which had been the most used mobile app, lost its No. 1 spot to Facebook after Apple kicked Google’s maps off the iPhone in October. Now, Facebook reaches 76 percent of the smartphone market and accounts for 23 percent of total time spent using apps each month. The next five most used apps are Google’s, which account for 10 percent of time on apps.

As mobile continues to take share from desktop, some industries have been particularly affected, and they are seeing significant declines in desktop use of their products as a result. They are newspapers, search engines, maps, weather, comparison shopping, directories and instant messenger services.

The most visited Web sites are not so surprising: Google, Yahoo, Microsoft, Facebook and Amazon. Facebook continues to take up most of our time online.

But there were a few surprises from younger, smaller Web companies. Tumblr was No. 8 on the list of sites, ordered by time spent on them. And several Web sites were breakout hits last year, as measured by growth and visitor numbers: Spotify (music), Dropbox (online storage), Etsy (shopping), BuzzFeed (news), JustFab (shopping), SoundCloud (music) and BusinessInsider (news).

Search, one of the biggest and most reliable Web industries, is at a crossroads, comScore said. Even though the search market continues to be extraordinarily profitable, there is a desire for it to evolve and offer new services to users.

Here is some evidence: Searches on traditional search engines, dominated by Google, declined 3 percent last year, and the number of searches per searcher declined 7 percent. Yet searches on specialty sites, known as vertical search engines, like Amazon.com or Whitepages.com, climbed 8 percent.

Social search, based on what users’ friends like, has put Facebook and Google on a “collision course,” comScore said, particularly in searches for local businesses like restaurants.

In social networking, the visual Web, as comScore calls it, has transformed the landscape. Pinterest, Tumblr and Instagram, all of which emphasize images, each gained more than 10 million visitors last year.

Last year was also pivotal for online video, comScore said, as viewers increasingly seek the ability to watch video when and where they want. Watching TV shows online helped last year break viewing records, especially during the Olympics.

In the United States, 75 million people a day watch online video and stream 40 billion videos a month, and viewing is driven by YouTube.

There has also been a turning point for video ads. They cost more than typical ads, and have always lagged behind viewership. But in 2012, 23 percent of videos were accompanied by an ad, up from 14 percent the year before. More TV ad dollars are coming to online video, comScore concluded.

Though e-commerce spending grew 13 percent last year, it was a disappointing holiday season online, largely because of economic pressures. Purchasing on mobile phones is beginning to make a dent in e-commerce, comScore said, with mobile shopping accounting for 11 percent of e-commerce in the fourth quarter of 2012, up from 3 percent in the period two years earlier.

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Disruptions: Disruptions: 3-D Printing Is on the Fast Track

Will the future be printed in 3-D?

At first glance, looking at past predictions about the future of technology, prognosticators got a whole lot wrong. The Web is a garbage dump of inaccurate guesses about the year 2000, 2010 and beyond. Flying cars, robotic maids and jet packs still are nowhere near a reality.

Yet the prediction that 3-D printers will become a part of our daily lives is happening much sooner than anyone anticipated. These printers can produce objects, even rather intricate ones, by printing thin layer after layer of plastic, metal, ceramics or other materials. And the products they make can be highly customized.

Last week, President Obama cited this nascent technology during his State of the Union address — as if everyone already knew what the technology was.

He expressed hope that it was a way to rejuvenate American manufacturing. “A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3-D printing that has the potential to revolutionize the way we make almost everything,” Mr. Obama said. He has pushed new technologies before, like solar and wind power, as remedies for our nation’s problems, and those attempts have only revived the debate about the limitations of government industrial policy.

But this one shows more promise. The question is, can the United States get a foothold in manufacturing one 3-D printer at a time?

Hod Lipson, an associate professor and the director of the Creative Machines Lab at Cornell, said “3-D printing is worming its way into almost every industry, from entertainment, to food, to bio- and medical-applications.”

It won’t necessarily directly create manufacturing jobs, except perhaps for the printers themselves. Dr. Lipson, the co-author of “Fabricated: The New World of 3D Printing,” said that the technology “is not going to simply replace existing manufacturing anytime soon.” But he said he believed that it would give rise to new businesses. “The bigger opportunity in the U.S. is that it opens and creates new business models that are based on this idea of customization.”

