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[unable to retrieve full-text content]It’s the latest health report developed from the reams of data the DNA company has collected over the years.
(Reuters) – Micron Technology Inc on Thursday played down the likely impact on its business of a temporary Chinese ban on some chip sales but said it would appeal a decision that has added to U.S.-China trade tensions.
The firm’s estimate that the ban imposed by a Chinese court in a patent infringement lawsuit would weaken quarterly revenue by just 1 percent drove its shares as much as 3.6 percent higher and lifted stocks of other U.S. chipmakers.
Shares in the sector had been shaken on Tuesday by the first reports of the ruling, which added to a growing list of intellectual property disputes between Washington and China in the technology sector.
Micron said the ruling by a Fuzhou Court in a lawsuit filed by rivals United Microelectronics Corporation (UMC) and Fujian Jinhua Integrated Circuit Co temporarily bans it from selling some memory chips and solid state drives in China.
The chipmaker said it would comply with the ruling, but would request the court to reconsider or stay its decision.
“The Fuzhou Court issued this preliminary ruling before allowing Micron an opportunity to present its defense,” said Joel Poppen, Micron’s general counsel.
The lawsuit followed Micron’s complaint in December against Chinese government-backed Fujian and UMC in a California court alleging misappropriation of its trade secrets and other misconduct.
China is trying to build its own semiconductor industry as part of its “Made in China 2025” strategy and as it seeks to lower its reliance on foreign companies, many of them U.S.-based.
The dispute follows a ban on U.S. firms supplying parts to China’s telecom equipment maker ZTE as well as the drawn-out wait for Chinese regulators to approve Qualcomm Inc’s $ 44 billion takeover of NXP Semiconductors.
“It certainly appears semiconductors could move to the prime time in negotiations between the Trump administration and China,” Evercore ISI analyst C.J. Muse said. “Near-term this could favor non-US chipmakers vs. US chipmakers.”
Several Chinese government-backed entities have poured billions into research and for buying companies with a trove of chip patents. Micron itself was the target of a failed takeover attempt by China’s Tsinghua Unigroup in 2015.
The Chinese ban on Micron targeted its products sold through retail outlets and represented only a small portion of the chipmaker’s revenue.
Analysts believe the ban is largely symbolic as hurting the U.S. chipmaker would end up creating more pain for local Chinese firms who would have to rely on Korean firms Samsung Electronics and SK Hynix, pushing up memory chip prices.
“At the end of the day, the Chinese government is not going to impact its own local companies,” said Kinngai Chan of Summit Insights Group.
Micron said it expects quarterly revenue to be within the previously guided range of $ 8.0 billion to $ 8.4 billion.
Shares of Micron, which fell 5.5 percent on Tuesday after the ban, was up 1.9 percent at $ 52.46 in afternoon trading on Thursday.
Other chipmakers also gained. Qualcomm Inc rose 3.2 percent, Broadcom Inc 2 percent and Intel Corp up 2.6 percent.
Reporting by Sonam Rai and Supantha Mukherjee in Bengaluru; Editing by Arun Koyyur
PYEONGCHANG, South Korea (Reuters) – Pyeongchang Winter Olympics organizers confirmed on Sunday that the Games had fallen victim to a cyber attack during Friday’s opening ceremony, but they refused to reveal the source.
The Games’ systems, including the internet and television services, were affected by the hack two days ago but organizers said it had not compromised any critical part of their operations.
“Maintaining secure operations is our purpose,” said International Olympic Committee (IOC) spokesman Mark Adams.
“We are not going to comment on the issue. It is one we are dealing with. We are making sure our systems are secure and they are secure.”
Asked if organizers knew who was behind the attack, Adams said: “I certainly don’t know. But best international practice says that you don’t talk about an attack.”
The Winter Games are being staged only 80km (50 miles) from the border with North Korea, which is technically still at war with the South since their 1950-1953 war ended in a truce rather than a peace treaty.
The two teams marched together at an Olympics opening ceremony for the first time since 2006.
South Korea has been using the Pyeongchang Games to break the ice with the reclusive North, which has been trading nuclear threats with the United States recently.
“All issues were resolved and recovered yesterday morning,” Pyeongchang organizing committee spokesman Sung Baik-you told reporters.
“We know the cause of the problem but that kind of issues occurs frequently during the Games. We decided with the IOC we are not going to reveal the source (of the attack),” he told reporters.
