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Facebook beats all expectations estimated to reach $2 billion in earnings

The Wall Street Journal appreciates that Facebook’s earnings will exceed $2 billion before taxes, depreciation, interest and amortization in 2011, growing faster than prior anticipated. The people who have contact with the companys recent finances think its profit is growing at a fast-enough rate to justify an $100 billion valuation when it goes public. This would make Facebook one of the biggest technology companies, surpassing Cisco Systems Inc. and Amazon.com Inc., among others. Facebook has had a continuous, natural growth through its over 600 million users who use the site regularly to share photos, in between whom tastes-stoking advertisers try to do business. The site is also generating income through its own payments system, which people use to buy things on the site. EMarketer estimates Facebook will reach an ad revenue of $4.05 billion this year, up from $1.86 billion last year. According to comScore Inc., in this first quarter Facebook ads were 31% off all online displayed ads in the United States. Facebook ads gained momentum with small, local businesses and social gaming companies that wanted a more direct contact with Web users, but recently the larger brands have also started to take an interest in advertising through Facebook and as a result advertising prices have grown considerably.

 

This year, Facebook ads cost 40% more per click than the last 3 months of 2010, according to Efficient Frontier, a firm that specialises in online ad performance. Very recently Facebook began selling local deals in 5 cities, putting it thus competing directly with Groupon Inc. and others in a very fast-growing Web marketing sectors, after another move by which Facebook started demanding that all virtual goods on the site should be sold using the Credits payments system, from which they take a 30% commission. Credits can be used to pay for such things as movie rentals and online games.

3D Printing
In 1990s

Jane Kyttanen the owner of a small company in the Dutch capital, turned off by traditional product, manufacturing, storage and distribution methods had a big idea. The great vision was to create a new technology to be used to make medical and auto parts, this great idea concerned 3D printing, the way to make production faster. Even thought people didnt believe in Kyttanens idea and they thought its some kind of joke, he didnt give up and collaborated on it with his older brother who worked in 3D animation.

When he started he got sponsorship from a Belgian company called Materialise and started a department there called .MGX where he focused on a brand of lamps, but he didnt see that going in the same direction with his vision. Some years later, they parted ways and he gathered all the money he had and founded Freedom of Creation, so called FOC. The company expanded slowly a catalog of high- concept designs that were all 3D printed and all customizable,but after 11 years he sold FOC to 3D Systems, the company that started the hole industry in the 80s.The main idea was that by marrying the design side with the production and materials side, and cutting out the middlemen, it would create the only way to make a business profitable like the one he always thought about.

Nowadays FOCs catalog is online and you can place an order there where FOC finds the right 3D printer, makes the item and ships it.When a customer uses FOCs products he can choose it from the catalog with personalization that can be easily added to any item. The costs of FOCs products are higher than the products made with traditional methods, but every one of them is unique and its done quickly. Altough there are other competitors on the market of 3D printed products like Shapeways, or .MGX, Kyttanens FOC has been the leader in its competition.



RIM profit dropped and revenue missed its own limp forecast

The German trading suffered a 13 percent loss in Research In Motion Ltd. because of the pressure from Apple and because of the delay of its latest models in U.S. stores, said the Blackberry smartphone producer who also announced that the product delays would force a series of layoffs. RIM said in a statement that revenue will be $4.9 to $4.8 in the second fiscal quarter, less than the average analyse estimate for sales of $5.47 billion.

 

This quarter, the profits are estimated at 75 cents to $1.05 a share, but analysts had predicted $1.40. Due to the pressure from Apple and Google smartphone, RIM announced that its latest models will be delayed in U.S. stores until the very late part of August. Although the competition is big, RIMs business is profitable and remains solid overall and with a growing market share in a lot of places around the world and a strong balance sheet with almost $3 billion in cash. In the late August or early September the products based on BlackBerry OS 7 will be launch, followed later by the launch of the QNX-based superphones.

 

The executives believe that the it will be build on the PlayBook platform, but only after it releases a series of devices with an upgraded version of the current operating system. Even though the analysts polled by Reuters expected the company to sell 500,000 units in six weeks after its April launch, it exceeded the average analyse forecast of 366,000. Even so, this number is just a small fraction of Apples iPad sales. Because of the competition, the analyst had thought it was only a matter of time before RIM abandoned a $7.50 a share earnings outlook for the year to late March 2012.

 

The company did just that, recalibrating expectations to between $5.25 and $6 a share. However, RIM also said that it will start to reduce costs, the company plans to cut jobs and focus on accelerating the product pipeline. The number of jobs to be laid off has not been determined yet. This measure will reallocate all the resources to allow the company to focus on the higher interest areas with the highest growth opportunities and align with RIM strategic objectives, such as accelerating new product introductions. The measure the company is intending to take is called streamlining, not restructuring, said the executives. Dolby Laboratories announced that it had sud the company in U.S. and Germany because the Hight Efficency Advanced Audio Coding (HE-ACC) is an international audio standard used within and all the smartphone makers have lichened the technology. The courts forced to halt sales of the PlayBook and the other Blackberry devices.

 

The companys shares fell more than 15% further to $28.84 in trade after the closing bell in U.S. Because the company had other financial problems, it declined to pay for the use of Dolbys technology, even the executive vice president of Dolby said that its their duty to fight for their intellectual property. In 2012 it is expected for RIM to have earnings between $5.25-$6.00 diluted, excluding one-time charges or share repurchases.

Defense Firms to Face Down Growing Cyber Threats

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A pilot program with leading private defense contractors and ISPs, called DIB Cyber Pilot was established by the US Department of Defense (DOD) and Department of Homeland Security (DHS) as an attempt to strengthen each others knowledge base in matters of

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stronger cybersecurity protection for defense contractors.The Deputy Secretary of Defense William J. Lynn believes that the information used in the classified computer systems is very vulnerable, because the cyber threat continues to grow, posing new dangers to their security.

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Regarding all this facts, Lynn declared that last month they started working at the Defense Industrial Base (DIB) Cyber Pilot. This is a voluntary program which involves sharing the DODs classified threat intelligence with defense contractors and their private Internet .

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service providers (ISPs)The federal government had tried in many ways to share intelligence information around cyber threats between the public and private sectors to improve the security, this is why this pilot program launched by them will protect their networks.

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Lynn declared about the distributed denial of service attacks (DDoS) in the last years that affected the Internet Service in Estonia and Georgia and the networks of big companies like eBay and PayPal. It is believed that this attacks were

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held by some organized hacking groups pursuing political goals or just for their own amusement.Lynn hopes that the DIB Cyber Pilot can be the beginning of something big concerning the security by establishing a lawful and effective framework for the government.