In addition to the lab that the president mentioned, a federally financed manufacturing innovation institute in Youngstown, Ohio, schools are embracing the technology. The University of Virginia has been working to introduce 3-D printers into some programs from kindergarten through 12th grade in Charlottesville to prepare students for a new future in manufacturing.

“We have 3-D printers in classrooms, and in one example, we’re teaching kids how to design and print catapults that they then analyze for efficiency,” said Glen L. Bull, professor and co-director of the Center for Technology and Teacher Education. “We believe that every school in America could have a 3-D printer in the classroom in the next few years.”

The education system may want to speed things up. The time between predictions for 3-D printers and the reality of what they can accomplish is compressing rapidly.

For example, in 2010, researchers at the University of Southern California said that another decade would pass before we could build a home using a 3-D printer. Yet last week, Softkill Design, a London architecture collective, announced that it planned to make the first such home — which it will assemble in a single day — later this year. The home isn’t that pretty, and will look more like a calcified spider web than a cozy house, but it will show it can be done. The price of 3-D printers has also dropped sharply over the last two years, with machines that once cost $20,000, now at $1,000 or less. That’s partly because Chinese companies are driving down prices. Yes, China sees the opportunity in these things, even though the technology may undermine some of its manufacturing advantages.

“When it costs you the same amount of manufacturing effort to make advanced robotic parts as it does to manufacture a paperweight, that really changes things in a profound way,” Dr. Lipson said.

This leaves us with one more question about the future: When will these 3-D printers be able to make us flying cars, robotic maids and jet packs?

E-mail: bilton@nytimes.com

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Bits Blog: Facebook Says Hackers Breached Its Computers

Facebook admitted that it was breached by sophisticated hackers in recent weeks, two weeks after Twitter made a similar admission. Both Facebook and Twitter were breached through a well-publicized vulnerability in Oracle’s Java software.

In a blog post late Friday afternoon, Facebook said it was attacked when a handful of its employees visited a compromised site for mobile developers. Simply by visiting the site, their computers were infected with malware. The company said that as soon as it discovered the malware, it cleaned up the infected machines and tipped off law enforcement.

“We have found no evidence that Facebook user data was compromised,” Facebook said.

On Feb. 1, Twitter said hackers had breached its systems and potentially accessed the data of 250,000 Twitter users. The company suggested at that time that it was one of several companies and organizations to be have been similarly attacked.

Facebook has known about its own breach for at least a month, according to people close to the investigation, but it was unclear why the company waited this long to announce it. Fred Wolens, a Facebook spokesman, declined to comment.

Like Twitter, Facebook said it believed that it was one of several organizations that were targeted by the same group of attackers.

“Facebook was not alone in this attack,” the company said in its blog post. “It is clear that others were attacked and infiltrated recently as well.”

The attacks add to the mounting evidence that hackers were able to use the security hole in Oracle’s Java software to steal information from a broad range of companies. Java, a widely used programming language, is installed on more than three billion devices. It has long been hounded by security problems.

Last month, after a security researcher exposed a serious vulnerability in the software, the Department of Homeland Security issued a rare alert that warned users to disable Java on their computers. The vulnerability was particularly disconcerting because it let attackers download a malicious program onto its victims’ machines without any prompting. Users did not even have to click on a malicious link for their computers to be infected. The program simply downloaded itself.

After Oracle initially patched the security hole in January, the Department of Homeland Security said that the fix was not sufficient and recommended that, unless “absolutely necessary”, users should disable it on their computers completely. Oracle did not issue another fix until Feb. 1.

Social networks are a prime target for hackers, who look to use people’s personal data and social connections in what are known as “spearphishing” attacks. In this type of attack, a target is sent an e-mail, ostensibly from a connection, containing a malicious link or attachment. Once the link is clicked or attachment opened, attackers take control of a user’s computer. If the infected computer is inside a company’s system, the attackers are able to gain a foothold. In many cases, they then extract passwords and gain access to sensitive data.

Facebook said in its blog post that the updated patch addressed the vulnerability that allowed hackers to access its employees’ computers.

Hackers have been attacking organizations inside the United States at an alarming rate. The number of attacks reported by government agencies last year topped 48,500 — a ninefold jump from the 5,500 attacks reported in 2006, according to the Government Accountability Office.

In the last month alone, The New York Times, The Wall Street Journal and The Washington Post all confirmed that they were targets of sophisticated hackers. But security experts say that these attacks are just the tip of the iceberg.