Russia, which has been banned from the Games for doping, said days before the opening ceremony that any allegations linking Russian hackers to attacks on the infrastructure connected to the Pyeongchang Olympic Games were unfounded.
“We know that Western media are planning pseudo-investigations on the theme of ‘Russian fingerprints’ in hacking attacks on information resources related to the hosting of the Winter Olympic Games in the Republic of Korea,” Russia’s foreign ministry said.
“Of course, no evidence will be presented to the world.”
Cyber security researchers said in January they had found early indications that Russia-based hackers may be planning attacks against anti-doping and Olympic organizations in retaliation for Russia’s exclusion from the Pyeongchang Games.
Stakeholders of the Olympics have been wary of the threat from hacking and some sponsors have taken out insurance to protect themselves from a cyber attack. [nL4N1PX1HV]
Editing by Peter Rutherford
Four years ago, almost to the day, it was obvious that Snapchat should have taken the money: $ 3 billion Facebook offered to acquire it. But, no, the company’s founders insisted that it would be a bad move. Co-founder and CEO Evan Spiegel and, presumably, others were sure it was worth more. Not according to the earnings release today by parent Snap Inc.
Snap’s 2017 third quarter results were egregious. It was like watching the Coyote in a Road Runner Cartoon stop off the edge of a cliff and keep moving for a bit until, looking down, it realized the situation.
Revenue was up by 62%, which is wonderful. Only, analysts expected nearly $ 237 million in revenue instead of the $ 207.9 million the company had. There was little change in the number of users, and when you depend on advertising revenue to grow the business, that’s really bad. The quarter’s net loss of $ 443,159,000 was more than 3.5 times larger than the same period last year.
The company uses the non-standard measure of “adjusted EBITDA” to measure its, uh, success. Net income or loss excluding interest income and expense, other income or expense, depreciation, amortization, stock-based compensation and the related payroll tax expense, and “certain other non-cash or non-recurring items impacting” the bottom line. Even with that twisting, there was a $ 178,901,000 loss, which tells you just how many contortions it takes to massage the real loss.
Wall Street is not happy and Snap’s stock price dropped by 20 percent inside an hour. Spiegel and his co-founder, Bobby Murphy, are probably not happy either: Between them, their stock holdings lost $ 1 billion in value before the Coyote could finish the long drop with that soft pooft at the end.
If only Snap were an aberration on the West Coast tech scene. But it’s not. There’s billions of investment money in Uber, which is in the red a couple of billion dollars a year at this point. Juciero and its crazy-expensive juicers and juice packs finally packed it in a couple of months ago when it was clear few people were crazy enough to spend many hundreds on a machine and then $ 140 to $ 200 a month on juice. Heck, you could invest the cash and start your own small juice bar at that rate. And Juciero had only $ 118.5 million in venture money.
There’s an old saying: owe the bank $ 100 dollars and it owns you; owe it $ 100 million and you own the bank. This is what Silicon Valley and U.S.-style tech investing has come to. Forget a Microsoft of Apple or even a Facebook, where the companies went public after they were making real money. They build businesses that understand the profit concept, not almost eternal indebtedness that was supposed to turn the corner one day.
Here’s the difference: Snap’s founders lost a lot in paper worth on a company that, if you took away all the venture money, would be out of business. Microsoft launched Bill Gates who, back in 1986 when he was 30, was “probably one of the 100 richest Americans,” according to Fortune. Now he’s the richest man in the world.
Investors have been entranced by companies that seem like they should be worth billions and billions because they have scalable architecture and, doggonit, people like them. But it’s not enough to have a likeable business. Attention isn’t enough. Do VCs and money people not know the history of the dot com bubble? “Eyeballs,” a former crazy measure of success, don’t count for squat unless you have a solid business model that can create revenue and, eventually, profit.
Entrepreneurs would be better off to forget the nonsense that has passed for business acumen all too often and instead focus on the three basic questions: What needs to people have, what can you do to solve them, and how will you get paid? If you can’t answer all three, better keep working on the idea.
But, too many investors will keep hoping for the magical company that will make their fortunes, and too many entrepreneurs will want to be the mighty captain of industry. Things won’t change until a couple of these unicorns go spiraling into the desert floor so hard and fast that it makes a Coyote landing look like a short drop to a fluffy mattress.