Tuesday, October 18, 2011

Apple full year profits rise 85%

The world's biggest technology company Apple has reported full year results, showing net profit for the year to 25 September at $25.9bn (�16.5bn), up 85% from the previous year.

Even that was not enough to satisfy Wall Street, with the shares falling nearly 5% in after-hours trading.

There was some disappointment with the fourth quarter of the year, when no major new products were released.

It is the first set of results since the death of co-founder Steve Jobs.

In the fourth quarter of the year, Apple sold 17.1 million iPhones, which was a 21% increase on the same period last year, and 11.1 million iPads, which was a 166% increase.

But analysts had been expecting iPhone sales of 20 million in the quarter.

Apple said sales were hurt in September by customers waiting for the new version, the iPhone 4S, which was released on 14 October.

It sold four million of the new models in the first three days after launch.

"The numbers came in weak. They need to set records every time they report to keep up the momentum," said Colin Gillis, analyst at BGC Partners.

Apple sold 4.9 million Mac computers in the quarter - up 27% over the same period last year.

"The numbers are actually quite good. The reason why the stock is off - I think some of the analysts got carried away," said Shaw Wu, analyst at Sterne Agee.



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Warning over web security attack

A key web security system is no better defended now than when hackers undermined it earlier this year.

So said Taher Elgamal, creator of the SSL (Secure Socket Layer) technology that is used to keep many different types of web transaction safe.

SSL came under attack in September when hackers stole credentials that let them pose as almost any web firm.

The stolen credentials were used to eavesdrop on the Gmail accounts of about 300,000 people.

Big target

The credentials, known as certificates, were stolen from Dutch security firm DigiNotar. The attack is believed to have been carried out by the same hackers who stole certificates from Comodo in March 2011.

In both cases, the attackers used their fake credentials to get at the web communications of people in Iran. Experts believe the hacks were carried out by the Iranian government to spy on the use of social media to organise protests by citizens.

A similar attack could be used by cyber thieves who wanted to pose as a bank or web shop to steal cash and credit card information from users.

Despite the two incidents and a claim by the hackers that they had access to four other firms that issue SSL certificates, little has been done to defend against these sorts of attacks, said Dr Elgamal, who is now chief technology officer at Axway.

"It could happen again," he said. "There's no back-up plan, which is generally a bad security model."

Dr Elgamal first developed SSL while working at Netscape and its usefulness led to it being adopted as a standard web technology known as Transport Layer Security (TLS) by the Internet Engineering Task Force.

The system guarantees the identity of a website via certificates that are issued by trusted authorities. It is used millions of times every day to re-assure people that they are connecting to the site they think they are.

The problem of what to do when certificate issuers were compromised never came up when the original work was being done on SSL/TLS, said Dr Elgamal.

"Nobody asked the question of what to do if a certificate authority turns out to be bad," he said.

The problem, he said, was not so much with the technology as it was with the firms issuing the certificates.

"There's way too many of them," he said.

However, said Dr Elgamal, TLS was not a static technology and in fact was regularly updated to tackle some of the shortcomings found by good and bad hackers

"It's a big target," he said. "Of course we could design a new one but I don't see what the point of that is as it would just become the next big target."

He pointed to updates to TLS which, if widely implemented by browser makers, could defend it from another attack.

"The fact that TLS has stood the test of time and there's been problems and the community has worked to fix them tells me it's a reasonable technology," he said.



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Machine vision spots rotten fruit

A machine that uses artificial vision and UV rays to scan through citrus fruits and get rid of rotten ones has been developed in Spain.

Usually the inspection is done manually in dark rooms, also using UV light.

But this type of light can harm workers' eyes and skin, so they must wear protective clothing and goggles.

The team from the Valencian Institute of Agrarian Research said that their technology could eliminate these risks.

The researchers describe the study in the journal Food and bioprocess technology.

Health risks

Detecting rotten citrus fruit is tricky, as interior decay is not visible to the naked eye.

That is why traditionally, workers use ultraviolet light - and when the essential oils of the decayed citrus rind react with UV rays, the fruits emit fluorescence.

But although there is usually a good chance that the oranges and mandarins that present spots of fluorescence turn out to be rotten, it is not always the case.

Florescence can be produced by defects other than decay, and thus workers often need to examine the fruit manually as well.

They must wear gloves and special goggles, and should not stay in the dark room too long.

"The biological effect of UV rays is very bad for the health," said Gregory Varennes of Roda Iberica, the company responsible for introducing the technology into the market.

"According to the tolerable radiation limits of the UV light lamps, operators must not remain in the dark room for more than one hour - but often they stay in there for longer periods.

And this labour also represents a considerable cost for the company, added Mr Varennes.

Early detection

So to avoid workers' UV exposure, Professor Jose Blasco of the Valencian Institute of Agrarian Research and his colleagues decided to let a machine do the job.

"Our system captures the images of the fruits inside an inspection chamber illuminated only with black light," he said.

"If the fruit is infected, it will show a spot of fluorescence, which is like a small right circle in the middle of the dark.

"The machine then uses image analysis techniques that are combined with UV to confirm the detection."

He added that fruit decay was one of the main causes of lost profits in the industry - meaning that detecting infected fruits as soon as possible and removing them from the rest of the pack was crucial.

The team has also developed another, similar mechanism that classifies citrus fruits on the production line according to their quality, colouring and the type of damage that the skin presents - at a speed of 15 to 20 pieces of fruit per second.

Thus, first class fruits that are destined for more demanding markets are separated from second class fruits that are perfectly edible despite having some small defects such as visible scratches.



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HTC loses Apple patent case in US

Taiwanese smartphone maker HTC has been dealt a big blow in its legal battle with Apple involving patent infringement claims.

The US International Trade Commission (ITC) has ruled that Apple did not violate patents as claimed by HTC in a complaint lodged last year.

HTC had asked the court to ban imports of several Apple products in to the US citing patent infringements.

HTC's shares fell as much as 6% after the ruling.

The case involved four patents held by HTC related to protecting data, storing contact information and managing the phone's power supply.

'Confident'

The judgement is another setback for HTC which is involved in a long and bitter battle with Apple.

In July this year, the Taiwanese phonemaker was found to have infringed two iPhone patents in a case brought by Apple at the ITC.

However, HTC said that despite the judgement, it was sticking to its claims.

"This is only one step of many in these legal proceedings. We are confident we have a strong case for the ITC appeals process and are fully prepared to protect our intellectual property," said Grace Lei, HTC's general counsel.

"We look forward to resolving this case, so we can continue creating the most innovative mobile experiences for consumers."

A full commission of the ITC is expected to decide in February, whether to uphold or reject the judge's decision.



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