A common saying among security experts is that there are now only two types of American companies: Those that have been hacked and those that don’t know they’ve been hacked.

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Bits Blog: Facebook Says Hackers Breached Its Computers

Facebook admitted that it was breached by sophisticated hackers in recent weeks, two weeks after Twitter made a similar admission. Both Facebook and Twitter were breached through a well-publicized vulnerability in Oracle’s Java software.

In a blog post late Friday afternoon, Facebook said it was attacked when a handful of its employees visited a compromised site for mobile developers. Simply by visiting the site, their computers were infected with malware. The company said that as soon as it discovered the malware, it cleaned up the infected machines and tipped off law enforcement.

“We have found no evidence that Facebook user data was compromised,” Facebook said.

On Feb. 1, Twitter said hackers had breached its systems and potentially accessed the data of 250,000 Twitter users. The company suggested at that time that it was one of several companies and organizations to be have been similarly attacked.

Facebook has known about its own breach for at least a month, according to people close to the investigation, but it was unclear why the company waited this long to announce it. Fred Wolens, a Facebook spokesman, declined to comment.

Like Twitter, Facebook said it believed that it was one of several organizations that were targeted by the same group of attackers.

“Facebook was not alone in this attack,” the company said in its blog post. “It is clear that others were attacked and infiltrated recently as well.”

The attacks add to the mounting evidence that hackers were able to use the security hole in Oracle’s Java software to steal information from a broad range of companies. Java, a widely used programming language, is installed on more than three billion devices. It has long been hounded by security problems.

Last month, after a security researcher exposed a serious vulnerability in the software, the Department of Homeland Security issued a rare alert that warned users to disable Java on their computers. The vulnerability was particularly disconcerting because it let attackers download a malicious program onto its victims’ machines without any prompting. Users did not even have to click on a malicious link for their computers to be infected. The program simply downloaded itself.

After Oracle initially patched the security hole in January, the Department of Homeland Security said that the fix was not sufficient and recommended that, unless “absolutely necessary”, users should disable it on their computers completely. Oracle did not issue another fix until Feb. 1.

Social networks are a prime target for hackers, who look to use people’s personal data and social connections in what are known as “spearphishing” attacks. In this type of attack, a target is sent an e-mail, ostensibly from a connection, containing a malicious link or attachment. Once the link is clicked or attachment opened, attackers take control of a user’s computer. If the infected computer is inside a company’s system, the attackers are able to gain a foothold. In many cases, they then extract passwords and gain access to sensitive data.

Facebook said in its blog post that the updated patch addressed the vulnerability that allowed hackers to access its employees’ computers.

Hackers have been attacking organizations inside the United States at an alarming rate. The number of attacks reported by government agencies last year topped 48,500 — a ninefold jump from the 5,500 attacks reported in 2006, according to the Government Accountability Office.

In the last month alone, The New York Times, The Wall Street Journal and The Washington Post all confirmed that they were targets of sophisticated hackers. But security experts say that these attacks are just the tip of the iceberg.

A common saying among security experts is that there are now only two types of American companies: Those that have been hacked and those that don’t know they’ve been hacked.

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Gadgetwise Blog: App Smart Extra: Apps to Improve Your Singing

This week in my App Smart column, I talked about a few karaoke apps that can replicate many of the features of a full-fledged karaoke machine. I also mentioned one app that can help you train your singing voice.

There are, of course, numerous apps that try to help you improve your singing or let you groove to your own rendition of a popular hit.

One interesting app that can help teach you the subtleties of singing in harmonies is the $3 iOS app Sing Harmonies. This app is all about prerecorded adult voices singing harmony parts to well-known songs. The idea is that you can turn the backing music off at will, and also turn off each of the parts separately. In this way, you can learn the harmony parts by copying them individually, and perhaps teach yourself to listen to other singer’s voices when you’re performing. It’s fun and pleasingly simple to use, but $3 only gets you a very short list of songs.

For an app that’s got an element of karaoke, check out the free iOS app StarMaker: Karaoke + Auto Tune. Like other apps of this sort, you have to spend in-app “credits” to access tracks. To add credits, you have to sing songs, perform actions like uploading and sharing your experiences or watch video advertisements. You can also pay, with unlimited access for $3 a week. When you are singing each track from this app’s impressively up-to-date archive, it scores how well you’ve performed by analyzing your voice. Thus, the Starmaker may help you be a better singer — or at least a better karaoke performer. That is, if you don’t turn on the auto-tune system, which automatically fixes the notes you sing!

For a bit of musical fun, singers may enjoy the free Android app Pitch Lab Pro–Chromatic Tuner. In part, this is an app aimed at helping you tune an instrument like a guitar. But its core function of listening to an input sound and reporting what musical note that sound matches may also be good for training your singing. To do this, it has an array of different graphical visualizations that show the note you are singing — including how accurately you’re hitting the right frequency.

Remember that for many singing apps, the microphone built into your smartphone or tablet might not be the best option; plugging in a dedicated microphone or your hands-free set could yield better results.

Quick call

Runkeeper is one of the better apps for helping runners, cyclists and walkers keep track of their exercise regimes. It’s just been upgraded to version 3.0 for Android devices, complete with a more highly polished new look and extra features like in-activity splits.

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Gadgetwise Blog: Tip of the Week: Adjusting Facebook Photo Previews

Hate the way Facebook seems to arbitrarily crop photos you post on your Timeline to fit the square preview windows? On the desktop version, you can change which part of the picture shows in the preview when you’re using Facebook through your Web browser.

To do so, pass the cursor over the image and then click the pencil icon that appears in the top right corner of the post. On the menu that appears, choose Reposition Photo. Click the cursor onto the photo and drag the image until you have the crop you desire for the preview window. Click the Save button. Even though you have now made the photo more appealing for friends browsing your Timeline page, the original image remains uncropped and expands into the full view when someone clicks on the preview window.

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Deal Professor: Unusual Moves in Confronting Apple's Huge Pile of Cash

The fight over Apple’s $140 billion cash pile is proving the adage that money can make people do strange things.

And it is not just Apple that is doing things it would not have done before. The hedge fund manager David Einhorn, famous for shorting stocks like Lehman Brothers, has gone long on Apple, betting heavily that Apple’s stock is undervalued — and blaming that eye-popping mountain of money.

While most of us would think that having tens of billions would be wonderful, it’s actually a problem for Apple. The money just sits there, not earning much in an environment of extremely low interest rates. And the problem is only getting worse. Apple is accumulating money at an enormous rate — more than $23 billion in the last quarter alone.

It was a more manageable issue when Apple was a rapidly growing stock, but since September Apple’s share price has fallen to roughly $470, from over $700.

According to Mr. Einhorn, roughly $145 of that share price represents Apple’s cash mountain. This means that the market is assigning a low multiple, about seven times earnings, to the rest of Apple’s business.

Multiples for Google are almost three times as much. Apple’s multiple is even less than Microsoft’s — a company whose revenue largely comes from PC operating software, which some people worry is a melting iceberg.

When it came to the buildup of cash, Steven P. Jobs, Apple’s co-founder and former chief executive, simply ignored a problem he had helped create. Mindful of Apple’s past financial difficulties before his return in 1997, he wanted a fortress of cash to protect the company. So he drew a line in the sand, saying no to dividends. After his death, Apple caved a little, announcing a dividend and share repurchase program worth $45 billion.

It’s still not enough for shareholders who want to increase Apple’s multiple and stock price. The fundamental idea is that shareholders could put this money to better use than Apple can, and that its stock would trade higher without the cash.

The problem is that even if Apple wanted to return all its cash to shareholders, it can’t. Much of the cash is held abroad in foreign subsidiaries. If the company repatriates it to return to shareholders, it would have to pay taxes on it. Instead, the company is letting the cash sit there in the apparent expectation that there will be federal tax relief.

It’s here that Mr. Einhorn enters the picture. He has been buying Apple shares for a few years, and his fund owns more than 1.3 million shares. The hedge fund magnate wants Apple’s stock to earn a higher multiple by dealing with the cash problem.

But Mr. Einhorn is also impatient and unwilling to wait for federal tax relief. Instead, he has a clever idea. At an investment conference last May, Mr. Einhorn proposed that Apple issue $500 billion of perpetual preferred stock free to all shareholders. The preferred stock would yield 4 percent and be freely tradable.

So, how will this increase the value of the company? It’s financial wizardry. If Apple issued debt, the market would be expected to subtract this value from Apple’s worth. But the preferred stock would not be treated as debt, for accounting purposes at least.

The only change would be that Apple’s income would be reduced by the amount of the interest paid on $500 billion, or $20 billion a year. If Apple stays at the same multiple, it would give the company a net worth of $300 billion or so. But now the $500 billion in preferred stock would be added, making the company worth $800 billion.

How can one plus one equal four? It depends on whether the market thinks that the $500 billion is not debt and never has to be repaid. If so, then this amount will not be deducted from Apple’s worth. It’s something that may work in theory in our sometimes puzzling financial markets, but no company has ever tried it.

Some experts are skeptical. Aswath Damodaran, a finance professor at New York University, has called the plan financial alchemy and written that it would “not add value to the company, not one cent.” When asked to comment, Mr. Einhorn said, “Professor Damodaran’s analysis brings to memory the old joke about the economist who refused to pick up a $100 bill on the street because in an efficient economy, there can’t be $100 bills lying around.”

Apple’s response to Mr. Einhorn has been equally clever. One would think that the maker of the iPad would just sit above the fray and do what it has traditionally done — ignore its shareholders. But with a declining stock price, that may no longer be a luxury Apple can afford. So, it has engaged with Mr. Einhorn to discuss his proposal. And the notoriously shareholder-unfriendly company has turned strangely in favor of good corporate governance.

In its latest proxy statement, Apple proposes to amend its charter to allow for election of directors only by a majority of shareholders. It also proposes to eliminate a provision called “blank check preferred,” which allows a company to issue preferred shares in unlimited number and type. Almost every company has this provision, but shareholder activists hate it because it can be used as a takeover defense, allowing a company to issue preferred stocks with significant voting rights to a friendly party.

While the proposal to eliminate the preferred shares appears worthy and has been endorsed by the California Public Employees’ Retirement System, the giant pension fund, this proposal is really about Mr. Einhorn.

The amendment has the convenient effect of eliminating the board’s ability to adopt the hedge fund magnate’s plan. Apple says that it just wants to be a good corporate citizen and shareholders can still vote to adopt Mr. Einhorn’s plan. But let’s face it, Apple would be one of the few companies in the United States to ever abolish its blank check preferred provision.

Apple has not been a paragon of corporate governance. That may not be surprising, given that its board has directors like Millard S. Drexler of J. Crew, who surreptitiously took his company private. And Apple has received negative marks in recent years from proxy advisory firms like Institutional Shareholder Services for giving its chief executive, Timothy D. Cook, almost $400 million in stock options in one year.

It’s an odd state of events.

By all accounts, it would appear to be a topsy-turvy world. Apple has turned defensive, while Mr. Einhorn is picking a public fight with a company he is betting on, instead of betting against.

Perhaps this column should have instead started with an adage from the movie “Wall Street” that money “makes you do things you don’t want to do.”

Yet Apple is not doing itself any favors by trying to do an end run around Mr. Einhorn.

He has sued Apple, claiming that the company’s proposal violates the securities laws, but the dispute is “a silly sideshow,” as Mr. Cook put it on Tuesday. Even if Mr. Einhorn wins, it would only force Apple to have a separate vote on the preferred share issue, something it is likely to win.

Even so, it might be better if Apple simply addressed Mr. Einhorn’s proposal head-on. After all, his proposal is clever, but untested. It may work, but it may not. Why should the world’s most valuable company be run as an experiment in finance?

Still, the world is changing. Apple may be a highflier, but its growth prospects are not as exciting as they seemed to be a year ago. Its stock may simply be deflating from an overheated place.

And that’s the oddest thing of all. Despite Apple’s growing cash pile, the company’s value is shrinking. But instead of focusing on making Apple an even better business, shareholders are trying to rescue their bubblelike bets with financial gimmickry, and Apple is engaging in its own gimmicks to defeat them. Even Apple can be consumed by the strange world of Wall Street.


A version of this article appeared in print on 02/13/2013, on page B7 of the NewYork edition with the headline: Unusual Moves in Confronting Apple’s Mountain of Cash.
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Apple’s Cook Calls Hedge Fund Manager’s Lawsuit a ‘Sideshow’







SAN FRANCISCO (Reuters) - Apple Inc CEO Tim Cook dubbed David Einhorn's lawsuit against his company a "sideshow" but said on Tuesday the board is carefully considering the star hedge fund manager's proposal to issue preferred stock, calling it "creative."




Waving off claims that Apple is clinging to a "Depression-era" mentality, Cook said the board is in "very active discussions" on how to share more of its $137 billion hoard of cash and marketable securities.


David Einhorn is suing Apple as part of a wider effort to get the iPhone maker to share more of its cash pile, one of the largest in the technology industry. Einhorn wants it to issue perpetual preferred shares that pay dividends to existing shareholders, arguing that such a vehicle would be superior to dividends or share buybacks.


His clash with Apple revolves around a proposed change to its charter that would eliminate the company's ability to issue "blank check" preferred stock at its discretion. Apple is recommending shareholders vote in favor of that at their annual meeting on February 27.


The lawsuit, filed in the U.S. District Court of Southern District of New York, objects to how that charter change is bundled together with two other corporate governance-related proposals in "Proposal 2", in the proxy document for the annual meeting.


While Cook gave Einhorn credit for the idea, the usually calm chief executive seemed to become impatient when discussing the topic. He was dismissive of Einhorn's media and legal blitz - which included the lawsuit as well as multiple television and media interviews - terming last week's episode "bizarre".


Cook, who traded in his usual casual jeans attire for a suit jacket - said the more serious issue here was finding ways to return cash.


"This is a waste of shareholder money and a distraction and not a seminal issue for Apple. That said, I support Prop 2. I am personally going to vote for it," Cook told investors at Goldman Sachs' annual technology industry conference in San Francisco.


The conflict over Prop 2 "is a silly sideshow," he added. Cook said he found it "bizarre that we would find ourselves being sued for doing something good for shareholders."


Apple's share price has tumbled in recent months from a high of just over $700 last September. By late morning on Tuesday, the shares were down around 1.8 percent at $471.40.


Apple stock is a mainstay in many fund managers' portfolios, with research outfit eVestment estimating that 75 percent of U.S. large-cap growth managers had invested more than 5 percent of their portfolios in Apple as of the end of the third quarter of 2012.


But that also piles on the pressure on Apple to give away a bigger portion of its cash pile, pressure that is increasing as the share price declines and its outlook grows murkier.


Cook also touched on Apple's acquisition strategy, saying that the company has looked at more than one large acquisition but each time it didn't pass the company's internal test.


But it could do one in the future, if the technology fits.


"We have the management talent and depth to do it," he said. "We don't feel the pressure to go out and acquire revenue."


Cook, who rarely speaks at length in public, also addressed criticism that Apple's pace of innovation has slowed, saying that product innovation is embedded in its culture.


"It's never been stronger," he said. "There is no better place for innovation. Apple is the center of innovation."


Cook said the company was also trying to appeal to cost-conscious customers. Apple has moved to make the iPhone more affordable without introducing a specific cheaper phone by cutting prices of older models.


"We didn't have enough supply of iPhone 4 after we cut the price," he said. "It surprised us the level of demand for it."


(Additional reporting by Jennifer Saba in New York; Editing by Gerald E. McCormick and Claudia Parsons)


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DealBook: British Regulators to Investigate Accounting at Autonomy

LONDON – British accounting regulators said on Monday that they would investigate the financial reporting at the British software maker Autonomy before its $11.1 billion acquisition by Hewlett-Packard in 2011.

The announcement comes after accusations from H.P. that Autonomy inflated its sales and carried out improper accounting practices that misled the American technology giant ahead of the multibillion-dollar takeover.

In November, H.P. took a charge of $8.8 billion after it wrote down the acquisition of Autonomy. The figure included around $5 billion related to what H.P. called accounting and disclosure abuses at Autonomy.

Investigations by American authorities, including the Justice Department, are under way. The Financial Reporting Council, the British accounting watchdog, said on Wednesday that it would also examine Autonomy’s financial accounts from the beginning of 2009 to the middle of 2011.

The investigation may take around a year to reach disciplinary proceedings if wrongdoing is discovered, according to a spokeswoman for the council.

Mike Lynch, the founder of Autonomy who has denied the charges of accounting misconduct leveled by H.P., said he welcomed the investigation by British regulators.

“We are fully confident in the financial reporting of the company and look forward to the opportunity to demonstrate this to the F.R.C.,” he said in a statement on behalf of the former management team of Autonomy.

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